Strategic Management Overview

Session 1: Introduction to Strategy

• Strategy is the long-term direction and scope of an organization.
• It considers internal and external stakeholder needs.
• Strategic elements include vision, mission, and core values.
• Strategy exists at various levels: corporate, business, and functional.

Session 2: External Analysis

• PESTEL Analysis examines political, economic, social, technological, environmental, and legal aspects.
• Porter's Five Forces analyzes industry competitiveness: rivalry, threat of new entrants, buyer power, supplier power, and threat of substitutes.
• Forecasting techniques include single-point, range forecasting, and scenario analysis.

Session 3: Internal Analysis

• Resources and capabilities are crucial for competitive advantage.
• Resources are the assets, while capabilities are how those assets are used.
• The VRIO framework assesses the value, rarity, imitability, and organizational support of resources/capabilities.
• Value chain analysis considers primary (inbound/outbound logistics, operations, marketing/sales, service) and support (procurement, technology, HR, infrastructure) activities.
• Dynamic capabilities involve sensing, seizing, and reconfiguring resources.

Session 4 & 5: Business Strategy

• Porter's Generic Strategies: Cost leadership, differentiation, and focus (cost/differentiation).
• Cost leadership aims for lowest costs.
• Differentiation focuses on unique offerings.
• Focus targets specific niches.
• Hybrid strategies combine elements of cost leadership and differentiation.
• Game theory and the interplay between cooperation and competition are crucial considerations.

Session 6: Corporate-Level Strategy

• Ansoff's Growth Matrix outlines market penetration, product development, market development, and diversification strategies.
• Diversification includes related and unrelated diversification.
• Diversification decisions can create or destroy value based on factors like economies of scope, managerial ambition, and risk-spreading.
• Vertical integration (backward/forward) is a corporate strategy for control over supply and distribution.

Session 7: M&A and Strategic Alliances

• Organic development is internal growth.
• Mergers and Acquisitions involve combining companies (friendly/hostile).
• Post-acquisition integration methods include absorption, preservation, symbiosis, and intensive care.
• Strategic alliances use equity or non-equity agreements for collaboration.

Session 8: Evaluating Strategies

• Performance measures include economic success (sales, profit, market share) and effectiveness (balanced scorecard).
• Gap analysis identifies performance discrepancies.
• SAFe criteria evaluate suitability, acceptability, and feasibility.
• Tools such as decision trees and sensitivity analysis help in strategic evaluation.

Unit 3: Resources, Capabilities, and Competitive Advantage

• Resources are the tangible and intangible assets of a company.
• Capabilities are how resources are used to reach goals.
• Dynamic capabilities include sensing opportunities, seizing opportunities, and reconfiguring assets.
• SWOT analyses identify internal strengths/weaknesses and external opportunities/threats.
• Blue-Ocean strategies identify uncontested market spaces.

Unit 4: Generic Strategies & Competitive Advantage

• Porter's generic strategies include cost leadership, differentiation, and focus.
• Cost leadership seeks lowest costs, while differentiation seeks unique offerings.
• Cost focus and differentiation focus target specific market niches.

Unit 5: Value Chain Analysis & Business Models

• Value chain analysis breaks down activities into primary (logistics, operations, marketing, service) and support (procurement, technology, HR, infrastructure).
• Business models include razor-and-blade, freemium, and multi-sided platforms.
  • Sustainable Business Model Canvas (SBMC) integrates economic, environmental, and social factors.

Unit 6: Corporate Strategy & Diversification

• Ansoff's Growth Matrix provides methods for market expansion.
• Diversification is the introduction of new products/markets.
• Related diversification is within similar industries.
• Unrelated diversification is in unrelated industries.

Unit 7: Mergers, Acquisitions & Alliances

• Mergers combine similar-sized companies.
• Acquisitions involve one company purchasing another (friendly/hostile).
• Strategic alliances are collaborations using equity or non-equity agreements.
• M&A motives involve strategic, financial, and managerial factors.

Unit 8: Evaluating Strategies

• Performance measures include economic performance, effectiveness, and feasibility.
• Strategic evaluation uses tools such as gap analysis, break-even analysis, sensitivity analysis, and decision trees.

Key Takeaways

• Master key frameworks and concepts like PESTEL, Porter's Five Forces, VRIO, SWOT, and Ansoff's Matrix.
• Understanding various strategies (business-level, corporate-level).
• Apply the SAFe criteria to assess strategic options.
• Recognize diverse business models and M&A/alliances.

This quiz covers the fundamentals of strategic management, including its long-term direction, internal and external analyses. It delves into key concepts such as PESTEL and Porter's Five Forces, as well as the importance of resources and capabilities. Test your understanding of these essential components of strategy!