Strategic Management PDF

Lecture 1 Corporate strategy : development of a company as a whole Business strategy : The managing of different business units Functional strategy : Structure within the business units that had a decentralisation of power. Strategic diagnosis : Analysing the company to implement the right strat...

Lecture 1 Corporate strategy : development of a company as a whole Business strategy : The managing of different business units Functional strategy : Structure within the business units that had a decentralisation of power. Strategic diagnosis : Analysing the company to implement the right strategy, External analysis of the market , analysis of demand and offer in a market. STrategy formulation - Determine strategy, companies vision and mission, external and internal analysis. Fixations of main strategic objectives. Strategy implementation - The steering related to the strategy, making decisions based on metrics. Strategy Evaluation - Evaluating if strategic objectives have been met. Production Strategic capacities Value is consumer satisfaction - Novelty - Performance - Personalization - Design - Brand/status - Price - Convenience/Ergonomics Toyota: Inclusive, innovative, creative, reliability –> core values —> objectives Patagonia: Sustainability, responsibility, —-> core values —> Objectives Vision “To create a better everyday life for the many people.” Core values Caring for people and planet We want to be a force for positive change. We have the possibility to make a significant and lasting impact — today and for the generations to come. Cost-consciousness As many people as possible should be able to afford a beautiful and functional home. We constantly challenge ourselves and others to make more from less without compromising on quality. Simplicity A simple, straightforward and down-to-earth way of being is part of our Smålandic heritage. It is about being ourselves and staying close to reality. We are informal, pragmatic and see bureaucracy as our biggest enemy. Renew and improve We are constantly looking for new and better ways forward. Whatever we are doing today, we can do better tomorrow. Finding solutions to almost impossible challenges is part of our success and a source of inspiration to move on to the next challenge. Different with a meaning We are not like other companies and we don’t want to be. We like to question existing solutions, think in unconventional ways, experiment and dare to make mistakes - always for a good reason. Strategic objectives Giving IKEA furniture a second life Creating a global clean energy community Introducing more good food that’s good for the planet Aiming to be 100% powered by renewable energy across the entire IKEA value chain Offering zero-emission home deliveries, everywhere Supporting refugees around the world Working with social entrepreneurs Promoting gender balance and equal pay Smart- goals Important to listen to the environment to apply the right economic models for each company Strategic diagnosis Understand what can be done and what must be done. External + internal analysis of the organization → strategic capabilities Framework for analysis Market strength - Challenges - Market segments - Needs and demands - Cost of Change - Income Sector strengths - Competitors - New entrants - Substitute products and services - Suppliers and other players in the value chain The scenario method The scenario development process consists of constructing plausible representations of the evolution of an industries environment in order to anticipate which strategy will fit best. 1. Identify driving forces → identify critical uncertainties → develop plausible scenarios → discuss implications & paths 2. Pestle, used to analyze and monitor external environmental factors that could impact an organization. The results of this can be used to establish the SWOT-analysis. 2. Chose pivot variables For example; the technological trends identified as the most decisive for the mobility sector - Automozation - Vehicle sharing To choose these we use a → Pestle impact Map - Positive & Negative - Factors that affect the industries environment Business model canvas - Main task is to analyze each block Channels - Communication, sales and distribution channels are important to analyze Key Resources Align with value propositions What resources do we need to create the values we strive for. What are the main resources (Resource theory) , Tangible, intangible QCM : Strategic Management 1) Which of the following is NOT a typical stage in the strategic management process? a) Strategy formulation b) Strategy implementation c) Strategy evaluation d) Strategy outsourcing 2) What does Porter's Five Forces model analyze? a) Internal strengths of a company b) Competitive intensity of an industry c) Global economic trends d) Customer satisfaction levels 3) What is the primary purpose of a PESTEL analysis in strategic management? a) To analyze internal company processes b) To evaluate the external macro-environment c) To assess competitor strategies d) To determine product pricing 4) In the BCG matrix, what are products with high market share in a low-growth industry called? a) Stars b) Question marks c) Cash cows d) Dogs 5) Which of the following is NOT a common method of internal growth? a) Research and development b) Capacity expansion c) Mergers and acquisitions d) Market penetration 6) Which of the following best describes a transnational strategy in internationalization? a) Standardizing products across all markets b) Adapting products to each local market c) Balancing global integration and local responsiveness d) Focusing solely on the domestic market 7) What is the main focus of the value chain analysis in strategic management? a) Analyzing the company's financial performance b) Identifying core competencies c) Examining activities that add value to the final product or service d) Evaluating customer satisfaction 8) Corporate strategy concerns: a) A particular SBU b) All SBUs of the company c) Some SBUs among those of the company d) The SBUs where the company is a leader 9) Strategy is the short-term orientation of a company: a) True b) False 10) A question mark activity in the BCG matrix: a) Requires massive investment to reach critical size b) Can become a dead weight c) Is an acquired position that one seeks to maintain durably d) Corresponds to a product that should be abandoned 11) At what moment in the activity life cycle are there more competitors? During the growth phase: a) True b) False 12) External growth: a) Is incompatible with internal growth b) Consists of a full merger of two or more companies c) Can cause negative synergies d) Leads to an increase in the stock prices of the companies involved 13) External diagnosis allows identifying the strengths and weaknesses of the company: a) True b) False 14) Internationalization: a) Always involves outsourcing production b) Is favored by a hierarchical structure c) Leads companies to become multinational d) Refers to the process by which a company develops outside its country of origin 15) Strategic segmentation is a strategic analysis tool that allows: a) To develop differentiated strategies based on the company's various business lines b) To identify customer segments on which commercial efforts will focus c) To define the scope of a product range d) To identify within the same product category those on which the commercial effort will focus 16) Internal growth: a) Increases the size of the company b) Improves the company's profitability c) Does not require resources other than auto-financing d) Is safer than external growth 17) SBU corresponds to: a) the smallest part of the offer segmentation. b) a homogeneous set of goods or services, intended to satisfy a specific demand and market, with identified competitors in a determined geographical area. c) a value chain (same clientele, same distribution channel, same technology, same competitor). 18) What does BCG stand for? a) Business Cabinet General b) Business Curve Graph c) Boston Consulting Group d) Business Consultation Grouping 19) To which type of product does the following notion refer: "products doomed to disappear because they bring nothing to the company": a) the "cash cow" products b) the "question mark" products c) the "star" products d) the "dog" products 20) 'Cash cow' activities are characterized by: a) a high sector growth rate and a high relative market share b) a low sector growth rate and a low relative market share c) a high sector growth rate and a low relative market share d) a low sector growth rate and a high relative market share 21) The objectives of strategic management are: a) Define development axes b) Articulate the means and resources to achieve an objective c) Determine the development paths and corresponding organizational means 22) To which phase of the product life cycle does the following notion relate: "divestment policy because market growth is negative and results are close to zero": 1. the launch phase 2. the growth phase 3. the maturity phase 4. the decline phase 23) A portfolio of activities: 1. It's a set of customers with homogeneous demands 2. These are the events sponsored by the company 3. These are the stock market participations offered to employees 4. These are the product ranges offered by the company 24) Competitive intelligence consists of monitoring customer needs: 1. true 2. False Strategic Management Revision MCQ : on international management 1.Which of these elements is not part of Porter's Diamond? a. Strategy, structure and rivalry of the firm X b. Market conditions c. Demand conditions d. Related and supporting industries 2.Market segments are part of industry forces a. True b. False X 3.Internationalization is a strategy of: a. Seeking new markets b. Strategic integration X 4.Exporting allows companies to: a. Achieve economies of scale X b. Reduce risks 5.The internationalization strategy adopted by McDonald's is a: a. International b. Localization c. Global X d. Transnational 6.Sporadic Export consists of: a. Focusing on the domestic market X b. Actively pursuing export sales 7.A Strategy that occurs when there are significant economies of scale and similarities in market demand is: a. Transnational strategy X b. Global strategy  c. International strategy 8.Which of the following is not a force in Porter's five forces model? a. Buyers b. Suppliers c. Complementary products X d. Industry rivalry 9.A global enterprise is defined as an organization that attempts to have a global presence in its market, standardize its operations globally in one or more functional areas of the business, and integrate its operations globally. According to this definition, the company: a. Looks for differences between markets b. Avoids maintaining a presence in key markets c. Uses national products, raw materials, and financing as much as possible d. Seeks market opportunities worldwide X 10.A multidomestic enterprise is: a. An organization that attempts to standardize and integrate operations globally in all functional areas b. The same as a global enterprise c. An organization with multi-country subsidiaries, each of which formulates its own business strategy based on perceived market differences X d. An organization that standardizes and integrates operations on a national basis 11.Which of the following is not a major driver pushing international companies to globalize their operations? a. Political x b. Market c. Environmental d. Technology 12.The most common definition of globalization is: a. Political globalization - international integration of political laws and customs b. Geographic globalization - international integration of countries geographically close to each other c. Cultural globalization - international integration of people with similar cultural characteristics 4. Economic globalization - international integration of goods, technology, labor, and capital X 13.One of the company's objectives is to use economies of scale to reduce unit costs. Which of the following would not necessarily achieve economies of scale? a. Globalizing product lines to reduce development costs b. Localizing production in countries where factor costs are lower c. Localizing production in countries where labor is most educated d. Globalizing product lines to reduce production and inventory costs x 14.Uncontrollable forces over which management has no direct control: a. Political x b. Capital c. Raw materials d. Production 15.Controllable forces that management administers to adapt to changes in uncontrollable forces: a. Financial x b. Legal c. Technological d. Human x 16.It is important that created factor conditions are continuously improved through: a. Skills development and knowledge creation x b. Liberalization of cross-border trade and resource movements Course Questions 1) What are the 7 main objectives of companies........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 2) fill in the table with the corresponding information Key resources Key activities Production Problem Solving Platform/Network 3) What leadership style corresponds to the following descriptions ? The management style where the manager tells employees what he wants done and how he wants it done :.............................................................................................................................................................. The management style where the manager involves one or more employees in the decision making process :........................................................................................................................................................ The management style where the manager allows employees to make the decisions : …………………………………………………………………………………… … 4) Name the two levels of management and indicate the type of decisions made by each level of management :................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 5) Link each management activity to the corresponding definition : 6) What are the common caracteristics to all organisations ?................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 7) What are the advantages and the disadvantages of the divisional structure :................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 8) Give exemples of : Internal stakeholders........................................................................................................................................................... External stakeholders :...........................................................................................................................................................