Strategic Management Study Notes PDF

**Strategic Management Study Notes** **1. Core Strategic Models** **Ansoff's Matrix** - **Market Penetration:** Increase market share in existing markets (e.g., Coca-Cola introducing new promotions). - **Market Development:** Enter new markets with existing products (e.g., Tesla ente...

**Strategic Management Study Notes** **1. Core Strategic Models** **Ansoff's Matrix** - **Market Penetration:** Increase market share in existing markets (e.g., Coca-Cola introducing new promotions). - **Market Development:** Enter new markets with existing products (e.g., Tesla entering India). - **Product Development:** Develop new products for existing markets (e.g., Apple introducing AirPods). - **Diversification:** New products in new markets (e.g., Amazon acquiring Whole Foods). **Past Paper Questions:** - **2020 (Q4):** Outline models used in a particular stage of the Rational Model and explain their contribution to strategy development. - **2021 Main (Q1):** Apply Ansoff's Matrix and Lynch's Model to analyze a company deciding between exporting or partnering in a new market. - **2023 (Q1):** Use Ansoff's Matrix to identify growth strategies for a company of your choice. **Lynch's Model** - **Definition:** Lynch's model focuses on strategic direction (growth, retrenchment, or stability) and location (local, regional, or global). - **Core Elements:** 1. **Direction:** - **Growth:** Expand market share, products, or operations (e.g., Apple's foray into services like Apple Music). - **Retrenchment**: Downsizing or withdrawing from markets (e.g., Ford exiting sedan production in certain markets). - **Stability:** Maintaining the current position without significant expansion or contraction. 2. **Location:** - **Local:** Focus on domestic markets (e.g., a small bakery serving its city). - **Regional:** Expand within a specific geographical area (e.g., Tesco targeting European markets). - **Global:** Operate across multiple countries (e.g., Netflix streaming in over 190 countries). - **Importance:** 1. Helps businesses decide where and how to compete based on their capabilities and market conditions. 2. Encourages consideration of both internal (resources, culture) and external (market, competition) factors. - **Applications:** 1. Netflix moving from DVD rentals (local) to global streaming demonstrates growth and global location. 2. Marks & Spencer retrenching in international markets to focus on UK operations highlights retrenchment and local focus. **Past Paper Questions:** - **2021 Repeat (Q1): Apply Lynch's Model to strategic planning decisions.** - **2022 Repeat (Q1): Explain and apply Lynch's Model focusing on direction and location decisions.** **Balanced Scorecard (BSC)** - **Framework for strategy implementation across four perspectives:** 1. **Financial:** Revenue, profit margins. 2. **Customer:** Satisfaction, loyalty. 3. **Internal Processes:** Operational efficiency. 4. **Learning & Growth:** Employee training, innovation. **Past Paper Questions:** - **2020 (Q2): Describe and apply models for developing an IT and Marketing strategy for a company.** - **2021 Repeat (Q1): Explain the Balanced Scorecard and provide examples.** - **2022 Main (Q1): Apply the Balanced Scorecard to align objectives with strategy.** - **2024 (Q1): Use BSC to evaluate a company's strategic implementation.** **SMART Objectives** - **Definition: A framework for setting clear, actionable, and measurable goals.** - **Components:** 1. **Specific: Clearly define what is to be achieved (e.g., \"Launch a new product line for millennials\").** 2. **Measurable: Include criteria to measure success (e.g., \"Achieve 20% market share\").** 3. **Achievable: Ensure the goal is realistic given available resources and constraints (e.g., \"Develop 3 new products in 12 months\").** 4. **Relevant: Align the goal with broader business objectives (e.g., \"Support our strategy of market expansion\").** 5. **Time-bound: Set a deadline for completion (e.g., \"By the end of Q4\").** - **Importance:** 1. **Encourages focus and clarity in goal-setting.** 2. **Improves performance tracking and accountability.** - **Applications:** 1. **Example: \"Increase online sales by 15% by launching a targeted social media campaign within 6 months.\"** 2. **Example: \"Reduce production costs by 10% by implementing new automation software by the next fiscal year.\"** **Past Paper Questions:** - **2023 (Q1): Explain SMART objectives and provide examples for a selected company.** - **2021 (Q1) Main: Apply SMART objectives to setting corporate goals.** **The 4Ps (Marketing Mix)** - **Definition: A framework for developing marketing strategies.** - **Components:** 1. **Product: What is being sold? Focus on quality, features, and packaging.** 2. **Price: At what cost? Includes pricing strategies like penetration or skimming.** 3. **Place: Where is it sold? Distribution channels and geographic reach.** 4. **Promotion: How is it sold? Advertising, sales promotions, and public relations.** **Past Paper Questions:** - **2020 (Q2): Describe and apply models for developing an IT and Marketing strategy for a company.** **Big Bang vs. Incremental Change** - **Big Bang Change: Entire system replaced at once.** - **Example: Implementing an enterprise-wide ERP system in one go.** - **Incremental Change: Gradual updates to existing systems. E.g. software rollouts.** - **Example: Rolling out software updates in phases.** **Contextual Factors of Change** - **Market: Understanding the dynamics and trends in the market.** - **Growth: Assessing opportunities for expansion and scalability.** - **Competitors: Evaluating competitive pressures and strategies.** - **Technology: Ensuring readiness and adaptability to technological advancements.** - **Employees: Fostering a skilled and motivated workforce.** - **Managers: Leadership capabilities to guide and execute changes.** - **Customers: Aligning change initiatives with customer needs and expectations.** - **Price/Quality/Culture: Balancing cost, quality, and cultural fit.** - **Performance: Monitoring key performance indicators to ensure success.** **Past Paper Questions:** - **2021 (Q3) & 2020 (Q3): Explain Big Bang and Incremental Change with applications.** - **2020 (Q1) & 2024 (Q2): List contextual factors of change and provide examples.** **The Cultural Web** - **Definition: A framework for analyzing organizational culture.** - **Elements:** - **Stories: Key narratives that define the organization's values.** - **Symbols: Visual or cultural markers like logos and uniforms.** - **Routines: Regular processes that demonstrate culture.** - **Power Structures: Decision-making hierarchies.** - **Control Systems: Incentives and performance metrics.** - **Organizational Structures: Formal reporting relationships.** **Applications:** - **Use the Cultural Web to identify areas for improvement in organizational culture.** - **Example: Google's flat power structure fosters innovation.** **Past Paper Questions:** - **2023 (Q4): Use the Cultural Web to analyze organizational culture.** - **2024 (Q4): Explain how Cultural Web elements influence behavior.** **The 9Ms Framework** - **Definition: A resource audit tool identifying key areas of organizational capability.** - **Components:** 1. **Manpower: Staff skills and availability.** 2. **Money: Financial resources and management.** 3. **Materials: Raw materials and supply chain efficiency.** 4. **Machinery: Equipment and infrastructure.** 5. **Management: Leadership and organizational capabilities.** 6. **Markets: Customer base and market positioning.** 7. **Methods: Processes and systems.** 8. **Make-up: Corporate culture and values.** 9. **MIS (Management Information Systems): Data and technology systems.** **Applications:** - **Example: Use the 9Ms to evaluate resource availability for new product development.** **Past Paper Questions:** - **2024 (Q3): Explain the 9Ms and apply them in internal analysis.** **(Other sections remain consistent with expanded approaches for Lynch\'s Model and SMART Objectives.)**