Thompson and Strickland's Strategic Management Model
What is Thompson and Strickland's Strategic Management Model?
Thompson and Strickland's strategic management model is a systematic approach to strategic management that involves analyzing the organization's internal and external environment, formulating strategies, implementing those strategies, and evaluating their effectiveness.
The model consists of eight steps:
- Identify the organization's mission and objectives: This step involves clarifying the organization's purpose and the goals it is seeking to achieve.
- Analyze the internal and external environment: This step involves identifying and analyzing the organization's internal resources and capabilities and the external opportunities and threats it faces.
- Generate alternative strategies: This step involves considering different options for achieving the organization's objectives, and selecting the most promising ones.
- Evaluate and select strategies: This step involves evaluating the potential risks and rewards of each alternative strategy, and selecting the one that is most likely to be successful.
- Implement the chosen strategies: This step involves putting the selected strategies into action, which may involve making changes to the organization's operations, structure, and culture, as well as allocating resources and implementing new processes.
- Monitor and control strategy implementation: This step involves monitoring and measuring the effectiveness of the chosen strategies and making any necessary adjustments to ensure that they achieve the desired results.
- Evaluate the outcomes of the chosen strategies: This step involves assessing the effectiveness of the chosen strategies in achieving the organization's objectives and determining whether they need to be modified or replaced.
- Engage in strategic renewal: This step involves reviewing and updating the organization's strategies regularly to ensure they remain relevant and effective in changing circumstances.
Thompson and Strickland's strategic management model provides a structured approach for organizations to manage their resources effectively and navigate the challenges of the external environment to achieve their goals and objectives.
Thompson and Strickland's Strategic Management Model is a framework for analyzing and formulating business strategies. It was introduced in the book "Strategic Management: Concepts and Cases" authored by Arthur A. Thompson Jr. and A.J. Strickland III.
- Strategic Analysis: Strategic analysis involves evaluating internal and external factors that affect an organization's ability to achieve its objectives. It encompasses techniques such as SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to assess the organization's capabilities and competitive environment.
- Strategy Formulation: Strategy formulation is developing strategies and plans to achieve organizational goals and objectives. It involves setting strategic goals, identifying target markets, allocating resources, and choosing courses of action to position the organization for success.
- Strategy Implementation: Strategy implementation executes and operationalizes the strategies developed during the formulation stage. It involves translating strategic plans into action plans, allocating resources, assigning responsibilities, and monitoring progress to achieve strategic goals.
- Strategic Control: Strategic control involves monitoring and evaluating the effectiveness of strategies and making adjustments as needed to ensure that organizational goals are achieved. It includes establishing performance metrics, tracking performance against targets, and implementing corrective actions to address deviations from the plan.
- Competitive Advantage: Competitive advantage refers to the unique strengths or capabilities that enable an organization to outperform its competitors and achieve superior performance. Thompson and Strickland's model emphasizes leveraging competitive advantages to achieve sustainable growth and profitability.