TOPIC 1
STRATEGIC MANAGEMENT MODEL
A strategic management model determines the development of strategies required to define an
organization's mission and accomplish it. The process of strategic management has five
components – situation analysis, strategic decision making, strategy formulation, strategy
implementation, and strategy evaluation or control.
THE REALITY OF DYNAMISM
The 21st century epitomizes
the reality of dynamism. In
fact, today's milieu is in a
state of fluidity. It is not
static. Rather, changes and
fluctuations are constantly
happening in the
surroundings. These
actualities are characterized
by the occurrence of
phenomenal situations, continuous challenges, and triggering forces that provoke corresponding
reactions. The certainty of change is universal and this foregone conclusion is largely experienced
by all nations and peoples—whether developed undeveloped, large or small, powerful or weak.
As a result, the current landscape of competition is highly threatening and daunting. With an
environment that is characterized by unpredictability drive, pursuit and transformation, and
volatility is a ruthless reality. Impermanence and unpredictability are certainties. Nothing is
stable; neither regularity a logical expectation. Competition has gone beyond nations, peoples,
cultures, geographic frontiers, and industries. As the global economy expands, blurring
boundaries, any business needs to create its own impact in any part of the world. Thus, it is urgent
for organizations and businesses to strategize.
Page 1 of 8
, HYPER-COMPETITION
Hyper-competition is a
fundamental feature of the
new economy. As the word
implies carries a note of
overexcitement and
agitation. Hyper-competition
occurs when product or
service offerings and
technologies are so new that
standards become unstable
and competitive advantage
not sustainable. It is a condition where strategic maneuverings have escalated to bigger business
exposure, more sophisticated marketing positioning, aggressive selling, and innovative products
and services. Doing business has become intense and more deliberate. It seems like a big waste
not to discern and take advantage of every opportunity. The business atmosphere is
characterized by activities such as outdoing each other, surpassing sales, taking competitors by
surprise, capturing a bigger market share, winning the business battle, and seizing the number
one slot.
In a strict sense, hyper-competition is a situation where both globalization and technology
collaborate to create a heightened cut-throat situation. It means that businesses compete with
each other whether they have same products, similar products, substitute products, and
different products. Competitors continuously strive to outplay and outsmart each other. They
need to devise ways and means to survive and deal with this super competitive and turbulent
reality. New value creation, competitive pricing, innovation in supply chain management, and
high degrees of quality are logical responses of companies. In short, the name of the game today
is tougher and smarter competition, quantitative and qualitative organizational changes, and
sustainable competitive advantage. In this hyper-competitive environment, only the most
adaptive and nimble organizations will survive. Thus, there is the need to strategize.
Page 2 of 8
STRATEGIC MANAGEMENT MODEL
A strategic management model determines the development of strategies required to define an
organization's mission and accomplish it. The process of strategic management has five
components – situation analysis, strategic decision making, strategy formulation, strategy
implementation, and strategy evaluation or control.
THE REALITY OF DYNAMISM
The 21st century epitomizes
the reality of dynamism. In
fact, today's milieu is in a
state of fluidity. It is not
static. Rather, changes and
fluctuations are constantly
happening in the
surroundings. These
actualities are characterized
by the occurrence of
phenomenal situations, continuous challenges, and triggering forces that provoke corresponding
reactions. The certainty of change is universal and this foregone conclusion is largely experienced
by all nations and peoples—whether developed undeveloped, large or small, powerful or weak.
As a result, the current landscape of competition is highly threatening and daunting. With an
environment that is characterized by unpredictability drive, pursuit and transformation, and
volatility is a ruthless reality. Impermanence and unpredictability are certainties. Nothing is
stable; neither regularity a logical expectation. Competition has gone beyond nations, peoples,
cultures, geographic frontiers, and industries. As the global economy expands, blurring
boundaries, any business needs to create its own impact in any part of the world. Thus, it is urgent
for organizations and businesses to strategize.
Page 1 of 8
, HYPER-COMPETITION
Hyper-competition is a
fundamental feature of the
new economy. As the word
implies carries a note of
overexcitement and
agitation. Hyper-competition
occurs when product or
service offerings and
technologies are so new that
standards become unstable
and competitive advantage
not sustainable. It is a condition where strategic maneuverings have escalated to bigger business
exposure, more sophisticated marketing positioning, aggressive selling, and innovative products
and services. Doing business has become intense and more deliberate. It seems like a big waste
not to discern and take advantage of every opportunity. The business atmosphere is
characterized by activities such as outdoing each other, surpassing sales, taking competitors by
surprise, capturing a bigger market share, winning the business battle, and seizing the number
one slot.
In a strict sense, hyper-competition is a situation where both globalization and technology
collaborate to create a heightened cut-throat situation. It means that businesses compete with
each other whether they have same products, similar products, substitute products, and
different products. Competitors continuously strive to outplay and outsmart each other. They
need to devise ways and means to survive and deal with this super competitive and turbulent
reality. New value creation, competitive pricing, innovation in supply chain management, and
high degrees of quality are logical responses of companies. In short, the name of the game today
is tougher and smarter competition, quantitative and qualitative organizational changes, and
sustainable competitive advantage. In this hyper-competitive environment, only the most
adaptive and nimble organizations will survive. Thus, there is the need to strategize.
Page 2 of 8
