Strategic Management Overview

The overall direction a company plans to take, including its long-term goals, how it will create value, and its scope of operations.

Examining a company's internal strengths and weaknesses, as well as external opportunities and threats in the environment.

Creating and choosing the best strategic options, considering corporate and competitive strategies.

Putting the chosen strategy into action, including implementation, monitoring, and control.

Focuses on how a company will compete within a specific business or industry.

Strategies for each department or function, like marketing, finance, or operations.

The ability of a company to achieve its goals and objectives.

Individuals or groups that have an interest in a company's actions and outcomes.

Activities that a company performs to create value for its customers. They can be either primary or secondary, with primary activities directly involved in the production and delivery of a product or service.

Include inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service. They directly contribute to the creation and delivery of the product or service.

Activities that support the primary activities and help them run efficiently. They include technology development, human resource management, procurement, and firm infrastructure.

Links between activities within the value chain. Can be horizontal (within internal activities) or vertical (with customers or suppliers).

A firm's unique combination of resources and capabilities that allow them to compete effectively in the market. It is created by a unique combination of resources and capabilities.

Assets that a company owns or controls. These can be tangible, such as physical assets and financial assets, or intangible, such as technological assets or organizational resources.

The ability of a company to use its resources effectively to perform activities. They are developed through the combination of resources and can be functional or cultural.

A tool for identifying and analyzing a company's internal strengths and weaknesses, and external opportunities and threats. This analysis can help companies develop strategies that leverage their strengths, address their weaknesses, capitalize on opportunities, and mitigate threats.

Different groups of companies within an industry competing in distinct ways, each with a unique approach to creating value.

The measurement of how difficult it is for a firm to move between strategic groups. This can be influenced by barriers, such as regulatory requirements, technological expertise, or brand reputation.

Factors that make it challenging for firms to enter a new strategic group or to exit their current one. These can include financial limitations, market access, or expertise limitations.

The attractiveness of a strategic group depends on the unique opportunities and threats present, as well as the expected performance levels. A group with strong growth potential and less competition would be more attractive.

An internal review of a firm's capabilities, strengths, weaknesses, opportunities, and threats, vital to understand its competitiveness and potential.

The identification and analysis of the firm's core characteristics, such as age, size, ownership structure, legal structure, and geographical scope.

A detailed examination of a firm's functional areas, such as finance, marketing, research and development, and operations, assessing their strengths and weaknesses.