This document provides an overview of strategic management and strategic competitiveness. It discusses the strategic management process, which includes analyzing strategic inputs, taking strategic action, and realizing strategic outcomes. Two models for analyzing strategic inputs are presented: the industrial organization model which focuses on the external environment, and the resource-based model which focuses on the firm's internal resources and capabilities. The chapter also discusses analyzing the competitive landscape, developing a strategic vision and mission, classifying stakeholders, and evaluating profit pools in an industry.
This document discusses long-term objectives and strategies that strategic managers establish for companies. It outlines seven common areas that strategic planners establish long-term objectives: profitability, productivity, competitive position, employee development, technological leadership, public responsibility, and employee relations. It then discusses various long-term strategies companies pursue, including low-cost leadership, differentiation, focus, operational excellence, customer intimacy, and product leadership. Grand strategies that provide overall direction include concentrated growth and market development.
Unit 3 Chapter 3 Strategic alternativesravalhimani
This document outlines various corporate level strategies including growth, stability, and retrenchment strategies. It discusses concentration, diversification, pause/proceed with caution, and turnaround strategies. The document also covers business level strategies like cost leadership, differentiation, and focus strategies. Finally, it discusses building and restructuring the corporation through various routes like start-ups, acquisitions, mergers, and divestments.
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
This document discusses various strategic alternatives that organizations can pursue for business success. It outlines different types of strategies such as stability, incremental growth, growth intensification, diversification, retrenchment, and turnaround. Growth strategies involve substantially broadening the scope of business based on demands and adopting strategies for high growth. Retrenchment strategies involve substantial contraction or elimination of activities to improve performance. Combination strategies involve adopting a mixture of stability, expansion, and retrenchment strategies to address complex business situations. The document provides examples and comparisons of these different strategic alternatives.
The document discusses various long-term objectives and grand strategies that companies can pursue, including concentrated growth, market development, product development, innovation, and diversification. It also describes the balanced scorecard approach to setting objectives across financial, customer, internal process, and learning/growth perspectives. Generic strategies like cost leadership, differentiation, and focus are discussed along with related organizational requirements and risks.
This document summarizes key points from Chapter 2 of the textbook on strategy analysis. It discusses the importance of analyzing a firm's strategy to understand risks, profitability and competitive advantages. It describes Porter's five forces framework for industry analysis and how it can be used to evaluate competitive strategies and achieve competitive advantages. Specific strategies like cost leadership and differentiation are also summarized. The chapter provides examples of analyzing strategies for companies in different industries.
This document summarizes key points from a chapter on cooperative strategy. It discusses three main types of strategic alliances - joint ventures, equity alliances, and non-equity alliances. Firms use strategic alliances to gain access to new resources and markets, reduce costs and risks, and respond to competition. The chapter also covers business-level cooperative strategies like vertical and horizontal alliances used to improve performance in product markets, as well as corporate-level strategies for diversification.
The document discusses various aspects of corporate strategy formulation. It defines corporate strategy as dealing with a company's overall growth orientation, portfolio of industries/markets, and coordination across business units. The key elements discussed include:
1. The 6 steps to effective strategy formulation: defining the organization, mission, objectives, competitive strategy, implementation, and evaluation.
2. Types of directional strategies like growth, stability, and retrenchment and the concentrations, diversifications, and portfolio analysis used within them.
3. Methods for managing strategic alliances, business units, resources, and capabilities across a corporation.
This document discusses long-term objectives and strategies that strategic managers establish for companies. It outlines seven common areas that strategic planners establish long-term objectives: profitability, productivity, competitive position, employee development, technological leadership, public responsibility, and employee relations. It then discusses various long-term strategies companies pursue, including low-cost leadership, differentiation, focus, operational excellence, customer intimacy, and product leadership. Grand strategies that provide overall direction include concentrated growth and market development.
Unit 3 Chapter 3 Strategic alternativesravalhimani
This document outlines various corporate level strategies including growth, stability, and retrenchment strategies. It discusses concentration, diversification, pause/proceed with caution, and turnaround strategies. The document also covers business level strategies like cost leadership, differentiation, and focus strategies. Finally, it discusses building and restructuring the corporation through various routes like start-ups, acquisitions, mergers, and divestments.
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
This document discusses various strategic alternatives that organizations can pursue for business success. It outlines different types of strategies such as stability, incremental growth, growth intensification, diversification, retrenchment, and turnaround. Growth strategies involve substantially broadening the scope of business based on demands and adopting strategies for high growth. Retrenchment strategies involve substantial contraction or elimination of activities to improve performance. Combination strategies involve adopting a mixture of stability, expansion, and retrenchment strategies to address complex business situations. The document provides examples and comparisons of these different strategic alternatives.
The document discusses various long-term objectives and grand strategies that companies can pursue, including concentrated growth, market development, product development, innovation, and diversification. It also describes the balanced scorecard approach to setting objectives across financial, customer, internal process, and learning/growth perspectives. Generic strategies like cost leadership, differentiation, and focus are discussed along with related organizational requirements and risks.
This document summarizes key points from Chapter 2 of the textbook on strategy analysis. It discusses the importance of analyzing a firm's strategy to understand risks, profitability and competitive advantages. It describes Porter's five forces framework for industry analysis and how it can be used to evaluate competitive strategies and achieve competitive advantages. Specific strategies like cost leadership and differentiation are also summarized. The chapter provides examples of analyzing strategies for companies in different industries.
This document summarizes key points from a chapter on cooperative strategy. It discusses three main types of strategic alliances - joint ventures, equity alliances, and non-equity alliances. Firms use strategic alliances to gain access to new resources and markets, reduce costs and risks, and respond to competition. The chapter also covers business-level cooperative strategies like vertical and horizontal alliances used to improve performance in product markets, as well as corporate-level strategies for diversification.
The document discusses various aspects of corporate strategy formulation. It defines corporate strategy as dealing with a company's overall growth orientation, portfolio of industries/markets, and coordination across business units. The key elements discussed include:
1. The 6 steps to effective strategy formulation: defining the organization, mission, objectives, competitive strategy, implementation, and evaluation.
2. Types of directional strategies like growth, stability, and retrenchment and the concentrations, diversifications, and portfolio analysis used within them.
3. Methods for managing strategic alliances, business units, resources, and capabilities across a corporation.
This document discusses various grand strategies and strategic options for companies. It covers stability strategies like maintaining the status quo or pursuing profitability. Expansion strategies discussed include concentrating on existing business, integrating vertically or horizontally, and diversifying. Retrenchment strategies involve downsizing through divestment, turnaround, or liquidation. The document also discusses combination strategies using multiple approaches. It provides details on strategic alliances, mergers and acquisitions, and the advantages and challenges of these approaches.
Corporate strategy involves determining a company's long-term goals and how to allocate resources to achieve them. It includes the overall mission, financial strategies, and policies that affect all business units within a company. A hybrid strategy uses a mixture of imitative and innovative approaches to maximize profits and sales through a quick response time and reduced disruption from failures. Market penetration and market development are strategies for increasing market share by attracting new and existing customers.
Grand strategies are long-term plans that guide organizations towards their strategic goals. They involve choices like expansion, innovation, or retrenchment. Growth strategies aim to increase profits, sales, or market share through approaches like concentric expansion into related businesses, vertical integration along the value chain, or diversification. Stability strategies maintain the status quo with incremental improvements. Organizations may choose stability when their market is stable or changing the environment presents risks.
This document discusses various stability strategies that corporations may employ, including stability strategy, pause/proceed with caution strategy, no-change strategy, and profit strategy. It provides examples of industries that have used stability strategies like steel authority of India and cigarette/liquor industries. Hindustan Levers trial of selling shoes in cities is given as an example of pause/proceed with caution strategy. The document also briefly outlines no-change and profit strategies.
This document discusses various strategic management concepts and frameworks for formulating strategies. It covers the basic definitions of strategy, strategic intent, and strategic management. It then discusses Porter's generic strategies of differentiation, cost leadership, and focus. The document also covers the BCG matrix for portfolio analysis and relates business units to growth-share conditions and strategic implications. Finally, it discusses adaptive strategies like prospector, defender, analyzer, and reactor.
This document discusses organizational strategy and competitive strategies, including Porter's five competitive forces and four competitive strategies of broad/narrow cost leadership and differentiation across/within industries. It notes that goals, culture and activities must align with the chosen strategy and discusses value chains and linkages between processes that can be streamlined or automated using information systems.
This document discusses corporate-level strategy and diversification. It defines corporate-level strategy as specifying actions to gain competitive advantage by selecting and managing different businesses. Diversification can occur at different levels from low to very high. Reasons for diversification include economies of scope, market power, financial economies, and external incentives like regulations. Firms can create value through related diversification using shared activities or transferred competencies, or unrelated diversification through efficient capital allocation or restructuring. However, overdiversification driven by managerial motives can reduce value. Low firm performance also provides an incentive to diversify.
This document discusses the difference between operational effectiveness and strategy. Operational effectiveness means performing similar activities better than rivals, while strategy means performing different activities or activities in different ways to achieve a unique position. For a strategy to be sustainable, it requires making trade-offs between activities and ensuring fit across the activity system. Strategy is about choosing what not to do and combining unique activities to create competitive advantages through fit, rather than just achieving excellence in individual functions.
This document discusses corporate level strategy and strategic options for companies. It covers:
1. The definition of corporate level strategy and the 4Es (extend, expand, exit, enhance) to address it.
2. Strategic choices like business closure, disposal, acquisition, reorganization, and start-up.
3. International entry options like exporting, licensing, franchising, and joint ventures.
4. Strategic alliances as a way for companies to collaborate without full ownership or control.
This document discusses analyzing a firm's external environment. It describes Porter's five forces model for understanding industry competition and outlines the general environment segments of demographic, economic, sociocultural, technological, political/legal, and global factors. The industry environment is analyzed using the five competitive forces of threat of new entrants, power of suppliers/buyers, threat of substitutes, and rivalry among existing competitors. Competitor analysis involves understanding competitors' objectives, strategies, assumptions, and capabilities.
The document discusses factors in a firm's external environment including remote, industry, and operating environments. It covers economic, social, political, technological, and ecological factors. It also discusses analyzing industries and competitors through examining industry structure, boundaries, competitive forces, and profiles of customers, suppliers, and creditors.
CORPORATE STRATEGY:DIVERSIFICATION AND MULTI BUSINESS COMPANYFyda Fyd
This document discusses strategies for diversification and the multi-business company. It outlines 6 steps to crafting a diversification strategy: 1) picking new industries, 2) pursuing cross-business value, 3) establishing investment priorities, 4) boosting performance, 5) testing industry attractiveness, and 6) evaluating acquisitions and divestitures. The document also examines related vs. unrelated diversification, factors for each approach, and how to structure and evaluate a diversified firm's strategy and resource allocation.
This document discusses strategies at the corporate and business unit levels. At the corporate level, strategies determine the mix of industries a firm operates in. Related diversification across industries that share resources performs best. Business unit strategies set missions and competitive advantages. The BCG matrix analyzes market share and industry growth to determine strategies like building, holding, harvesting or divesting business units. Porter's five forces and value chain models identify industry factors and activities that influence competitive advantage.
The chapter discusses strategic planning and management. It defines strategic management as decisions and actions to implement strategies that provide a competitive advantage to achieve organizational goals. The strategic management process involves scanning the external and internal environment, evaluating current strategies, identifying strategic factors through SWOT analysis, defining new goals and strategies, and implementing strategies through leadership, structure, culture and systems. Grand strategies include growth, stability, and retrenchment. Functional strategies support business unit strategies, which in turn support corporate strategies. Tools for implementing strategies include leadership, structure, culture, human resources practices, and information and control systems.
What is strategy by article of michael porter (safi)SafiullahSaleemi2
The document discusses Michael Porter's views on strategy. It defines strategy as "a high-level plan to achieve one or more goals under conditions of uncertainty." Porter believes the essence of strategy is choosing activities that are different from competitors' and that involve difficult trade-offs. This ensures strategic positions are sustainable by preventing imitation. Strategic fit among a company's activities is also important as it creates advantages and locks out imitators.
The document discusses various corporate level strategies that companies adopt including:
1. Concentrated growth where a company focuses resources on growing a single product, market, or technology. IBM is provided as an example.
2. Acquisitions where a company purchases another firm to gain competencies or market share. Problems with acquisitions are also outlined.
3. Other strategies discussed include vertical integration, horizontal integration, strategic alliances, diversification through concentric or conglomerate means, turnaround, divestiture, liquidation, and bankruptcy.
The factors influencing which strategy to adopt based on a company's competitive position and market growth are mapped out.
Arthur D. Little is a management consulting firm that provides services to clients across various industries, including technology, operations, strategy, and organizational change. Some of its major competitors are Booz Allen Hamilton, McKinsey & Company, and Accenture. Arthur D. Little helps companies develop innovative solutions, reengineer business models, and provide strategic and technological expertise tailored to each client's needs. One case study describes how Arthur D. Little helped a global mining and construction manufacturer develop a leading product portfolio strategy to better address market segments and respond quickly to new opportunities.
This document summarizes key topics from Chapter 2 of an organizational behavior textbook, including defining a company's mission, formulating and overseeing a mission statement, agency theory, and approaches to social responsibility. It provides examples of mission statements and discusses how social responsibility and ethics relate to developing a company's mission.
The document outlines the general decision making process in Foundation® by explaining the six basic strategies to use as a starting point when making decisions. It then provides an overview of the different modules in Foundation® for research and development, marketing, production, and finance. Users are directed to additional resources for more guidance on using the specific modules and strategies.
The process of strategic choice involves focusing on strategic alternatives through gap analysis, analyzing alternatives based on objective and subjective factors, evaluating alternatives against selection criteria, and making a final choice. Subjective factors considered in strategic choice include perceptions of critical success factors, commitment to past actions, decision styles and risk attitudes, and internal politics. Organizations develop contingency strategies in advance to deal with uncertainties and create strategic plans to implement chosen strategies.
This chapter introduces key concepts in strategic management including strategy, competitive advantage, and the strategic management process. It describes two models for achieving above-average returns: the industrial organization model which focuses on external industry factors, and the resource-based model which emphasizes a firm's internal resources and capabilities. The chapter also discusses the changing competitive landscape driven by globalization and technology, and how vision, mission, and stakeholders influence strategic decisions.
El documento habla sobre el análisis SWOT, el cual consiste en analizar las fortalezas, debilidades, oportunidades y amenazas a las que se enfrenta un proyecto o empresa. El SWOT es una herramienta clave de planificación estratégica que permite identificar estas cuatro categorías de factores, tanto internos (fortalezas y debilidades) como externos (oportunidades y amenazas).
This document discusses various grand strategies and strategic options for companies. It covers stability strategies like maintaining the status quo or pursuing profitability. Expansion strategies discussed include concentrating on existing business, integrating vertically or horizontally, and diversifying. Retrenchment strategies involve downsizing through divestment, turnaround, or liquidation. The document also discusses combination strategies using multiple approaches. It provides details on strategic alliances, mergers and acquisitions, and the advantages and challenges of these approaches.
Corporate strategy involves determining a company's long-term goals and how to allocate resources to achieve them. It includes the overall mission, financial strategies, and policies that affect all business units within a company. A hybrid strategy uses a mixture of imitative and innovative approaches to maximize profits and sales through a quick response time and reduced disruption from failures. Market penetration and market development are strategies for increasing market share by attracting new and existing customers.
Grand strategies are long-term plans that guide organizations towards their strategic goals. They involve choices like expansion, innovation, or retrenchment. Growth strategies aim to increase profits, sales, or market share through approaches like concentric expansion into related businesses, vertical integration along the value chain, or diversification. Stability strategies maintain the status quo with incremental improvements. Organizations may choose stability when their market is stable or changing the environment presents risks.
This document discusses various stability strategies that corporations may employ, including stability strategy, pause/proceed with caution strategy, no-change strategy, and profit strategy. It provides examples of industries that have used stability strategies like steel authority of India and cigarette/liquor industries. Hindustan Levers trial of selling shoes in cities is given as an example of pause/proceed with caution strategy. The document also briefly outlines no-change and profit strategies.
This document discusses various strategic management concepts and frameworks for formulating strategies. It covers the basic definitions of strategy, strategic intent, and strategic management. It then discusses Porter's generic strategies of differentiation, cost leadership, and focus. The document also covers the BCG matrix for portfolio analysis and relates business units to growth-share conditions and strategic implications. Finally, it discusses adaptive strategies like prospector, defender, analyzer, and reactor.
This document discusses organizational strategy and competitive strategies, including Porter's five competitive forces and four competitive strategies of broad/narrow cost leadership and differentiation across/within industries. It notes that goals, culture and activities must align with the chosen strategy and discusses value chains and linkages between processes that can be streamlined or automated using information systems.
This document discusses corporate-level strategy and diversification. It defines corporate-level strategy as specifying actions to gain competitive advantage by selecting and managing different businesses. Diversification can occur at different levels from low to very high. Reasons for diversification include economies of scope, market power, financial economies, and external incentives like regulations. Firms can create value through related diversification using shared activities or transferred competencies, or unrelated diversification through efficient capital allocation or restructuring. However, overdiversification driven by managerial motives can reduce value. Low firm performance also provides an incentive to diversify.
This document discusses the difference between operational effectiveness and strategy. Operational effectiveness means performing similar activities better than rivals, while strategy means performing different activities or activities in different ways to achieve a unique position. For a strategy to be sustainable, it requires making trade-offs between activities and ensuring fit across the activity system. Strategy is about choosing what not to do and combining unique activities to create competitive advantages through fit, rather than just achieving excellence in individual functions.
This document discusses corporate level strategy and strategic options for companies. It covers:
1. The definition of corporate level strategy and the 4Es (extend, expand, exit, enhance) to address it.
2. Strategic choices like business closure, disposal, acquisition, reorganization, and start-up.
3. International entry options like exporting, licensing, franchising, and joint ventures.
4. Strategic alliances as a way for companies to collaborate without full ownership or control.
This document discusses analyzing a firm's external environment. It describes Porter's five forces model for understanding industry competition and outlines the general environment segments of demographic, economic, sociocultural, technological, political/legal, and global factors. The industry environment is analyzed using the five competitive forces of threat of new entrants, power of suppliers/buyers, threat of substitutes, and rivalry among existing competitors. Competitor analysis involves understanding competitors' objectives, strategies, assumptions, and capabilities.
The document discusses factors in a firm's external environment including remote, industry, and operating environments. It covers economic, social, political, technological, and ecological factors. It also discusses analyzing industries and competitors through examining industry structure, boundaries, competitive forces, and profiles of customers, suppliers, and creditors.
CORPORATE STRATEGY:DIVERSIFICATION AND MULTI BUSINESS COMPANYFyda Fyd
This document discusses strategies for diversification and the multi-business company. It outlines 6 steps to crafting a diversification strategy: 1) picking new industries, 2) pursuing cross-business value, 3) establishing investment priorities, 4) boosting performance, 5) testing industry attractiveness, and 6) evaluating acquisitions and divestitures. The document also examines related vs. unrelated diversification, factors for each approach, and how to structure and evaluate a diversified firm's strategy and resource allocation.
This document discusses strategies at the corporate and business unit levels. At the corporate level, strategies determine the mix of industries a firm operates in. Related diversification across industries that share resources performs best. Business unit strategies set missions and competitive advantages. The BCG matrix analyzes market share and industry growth to determine strategies like building, holding, harvesting or divesting business units. Porter's five forces and value chain models identify industry factors and activities that influence competitive advantage.
The chapter discusses strategic planning and management. It defines strategic management as decisions and actions to implement strategies that provide a competitive advantage to achieve organizational goals. The strategic management process involves scanning the external and internal environment, evaluating current strategies, identifying strategic factors through SWOT analysis, defining new goals and strategies, and implementing strategies through leadership, structure, culture and systems. Grand strategies include growth, stability, and retrenchment. Functional strategies support business unit strategies, which in turn support corporate strategies. Tools for implementing strategies include leadership, structure, culture, human resources practices, and information and control systems.
What is strategy by article of michael porter (safi)SafiullahSaleemi2
The document discusses Michael Porter's views on strategy. It defines strategy as "a high-level plan to achieve one or more goals under conditions of uncertainty." Porter believes the essence of strategy is choosing activities that are different from competitors' and that involve difficult trade-offs. This ensures strategic positions are sustainable by preventing imitation. Strategic fit among a company's activities is also important as it creates advantages and locks out imitators.
The document discusses various corporate level strategies that companies adopt including:
1. Concentrated growth where a company focuses resources on growing a single product, market, or technology. IBM is provided as an example.
2. Acquisitions where a company purchases another firm to gain competencies or market share. Problems with acquisitions are also outlined.
3. Other strategies discussed include vertical integration, horizontal integration, strategic alliances, diversification through concentric or conglomerate means, turnaround, divestiture, liquidation, and bankruptcy.
The factors influencing which strategy to adopt based on a company's competitive position and market growth are mapped out.
Arthur D. Little is a management consulting firm that provides services to clients across various industries, including technology, operations, strategy, and organizational change. Some of its major competitors are Booz Allen Hamilton, McKinsey & Company, and Accenture. Arthur D. Little helps companies develop innovative solutions, reengineer business models, and provide strategic and technological expertise tailored to each client's needs. One case study describes how Arthur D. Little helped a global mining and construction manufacturer develop a leading product portfolio strategy to better address market segments and respond quickly to new opportunities.
This document summarizes key topics from Chapter 2 of an organizational behavior textbook, including defining a company's mission, formulating and overseeing a mission statement, agency theory, and approaches to social responsibility. It provides examples of mission statements and discusses how social responsibility and ethics relate to developing a company's mission.
The document outlines the general decision making process in Foundation® by explaining the six basic strategies to use as a starting point when making decisions. It then provides an overview of the different modules in Foundation® for research and development, marketing, production, and finance. Users are directed to additional resources for more guidance on using the specific modules and strategies.
The process of strategic choice involves focusing on strategic alternatives through gap analysis, analyzing alternatives based on objective and subjective factors, evaluating alternatives against selection criteria, and making a final choice. Subjective factors considered in strategic choice include perceptions of critical success factors, commitment to past actions, decision styles and risk attitudes, and internal politics. Organizations develop contingency strategies in advance to deal with uncertainties and create strategic plans to implement chosen strategies.
This chapter introduces key concepts in strategic management including strategy, competitive advantage, and the strategic management process. It describes two models for achieving above-average returns: the industrial organization model which focuses on external industry factors, and the resource-based model which emphasizes a firm's internal resources and capabilities. The chapter also discusses the changing competitive landscape driven by globalization and technology, and how vision, mission, and stakeholders influence strategic decisions.
El documento habla sobre el análisis SWOT, el cual consiste en analizar las fortalezas, debilidades, oportunidades y amenazas a las que se enfrenta un proyecto o empresa. El SWOT es una herramienta clave de planificación estratégica que permite identificar estas cuatro categorías de factores, tanto internos (fortalezas y debilidades) como externos (oportunidades y amenazas).
The chapter discusses a company's internal environment and core competencies. It explains that a company's resources and capabilities can be combined to form core competencies. Core competencies provide strategic value if they are valuable, rare, costly to imitate, and non-substitutable. The chapter also discusses using a SWOT analysis and value chain analysis to identify a company's strengths, weaknesses, and areas that add value in order to discover its core competencies.
This summary provides an overview of Chapter 9 which discusses cooperative strategies between firms. The chapter describes different types of strategic alliances such as joint ventures, equity alliances, and non-equity alliances. It also categorizes alliances as complementary, competition reducing, competition responding, or uncertainty reducing. Additionally, the chapter outlines reasons for alliances based on market type and risks associated with international and network alliances if strategic intent is misunderstood or contracts are inadequate.
The document discusses international strategy and international diversification. It addresses several key questions:
1. Issues to consider for international diversification include opportunities/incentives like market size, returns, and location advantages, as well as management problems and risks.
2. International strategies can achieve benefits like increased market size and returns, but also face political and economic risks in foreign markets.
3. The three main international strategies - multinational, global, and transnational - balance global integration and local responsiveness differently based on environmental trends.
The document discusses various topics related to mergers, acquisitions, and restructuring strategies including:
- The differences between mergers, acquisitions, and takeovers. Restructuring refers to changes in a company's operations or strategy.
- Common reasons why firms pursue mergers and acquisitions, such as increasing market power, overcoming barriers to entry, and learning new capabilities.
- Potential problems with mergers and acquisitions like integration difficulties, inadequate target evaluation, inability to achieve synergies, and managers becoming too focused on acquisitions.
- Attributes of effective acquisitions like complementary assets/resources and careful selection processes.
El documento describe el Balanced Scorecard, un marco que ayuda a las organizaciones a evaluar su desempeño estratégico y financiero de manera equilibrada. Proporciona perspectivas como finanzas, clientes, procesos internos y aprendizaje/crecimiento, así como criterios clave para cada una. El objetivo es evitar un enfoque excesivo en las finanzas a corto plazo y apoyar el valor a largo plazo.
The document discusses analyzing a firm's external environment including the general environment, industry environment, and competitor environment. It describes the components of the general environment and how they can affect firm strategy. It also explains Michael Porter's five forces model for analyzing industry competition including the threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and rivalry among existing competitors. Finally, it provides guidance on conducting a competitor analysis by examining a competitor's objectives, strategies, assumptions, and capabilities.
This document discusses corporate governance and agency theory. It describes how corporate governance is used to establish order between a firm's owners and managers due to the separation of ownership and control in modern corporations. Agency theory holds that conflicts can arise since manager and shareholder goals may not be aligned. Various governance mechanisms exist to help mitigate this issue, such as ownership concentration, boards of directors, executive compensation structures, the market for corporate control, and multidivisional organizational structures. The document provides details on each of these mechanisms.
The document discusses various business-level strategies that a firm can pursue, including cost leadership, differentiation, and focus strategies. It provides discussion questions and explanations for each strategy. Specifically, it addresses how a cost leadership strategy is developed through tightly controlling costs, how differentiation is achieved by developing unique product features, and when a focused strategy targeting a niche market should be implemented. It also describes the risks and competitive advantages of each strategy in dealing with the five competitive forces. Finally, it discusses the integrated low-cost differentiation strategy and why it may be an increasingly important option.
The document discusses the importance of hospital antibiograms for monitoring antimicrobial resistance trends and supporting clinical decision making. It outlines recommendations from the Clinical and Laboratory Standards Institute (CLSI) for creating an antibiogram, including only using final verified results, analyzing data at least yearly, including common species with at least 30 isolates, and calculating percentage susceptibility without intermediate results. The document provides examples of supplemental analysis that can stratify data by location, resistance characteristics, specimen type, or clinical service. It emphasizes the utility of combination antibiograms for guiding therapy against pathogens often treated with drug combinations.
The document discusses the internal organization of a firm, including its resources, capabilities, and core competencies. It defines these terms and explains how they contribute to competitive advantage. Specifically, it provides criteria for determining a firm's core competencies and discusses how core competencies can provide sustainable competitive advantage if they are valuable, rare, costly to imitate, and non-substitutable. However, the document also notes that core competencies carry risks of becoming outdated or imitated by competitors over time.
Este documento trata sobre el liderazgo estratégico. Explica conceptos clave como el liderazgo, teorías de liderazgo, equipos de alta gerencia e identifica acciones claves de líderes estratégicos como establecer una visión, administrar recursos, aprovechar competencias centrales y fomentar una cultura organizacional efectiva. El objetivo es comprender la importancia del liderazgo estratégico para el éxito de una organización.
Corporate governance involves establishing order between a firm's owners and top managers. It addresses the agency problem that arises from the separation of ownership and control, where managers may not always act in shareholders' best interests. Governance mechanisms like boards of directors, executive compensation, and market threats aim to align manager and shareholder goals. Effective governance also considers ethical treatment of all stakeholder groups.
Strategic leadership is important for determining strategic direction, exploiting core competencies, developing human capital, sustaining culture, emphasizing ethics, and establishing controls. Effective strategic leaders balance strategic and financial controls to achieve long-term returns. Characteristics of leaders, teams, and the environment influence the discretion leaders have over strategic decisions.
This document discusses key concepts in strategic management including:
1. It introduces 12 chapters that will cover topics like strategic leadership, internal/external environments, business and corporate level strategies, competitive dynamics, and international strategies.
2. It provides discussion questions at the end of each chapter to engage the reader in the concepts. Questions address what strategy and competitive landscapes are, strategic flexibility, the industrial organization and resource-based models of strategy, and the roles of strategic intent, stakeholders, and top executives.
3. The models of strategy are summarized as the industrial organization model focusing on external environment opportunities and the resource-based model focusing on internal strengths and exploiting them in attractive environments.
The document discusses various topics relating to cooperative strategy. It introduces strategic alliances as a type of cooperative strategy where firms combine resources to create value. There are four main types of strategic alliances: joint ventures, equity alliances, non-equity alliances, and strategic cooperative networks. A strategic network differs from a single alliance in that it involves multiple partnerships between firms. The document also discusses reasons for forming alliances based on market type and risks associated with cooperative strategies.
Les capacités peuvent être classées autour des 9 M de management :
Manpower
Management
Money
Machinery
Materials
Markets
Methods
Make-up
Management information
Organization : Est-ce que l’entreprise a la capacité organisationnelle pour exploiter la capacité.
Inimitable : Historique, coûteuse, complexe techniquement ou socialement
This document discusses strategies at the corporate and business unit levels. At the corporate level, strategies determine how the organization will achieve its goals of profitability, shareholder value, risk tolerance, and stakeholder approach. Strategies can be evaluated using industry analysis and the value chain. At the business unit level, strategies are developed based on the unit's mission and competitive advantage within its industry structure. Business units are classified by the BCG matrix to determine the appropriate build, hold, harvest, or divest strategy.
Tech clarity perspective-industrial_top_performersBentley Systems
The document discusses best practices for developing industrial equipment based on a survey of 378 manufacturers. It finds that the top 17% of performers by revenue and profit growth ("Top Performers") have grown revenue 2.2 times more and profit margins 2.4 times more than average companies. Top Performers more heavily emphasize globalization, quote accuracy, and innovation. They are more likely to use advanced engineering approaches like modular design and leverage simulation, configurators, PLM, and factory simulation tools to a greater degree to support their strategies and processes.
The document discusses an engineer's role in developing an understanding of an enterprise's business model using five principles: strategic analysis, business process analysis, business performance management, risk assessment, and continuous improvement. It provides details on each principle, including analyzing external forces, markets, core processes, products/services, customers, and key performance indicators. It also discusses assessing and managing risks. The overall aim is for the engineer to construct an integrated business model that identifies the enterprise's value proposition and opportunities to enhance performance and mitigate threats.
Strategic Management And Strategic CompetitivenessMrirfan
This document discusses strategic management and objective setting for e-business. It provides an overview of strategic management processes including internal and external analysis, competitive strategies, and setting objectives and key performance indicators. The strategic management process involves determining long-term goals and objectives, and choosing actions to achieve those aims over time.
This document outlines the key themes of strategic management. It discusses the changing competitive landscape where industry boundaries are blurring due to technological changes and globalization. It presents two models for achieving superior profitability: the industrial organization model which focuses on external industry factors, and the resource-based model which focuses on internal resources and capabilities. It also discusses strategic intent, mission, and key stakeholder groups that are important for firms.
The document discusses strategic entrepreneurship and unpacking the business concept. It describes the business concept as comprising four main components: core strategy, strategic resources, customer interface, and value network. These components are linked by configuration, customer benefits, and company boundaries. Factors that determine a business concept's wealth potential include efficiency, uniqueness, fit among elements, and exploiting profit boosters like increasing returns, competitor lock-out, strategic economies, and flexibility. The document also discusses opportunities for startups when the window of opportunity is open, such as creativity, market imitation, process effectiveness, and omega-entrepreneurship.
This document discusses strategies at the corporate and business unit levels. At the corporate level, strategies determine the mix of industries a firm operates in. Related diversification across industries that share resources performs best. Business unit strategies set missions and competitive advantages. The BCG matrix analyzes market share and industry growth to determine strategies like building, holding, harvesting or divesting business units. Porter's five forces and value chain analyses identify industry factors and activities that determine a unit's competitive advantage as low cost, differentiation or stuck in the middle. Control system designers must understand the strategic goals and positioning of business units.
This document provides an overview and agenda for a presentation on successful IT business integration. Some key points:
1. It discusses the challenges facing IT and business executives in a difficult economic environment with flat IT budgets and increased pressure to demonstrate value.
2. Statistics are presented on top business and technology priorities from a Gartner survey, showing business process improvement and business intelligence as the top priorities.
3. An approach is outlined to transform organizations through self-assessment, defining strategic outcomes, and using balanced scorecards to drive change and close competency gaps.
4. The importance of IT business alignment, governance, and moving from an operational to strategic focus is emphasized to support business goals.
Entrepreneur 4: Business Strategies & Rapid Growth StrategiesBernard Leong
The 4th lecture focus on business strategy and models, rapid growth strategies (franchising, mergers & acquisitions), and an introduction to Moore's "Crossing the Chasm", Gartner's Hype Cycle and Porter's 5 Forces.
This chapter discusses business-level strategies and examines how corporate strategies, business definitions, and business models provide the foundation for developing business strategies. It explores how industry structure and a firm's positioning within an industry help determine competitive advantage and discusses the three generic business strategies of cost leadership, differentiation, and focus. The chapter also describes timing and market location tactics, business strategies for different industry conditions, leveraging advantages for international businesses, and the role of digitalization.
This document provides an introduction and overview of strategic management concepts. It discusses strategic competitiveness and how firms can achieve competitive advantage through implementing value-creating strategies. Firms must analyze their external environment and internal resources to formulate strategies that will lead to above-average returns. Technological changes and globalization have increased competition and hypercompetition in many industries. Firms must understand these implications and integrate digitalization and flexibility into their strategies to maintain competitiveness.
This document discusses sources of competitive advantage and strategies for different types of industries. The main sources of competitive advantage are cost leadership, differentiation, speed, and market focus. Cost leadership requires low production costs, while differentiation means creating unique value for customers. Industries evolve over time from emerging to growth to mature to declining. Different strategies are most effective depending on the industry's stage, such as emphasizing innovation in growth industries but cost reduction in mature ones. The document also examines strategies for fragmented, global, and other specialized industry types.
This document provides an overview of managerial accounting concepts including:
- The four functions of management: planning, directing/motivating, controlling, and budgeting.
- Differences between financial and managerial accounting such as users, time focus, and precision.
- Process management techniques like Lean Production and the Theory of Constraints which aim to improve efficiency.
- Quality management methods including Six Sigma which uses data analysis to reduce defects.
- The importance of ethics, competence, confidentiality, integrity, and credibility for management accountants.
One of the biggest reasons for failure in software testing, is the lack of attention to business goals / objectives. Defining clear business goals is essential to succeed. Aligning your organization to the said goals, makes it easier to chart out the quality dimensions required to achieve them.
Corporate Strategies are considered as Grand Strategy of a company. Here we are dealing with corporate strategy and its types. They are: Stability Strategies, Expansion Strategies, Retrenchment Strategies, and Combination Strategies
Chapter 1 introduction to strategic managementjrkotnal
This document provides an introduction to strategic management. It defines key strategic concepts like strategy, tactics, and stakeholders. It outlines two main models for achieving above-average returns - the industrial organization model which is based on external industry analysis, and the resource-based model which focuses on a firm's internal resources and capabilities. It also discusses the strategic management process, intended versus emergent strategies, and the different levels of strategy from functional to corporate to global.
IAF605 week 8 the strategy of international businessIAF605
The chapter discusses the role of strategy in international business. It examines how industry structure and competitive forces impact firm strategy and performance. Managers develop strategy to attract customers, operate efficiently, and compete effectively. The value chain framework helps managers analyze how the company creates value through primary and support activities. Firms face pressures for global integration to benefit from efficiencies but also pressures for local responsiveness to address host country needs. Different industry types and strategy types determine a firm's appropriate integration-responsiveness approach. The homework is to review exam performance, chapter 11, and prepare for chapter 12 by reading the case study on Burger King.
In Chapter 1 we will discuss strategic management and strategic competitiveness. We will take a close look at the strategic management process, define it, and examine the steps involved in the process and the concepts used in each step. Let’s begin by defining a few terms. Strategic competitiveness is when a firm successfully forms and implements a value-creating strategy. A strategy is an integrated, coordinated set of commitments and actions that exploit core competencies and gain competitive advantage. A firm has a competitive advantage when it implements a strategy competitors are unable to duplicate or find too costly to try to imitate. No competitive advantage is permanent.
Firms use the strategic management process to achieve strategic competitiveness and earn above-average returns. Strategic competitiveness is achieved when a firm has developed and learned how to implement a value-creating strategy. Above average returns (in excess of what investors expect to earn from other investments with similar levels of risk) provide the foundation a firm needs to simultaneously satisfy all of its stakeholders.
The first step of the strategic management process is to analyze strategic inputs. To do this, a firm must evaluate its competitive landscape.
The first step in the strategic management process is to analyze strategic inputs. There are two models to assist with doing this. The Industrial organization model is based on the logic that the external environment primarily determines a firm’s strategic decisions. The resource-based model looks to the firm’s internal sources of strategic competitiveness. Global economy and hypercompetition Technology Competitive advantage Competitive landscape characteristics Industries are changing as companies partner and technologies converge. Conventional sources of competitive advantage - such as scale – are less effective. Managers value flexibility, speed, innovation, integration, and a dynamic environment. Global competition requires enormous investments with costly consequences of failure. Success requires an effective strategy properly timed and supported.
Rate of technology diffusion is defined as the speed at which new technologies become available and are used. The rate of technology diffusion has increased substantially over the past 15 to 20 years. There are at least three indicators of rapid technology diffusion: Perpetual innovation, patents becoming less effective because technology changes so rapidly, and disruptive technologies. Another aspect of technology is called the information Age. Today’s businesses compete in an information-based economy known as the Information Age. Effectively and efficiently accessing and using information has become an important source of competitive advantage in virtually all industries. Both the pace of change in information technology and its diffusion will continue to increase. The Internet has fueled hypercompetition on a global scale. Yet another aspect of technology is increasing knowledge intensity. Knowledge – including information, intelligence, and expertise - is the basis of technology and its application. Knowledge is a critical organizational resource and an increasingly valuable source of competitive advantage. As an example, consider Wal-Mart. Wal-Mart transformed retailing by leveraging its knowledge of supply chain management and its information-rich relationships with customers and suppliers.
As mentioned earlier, the industrial organization (I/O) model says that the external environment was thought to be the primary determinant of strategies that firms selected to be successful. The industrial organization model of above-average returns explains the external environment’s dominant influence on a firm’s strategic actions. The model specifies that the industry in which a company chooses to compete has a stronger influence on performance than do the choices managers make inside their organizations. The firm’s performance is believed to be determined primarily by a range of industry properties, including economies of scale, barriers to market entry, diversification, product differentiation, and the degree of concentration of firms in the industry. This model explains the external environment’s dominant influence on a firm’s strategic actions. It challenges firms to select the most attractive industry in which to compete. The model makes four assumptions. First, the external environment imposes pressures and constraints that determine the strategies for above-average returns. Second, most competitors control similar strategically relevant resources and pursue similar strategies based on those resources. Third, resources used to implement strategies are highly mobile across firms, so any resource differences between firms are short-lived. Fourth, organizational decision makers are rational and committed to acting in the firm’s best interests.
The core assumption of the I/O model is that the firm’s external environment has more of an influence on the choice of strategies than do the firm’s internal resources, capabilities, and core competencies. Thus, the I/O model is used to understand the effects an industry’s characteristics can have on a firm when deciding what strategy or strategies to use to compete against rivals. The logic supporting the I/O model suggests that above-average returns are earned when the firm locates an attractive industry and successfully implements the strategy dictated by that industry’s characteristics. The core assumption of the resource-based model is that the firm’s unique resources, capabilities, and core competencies have more of an influence on selecting and using strategies than does the firm’s external environment. Above-average returns are earned when the firm uses its valuable, rare, costly to imitate, and nonsubstitutable resources and capabilities to compete against its rivals in one or more industries. Evidence indicates that both models yield insights that are linked to successfully selecting and using strategies. Thus, firms want to use their unique resources, capabilities, and core competencies as the foundation for one or more strategies that will allow them to compete in industries they understand. in order to retain their support. A firm earning below average returns must minimize the amount of support it loses from dissatisfied stakeholders. The I/O model also includes the five forces model of competition. This analytical tool is used to help firms select the most attractive industry in which to compete. According to the model, an industry’s profitability is a function of interactions among five forces: suppliers, buyers, competitive rivalry among firms currently in the industry, product substitutes, and potential entrants to the industry.
The Resource-Based Model of Above-Average Returns is the second model discussed in this chapter as a basis for a strategy to earn above-average returns. Resources are inputs into a firm’s production process - such as capital equipment, the skills of individual employees, patents, finances, and talented managers. There are 3 categories of resources: physical resources, human resources, and organizational capital resources.
Using the resources-based model, it is logical that a business would enter an industry in which it had competitive advantages. To become a competitive advantage, a resource must have four attributes. They are as follows. Resources are valuable when they allow a firm to take advantage of opportunities or neutralize threats in its external environment. They are rare when possessed by few, if any, current and potential competitors. Resources are costly to imitate when other firms either cannot obtain them or are at a cost disadvantage in obtaining them compared with the firm that already possesses them. And they are nonsubstitutable when they have no structural equivalents. Many resources can either be imitated or substituted over time. Therefore, it is difficult to achieve and sustain a competitive advantage based on resources alone. When these four criteria are met, however, resources and capabilities become core competencies.
After studying the external environment and the internal environment, the firm has the information it needs to form a vision and a mission. Stakeholders (those who affect or are affected by a firm’s performance, as discussed later in the chapter) learn a great deal about a firm by studying its vision and mission. Indeed, a key purpose of vision and mission statements is to inform stakeholders of what the firm is, what it seeks to accomplish, and who it seeks to serve. Vision is “big picture” thinking with passion that helps people feel what they are supposed to be doing in the organization. People feel what they are to do when their firm’s vision is simple, positive, and emotional, but a good vision stretches and challenges people as well. Vision statements reflect a firm’s values and aspirations and are intended to capture the heart and mind of each employee and, hopefully, many of its other stakeholders. The vision is the foundation for the firm’s mission.
Stakeholders are the individuals and groups who can affect the vision and mission of the firm, are affected by the strategic outcomes achieved, and have enforceable claims on a firm’s performance. Stakeholder relationships can be managed to be a source of competitive advantage. A firm’s stakeholders can be separated into at least three groups: capital market stakeholders (shareholders and the major suppliers of a firm’s capital), the product market stakeholders (the firm’s primary customers, suppliers, host communities, and unions representing the workforce), and the organizational stakeholders (all of a firm’s employees, including both nonmanagerial and managerial personnel). Capital market stakeholders - Shareholders and lenders expect a firm to preserve and enhance the wealth they have invested in it. The returns expected reflect the degree of risk. Dissatisfied lenders may impose stricter covenants on subsequent borrowing of capital or reflect their concerns through several means, including selling their stock. Product market stakeholders - Product market stakeholders include customers, suppliers, host communities, and unions. Organizational stakeholders - Employees—the firm’s organizational stakeholders—expect the firm to provide a dynamic, stimulating, and rewarding work environment. The education and skills of a firm’s workforce are competitive weapons affecting strategy implementation and firm performance. Strategic leaders - Strategic leaders are people located in different parts of the firm using the strategic management process to help the firm reach its vision and mission. Today, the effectiveness of the strategic management process increases when it is grounded in ethical intentions and behaviors.
Strategic leaders map an industry’s profit pool to anticipate the possible outcomes of different decisions and to focus on growth in profits rather than strictly growth in revenues. Analyzing the profit pool in the industry may help a firm see something others are unable to see by helping it understand the primary sources of profits in an industry.