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• Exam covers lessons 1-9.

Roger Martin: Why Do People Plan?

• People in corporations act like regular people.
• Data analytics can hinder change by reinforcing past trends.

Mental Models & Strategy

• Managers use mental models for decisions; outdated models can impede progress.
• Kodak's failure to adapt to digital photography exemplifies this.
• Persisting with ineffective models can lead to failure.
• Blockbuster’s downfall, due to ignoring streaming is an example vs Netflix thriving in adopting it
• Flexible thinking promotes innovation.
• Tesla revolutionized the automotive industry through this.
• Prioritizing unique value creation should be focused on instead of only focusing on beating competitors.
• Apple prioritizes user experience.
• Strategy and execution should be aligned.
• Amazon integrates logistics, AI, and customer service
• Corporate culture evolves through shared experiences.
• Google embodies an innovation-driven workplace.
• Experimentation should be encouraged.
• 3M allows employees 15% of their time for personal projects.
• Stock-based compensation can have flaws.
• Warren Buffett focuses on long-term value.
• Fulfilling customer needs is key to success.
• Airbnb disrupted hospitality.
• Strategies should be regularly updated, Google adapting shows this.

Strategic Planning & Management

• A business plan includes a vision/mission, goals, market strategy, financial plan, and operations plan.
• Strategic management involves environmental scanning with SWOT & PESTLE analysis, and strategy formulation during implementation, as well as being evaluated and controlled.

Key External Factors & Megatrends

• Emerging markets are influencing global business.
• Sustainability is now a vital business strategy amid resource scarcity.
• AI, automation, and digital transformation mark technological breakthroughs.
• Changing consumer behaviors and expectations define social change.
• Growth happens in metropolitan areas, shaping market dynamics through urbanization.

Marketing & Strategy

• Identifying customer needs is why marketing is core to success.
• Value needs to be created and delivered in order to build strong relationships,
• Marketing involves product, price, promotion, and place with the 4Ps expanded to include people, process, and physical evidence with the 7Ps.
• Porter's Five Forces are competitive rivalry, the threat of new entrants, the threat of substitutes, and then buyer & supplier power.
• Segmentation is utilized as a marketing tool.
• Unique market offerings distinguish the company from competitors.

Planning in Companies (SME & MNC)

• Strategic planning (3-5+ years) focuses on long-term growth, as shown by Amazon's healthcare expansion.
• Tactical planning (1-3 years) uses medium-term strategy as demonstrated by Nike's influencer marketing.
• Operational planning (short-term) is execution-focused, for example McDonald's staffing logistics.
• Contingency planning prepares for unexpected risks, like Tesla's pursuit of alternative battery suppliers

Market Entry Strategies

• Local purchasing is buying from local suppliers for export.
• Use export management for handling international sales for SMEs.
• Large-scale international trade utilizes trading companies.
• Foreign direct investment (FDI) establishes local operations abroad.

Key Planning Tools

• SWOT Analysis examines strengths, weaknesses, opportunities, and threats.
• PESTLE Analysis covers political, economic, social, technological, environmental, and legal factors.
• The Balanced Scorecard (BSC) measures performance and strategic alignment.
• SMART Goals that are specific, measurable, attainable, rewarded, and timed.

Customer-Centric Strategy

• Customer needs must be understood.
• Value and satisfaction is important for long-term loyalty.

AI & Future of Marketing

• AI is influencing automated content creation, and offers insights.
• Data analytics can drive personalized marketing campaigns.

Key Concepts in Management

• Planning, setting goals, and determining actions to achieve them is important.
• Resources are arranged to implement plans with the organizing aspect of management.
• Leading involves directing and motivating people.
• Monitoring performance and adjusting is important for managing the company.

Business Strategy

• Corporate strategy focuses on the overall purpose and scope of the business.
• Business-level strategy strategizes on how the business will be competitive in a market.
• Functional strategy plans specific strategies for departments like marketing, finance, and operations.

Business Plan & Understanding It

• The business plan outlines the company's vision, mission, and operational structure with it's key components:
• Overview the business with an executive summary.
• Explain the industry and company background with the business description.
• Research industry, the target audience, and competitors.
• Define Organizational Structure of the management team.
• Provide the product or service offering of what the business provides.
• Describe the marketing & financial strategy and the budget & revenue projections.

Porter's Five Forces

• Framework for competitive rivalry is about the intensity of the competition among existing competitors.
• The threat of new entrants looks at how easy it is for new firms to enter.
• Bargaining power assesses the supplier's influence over pricing, along with the influence customers have over pricing.
• The threat of substitutes includes that there are alternative products replacing existing ones.

Megatrends in Business

• Shifting to a digital transformation with AI, automation, and cloud computing.
• Sustainability requires environmentally responsible businesses.
• Expanding international trade and competition are included with globalization.
• Changes happen in aging populations and the workforce changes.
• New business models include subscription services and the gig economy,

Marketing Strategy

• Requires segmenting, dividing the market into distinct groups.
• Requires targeting, choosing which segments to focus on.
• Positioning requires knowing how the business wants to be perceived by customers.

Marketing Mix (4Ps)

• Product needs to have features design and a brand.
• Prices include various pricing strategies and discounts that can be applied.
• The business requires distribution channels and physical locations.
• Advertising & sales tactics are important.

Management Theories

• Efficiency and hierarchy needs to be emphasized with classical management theory.
• Employee motivation and teamwork needs to be emphasized with human relations theory.
• Management strategies should be varied based on the situation to promote contigency.

Leadership Styles

• Autocratic leadership makes decisions alone.
• Democratic leadership encourages team participation.
• Laissez-faire requires minimal supervision and has high autonomy.

Decision-Making Process

• Requires knowing the problem, then gathering the information.
• Developing the alternatives and evaluating it so that there is a choice.
• Implement the decision then monitor and adjust it if needed.