Strategic Management
Remember strategy is about the long-term direction of an organisation and addresses three basic questions:
1. Where do we compete? 2. How do we compete? 3. How will we implement it?
Analyse the external (Porters 5 Forces, PESTEL) and internal environments (
Analyse the sustainability of the organisations current competitive advantage: diversification, differentiation
Analyse the method of pursuing the strategy: organic growth, acquisition, strategic alliance
How competitive advantage could be developed and sustained.
Evaluate the current strategy and future options (of entrepreneurs/owners)
1. Intro – including definition of terms in question 2. Discuss analysis 3. Make assumptions 4. Justify conclusions and recommendations
5. Intro – including definition of terms in question 6. Discuss analysis 7. Make assumptions 8. Justify conclusions and recommendations
Strategic Theme | Specific Frameworks | Helps with Understanding | External Environment | PESTELpolitical, economic, social, technological, environmental, legalPorter’s Five ForcesCompetitors and Markets * Strategic groups * Market segments * Critical success factors * Niche markets * Blue Oceans * the threat of entry * the threat of substitutes * the bargaining power of buyers * the bargaining power of suppliers and the extent of rivalry between competitors | Achieving competitive advantage through the positioning of an organisationAnticipate environmental change Opportunities and Threats | Internal Environment:Strategic Capability | Resources * Tangible * Intangible * Threshold or uniqueCompetencies * Threshold or uniqueCapabilities * Can be either resources or competencies * Threshold or uniqueThe Resource Based ViewVRIN Framework for assessing the value of strategic capabilitiesValue chainValue network | Competitive advantage through superior capabilityStrengths and Weaknesses | Strategic Purpose |
1. Where do we compete? 2. How do we compete? 3. How will we implement it?
Analyse the external (Porters 5 Forces, PESTEL) and internal environments (
Analyse the sustainability of the organisations current competitive advantage: diversification, differentiation
Analyse the method of pursuing the strategy: organic growth, acquisition, strategic alliance
How competitive advantage could be developed and sustained.
Evaluate the current strategy and future options (of entrepreneurs/owners)
1. Intro – including definition of terms in question 2. Discuss analysis 3. Make assumptions 4. Justify conclusions and recommendations
5. Intro – including definition of terms in question 6. Discuss analysis 7. Make assumptions 8. Justify conclusions and recommendations
Strategic Theme | Specific Frameworks | Helps with Understanding | External Environment | PESTELpolitical, economic, social, technological, environmental, legalPorter’s Five ForcesCompetitors and Markets * Strategic groups * Market segments * Critical success factors * Niche markets * Blue Oceans * the threat of entry * the threat of substitutes * the bargaining power of buyers * the bargaining power of suppliers and the extent of rivalry between competitors | Achieving competitive advantage through the positioning of an organisationAnticipate environmental change Opportunities and Threats | Internal Environment:Strategic Capability | Resources * Tangible * Intangible * Threshold or uniqueCompetencies * Threshold or uniqueCapabilities * Can be either resources or competencies * Threshold or uniqueThe Resource Based ViewVRIN Framework for assessing the value of strategic capabilitiesValue chainValue network | Competitive advantage through superior capabilityStrengths and Weaknesses | Strategic Purpose |
Links: with RBV (strategic capability) * Uncertainty and risk * Accessing or acquiring resources to support opportunity seeking behaviour and achieve competitive advantage * Key principles * Skunk works projects (Tesco Home Delivery example) * Experimental behaviour (heuristics) | How organisations discover, evaluate and exploit opportunitiesInnovationThe entrepreneurial behaviour of individuals or organisations | The Strategy Development Processes | Intended or planned strategy * Strategic leadership * Strategic planning * Benefits * Dangers * Externally imposedEmergent strategy * Logical incrementalism * Political processes * Prior decisions * Product of organisational systemsOrganisational cultureManaging strategy development | How strategy is actually developed in practiceThe blending of intended and emergent processesThe significant of culture and the possibility of strategic driftHow managers can manage the processes |