Strategic management for tu mbs

June 22, 2013 rijalcpr@gmail.com:9851105671 1
STRATEGIC MANAGEMENT
Teaching Notes
on
Strategic Management
for TU MBS
C. P. Rijal, PhD
Associate Professor
STRATEGIC MANAGEMENT
Teaching Notes
on
Strategic Management
for TU MBS
C. P. Rijal, PhD
Associate Professor

Unit I: Introduction
Unit Coverage
1. Evolution of strategic management
2. Characteristics of strategic decisions
3. Mintzberg’s model of strategic decision-making
4. Components of strategic management: planning,
implementation and control
5. Importance of strategic implementation in Nepal
6. Strategic plan: mission, objectives, strategies
7. Levels of objectives and strategies
8. Role of CEO in strategic management

Evolution of strategic management
° Integral part of overall management process.
° Planning process to deal with the rapid change in
the environment.
° Has close associations with budgeting (early 1990s),
long-range planning (1950s), and strategic planning
(1960s), and is developed since mid 1980s.
° A proactive, reactive, and futuristic management
process.
° Emphasizes the strategy development needs to be
driven by the market and its environment rather than
limiting to only internal orientation.

June 22, 2013 cprijal@hotmail.com:2001015 4
Strategic Market Management …
° Developed along with the evolution of various
management systems.
° Follows the evolution of Budgeting, Long-
Range Planning, and Strategic Planning.
° Sometimes all these terms are used
interchangeably.

Business Strategy
O The means an organization uses to achieve its
objectives
O Serves as a tool for the implementation of
management’s concept of business scope, mission,
purpose, and objectives
O Formula in running whole business
O A direction for the organization both in shorter as well
as long run

Strategic Management Aims at:
° How to influence the external factors and make
them supportive to the operations of the
organization, and how to most efficiently and
effectively use the internal forces whereby the
resources (strengths) are best utilized to
achieve the highest possible rate of
productivity for the organization.

Characteristics of strategic decisions
The following are some of the major features of strategic
decisions:
1. External, Market Orientation
2. Proactive Strategies
3. Emphasis on Information System
4. On-Line Analysis and Decision Making
5. Entrepreneurial Thrust
6. Strategic Fitness in Implementation
7. Matching with the Global Realities
contd…

Characteristics contd…
8. Longer Time Horizon
9. Empirical Research Based
10. Interdisciplinary Developments --
Marketing
Organizational Behavior
Finance and Accounting
Economics
Strategy

A Business Strategy Specification
Includes the determination of:
1. The product market in which the business is to compete
2. The level of investment
3. The functional area strategies needed to compete in the
selected product market
4. The strategic assets or competencies that underline the
strategy and provide sustainable competitive advantage (SCA)
Multiple Businesses
5. The allocation of resources over the business units
6. The development of synergistic effects across the business-the
creation of value by having business units that support and
complement each other.

Mintzberg’s model of strategic decision components
 Mintzberg focused on:

Mintzberg’s model of strategic decision-making
 Mintzberg focused on:

Components of Strategic Management
Planning and development
Implementation
Control
(Please follow the detailed diagram developed
in class)

Components and Process of Strategic Market Management
Strategic Analysis
External Analysis
1. Customer analysis
2. Competitor analysis
3. Market analysis
4. Environmental analysis
Strengths, weaknesses, stg. problems,
constraints, and uncertainties
Opportunities, threats, trends,
and strategic uncertainties
Internal Analysis
1. Performance analysis
2. Determinants of strategic options
Strategy Identification and Selection
Determination of Marketing Strategies
Marketing Planning, Implementation and Control

Importance of strategic thinking in Nepal
 Strategic management aims at bringing in system
thinking practices in business whereas Nepal is yet to
establish its national constitution.
 Strategic management provides with external,
proactive view of managing institutions, whereas
most of the Nepalese institutions are yet to be
managed with specific norms and operating
standards.
 Strategic management aims to provide inputs on how
to compete in competitive environment, whereas
Nepalese institutions are yet to understand the value
of competing in business.
 Most essential in every sector.

Strategic Plan: Mission, Objectives and Strategies
Follow the subsequent slides

Components of Corporate Strategy
1. Scope, mission, and intent
2. Objectives
3. Development strategy
4. Resources allocation
5. Source of synergy

1. Scope, mission, and intent
* What business should the firm be in?,
* What customer needs, market segments,
and/or technologies should the firm focus on?,
and
* What should be the ending purpose or the
intent of the firm?

Market
Oriented
Market
Oriented
Fit Market
Environment
Fit Market
Environment
MotivatingMotivating RealisticRealistic
Distinctive
Competencies
Distinctive
Competencies
SpecificSpecific
Characteristics
of Good Mission
Statements
Characteristics
of Good Mission
Statements
Mission
Statements
Mission
Statements

2. Objectives
* What performance dimensions should the
firm’s business units and employees focus
on?,
* What is the target level of performance to be
achieved on each dimension?, and
* What is the timeframe in which each target
should be attained?

The Characteristics of Business Objectives
Every business objective should be:
S = Specific
M = Measurable
A = Achievable
R = Realistic
T = Time-bounded

3. Development Strategy
* How can the firm achieve the desired level of
growth over time?,
* Can the desired growth be attained by
expanding the firm’s current businesses?, and
* Will the company have to diversify into new
businesses or product-markets to achieve its
future growth objectives?

4. Resources Allocation
* How should the firm’s limited financial
resources be allocated across its businesses
to produce the highest returns? and
* Of the alternative strategies that each business
might pursue, which will produce the greatest
returns for the dollars invested?

5. Sources of Synergy
* What competencies, knowledge, and customer
based intangibles (e.g., brand recognition,
reputation, loyalty, etc.) might be developed and
shared across the firm’s businesses? and
* What operational resources, facilities, or functions
(e.g., plants, R&D, salesforce, etc.) might the firm’s
business share to increase their efficiency?

Levels of objectives and strategies
Corporate LevelCorporate Level: Grand strategies and grand objectives;
corporate plans
Business LevelBusiness Level: Strategic business unit or product
category-wise strategies and objectives; business
development plans
Product/service levelProduct/service level : Bottom-line action programs to
develop and promote products and services; Tactical
action plans;

Role of CEO in strategic management
 Taking business risks making strategic decisions
 System visualization or system thinking
 Promoting institutional innovation, change and
development
 Responding to environmental changes and taking
charge of organizational success or failure
 Responding with accountability and responsiveness

Some Strategic Challenges to Managers:
° Management has a distinctive and farsighted view,
rather than a conventional and reactive view, about
the future.
° Senior management focuses regenerating core
strategies rather than reengineering core processes.
° Competitors view the company as a rule maker
rather than a rule follower.
° The company’s strength is on innovation and
growth rather than on operational efficiency.
° The company is mostly out in front rather than
catching up.

Needs/Importance of Strategic Management
Despite the involvement of high cost, strategic
management has the potential to:
• Precipitate the concept of strategic choices,
• Force a long-range view,
• Make visible the resources allocation decision,
• Aid strategic analysis and decision making,
• Provide a strategic management and control system,
• Provide both horizontal and vertical communication
and coordination systems, and
• Help a business cope with changes.

Unit II: External Environment AnalysesUnit II: External Environment Analyses
1. Nature of environment: remote and operating
environment
2. Process of environmental scanning
3. Techniques of environmental analyses:
PESTEL, Scenario planning, Porter’s Five
Forces Model, environmental threat and
opportunity planning (ETOP)

1.1. Nature of environment: remote andNature of environment: remote and
operating environmentoperating environment
 Basically, the business environment comprises
of micro and macro environment.
 The macro environment is referred to as
remote environment and micro environment is
referred to as operating or internal
environment.
 Please follow the detailed diagram developed
in class.

2. Process of environmental scanning2. Process of environmental scanning

Strategic Analysis
External Analysis
3. Market analysis
Internal Analysis

Strategic Analysis
External AnalysisExternal Analysis
1. Customer AnalysisCustomer Analysis: segmentation, consumer
motivations, and unmet needs analysis.
2. Competitor AnalysisCompetitor Analysis: identifying, evaluating
and dealing with competitors.
3. Market AnalysisMarket Analysis: market size, market growth,
market profitability, cost structure,
distribution system, market trends, key factors
for success, and risks in high growth markets.
4. Environmental AnalysisEnvironmental Analysis: dimensions,
forecasting environmental trends and events,
analyses of strategic uncertainty, impact, and
scenarios.
Internal AnalysisInternal Analysis
5. Performance analysesPerformance analyses: shareholder value
analysis, sales and profitability analysis

3. Techniques of environmental analyses:
PESTEL, Scenario planning, Porter’s Five
Forces Model, environmental threat and
opportunity planning (ETOP)

PEST analysis
• Political factors
• Economic factors
• Socio-cultural factors
• Technological factors

Political/legal
• Monopolies legislation
• Environmental protection laws
• Taxation policy
• Employment laws
• Government policy
• Legislation
• Others?

Economic Factors
• Inflation
• Employment
• Disposable income
• Business cycles
• Energy availability and cost
• Others?

Socio-Cultural Factors
• Demographics
• Distribution of income
• Social mobility
• Lifestyle changes
• Consumerism
• Levels of education
• Others?

Technological Factors
• New discoveries and innovations
• Speed of technology transfer
• Rates of obsolescence
• Internet
• Information technology
• Others?

SCENARIO ANALYSIS
Scenario Analysis can be divided into four elements:
• Identify Scenarios
• Develop Scenario Strategies
• Estimate Scenario Probabilities
• Perform Regret Analysis

1. Identify Scenarios
It is important to reduce the number of scenarios by
identifying a small set that ideally includes those
that are plausible/credible and those that represent
departures from the present that are substantial
enough to affect strategy development.
2. Develop Scenario Strategies
After scenarios have been identified, the next step is
to relate them to strategies – both existing strategies
and new options.

3. Estimate Scenario Probabilities
¤ To evaluate alternative strategies it is useful to
determine the scenario probabilities.
¤ Experts could be asked to assess probabilities
directly.
4. Perform Regret Analysis
The final step is to compare the expected outcomes
of each strategy if the wrong scenario emerges.

Forecasting Environmental Trends and Events
• Asking the Right Questions
• Trend Extrapolation
• Asking Experts
• Decomposing the Task
• Cross-Impact Analysis

Strategic Uncertainty
¤ Strategic Uncertainty may result from a typical
external analysis or sometimes the strategic
uncertainty is represented by a future trend or event
that has inherent unpredictability.
¤ To deal with strategic uncertainty, impact analysis
and scenario analysis can be employed.

Impact Analysis
¤ The extent to which a strategic uncertainty should
be monitored and analyzed depends on its impact
and immediacy.
¤ The impact of a strategic uncertainty is related to:
* The extent to which it will impact existing or
potential SBUs (strategic business units)
* The importance of the involved SBUs
* The number of involved SBUs.

Impact Analysis contd . . .
• The immediacy of a strategic uncertainty is related
to
- The probability that the involved trends or
events will occur.
- The time frame of the trends or events.
- The reaction time likely to be available,
compared with the time required to develop
and implement appropriate strategy

Managing Strategic Uncertainties
If both the immediacy and impact are low, then a
low level of monitoring may be appropriate.
If the impact is thought to be low but the immediacy
is high, then monitoring and analysis may be
appropriate.
If the immediacy is low and the impact high, then
monitoring and analysis in more depth and
contingent strategies may be considered.
When both the immediacy and potential impact of
the underlying trends and events are high, then an
in-depth analysis will be appropriate, as will be the
development of reaction plans or strategies.

Porter’s Five Forces Analysis
Threats of Potential
New Entrants
Competition Among
Existing Firms
Bargaining
Power
of Suppliers
Bargaining
Power
of Customers
Threats of
Substitute
Products

Source: Adapted from M. E. Porter, Competitive Strategy, Free Press, 1980, p. 4. Copyright by The
Free Press, a division of Macmillan Publishing Co., Inc. Reproduced with permission.
Threat ofThreat of
substitutessubstitutes
Potentia
l
entrants
Threat ofThreat of
entrantsentrants
Suppliers
BargainingBargaining
powerpower
Substitutes
Buyers
BargainingBargaining
powerpower
COMPETITIVE
RIVALRY
Five forces analysis

The Threat of Entry ...
Dependent on barriers to entry such as:
• Economies of scale
• Capital requirements of entry
• Access to distribution channels
• Cost advantages independent of size (eg the
“experience curve”)
• Expected retaliation
• Legislation or government action
• Differentiation

Buyer power is likely to be high when:
• There is a concentration of buyers
• There are many small operators in the
supplying industry
• There are alternative sources of supply
• Components or materials are a high
percentage of cost to the buyer leading to
“shopping around”
• Switching costs are low
• There is a threat of backward integration

Supplier power is high when:
• There is a concentration of suppliers
• Switching costs are high
• The supplier brand is powerful
• Integration forward by the supplier is possible
• Customers are fragmented and bargaining
power low

Threat of Substitutes
Substitutes take different for:
• Substitution of need
• Generic substitution
• Doing without

Competitive rivalry is high when:
• Entry is likely
• Substitutes threaten
• Buyers or suppliers exercise control
• Competitors are in balance
• There is slow market growth
• Global customers increase competition
• There are high fixed costs in an industry
• Markets are undifferentiated
• There are high exit barriers

Five Forces Analysis: Key Questions and Implications
• What are the key forces at work in the competitive
environment?
• Are there underlying forces driving competitive
forces?
• Will competitive forces change?
• What are the strengths and weaknesses of
competitors in relation to the competitive forces?
• Can competitive strategy influence competitive
forces (eg by building barriers to entry or reducing
competitive rivalry)?

Unit III: Internal Environment AnalysesUnit III: Internal Environment Analyses
1. Corporate resources analyses for strengths and weaknesses:
marketing, HR, production and operations, finance and
accounting
2. Process of corporate appraisal: concept of available resources,
threshold resources, unique resources, core competencies,
and strategic advantage
3. Techniques for internal analyses: value chain analyses (cost
efficiency and product features)
4. Comparative analyses: historical comparison, industry
standards, benchmarking, robustness, strategic advantage
profile (SAP)

Internal Analysis
Structuring Strategic Decisions
Organizational
strengths and
weaknesses
Environmental
opportunities
and threats
Market needs, attractiveness,
and key success factors
Strategic Decisions
* Strategic investment decisions
* Financial area strategies
* Sustainable competitive advantages

Internal Analysis
Performance Analysis
1. Shareholder Value Analysis
2. Financial Performance - Sales and Profitability
3. Performance Measurement - Beyond Profitability
4. Determinants of Strategic Options
5. From Analysis to Strategy
6. Business Portfolio Analysis

Why Do Companies Fail?
What went wrong?
– Inertia (resistant to change)
– Prior strategic commitments
– The icarus paradox
Avoiding failure and
sustaining competitive
advantage:
– Focus on the building blocks of
competitive advantage.
– Institute continuous improvement
and learning.
– Track best industrial practice and
use benchmarking.
– Overcome inertia.

Shareholder Value Analysis
How competent the firm is to create various values
to shareholders
Key values to the shareholder are:
1. Profit maximization, and1. Profit maximization, and
2. Increment of worth of the share per unit2. Increment of worth of the share per unit
Other important values to the shareholders may be
Business/product diversification
Goodwill
Brand recognition, and so on ….

Competitive Advantage: Value Creation, Low Cost,
and Differentiation
• Competitive advantage is a firm’s ability to
outperform its competitors (earn higher profits).
• The source of competitive advantage is value
creation for customers.
• Sustained competitive advantage comes from
maintaining higher profits than competitors over
long periods of time.
• Sustained competitive advantage leads to higher
shareholder value.

Value Creation

Financial Performance - Sales and Profitability
The Determinants
1. Sales and Market Share
2. Profitability
3. Good Performance
4. Economic Value Added

Return on Capital Employed for Selected U.S.
Department Stores, 1989-1998
Source: Data from Value Line Investment Survey

Performance Measurement - Beyond Profitability
Some Indicators
1. Customer satisfaction and brand loyalty
2. Product service quality
3. Brand and firm associations
4. Relative costs
5. New product activity
6. Manager/employee capability and performance

Performance Measurement Beyond Profitability
It is very important to develop performance
indicators that convincingly represent the long term
prospect.
Customer satisfaction/brand loyalty are the keys
It indicates how customers really feel about the firm.

Guidelines for measuring satisfaction and loyalty
 problems and causes of dissatisfaction should be
identified
 exit interviews should be taken
 size and intensity of the customer group that truly likes a
brand should be known.
 measures should be tracked

Product and service quality
 how good a value it is?
 can it really deliver superior performance?
 how does it compare with competitor offerings?
 how will it compare with competitor offerings in the future
give competitive innovations?

performance measurement
• brand/firm associations
 what are its associations?
 what is the perceived quality?
• relative cost
• average costing
 in average costing some elements of fixed or semi
variable costs are not carefully allocated but
instead are averaged over total production

performance measurement
• new product activity
• manager/employee capability and
performance
 human factor is very important as they are the
ones who implement the strategies
 does the human resource support the current and
future strategies?
 does new employees match the needs of the
organization?

Generic Building Blocks of Competitive Advantage

Generic Building Blocks of Competitive Advantage:
Efficiency
Efficiency = Outputs/Inputs
For many firms, EE productivity is key (output per
employee)
Increased efficiency requires strategy, structure and
controls (and a strong functional production or
operations program)
Efficiency is “critical” for cost leaders (eg. Wal-
Mart) but still very important for others

Competitive Advantage: Customer Responsiveness
• Superior Customer Responsiveness is a function
of:
Quality, and
Innovation in design, service, etc.
• Often measured by:
Response time, and
Adaptability

Competitive Advantages: Innovation
• Perhaps the most important building block of
competitive advantage: may drive greater innovation
leading to higher prices via differentiation or simply
better processes leading to lower costs.
• Companies can’t afford to sit still
• Innovation includes advances in products,
processes, management systems, organizational
structure, strategies, etc

Competitive Advantage: Quality
• Quality drives profits in two ways:
Increased reliability which leads to higher prices
due to perceived higher quality
Increased productivity due to lower re-work,
returns and rejection rates leading to lower costs
(zero defects)
• Higher prices plus lower costs means more profits

Choice of functional strategy and policies

The Impact of Efficiency, Quality, Innovation, and
Customer Responsiveness on Unit Costs and Prices

Figure misses the role played by finance and accounting/Information systems
as support services
The Value Chain (Business Functions)

Distinctive Competencies, Resources, and Capabilities
The roots of competitive advantage

Strategy and Competitive Advantage
The relationship between strategies and resources and
capabilities:

Strategic Resources: Two Types
• Tangible
– Land
– Buildings
– Plant
– Equipment
• Intangible
– Brand names
– Reputation
– Patents
– Technological or
marketing know-how

Resources and Capabilities
Skills in effectively coordinating and managing
resources for productive use.
– UniqueUnique resources and capabilities, or, at a
minimum,
– CommonCommon resources and
unique capabilitiescapabilities
– Best if have both.

The Durability of Competitive Advantage
• Barriers to imitation (Slows the speed of imitation by
competitors in reducing advantage)
– Imitation by acquiring similar resources
– Imitation of capabilities (more difficult)
• Limits on competitors
– Prior strategic commitments
– Absorptive capacity for change
• Industry dynamism
– The rapid innovation
shortens product life cycles.

Durability of Competitive Advantage
• Durability is dependent upon:
- height of barriers to imitation
- capability of competitors to imitate innovation
- general level of industry dynamism

Analysis of Strategic Options
Determinants of Strategic OptionsDeterminants of Strategic Options
1. Past and current strategies
2. Strategic problems
3. Organizational capabilities and constraints
4. Financial capabilities and constraints
5. General strengths and weaknesses

Business Portfolio Analysis
The Components
1. The Market Attractiveness - Business Position
Matrix
a. Evaluate the abilities to compete
b. Evaluate the market attractiveness

business portfolio analysis
• it provides a structured way to evaluate business
units on two key dimensions
• attractiveness of the market involved and
• strength of the firms position in that market
• the market attractiveness-business
position matrix
 it is a formal, structured way to match a firm’s
strength and market opportunities.

business portfolio analysis
• Applying the matrix
• logical alternatives in structuring strategies
 invest to bold
 invest to penetrate
 invest to rebuild
 selective investment
• The BCG Growth Share Matrix.

Unit IV: Strategic Options
1. Generating alternative strategies using SWOT analyses
2. Corporate strategies: stability, growth (related and unrelated
diversification), retrenchment strategies
3. Porter’s competitive strategies
4. Strategy clock (low price, differentiation, hybrid, focused
differentiation, and failure strategies)
5. Sustainable competitive advantages (SCAs)
6. Comparative collaborative strategies
7. Directions for strategy development: consolidation, market
penetration, product development, market development and
diversification
8. Methods of strategy development: internal development,
mergers and acquisition, joint-venture and strategic alliances

SWOT Analysis
• Strengths (internal)
• Weaknesses (internal)
• Opportunities (external)
• Threats (external)

SWOT ANALYSIS
The Components of SWOT Analysis
SWOT
Analysis
Innovation
Financing
Access to
Capital
Marketing
Customer
Base
Management
Manufacturing

SWOT ANALYSIS
Innovation
Technical or product/service superiority
R&D
New product capabilities and new technologies
Patents
Manufacturing
Cost structure
Production flexibility and capacity
Equipment
Access to raw materials
Vertical integration
Workforce attitude and motivation

SWOT ANALYSIS
Finance
From operations
From net short-term assets
Ability to use debt and equity financing
Parent’s willingness to finance
Management
Top and middle management quality
Organizational culture, strategy, goals, plans, tactics
Knowledge, skill, capability
Employee motivation and turnover
Quality of strategic decision-making

SWOT ANALYSIS
Marketing
Product quality, brand image, differentiation
Customer focus, service and support
Quality of segmentation
Product line length, depth, width, and capability
Market networks and relationship
Sales force motivation and loyalty
Customer Base
Size or market share, loyalty
Growth of segments served

Generic Building Blocks of Competitive Advantage

The Impact of Efficiency, Quality, Innovation, and Customer
Responsiveness on Unit Costs and Prices

Comparative Collaborative Strategies
 In collaborative strategies, the firms with
similar interests or having similar strengths
work together to consolidate their strengths so
as to counter the threats or take benefits of the
prevailing opportunities by the help of
collective efforts.
 In most of such instances, the firms intend to
take benefits of their comparative strengths.

Directions for strategy developmentDirections for strategy development
ConsolidationConsolidation is a strategic direction in which a firm attempts to
consolidate its entire efforts and resources in one or two
offerings at a time so as to perform the best in the category.
In market penetrationmarket penetration, the firm applies very low cost strategy
and attempts to reach every corner of the marketplace so as to
occupy a comfortable market share, mostly in the case of new
launch consumer goods and other convenience items.
Product development follows a process of developing new
product or making some changes in existing product after
experiencing negative effect of product life cycle maturity, most
of the cases.

Directions for strategy developmentDirections for strategy development
Market developmentMarket development strategy seeks exploring
new markets for existing product offerings by
converting the non-users into users or
exploring into completely new market
segments.
DiversificationDiversification refers to simply expansion, and
expansion may take place at product and/or
market level.

Methods of strategy developmentMethods of strategy development
Internal developmentInternal development refers to internally strengthening the firm
by means of research, innovation, new product development
and strategy revisits.
Mergers and acquisitionMergers and acquisition is another popular mode of strategic
development whereby the firm gets itself strengthened either
by getting merged with other firm/s, and acquiring other firms
into self.
Joint-ventureJoint-venture is another mode of strategic strengthening
whereby an existing firm joins hands with national or
international venture partners.
In strategic alliancesstrategic alliances, the firms with similar interests and
operating specializations join hands together for some
purpose.

Unit V: Strategy Evaluation and Choice
1. Evaluation criteria: suitability, acceptability
(return on risk and stakeholder reaction), and
feasibility.
2. Portfolio analyses for strategic choices: BCG
growth share matrix, GE business screen,
Hofer’s product market evolution matrix
3. Choices of functional strategies and policies

Evaluation Criteria
 While evaluating the strategic development and
execution, we must pay attention on potential risk and
return associated to the business.
 Suitability and acceptability of the firm and its offering
also need be assessed from the perspectives of the
investor, maker and marketer.
 We also should assess the general reaction pattern of
the key internal and external stakeholders.
 Finally, social, financial and developmental feasibility
also need to be made one of the bases.

Portfolio Analyses for Strategic Choices
1. BCG growth share matrix,
2. GE business screen,
3. Hofer’s product market evolution matrix

BCG growth share matrix
1. xx

1. xx

GE business screen
1. GE

Unit VI: Strategy Implementation and ControlUnit VI: Strategy Implementation and Control
1.Process of Strategy implementation
2.Organizational structure for strategy
implementation
3.Managing strategic change
4.Strategic control

Process of Strategy implementation

Organizational structure for strategy
implementation
Here, you should briefly review the various types
of organizational structures and relate the
relevant functional strategies per structural
design.

Managing strategic change

Strategic control

Strategic Analysis
External Analysis
3. Market analysis
Internal Analysis

Strategic Analysis
External AnalysisExternal Analysis
1. Customer AnalysisCustomer Analysis: segmentation, consumer
motivations, and unmet needs analysis.
2. Competitor AnalysisCompetitor Analysis: identifying, evaluating
and dealing with competitors.
3. Market AnalysisMarket Analysis: market size, market growth,
market profitability, cost structure,
distribution system, market trends, key factors
for success, and risks in high growth markets.
4. Environmental AnalysisEnvironmental Analysis: dimensions,
forecasting environmental trends and events,
analyses of strategic uncertainty, impact, and
scenarios.
Internal AnalysisInternal Analysis
5. Performance analysesPerformance analyses: shareholder value
analysis, sales and profitability analysis

Strategic management for tu mbs

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