Academic Models in Strategic Management Essay Example | Topics and Well Written Essays - 1000 words

Academic Models in Strategic Management - Essay Examplethither are numerous techniques and feeleres that support strategical decision making, like feller, mug up, portfolio matrixes, life cycles, value chain concepts and some others. The most important aspect of these pedantic tools is to what extent these tools enhance or inhibit creative hawkish strategy making in organizations (Clark, 1997, p. 417).Some authors argue (Eilon, 1980, cited by Clark, 1997, p. 418) that there is an absence of strong localize on academic tools because they play a secondary role being the means to an rarity, not an end in itself. Still, the usage of academic business models should not be underrated, because these promote the development of strategic intellection in organizations (Clark, 1997, p. 418). Strategic management tools perform basically a support role (Clark, 1997, p. 418) in the strategic management process. This is so, because academic instruments offer useful insights into the imp rovements of different strategies and suggest a more systematic approach towards strategy implementation. These tools provide information generation, cloth for analysis, also coordination and control mechanisms (Clark, 1997, p. 418). Further on, schemes and visualized models leave the benefit of presenting ideas, model relationships and help management identify opportunities and convict others about the usefulness of suggested strategies. 2. The use of tools during the different strategic management stagesAcademic models are visible throughout the strategic management process, from planning and defining of military commission and purpose to crafting different strategies and strategy execution and evaluation (Thompson et al, 1996, p. 3).Situation analysisAnalysis of the business milieu is regarded as a fundamental part of the strategic management planning process (Pickton, 1998, p. 102), because academic strategists have realized that environmental changes are constant and unavoi dable. A research undertaken by Clark (1997) points out that for many companies environmental analysis includes evaluation of remote environment, meaning PEST analysis and evaluation of the companies operating environment, meaning competitors, customers, markets, suppliers and stakeholders. PEST and Porters five forces model are basically similar tools for environmental audit and are ranked in the top set of tasks in UK (Clark, 1997, p. 423). In an increasingly diverse competition, industries are no longer viewed as isolated independent markets. This makes the application of the Porters model insufficient, because it tends to be focused on the single industry or strategic business unit, which means that its much narrower in its scope.Another largely used academic tool is SWOT analysis, which is regarded as the simplest easy-to-use technique for getting a quick overview of a firms strategic agency (Thompson et al, 1996, p. 92). SWOT is praised for its simplicity and practicality and is widely adopted uncritically (Pickton et al, 1998, p. 101) it underscores the basic principle that strategy must be a good fit between a companys internal capabilities and its external situation. Authors like Farjourn (2002) observe that SWOT is only suitable to a stable and predictable world. Too simplistic adoption of SWOT is reflected by the fact that most academic papers review it as a static strategic framework (Pickton et al, 1998, pp. 102-103) academicians simplify it to a list of factors and fail to conduct further analysis, which limits the usability of the model.Another tool, the value chain concept is a aboriginal analytical tool of strategic cost analysis it identifies costs and value drivers for primary and