strategic management lessons

1. Key Concepts, Diagrams & Quizzes

3. Importance of Strategic Management
• Defines long-term direction
• Helps in resource allocation
• Identifies opportunities and threats
• Example: Apple’s innovation strategy

4. Schools of Thought in Strategic
Management

5. School of Thought Core Idea Strategy Formation Example
Design School Strategy is a deliberate, conscious process of matching
internal strengths to external threats
Planned & Analytical Apple designs strategy based on internal innovation
strengths & market trends
Planning School Formal process involving rigorous analysis and
forecasting
Formal & Structured Coca-Cola uses cost leadership & differentiation
Positioning School Strategy is about positioning in the industry using
competitive forces
Analytical Elon Musk shaping Tesla’s future through bold strategic
moves
Entrepreneurial School Vision and intuition of the top leader drive strategy Visionary & Centralized Elon Musk shaping Space X fhrough his visionary
strategy
Cognitive School Strategy shaped by how individuals perceive and
process information
Psychological Netflix shifting to streaming using consumer behavior
data
Learning School Strategy emerges over time through learning and
adaptation
Emergent & Evolving Toyota’s Kaizen (continuous improvement) process
Power School Strategy emerges by negotiation and power among
stakeholders
Political Union influence in wage strategy at Tata Steel
Cultural School Strategy is a product of organizational culture and
values
Collective & Internal Infosys building a learning-based culture for long-term
growth
Environmental School Strategy is a reactive process shaped by external
environment
Reactive Oil companies adjusting strategies due to global
environmental regulations

6. Strategy Content, Process, and Practice
• Content: What to do (Netflix's content
strategy)
• Process: How to do it (Licensing, Originals)
• Practice: Who & Execution (Algorithms, global
rollout)

7. Fit Concept & Configuration Perspective
• Alignment between internal & external factors
• Zara – Fast fashion & integrated operations
• Configuration aligns strategy, structure,
culture

8. Core Competence as Competitive Advantage
• Unique capabilities add value & are hard to
imitate
• Honda – Engines in bikes, cars, lawnmowers
• 3M – Adhesives innovation

9. Sources of Sustained Competitive Advantage
• Based on VRIO: Valuable, Rare, Inimitable,
Organized
• Examples: Coca-Cola (brand), Amazon
(logistics)

10. Resource & Competence-Based View
• Resources: Tangible & Intangible assets
• Competence: Skills, know-how, processes
• Tesla: Battery tech + engineering team

11. The 7S Framework (McKinsey)
• Hard: Strategy, Structure, Systems
• Soft: Skills, Staff, Style, Shared Values
• Example: IBM’s digital transformation