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Strategic Management Notes

The document discusses various strategic management concepts including: 1) Strategy is a comprehensive plan for achieving competitive advantage that answers questions about sources of sustainable competitive advantage and market positioning. 2) There are different types of strategies such as growth, diversification, restructuring, and global strategies. 3) Corporate strategies include strategic intent, competitive advantage, and corporate strategy. Business and functional strategies are also discussed.

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Krishna Mishra
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110 views6 pages

Strategic Management Notes

The document discusses various strategic management concepts including: 1) Strategy is a comprehensive plan for achieving competitive advantage that answers questions about sources of sustainable competitive advantage and market positioning. 2) There are different types of strategies such as growth, diversification, restructuring, and global strategies. 3) Corporate strategies include strategic intent, competitive advantage, and corporate strategy. Business and functional strategies are also discussed.

Uploaded by

Krishna Mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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UNIT 1

STRATEGIC MANAGEMENT

“Insights and hard work deliver results”

• Strategy is a Comprehensive plan for achieving competitive advantage.

• Strategy is a set of technique for understanding and influencing the corporate position in the
market.

• Organizations use strategy at the corporate, business and functional levels.

• Strategy answers the following questions:

• What are the sources of the company's sustainable competitive advantage?

• How a company will position itself against competition in the market over the long run to
secure a sustainable competitive advantage?

• What are the key strategic priorities?


Types Of Strategies

• Strategy

– a comprehensive plan guiding resource allocation to achieve long-term organization


goals.

• Growth and diversification strategies focus on expansion.

• Restructuring and divestiture strategies focus on consolidation.

• Global strategies focus on international business initiatives.

• E-business strategies focus on using the Internet for business transactions.

Corporate Strategies

• Strategic Intent

– Focuses organizational energies on achieving a compelling goal.

• Competitive Advantage
– operating in successful ways that are difficult to duplicate

• Corporate Strategy

– Sets long-term direction for the total enterprise

• Business Strategy

– Identifies how a strategic business unit or division will compete in its product or
service domain

• Functional Strategy

– Guides activities within one specific area of operations

Growth And Diversification Strategies

• Growth Strategy

– Expansion through current operations

• Concentration

– Expansion within an existing business area

• Diversification

– Expansion occurs by entering new business areas


• Vertical Integration

– Expansion by acquiring existing suppliers or distributors

Restructuring and Retrenchment Strategies

• Retrenchment

– Changes operations to correct weaknesses

– Liquidation

• An extreme form of retrenchment wherein the business closes and sells off its
assets

• Restructuring

– Reduces the scale or mix of operations

• Downsizing

– Decreases the size of operations

• Divestiture

– Sells off part of the organization to focus on core businesses

Global Strategies

• Globalization Strategy

– Adopts standardized products and advertising for use worldwide

• Multi-domestic Strategy

– Customizes advertising and products to best fit local needs

• Transnational Strategy

– Seeks efficiencies of global operations with attention to local markets

E-Business Strategies

• E-Business Strategies

– Focus on Using the Internet for Business Transactions

• B2B Business Strategies


– use IT and Web portals to vertically link organizations with members of their supply
chains.

• B2C Business Strategies

– use IT and Web portals to vertically link organizations with members of their
customers.

Strategic Management

• Strategy formulation begins with the organization’s mission and objectives.

• SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

• Porter’s five forces model examines industry attractiveness.

• Porter’s competitive strategies model examines business or product strategies.

• Portfolio planning examines strategies across multiple businesses or products.

• Strategic leadership activates organizations for strategy implementation.

• Strategic management

• the process of formulating and implementing strategies.

• Strategy Formulation

• the process of creating strategies

• Strategy Implementation

• the process of putting strategies into action.

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