Elements and Vocabulary of Strategy

1. Strategy and
Strategic
Management: An
overview
Global Business Consultants &
Partners Training Courses
Copyright 2020 Global Business Consultants

2. Nice to
meet you.
Sam Lee Mohan
Founder and Team Member,
Global Business Consultants

3. Chapter 1. Introduction to
Strategic Management
Lesson 1: Elements and Vocabulary of Strategy

4. ContentsA model of the elements of strategic management

5. There are three foundation elements of Strategic
Management. These are:
Element 1: The Strategic Position of a Company.
The strategic position of a company is its relative position
within its industry.
The strategic position of the company reflects the choices it
will make about the kind of value it will create and how that
value is created differently than rivals.
For example: A company could be a low cost provider which
sells goods or services at a low cost with inferior quality or the
company could sell a higher quality goods or services at a higher
price, which is referred to as Differentiation.
Elements
of strategic
management

6. There are three foundation elements of Strategic
Management. These are:
Element 2: The Strategic Choices that a
company makes.
 Every company regardless of type and size have a finite
amount of resources available to it. Resources could include
financial, human, productive capacity and distribution
channels.
The strategic choices of a company are the specific steps a
company intends to take to deploy its resources.
For example: A company’s strategic choices would include
determining what products and services to sell, where to sell
them, how to sell them and what targets markets to sell to.
Elements
of strategic
management

7. There are three foundation elements of Strategic
Management. These are:
Element 3: Strategy Into Action.
 Only when a company understands it relative Strategic
Position and its Strategic Choices, it can put strategy into
action.
Putting strategy into action entails structuring the company,
marshalling its resources and effectively managing change.
For example: A company may choose to outsource its
distribution channel, deploy its human resources to
administration and determine changes in light of new of actual
information.
Elements
of strategic
management

8. The
vocabulary
of strategy
Johnson, Scholes,
Whittington | 2006

9. Congratulations! You’ve completed lesson 1.
Recap: In this lesson you learned that there three foundation
levels for Strategic Management. Every business has a strategic
position which determines its strategic choices, and only then can
a company can put its strategy into action.
Awesome work!

10. “A winning strategy must fit the enterprise’s
external and internal situation, build
sustainable competitive advantage, and
improve company performance and be based
on awareness of the lens through which it is
perceived.”
Global Business Consultants
“A Successful Strategy
Copyright 2020 Global Business Consultants