Strategic Analysis and Management

Questions and Answers

To formulate a strategy based on short-term goals

To gather data to inform long-term strategy and goals (correct)

To focus solely on gaining a competitive advantage

To prioritize functional-level decisions over others

Industry-level strategy

Functional-level strategy (correct)

Business-level strategy

Corporate-level strategy

It allows for both competitive and cooperative strategies (correct)

It focuses solely on business-level decisions

It ignores the role of cooperation and imitation

It only considers deliberate, logical strategy

Corporate-level strategy Signup and view all the answers

All-encompassing of a company Signup and view all the answers

Both internal and external factors Signup and view all the answers

External factors in the political, economic, social, technological, environmental, and legal realms Signup and view all the answers

A Harvard Business School professor named Michael Porter Signup and view all the answers

Considering the past, present, and future impact of decisions Signup and view all the answers

Matching internal potential with environmental opportunities Signup and view all the answers

Study Notes

Strategic analysis is the process of researching a company and its environment to formulate a strategy.
It involves gathering data to help leaders decide on priorities and goals, shaping or shifting a long-term strategy.

Strategy is the long-term direction of an organization, encompassing both deliberate and emergent patterns.
It can include both strategies that emphasize difference and competition, and those that recognize cooperation and imitation.

Corporate-level strategy: high-level decisions to sustain a competitive advantage and remain profitable in the future.
Business-level strategy: focuses on market position to gain a competitive advantage in an industry.
Functional-level strategy: focuses on activities within and between functions to improve efficiency.

SWOT analysis: identifies internal strengths and weaknesses, and external opportunities and threats.
PESTLE analysis: focuses on external factors in the political, economic, social, technological, environmental, and legal realms.
Porter's Five Forces model: identifies and analyzes five competitive forces affecting a company's profitability in an industry.
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining power of buyers
- Threat of substitute products or services
- Competitive rivalry

Time: strategy evolves over time, considering the past, present, and future impact of decisions.
Balancing: balancing internal and external factors, matching the organization's potential with environmental opportunities.