The document outlines the strategic management process in 6 steps: conducting external and internal analysis, formulating strategies, implementing strategies, and evaluating results. It also discusses types of organizational strategies including corporate growth strategies like diversification. Business-level strategies aim to achieve competitive advantage through differentiation, cost leadership, or focus. Porter's five forces model analyzes industry competition.
Strategic Management is the core course in MBA according to HEC recommended syllabus in Minhaj University, Lahore. and other HEC recognized Universities.
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
Strategic Management is the core course in MBA according to HEC recommended syllabus in Minhaj University, Lahore. and other HEC recognized Universities.
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
This is the first lecture of 40 lectures planned for Anna University/Anna University of Technology students of 3ed semester MBA. Please provide your comments. The required notes will be uploaded soon.
This is the first lecture of 40 lectures planned for Anna University/Anna University of Technology students of 3ed semester MBA. Please provide your comments. The required notes will be uploaded soon.
Types of Organizational Strategies (cont’d)
Discuss the BCG matrix and how it’s used.
Define SBUs and business-level strategies.
Describe the role of competitive advantage in business-level strategies.
Explain Porter’s five forces model.
Describe three generic competitive strategies.
Tell what it means to be stuck in the middle.
Define functional-level strategies.
Organization and Management Guide,Chapter 8 Strategic Management by Stephen Robbins and Mary Coulter Management Book 12th Edition, Pearson Publication.
Global marketing Plan External & Internal Analysis pptMoriba Touray
It should be apparent by now that companies and organizations planning to compete effectively in world markets need a clear and well-focused international marketing plan that is based on a thorough understanding of the markets in which the company is introducing its products. The challenge, then, of international marketing is to ensure that any international strategy has the discipline of thorough research, and an understanding and accurate evaluation of what is required to achieve a competitive advantage.
ORIGINAL WORK ONLY. APA FORMAT WITH ABSTRACT AND REFERENCES. BELOW.docxjohnbbruce72945
ORIGINAL WORK ONLY. APA FORMAT WITH ABSTRACT AND REFERENCES. BELOW IS THE ASSIGNMENT AND READING NOTES
Strategic Audit (Assignment)
The strategic audit system is a diagnostic tool to pinpoint an organization’s strengths and weaknesses. Use the Strategic Analysis Framework and other tools in order to conduct a strategic audit.
You might consider using a SWOT analysis for both companies to analyze each of their situations.
For this assignment, a mini strategic audit will be conducted for two companies with an overall goal to compare how each company differs in the strategy management and implementation, while identifying the importance of strategic management.
•Conduct a Strategic Audit on two companies of your choice that are within the same industry. During this audit, you will be comparing each company, to do so be sure to create a SWOT analysis for each company.
•In addition, visit each company’s website and conduct research to identify key strategies that each company has. List a brief introduction of each company, to include the Mission Statement and compare key aspects of each company.
•Be sure to include the concepts identified in the readings for this week's topics.
The requirements below must be met for your paper to be accepted and graded:
•Write between 850 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.
•Use font size 12 and 1” margins.
•Include cover page and reference page.
•At least 80% of your paper must be original content/writing.
•No more than 20% of your content/information may come from references.
•Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
•Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.
References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.
READING
Role of Strategy
The focus of this lecture will be on the concepts of strategic management, the framework for strategy analysis and the link between strategy and the industry environment.
The Concept of Strategy
Key questions to consider:
1.Why are decisions important?
2.What is strategic management?
3.Why has strategic management become so important to today’s corporations?
Strategic Management is described as a set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control.
Importance of Strategic Managem.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
3. L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.
Types of Organizational Strategies
• Explain the three growth strategies.
• Discuss the BCG matrix and how it’s used.
• Define SBUs and business-level strategies.
• Describe the role of competitive advantage in business-level
strategies.
• Explain Porter’s five forces model.
• Describe three generic competitive strategies.
8–3
4. L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.
Strategic Management in Today’s Environment
• Discuss the implications of dynamic and uncertain environments
on organizational strategy.
• Explain the rule of three and its significance to strategic
management.
• Describe strategies applying e-business techniques.
• Explain what strategies organization might use to become more
customer oriented to be more innovative.
8–4
5. Strategic Management
• The set of managerial decisions
and actions that determines
the long-run performance
of an organization.
8–5
6. Why Strategic Management Is
Important
1. It results in higher organizational
performance.
2. It requires that managers examine and
adapt to business environment changes.
3. It coordinates diverse organizational units,
helping them focus on organizational goals.
4. It is very much involved in the managerial
decision-making process.
8–6
8. Strategic Management Process
• Step 1: Identifying the organization’s current
mission, objectives, and strategies
– Mission: the firm’s reason for being
• The scope of its products and services
– Goals: the foundation for further planning
• Measurable performance targets
• Step 2: Conducting an external analysis
– The environmental scanning of specific and general
environments
• Focuses on identifying opportunities and threats
8–8
9. Components of a Mission Statement
• Customers: Who are the organization’s customers?
• Products or services: What are the organization’s major products or
services?
• Markets: Where does the organization compete geographically?
• Technology: How technologically current is the organization?
• Concern for survival growth, and profitability: Is the organization
committed to growth and financial stability?
• Philosophy: What are the organization’s basic beliefs, values, aspirations,
and ethical priorities?
• Self-concept: What is the organization’s major competitive advantage and
core competencies?
• Concern for public image: How responsive is the organization to societal
and environmental concerns?
• Concern for employees: Does the organization consider employees a
valuable asset?
Exhibit 8.2
Source: Based on F. David, Strategic Management, 8th ed. (Upper Saddle River, NJ: Prentice Hall, 2001), pp. 65–66.
8–9
10. PEST Analysis (external analysis)
• A scan of the external macro-environment in
which the firm operates can be expressed in
terms of the following factors:
• Political
• Economic
• Social
• Technological
8–10
11. Political Factors
• Political factors define both formal and informal rules under which the firm must
operate. Some examples include:
• tax policy
• employment laws
• environmental regulations
• trade restrictions and tariffs
• political stability
Economic Factors
• Economic factors affect the purchasing power of potential customers and the
firm's cost of capital. The following are examples;
• economic growth
• interest rates
• exchange rates
• inflation rate
8–11
12. Social Factors
• Social factors include the demographic and cultural aspects. These factors affect
customer needs and the size of potential markets. Some social factors include:
• health consciousness
• population growth rate
• age distribution
• career attitudes
• emphasis on safety
Technological Factors
• Technological factors can lower barriers to entry, reduce minimum efficient
production levels, and influence outsourcing decisions. Some technological factors
include:
• R&D activity technology incentives
• Automation rate of technological change
8–12
13. Strategic Management Process
(cont’d)
• Step 3: Conducting an internal analysis
– Assessing organizational resources, capabilities,
activities, and culture:
• Strengths (core competencies) create value for the
customer and strengthen the competitive position of
the firm.
• Weaknesses (things done poorly or not at all) can place
the firm at a competitive disadvantage.
• Steps 2 and 3 combined are called a SWOT analysis.
(Strengths, Weaknesses, Opportunities, and Threats)
8–13
14. SWOT Analysis
• A scan of the internal and external environment is an
important part of the strategic planning process.
• Environmental factors internal to the firm usually can be
classified as strengths (S) or weaknesses (W), and those
external to the firm can be classified as opportunities (O) or
threats (T).
• The SWOT analysis provides information in matching the
firm's resources and capabilities to the competitive
environment in which it operates.
8–14
15. A strength for a business could be:
• a new, innovative product or service
• location of your business
• quality processes and procedures
• any other aspect of your business that adds value to your
product or service.
A weakness could be:
• lack of marketing expertise
• location of your business
• poor quality goods or services
• damaged reputation
8–15
16. An opportunity could be:
• a developing market such as the Internet.
• mergers, joint ventures or strategic alliances
• moving into new market segments that offer improved profits
• a new international market
• a market vacated by an ineffective competitor
A threat could be:
• a new competitor
• price wars with competitors
• a competitor has a new, innovative product or service
• competitors have superior access to channels of distribution
• taxation is introduced on your product or service
•
8–16
17. SWOT / TOWS Matrix
• S-O strategies pursue opportunities that are a good fit to the company's
strengths.
• W-O strategies overcome weaknesses to pursue opportunities.
• S-T strategies identify ways that the firm can use its strengths to reduce its
vulnerability to external threats.
• W-T strategies establish a defensive plan to prevent the firm's weaknesses
from making it highly susceptible to external threats.
8–17
18. Strategic Management Process
(cont’d)
• Step 4: Formulating strategies
– Develop and evaluate strategic alternatives
– Select appropriate strategies for all levels in the
organization that provide relative advantage over
competitors
– Match organizational strengths to environmental
opportunities
– Correct weaknesses and guard against threats
8–18
19. Strategic Management Process
(cont’d)
Step 5: Implementing strategies
◦ Implementation: effectively fitting organizational
structure and activities to the environment
◦ The environment dictates the chosen strategy;
effective strategy implementation requires an
organizational structure matched to its requirements.
Step 6: Evaluating Results
◦ How effective have strategies been?
◦ What adjustments, if any, are necessary?
8–19
20. Types of Organizational Strategies
• Corporate-Level Strategies
– Top management’s overall plan for the entire
organization and its strategic business units
• Types of Corporate Strategies
– Growth: expansion into new products and markets
– Stability: maintenance of the status quo
– Renewal: redirection of the firm into new markets
8–20
21. Corporate-Level Strategies
• Growth Strategy
– Seeking to increase the organization’s business by
expansion into new products and markets.
• Types of Growth Strategies
– Concentration
– Vertical integration
– Horizontal integration
– Diversification
8–21
22. Growth Strategies
Concentration
◦ Focusing on a primary line of business and increasing
the number of products offered or markets served.
Vertical Integration
◦ Backward vertical integration: attempting to gain
control of inputs (become a self-supplier).
◦ Forward vertical integration: attempting to gain control
of output through control of the distribution channel
and/or provide customer service activities (eliminating
intermediaries).
8–22
23. Growth Strategies (cont’d)
Horizontal Integration
◦ Combining operations with another competitor in the
same industry to increase competitive strengths and
lower competition among industry rivals.
Related Diversification
◦ Expanding by merging with or acquiring firms in
different, but related industries that are “strategic fits”.
Unrelated Diversification
◦ Growing by merging with or acquiring firms in
unrelated industries where higher financial returns are
possible.
8–23
24. Growth Strategies (cont’d)
• Stability Strategy
– A strategy that seeks to maintain the status quo to
deal with the uncertainty of a dynamic
environment, when the industry is experiencing
slow- or no-growth conditions, or if the owners of
the firm elect not to grow for personal reasons.
8–24
25. Growth Strategies (cont’d)
• Renewal Strategies
– Developing strategies to counter organization
weaknesses that are leading to performance declines.
• Retrenchment: focusing of eliminating non-critical
weaknesses and restoring strengths to overcome current
performance problems.
• Turnaround: addressing critical long-term performance
problems through the use of strong cost elimination
measures and large-scale organizational restructuring
solutions.
8–25
26. Corporate Portfolio Analysis
• BCG Matrix
– Developed by the Boston Consulting Group
– Considers market share and industry growth rate
– Classifies firms as:
• Cash cows: low growth rate, high market share
• Stars: high growth rate, high market share
• Question marks: high growth rate, low market share
• Dogs: low growth rate, low market share
8–26
28. Business-Level Strategy
• Business-Level Strategy
– A strategy that seeks to determine how an
organization should compete in each of its SBUs
(strategic business units).
8–28
29. The Role of Competitive Advantage
• Competitive Advantage
– An organization’s distinctive competitive edge that is
sourced and sustained in its core competencies.
• Quality as a Competitive Advantage
– Differentiates the firm from its competitors.
– Can create a sustainable competitive advantage.
– Represents the company’s focus on quality
management to achieve continuous improvement and
meet customers’ demand for quality.
8–29
30. The Role of Competitive Advantage
(cont’d)
• Sustainable Competitive Advantage
– Continuing over time to effectively exploit
resources and develop core competencies that
enable an organization to keep its edge over its
industry competitors.
8–30
31. Forces in the Industry
Analysis
Source: Based on M.E. Porter, Competitive Strategy: Techniques for Exhibit 8.6
Analyzing Industries and Competitors (New York: The Free Press, 190).
8–31
32. Five Competitive Forces
• Threat of New Entrants
– The ease or difficulty with which new competitors can
enter an industry.
• Threat of Substitutes
– The extent to which switching costs and brand loyalty
affect the likelihood of customers adopting substitutes
products and services.
• Bargaining Power of Buyers
– The degree to which buyers have the market strength
to hold sway over and influence competitors in an
industry.
8–32
33. Five Competitive Forces
• Bargaining Power of Suppliers
– The relative number of buyers to suppliers and
threats from substitutes and new entrants affect
the buyer-supplier relationship.
• Current Rivalry
– Intensity among rivals increases when industry
growth rates slow, demand falls, and product
prices descend.
8–33
34. Competitive Strategies
Cost Leadership Strategy
◦ Seeking to attain the lowest total overall costs relative
to other industry competitors.
Differentiation Strategy
◦ Attempting to create a unique and distinctive product
or service for which customers will pay a premium.
Focus Strategy
◦ Using a cost or differentiation advantage to exploit a
particular market segment rather a larger market.
8–34
35. Strategic Management Today
• The Rule of Three
– The competitive forces in an industry, if
unfettered, will inevitably create a situation where
three companies (full-line generalists) will
dominate any given market
– Some firms in the same market become super
niche players and while others end up as “stuck-in-
the-ditch” bottom dwellers.
8–35
36. Strategies for Applying e-Business
Techniques
• Cost Leadership
– On-line activities: bidding, order processing,
inventory control, recruitment and hiring
• Differentiation
– Internet-based knowledge systems, on-line
ordering and customer support
• Focus
– Chat rooms and discussion boards, targeted web
sites
8–36
37. Customer Service Strategies
• Giving the customers what they want.
• Communicating effectively with them.
• Providing employees with customer service
training.
8–37