Wheelen and Hunger's Strategic Management Model
Wheelen and Hunger's Strategic Management Model is a comprehensive framework for strategic planning and management. It guides organizations through the process of strategic analysis, strategy formulation, strategy implementation, and evaluation and control. This model is detailed in their widely used textbook, "Strategic Management and Business Policy," which serves as a foundational resource for students and practitioners of strategic management. The model emphasizes a systematic approach to making strategic decisions to achieve long-term objectives and sustain competitive advantage. Key Components of Wheelen and Hunger's Strategic Management Model:
- Environmental Scanning: This involves the analysis of external opportunities and threats that could impact the organization's strategy. It includes examining factors in the macro environment (such as economic, social, and political trends) and the industry environment (such as competition, supplier power, and customer needs).
- Internal Analysis: Assessing the organization's internal environment to identify its strengths and weaknesses. This includes evaluating resources, capabilities, and core competencies that can be leveraged to create a competitive advantage.
- Strategy Formulation: Based on the insights gained from environmental scanning and internal analysis, this step involves developing strategic options, setting long-term objectives, and selecting specific strategies to pursue. Strategies may be formulated at the corporate, business, and functional levels.
- Strategy Implementation: The focus here is on putting the chosen strategies into action. This includes developing programs, budgets, and procedures to execute the strategy effectively. It also involves organizing resources, developing change management plans, and aligning organizational structure and culture to support the strategy.
- Evaluation and Control: The final step involves monitoring the implementation of the strategy and evaluating its effectiveness against the set objectives and external and internal factors. This step ensures that the organization can make necessary adjustments to the strategy or its implementation in response to feedback and changing conditions.
Key Considerations in Wheelen and Hunger's Model:
- Strategic Decision Making: Emphasizes the importance of strategic decision-making by top management and the need for involvement from various levels of the organization.
- Adaptability: Recognizes the dynamic nature of the business environment and the need for strategies to be flexible and adaptable.
- Balanced Approach: Advocates for a balanced consideration of both the external environment and internal capabilities in formulating strategies.
- Alignment: Stresses the importance of aligning the organization's structure, culture, and resources with its strategic objectives to ensure successful implementation.
- Continuous Process: Views strategic management as a continuous process that requires ongoing assessment and adjustment.
Wheelen and Hunger's Strategic Management Model provides a structured approach for organizations to navigate the complexities of the business environment and to make informed strategic decisions. By systematically analyzing both the external and internal environments, formulating coherent strategies, implementing them effectively, and continuously evaluating their success, organizations can enhance their competitiveness and achieve their long-term goals.
See Also
Wheelen and Hunger's Strategic Management Model is a renowned framework in the field of strategic management that outlines a systematic approach for organizations to analyze, formulate, implement, and evaluate their strategies over time. This model is detailed in their work, "Strategic Management and Business Policy," and is widely used for educational and practical purposes in business strategy development. The model is often depicted as a continuous cycle or process that includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control phases. Each phase is crucial for ensuring that an organization's strategy aligns with its external environment and internal capabilities.
- SWOT Analysis: A tool used in the environmental scanning phase to identify strengths, weaknesses, opportunities, and threats related to the organization.
- Corporate Governance: Highlighting the role of corporate governance in strategic management, including the responsibilities of boards of directors and executive management in guiding the organization's strategy.
- Ethical Decision Making and Corporate Social Responsibility (CSR): Discussing the importance of ethics and social responsibility in strategic management, and how organizations incorporate ethical considerations into their strategic planning and implementation processes.
- Global Strategy: Covering strategies for entering and competing in international markets, including considerations for global, multinational, and transnational strategies.
- Competitive Advantage: Explaining how organizations develop and sustain competitive advantages through their strategies, including cost leadership, differentiation, and focus strategies.
- Strategic Leadership: Discussing the role of strategic leadership in guiding and influencing the strategic management process, including vision setting, strategic communication, and fostering a strategic culture.
- Strategic Change Management: Highlighting the processes and techniques for managing change in organizations, particularly as it relates to implementing new strategies or adjusting existing strategies.
- Innovation and Entrepreneurship: Covering the importance of innovation in strategy formulation and how entrepreneurial activities can drive strategic renewal and competitive advantage.
- Business Ethics: Exploring how ethical considerations and social responsibilities are integrated into strategic planning and decision-making processes.
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