Essential Strategic Management Frameworks and Models

SECI Knowledge Conversion Model

The SECI model describes four modes of knowledge conversion between Tacit (T) and Explicit (E) knowledge:

• Socialization: Tacit (T) → Tacit (T)
• Externalization: Tacit (T) → Explicit (E)
• Combination: Explicit (E) → Explicit (E)
• Internalization: Explicit (E) → Tacit (T)

Strategic Environment and Postures

The environment is characterized by dynamics, complexity, and uncertainty.

A) Different Types of Future

1. Clear Enough Future
2. Alternative Futures
3. Range of Futures
4. True Ambiguity

B) Strategic Postures

1. Shape the Future: Play a leadership role in establishing how the industry operates.
2. Adapt to the Future: React to market changes.
3. Reserve the Right to Play: Invest sufficiently to stay in the game, but avoid major commitments.

C) Portfolio of Actions

1. Big Bets: Major investments (e.g., research and development) that can lead to positive or negative scenarios.
2. Options: Smaller investments that provide flexibility.
3. No Regrets Moves: Decisions that are beneficial regardless of the future outcome.

Porter's Five Forces

These forces determine the intensity of competition and profitability within an industry:

• Threat of Potential Entrants
• Bargaining Power of Buyers
• Threat of Substitutes
• Bargaining Power of Suppliers
• Competitive Rivalry

Product/Industry Life Cycle Model

1. Introduction
2. Growth
3. Maturity
4. Decline

Strategic Drift Model

This model illustrates how organizational change lags behind environmental change:

1. Phase 1: Incremental Change
2. Phase 2: Strategic Drift
3. Phase 3: Flux
4. Phase 4: Transformational Change or Death

Note: The underlying trend is increasing environmental change.

Value Chain Analysis

Primary and Support Activities

• Primary Activities:
  • Inbound Logistics
  • Operations
  • Outbound Logistics
  • Marketing and Sales
  • Service
• Support Activities:
  • Infrastructure
  • Human Resource Management (HRM)
  • Technology Development
  • Procurement

Benchmarking Types

• Internal
• Industry
• Best in Class

Value Network

A Value Network represents interconnected parts of the overall Value Chain.

Business Clusters and Collective Efficiency

A cluster is a concentration or group of businesses and institutions that interact within the same industry or value system. These entities are geographically close, generating formal and informal relations (spontaneous or deliberate), thereby contributing to collective efficiency.

Key components often include:

• Government
• Academia
• Industry

Organizational Culture Models

Cultural Frames of Reference

These frames influence individual behavior:

• National
• Organizational Field
• Organizational
• Functional/Divisional

(The Individual is typically positioned at the center of these frames.)

Culture in Three Layers

1. Paradigm: Taken for granted assumptions.
2. Beliefs
3. Values

The Cultural Web

Elements surrounding the central Paradigm:

• Stories
• Symbols
• Power Structures
• Organizational Structures
• Control Systems
• Rituals and Routines

Ansoff Matrix: Growth Strategies

The matrix plots strategies based on existing/new markets and existing/new products:

• Market Penetration (Protect/Build): Existing Product, Existing Market
• Product Development: New Product, Existing Market
• Market Development: Existing Product, New Market
• Diversification: New Product, New Market

Strategic Evaluation Criteria (SAF)

• Suitability: Does the strategy address the strategic position?
• Acceptability: Do the expected performance outcomes meet the expectations of stakeholders?
• Feasibility: Can the strategy be implemented successfully?