This report is about combination of various strategic management theories which has explains by different authors with different viewpoints according to the situations which they are looking at. Strategic management can be basically describe as a process which analysis the current situation and make strategies which will matches to that. Basically strategic management has three main processes which can name as strategic formulation, implementation and evaluation. First this report explains about what is strategic management and how it has implemented and how if effects for an organization. Compare to that briefing then the report focus on the theories which has found out to be explain in the journals which has selected to review the strategic management theories. And then the report contains about the strengths and weaknesses of the each selected strategic management theory. After that it contains about a combination of all the theories which has mention in the report, to fill up the gap of each theory using the strength of the other. Finally, in the conclusion the report shows the final view of the researcher about the finding throughout the research and the assumption which can make about combination of the strategic management theories and the use of this combination for a better performance.

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POST GRADUATED DIPLOMA IN BUSINESS MANAGEMENT
PDB 10600
INDIVIDUAL ASSIGNMENT
PresentedBy: ApsaraKaduruwana(G1543259X)
Guided by: Mr. Ken Chua
Subject:Strategic Management
Code: PDB 10600
SubmissionDate:5th
February 2016

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Content
No Content Pages
Executive Summary 03
1 Introduction 04
2 Strengths of the theories 05-09
3 Weaknesses of the theories 10-11
4 Combination of various theories 12-13
5 Conclusion 14
6 Recommendation 15
7 References 16-17

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Executive Summary
This report is about combination of various strategicmanagement theories which has explains
by different authors with different viewpoints according to the situations which they are
looking at.
Strategic management can be basically describe as a process which analysis the current
situation and make strategies which will matches to that. Basically strategic management has
three main processes which can name as strategic formulation, implementation and
evaluation.
First this report explains about what is strategic management and how it has implemented
and how if effects for an organization. Compare to that briefing then the report focus on the
theories which has found out to be explain in the journals which has selected to review the
strategic management theories.
And then the report contains about the strengths and weaknesses of the each selected
strategic management theory. After that it contains about a combination of all the theories
which has mention in the report, to fill up the gap of each theory using the strength of the
other.
Finally, in the conclusion the report shows the final view of the researcher about the finding
throughout the research and the assumption which can make about combination of the
strategic management theories and the use of this combination for a better performance.

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1. Introduction
Currently strategic management is a compulsory area to follow, when managing a business in
a competitive environment. IT is a modern management concept which is talking about face
to the changes and make amendments according to the changes which has to face in the
competitive environment.
Strategic management does not follow a fixed guide line to approach to any business
management, according to the situation it differentiate the way of approaching. There are
many theories which are develop about the strategic management and those theories are
focused on specific areas in business management. None of the strategic management
theories are cover up all the function areas of the business management so applying one
theory is not enough for a practical situation.
This report contains about several strategic management theories which are more popular to
practice in the real time, and analysis the strengths and the weakness of each theory.
Next objective of this report is about combination each theory with another one to shield the
area of management which does not cover by each theory. This combination is doing to make
a better strategic management approach which will helps to develop the strategic
management plan for an ongoing business.

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2. Strengths of the theories
There are many strategicmanagement theories which are using in the business world to make
plans to achieve the organizational goals and objectives. Here we are describing about Blue
Ocean theory, Delta Model theory, Balance Score Card theory, Talent Management theory
and Reengineering theory which use in current business world to make competitive business
plans in to achieve strategic management goals of organizations.
2.1 Blue Ocean Theory
Blue ocean theory helping to work out for a new market which has not addressed before by
any party. It creates an uncontested market space while creating and capturing new market
demand while making the competition unrelated. Mainly this theory focused on value
proposition, profit proposition and people proposition.
Strengths of Blue Ocean Theory
When the Blue Ocean theory implemented it works to enter to a new market as the first
comer to that market. So this make change to gain high profit margins as there are no
traditional competitors or bench marker. Becoming the first implementer makes chance to
set the profit margins without any conditions.
This strategy helps to create and set standards for the business andthe other functional areas,
and this helps to develop the quality and the standard level of the business and also the
quality of the product/ services.
A blue ocean strategic move can create brand equity that could last for decades. As it helps
to enter into a fresh market which has not touched by other competitor or a substitute.

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2.2 Delta Model Theory
This theory is mention the “customer bonding is the driving force in strategy “and it shows if
a business need asuperior performance they have to serve the customers in a distinctive way.
Delta model talks about main three distinct strategic options, which are named as system-
Locked in, Total customer solutions and Best product combined together using tringle
method, which has to enable through effective use of technology.
Strengths of Delta model
Focus on customers. Stay with careful customer segmentation and development of the best
possible knowledge of the business customer economics.
Choose the most suitable strategic position among the three main options; the best,
comprehensive solutions, and system lock-in, which will lead to a proposal for a customer
value of the highest bond.
Define the strategic agenda that determines the action program to implement desired
strategic options. Assure the proper alignment with three adaptive processes: operational
effectiveness, customer targeting and innovation.

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2.3 Balance Score Card Theory
The balance score card is a strategic planning and management system that is used
extensively in business to improve internal and external communications, and monitor
organizational performance against strategic goals.
Balance score card method includes strategic non-financial performance measures and also
the traditional financial metrics which helps to give a clear perception about what a company
should measure in order to balance the financialperspective. It provides feedback about both
internal business processes and external outcomes to improve strategic performance as
results.
Strengths of Balance Score Card Theory
This is showing a balance view of company performance while giving a full picture of whether
the company is meeting the objectives and the track of financial health of the business. It will
point out that the company is financially doing well, but the customer satisfaction is down,
employee training is inadequate, or the processes are outdated.
Using balance score card it allows stake holders to look into health of short-term, medium-
term and long-term objectives, and make suggestion immediate. It doesn’t depend only on
the immediate financial bottom line.
Using the balanced scorecard, the company can be sure that all the strategic actions
implemented to meet the desired results. It is increasing the price of a product to help the
company's bottom line in the long run? Perhaps, if the customer is satisfied with this
product, or processes associated with the creation of this product make it a superior
product.

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2.4 Talent Management Theory
Talent management can describe as “core-subsystem of an organization strategic
management system, to develop human resources assets base that is capable to support
current and future organizational growth directions and objectives”. (www.iiste.org , 2014)
There are three main components describe under this are talent identification, talent
development and talent engagement, motivation and retention.
Strengths of Talent Management Theory
Talent management strategy helps to become proactive and fill the critical talent
management needs and helps to face the changes in business and the industry.
Identify essentialskills tobe developed in allemployees, and minimize the cost and resources
wastage by focusing on the key development areas.
Improve the recruitment process by identifying high quality candidates who are holding
industry competencies and outstandingly values.

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2.5 Business Reengineering Strategy
Business Reengineering Strategy is the ultimate rethinking and drastic redesign of business
processes to achieveintense improvements in critical,existing measures of performance such
as cost, quality, service and speed. This depends on the capability of the company implement
it. A proper analysis of identified success and failure factors can reduce the risk of failure and
increase the level of success. This structured process shows possibility to simplify the change
implementation process and sidestep failures but their focus was on innovation which they
recognized to have a high failure rate.
Strengths of Business Reengineering strategy
Business Reengineering is a process which work out with new technology and new updates in
the operational processes, so this is helping the organization to adapt the new updates to the
organization to meet the competitive advantages.
And also this process has ability to compare the capabilities of the organization to adapt a
new version and choose what is most essential to the business and make the plans to
implement the update to the organization.

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3. Weakness of the theories
3.1 Weaknesses of Blue Ocean Theory
When we implement the blue ocean strategy if frame works are not properly executed, it
promotes market complacency. Which can make a disappointment that whether the
company will be able to achieve the predetermined objectives/goals.
This is intermediate strategy which does not talk about a specific area in business
management. This covers the overall concepts of approaching to a new market without
showing the specific areas to be improved.
Red ocean strategy is about approaching to the existing market and this blue ocean strategy
also eventually becomes red ocean strategy when the time passes after the implementation.
3.2 Weaknesses of Delta Model Theory
Main focus is based about customers, does not give an importance to suppliers or key
complementors.
Does not concern about the most important complementors who are in the inside of the
organization.
3.3 Weaknesses of Balance Score Card Theory
The balanced scorecard takes foresight. It is not a tool which can easily apply to take it is not
a tool which can use to take an immediate decision. Once all the objectives are clearly stated
and brake in to part, then only this can use to take a decision.
Balanced scorecard gives you an overall view of the business growth and development, but
do not paint the whole picture. The financial information included on the scorecard is limited.
Instead, to be successfully implemented, the balanced scorecard must be part of a bigger
strategy for company growth that includes particular accounting methods.
Many companies use metrics that are not applicable to their own situation. It is vitally
important when using balanced scorecards to make the information being tracked applicable
to your needs. Otherwise, the metrics will be meaningless.

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3.4 Weaknesses of Talent Management Theory
The time can be resources and the financial cost of talent management programs is high. This
is a burden for small companies that do not necessarily have to implement such a system,
resources. Many companies have one or more HR professionals spend a lot of time to develop
and implement skills supply, but cannot find a company with a few employees, this time
better spent working on other ways.
Different situations make it difficult to work the impact of talent management. Many small
companies rely on part-time and temporary workers. To keep them motivated, focusing on
long-term research to full-time permanent employees is difficult. If your company depends
on the personnel needed and not wait to be together for a long time, it may not be worth
installing, edition a formal program of talent management. Workplace Multigenerational also
present challenges. Businesses of all sizes are struggling to develop effective recruitment
strategies,unable to distinguishbetween ageand provide rewards for hard workers, who may
have different motivations, different ages.
HR professionals often rendered the need for leadership and business skills required at each
level. Small businesses can fight effectively enough to provide and develop memory, or
president of information business units to perform with other small businesses and larger
competitors. To recruit more aggressively in other areas, just the cost of talent management.
3.5 Weaknesses of Business Reengineering Theory
Reengineering implementations often fail to achieve real business impact, that the resulting
improvements in performance are often disappointing.
The changes which are selected to work out from the reengineering more often are costly
and difficult to implement, while the length of time they take to achieve is uncertain.

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4. Combination of various theories
Strategic management is a process which effect the planning of a business in all aspects. This
report has describes five major strategic management theories which are using in the current
business management world to implement strategic management strategies to organizations
to achieve the business goals/objectives. But any of those theories does not cover the whole
function areas in the business which are important to make a success. As an option for that
combination of strategic management theories can be performed to cover all the functional
areas of the business.
The theories describe in this report are Blue Ocean Strategy, Delta Model Theory, Balance
Score Card, Talent Management Strategy and Business Re-engineering process.
For a one combination selected theories are Balance score card, Business re-engineering and
Blue Ocean Strategy. Combination of these three theories talks about the current
performance of the business, rebuilding the current business process of the organization and
entering to the new market. This arrangement is helping to make plans while identifying the
current statues of the business, and find out the areas to be improved and the new
opportunities to expand the business.
Theories selected for the second combination are Delta Model Theory, Balance Score Card
Theory and Talent Management Theory. Combination of these three theories make
combination of evaluating company operations, procedures, customer satisfaction, current
performance of the business against the goals/objectives and Development of the human
resources as the main asset of the company. This work out to make arrangement to utilize
the resources of the organization while developing the strengths more advanced and
minimizing the weakness as much as possible.

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As the final combination selected theories are Business Re-Engineering Strategy, Delta Model
Theory and Talent Management Theory. These theories describes about approaching to a
new business opportunity, evaluating the business operations, procedures, customer
satisfaction level and redeveloping the business operations currently following. Combination
of these helps to organize a new strategic management plan to achieve the current objectives
of the business and also to implement new goals which can achievable easily with the correct
managing process.

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5. Conclusion
Strategic management is an important area to follow when a company or a business is
operating in a competitive environment. Strategic management is a process increasinglyused
by the small business, large enterprises, NGO’s, government bodies and multinational
companies, This helps to be proactive attitude in the competitive industry than only being
reactive compared to the competitors while fighting for the influences.
Any kind of organization or a business should practice strategic management in order to
achieve its objectives in the most efficient way. It helps for the survival of the business in
actual competitive changing environment. And also it helps to ensure the balance between
economic growth, and environmental protection.
Use of more than one strategic management theory in the implementation for a real time
business operation is an essential need as this combinations of theories will help to achieve a
sustainable development of the economy and the social placement.

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6. Recommendation
Strategic management is a major concept which has to follow today when implement a
business in the competitive market. It’s totally talking about how to plan out the business
process to achieve the competitive advantage to be a successful player in the market.
Some of the strategic management theories which can use in a business has describes above
in the report, and below are some recommendations to follow when implementing those in
to actual situations.
Recommendations Short Term (< 1 year)
Develop an effective communication system within the organization before implement the
strategic management plans as communication is the key to a successful strategic
management implementation.
Develop the participation of top to bottom level and bottom to top level and all cooperative
levels in the organization to the new strategic management implementation, as it make the
success of the implementation.
Recommendations Medium Term (1 -5 years)
In addition to the managers and the employees, throughout the firm all the stakeholders
should be able to describe the strategist’s position of the company. This degree of discipline
has to promote through understanding and learning.
No organization has unlimited resources, no business can take unlimited debts or shares to
expand the resources. Implementation of strategic management has to work out to eliminate
some course of actions to allocate resources among others.
Recommendations Long Term (5- 10 Years)
Strategic management implementations has to formalize with subjective judgements and
preferences to focus with the main business objectives to make sure to gain competitive
posture and profitability.

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7. References
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