Fundamentals of Strategic Management - UFV Madrid

Fundamentals of Strategic Management

• This course is titled Fundamentals of Strategic Management and is offered in the academic year 2024-2025 by Ángel Araujo, PhD.
• The course is part of the IR1 curriculum at the Universidad Francisco de Vitoria UFV Madrid.

Learning Goals

• Students should define the key concepts of strategy.
• Students should identify phases involved in the strategic management process and analyze any potential advantages.
• Students should analyze the process rationale and the important factors that impact it.
• Students should develop a framework for strategic management that combines economic rationality and organizational aspects.

Index - Structural Pillars

• The course is structured around strategic decisions, the strategy management process and its responsibilities, and strategic management as a field of study.

Index

• Additional topics include a detailed study of about strategic management, the concepts of strategy, other major concepts, levels of strategy, and the characteristics of strategic decisions.

Strategic Analysis

• Strategic analysis involves research into a company and its environment to formulate a strategy.
• This research includes identifying and evaluating relevant company data.
• It also involves analyzing both internal and external environments to evaluate data.
• Methods such as Porter's Five Forces analysis, SWOT analysis, and value chain analysis are used.

Strategic Formulation

• Strategic formulation is a critical process where the company analyzes its internal and external environments to define clear objectives.
• The process involves considering the integration of insights from various functional areas to create strategies aligned with the organization's mission and vision.
• The goal of formulation is to create a competitive advantage, increase sustainability, and increase the company's chances of future growth.

Strategic Implementation

• Strategic implementation is the act of putting a plan into action.
• It involves executing a plan to achieve a desired goal.
• The process is heavily dependent on feedback and status reports to ensure the strategy is effective.
• Strategy implementation is important for taking action, showing the viability of strategies, improving communication, and team development.

The Concept of Strategy

• Strategy is the complex interaction between a company and its environment.
• It defines the actions taken to achieve goals and increase performance through effective use of resources.

Key Point

• Strategy is not static; it involves ongoing adjustments and adaptation to the environment.
• Strategy considers the firm's interaction with its surrounding environment.
• Strategy focuses on improving a firm’s performance and the benefits to stakeholders

Additional Ideas

• A firm seeks to improve its performance for long-term direction.
• It also aims to effectively manage its resources and capabilities.
• Defining the scope of the firm is vital for effective strategic decision-making.

Why Strategic Decisions Are Important

• Strategic decisions often involve high uncertainty in the current business environment.
• Strategic decisions require a holistic approach to the organization.
• Strategic decisions are complex, involving many factors requiring a detailed analysis.

Levels of Strategy

• Corporate strategy is the highest level, focusing on a company's overall goals, direction, and scope.
• Business unit strategy is focused on the segments and products/services in each unit to attain a competitive advantage.
• Functional strategy details the methods of functions such as operations, marketing, and finance to support the overall business units/objectives.

Competitive Strategies

• Competitive strategies are used to create a competitive advantage, defining the scope of what the company wants to achieve in the future.
• This level of strategy considers how a business creates and sustains advantage.
• The strategy is composed of elements such as resources, tangibles, and capabilities.

Functional Strategies

• These strategies focus on the functional areas of a business-operations, marketing, finance, and human resources and technology- and how to use and apply resources and capabilities effectively.

Explore the key concepts and phases of strategic management in this course offered by Ángel Araujo, PhD. Students will analyze strategic management processes and develop a comprehensive framework that melds economic rationality with organizational dynamics. Enhance your understanding of the responsibilities associated with strategic decision-making.