This document outlines key concepts in strategic management. It defines strategy as a course of action to achieve goals and objectives. It also discusses strategic intent as a desired leadership position and stretch as a strategic planning period. Additionally, it defines competitive advantage as an internal factor that gives a firm superiority over competitors. Some sources of competitive advantage mentioned include superior skills, resources, position, customer service and technology.

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Key concepts inKey concepts in
StrategicStrategic
ManagementManagement
These concepts will make you learn the
Strategic MGT language.
These concepts will make you learn the
Strategic MGT language.

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1. Strategy1. Strategy
• A course of action to achieve the stated goals
and objectives.
• A coherent set of decisions & actions that a
company will take to increase its competitive
advantage/ a means of competitively winning
battles against your rivals (like military
strategies).
• A unified, comprehensive and integrated plan
for achieving the strategic direction, that relates
the strategic advantages of a firm to the
challenges in the environment

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2. Strategic intent2. Strategic intent
 A statement of the desired leadershipA statement of the desired leadership
position that an organization wishes toposition that an organization wishes to
achieve/a goal that employees perceiveachieve/a goal that employees perceive
as inherently worthwhile.as inherently worthwhile.
 Exceeds your current strategic focusExceeds your current strategic focus
(picture) and existing resources.(picture) and existing resources.
A corporate ambition /obsession/A corporate ambition /obsession/
challenge to win at all levels.challenge to win at all levels.

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3. Stretch3. Stretch
A strategic planning period adoptedA strategic planning period adopted
by an organizationby an organization
Better to refer your stretch to theBetter to refer your stretch to the
‘strategic window’ of your chosen‘strategic window’ of your chosen
strategy( a period within which youstrategy( a period within which you
chosen strategy will favourably workchosen strategy will favourably work
coz everything is changing)coz everything is changing)

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4. Competitive4. Competitive
advantageadvantage
• Internal factor that enables aInternal factor that enables a
firm to have market superiorityfirm to have market superiority
or leverage or an edge over itsor leverage or an edge over its
competitors on a sustainablecompetitors on a sustainable
basis.basis.
• Must be valuable, rare,&Must be valuable, rare,&
inimitable( originates from ainimitable( originates from a
firm’s core competence).firm’s core competence).

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Sources of competitiveSources of competitive
advantageadvantage
•Superior skillsSuperior skills
•Superior resourcesSuperior resources
•Superior positionSuperior position

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Customer serviceCustomer service
Continuous innovationContinuous innovation
Superior technologySuperior technology
Superior qualitySuperior quality
Government protectedGovernment protected
monopolymonopoly
Patents andPatents and
copyrights/accumulated brandcopyrights/accumulated brand
equityequity

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5. Strategic Competition5. Strategic Competition
Competing for longCompeting for long
term survivalterm survival
Competing with a longCompeting with a long
term orientationterm orientation

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6.6. Strategic thinkingStrategic thinking
• Long term thinking (about what the future should be
like).
• Building scenarios of the future and plotting
backwards to see how your present actions can
influence the future.
• Seeing the big picture (picture painting) about the
future.
Can only be successful when you get commitment
from top executives ,and those key organizational
members who will implement the strategy for
achieving your strategic direction.

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7. Competitive exclusion7. Competitive exclusion
• The argument that no two firms
can co-exist if they continue to
make their living in an identical
way (may be achieved through
competitive market targeting, and
market positioning).
• A firm survives at the expense of
another similar one.

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Other key conceptsOther key concepts
• Strategic issues
• Strategic problem
• Management/operational problem
• Strategic fit
• Business portfolio