types of strategic management

types of strategic management

7 Types of Strategic Management for Export Success

Strategic management is the process of planning, implementing and evaluating the actions and decisions that affect the performance and goals of an organization. It involves analyzing the internal and external environment, setting the vision and mission, formulating the strategies, executing the plans and monitoring the results.

One of the areas where strategic management is crucial is export management. Export management is the process of managing the export activities of an organization, such as identifying the target markets, selecting the distribution channels, negotiating the contracts, complying with the regulations, delivering the products and services, and handling the payments and risks.

Export management requires different types of strategic management depending on the level, scope and nature of the export activities. In this article, we will discuss seven types of strategic management for export success:

1. Corporate-level strategy

This is the overall strategy that guides the direction and scope of the entire organization. It defines the vision, mission, values and objectives of the organization, as well as the portfolio of businesses and markets that it operates in. Corporate-level strategy also determines how the organization allocates its resources and capabilities among its business units and how it creates value and synergy across them.

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2. Business-level strategy

This is the strategy that guides the competitive position and performance of each business unit within the organization. It defines how the business unit competes in its chosen market segment, how it differentiates itself from its rivals, how it delivers value to its customers and how it achieves a sustainable competitive advantage.

3. Functional-level strategy

This is the strategy that guides the activities and processes of each functional department within a business unit, such as marketing, finance, operations, human resources and research and development. It defines how each function supports and aligns with the business-level strategy and how it optimizes its efficiency and effectiveness.

4. International-level strategy

This is the strategy that guides how the organization adapts to and exploits the opportunities and challenges in different countries and regions. It defines how the organization chooses its mode of entry, how it configures its value chain across borders, how it coordinates and integrates its global operations and how it balances its global standardization and local adaptation.

5. Market-level strategy

This is the strategy that guides how the organization segments, targets and positions its products and services in each specific market that it enters. It defines how the organization identifies and analyzes the needs, preferences and behaviors of its potential customers, how it selects and prioritizes its target segments, how it develops and communicates its value proposition and how it builds and maintains its customer relationships.

6. Product-level strategy

This is the strategy that guides how the organization designs, develops and manages its products and services for each market segment that it serves. It defines how the organization innovates and creates new products and services, how it modifies and adapts existing products and services, how it prices and packages its products and services and how it protects its intellectual property rights.

7. Risk-level strategy

This is the strategy that guides how the organization identifies, assesses and mitigates the various risks that it faces in its export activities, such as political risk, economic risk, legal risk, cultural risk, financial risk, operational risk and environmental risk. It defines how the organization monitors and evaluates the changes in its external environment, how it anticipates and responds to potential threats and crises, how it diversifies and hedges its exposures and how it ensures its compliance and ethics.

These seven types of strategic management are interrelated and interdependent. They should be aligned with each other to ensure coherence and consistency in achieving export success. They should also be flexible enough to adapt to changing circumstances in dynamic markets.
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 Types of Strategic Management and Their Global Demand

Strategic management is the process of defining and implementing procedures and objectives that set a company apart from its competition. It involves developing and executing plans to help an organization achieve its goals and challenges. There are different types of strategies in strategic management, depending on the level, approach, and focus of the organization.

 Business Strategy

A business strategy is a high-level plan where an organization outlines how it will achieve its objectives. It involves choosing the best strategy among different options, such as structuralist, growth, directional, marketing, innovation, diversification, turnaround, retrenchment, combination, blue ocean, red ocean, and greenfield strategies. A business strategy is usually formulated by senior management of a diversified company or a business unit. The global demand for business strategy is high, as it helps organizations gain competitive advantage, increase market share, and create value for stakeholders.

 Operational Strategy

An operational strategy is a more specific plan where an organization details what actions to take to achieve the desired results. It involves planning organizational structure and resource allocation, leading change initiatives, and controlling processes and resources. An operational strategy is usually implemented by middle management or functional managers of a single business unit or department. The global demand for operational strategy is also high, as it helps organizations improve efficiency, reduce costs, and enhance quality and customer satisfaction.

 Transformational Strategy

A transformational strategy is a radical plan where an organization makes significant changes to achieve major improvements. It involves creating a new vision and mission for the organization, redefining its core values and culture, and redesigning its products and services. A transformational strategy is usually initiated by visionary leaders or external consultants who challenge the status quo and inspire change. The global demand for transformational strategy is moderate, as it requires a high level of risk-taking, innovation, and commitment from the organization.


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 Linear Strategy

A linear strategy is a simplistic approach to strategic management that focuses on how strategies should be developed. It involves following a logical sequence of steps to analyze the situation, formulate the strategy, implement the plan, and evaluate the results. A linear strategy is based on SWOT analysis and assumes that the environment is stable and predictable. The global demand for linear strategy is low, as it does not account for the complexity and uncertainty of the real world.

 Adaptive Strategy

An adaptive strategy is a flexible approach to strategic management that focuses on how strategies should be put into practice. It involves experimenting with different methods to find solutions and learning from experience. An adaptive strategy applies agile methodology to strategic management and assumes that the environment is dynamic and uncertain. The global demand for adaptive strategy is high, as it allows organizations to respond quickly and effectively to changing conditions.

 Interpretive Strategy

An interpretive strategy is a creative approach to strategic management that focuses on how strategies should be understood and communicated. It involves creating a unique and valuable position for the organization in the market by using symbols, stories, and images. An interpretive strategy relies on intuition and imagination and assumes that the environment is subjective and ambiguous. The global demand for interpretive strategy is moderate, as it requires a high level of differentiation and innovation from the organization.

 Expressive Strategy

An expressive strategy is a hybrid approach to strategic management that combines the adaptive and interpretive types. It involves expressing the identity and values of the organization through its actions and interactions with stakeholders. An expressive strategy balances experimentation and communication and assumes that the environment is complex and diverse. The global demand for expressive strategy is moderate, as it requires a high level of integration and alignment from the organization.

 Transcendent Strategy

A transcendent strategy is an advanced approach to strategic management that goes beyond the conventional types. It involves transcending the boundaries of the organization and collaborating with other entities to create shared value for society. A transcendent strategy embraces sustainability and social responsibility and assumes that the environment is interconnected and interdependent. The global demand for transcendent strategy is low, as it requires a high level of vision and leadership from the organization.










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