1.
Strategic management guide
By
Dr. Raafat Youssef Shehata

2.
Environmental scanning models
Models for internal analysis
• SW(SWOT)
• Porter value chain model
• Mackinsey 7S model
• PLC
• BCG
Models for External analysis
• OT (SWOT)
• PESTEL
• Porter 5 force model

3.
Mission- the purpose or reason for the organization’s existence
Vision- describes what the organization would like to become
Objectives- the end results of planned activity
Basic Elements of Strategic Management

4.
Generating alternative strategies by using
TOWS matrix

5.
SO Strategies
Use a firm’s
internal strengths
to take advantage
of external
opportunities
SO
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT

6.
WO Strategies
Improving internal
weaknesses by
taking advantage
of external
opportunities
WO
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT

7.
ST Strategies
Use a firm’s
strengths
to avoid or
reduce the impact
of external
threats
ST
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT

8.
WT Strategies
Defensive tactics
aimed at reducing
internal
weaknesses &
avoiding
environmental
threats
WT
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT

9.
Ch 5 -18
Types of Strategies
Operational Level
Functional Level
Division Level
Corp
Level

10.
Ch 5 -19
Types of Strategies
Vertical
Integration
Strategies
Forward
Integration
Backward
Integration
Horizontal
Integration

11.
Ch 5 -20
Types of Strategies
Intensive
Strategies
Market
Penetration
Market
Development
Product
Development

12.
Ch 5 -21
Types of Strategies
Diversification
Strategies
Related
Diversification
Unrelated
Diversification

13.
Ch 5 -22
Types of Strategies
Defensive
Strategies
Retrenchment
Divestiture
Liquidation

14.
Michael Porter’s Generic Strategies
Cost Leadership Strategies
(Low-Cost & Best-Value)
Differentiation Strategies
Focus Strategies
(Low-Cost Focus &
Best-Value Focus)

15.
First Mover advantage strategy
 Benefits a firm may achieve by entering a new market or developing a
new product or service prior to rival firms

16.
Blue ocean strategy(BOS)= Value innovation
• Value innovation= value creation + innovation
• A strategy that makes the competition irrelevant
• BOS tools include:
Strategy canvas
4 actions

17.
low
high
Industry Variables
Strategy Canvas

18.
Four Actions: Eliminate/Reduce/Raise/Create
• Which of the factors that the industry takes for granted
should be eliminated?
• Which should be reduced?
• Which should be raised well above standard?
• Which factors should be created that have not existed
before?

19.
11-29
• Return on Investment (ROI)
• Earnings per share (EPS)
• Return on equity (ROE)
• Operating cash flow
Primary Measures of Corporate Performance

20.
Measuring performance
Balanced score card– combines financial measures that tell results of actions already
taken with operational measures on customer satisfaction, internal processes and
the corporation’s innovation and improvement activities
• Financial
• Customer
• Internal business perspective
• Innovation and learning