Module 1 - Strategic Management Summary

Defining Strategy

- Strategy is a plan, method, or series of actions designed to achieve a specific goal or effect.

- It is relevant to both business and military contexts.

- Strategy is about achieving a sustainable competitive advantage.

Success Criteria

- Above-average performance is measured by metrics like company valuation, profits, profitability

- Strategy aims to maximize performance in these areas.

Value Creation and Appropriation

- Strategy considers both shareholder (value appropriation) and stakeholder (value creation)
perspectives.

- Shareholders are concerned with profits and market valuation.

- Stakeholders include employees, lenders, landlords, government, and society.

Common Elements of Successful Strategies

- Successful strategies have the following elements:

- Clear, consistent, long-term goals.

- Profound understanding of the competitive environment.

- Effective implementation of resources and capabilities.

The Evolution of Strategic Management

- Strategic management has evolved through several phases:

- Financial Budgeting: Focused on operational and capital budgeting.

- Emergence of Strategic Management: Industry analysis and competitive positioning.

- The Quest for Competitive Advantage: Emphasis on resources, capabilities, and shareholder value.

- Adapting to Turbulence: Exploiting information and communications technology, seeking flexibility and
strategic innovation.

- Strategic Alliances: Collaborating with other companies.

- Social and Environmental Responsibility: Considering sustainability and ethical considerations.

The Need for Strategy in Firms

- Strategy acts as decision support, helping firms make trade-offs.

- It serves as a coordinating device, ensuring cohesive actions across the organization.

- Strategy provides a target and strategic intent, setting a vision for the future.

Where to Find Strategy

- Strategy is reflected in a company's:

- Mission: Why the company exists.

- Values: What the company believes in and how it will behave.

- Vision: What the company wants to be.

- Strategy Statement: Objectives, business scope, and advantage.

Panpacific University's Strategy

- Mission: To build better lives by pioneering learning, teaching, and research.

- Values: Pioneer, Compassion, Service, Truth.

- Vision: To be a total university of choice in the Panpacific Rim.

Conclusion
- Strategy is about making choices, trade-offs, and deliberately choosing to be different.

- This module has provided a comprehensive overview of strategic management and its key concepts.

Reviewer Notes

- The document provides a strong foundation for understanding the principles of strategic management.

- It's well-organized and covers important aspects of the topic.

- Some additional points to consider for the reviewer:

- Practical Examples: Including real-world examples of companies and their strategies would enhance
the understanding and applicability of the concepts.

- Case Studies: Incorporating case studies could illustrate the principles in action and provide deeper
insights.

- Further Exploration: Encouraging further research on specific topics like competitive advantage or
industry analysis would be beneficial.

Module 2 - Strategic Management Process: Industry Analysis Summary

1. General Environment

- The general environment affects all industries, but its impact varies.

- Key factors include:

- Economic Environment: GDP growth, interest rates, exchange rates.

- Technological Environment: Technology development, innovation potential.

- Social Environment: Lifestyle trends, demographics, consumer attitudes.

- Political Environment: Legislation, government policies, political stability.

- Legal Environment: Health protocols, security regulations, intellectual property laws.

- Environmental Environment: Environmental risk assessment, hazardous materials regulations.

- PESTLE Analysis is a framework for analyzing macro-environmental factors that affect organizations.

- It helps identify opportunities and threats by examining political, economic, social, technological, legal,
and environmental factors..

3. SWOT Analysis

- SWOT Analysis is a framework for evaluating an organization's competitive position.

- It identifies strengths, weaknesses, opportunities, and threats.

- Helps develop strategies to maximize strengths and opportunities while mitigating weaknesses and
threats.

4. From General Environment to Industry

- The general environment impacts industry attractiveness and profitability.

- Understanding the relationships between suppliers, customers, and competitors is crucial.

5. Porter's Five Forces of Competition Framework

- Porter's Five Forces Framework analyzes industry attractiveness by examining:

- Threat of New Entrants: Barriers to entry, such as capital requirements, economies of scale, and
product differentiation.

- Bargaining Power of Suppliers: Supplier concentration, availability of substitutes, switching costs.

- Bargaining Power of Buyers: Buyer concentration, availability of substitutes, price sensitivity.

- Intensity of Rivalry: Number of competitors, industry growth rate, product differentiation.

- Threat of Substitutes: Availability of substitute products, price performance of substitutes.

6. Key Success Factors

- Key Success Factors are the factors that are critical to achieving success in a particular industry.

- They vary by industry and change over time.

7. Competitive Dynamics

- Competitive Dynamics examines the actions and reactions of firms in an industry.

- It focuses on how firms compete and how they can improve their competitive advantage.

8. Segmentation and Strategic Group Analysis

- Segmentation and Strategic Group Analysis helps organizations identify competitors and understand
their competitive positions.

- Segmentation groups customers based on their needs and preferences.

- Strategic Group Analysis groups competitors based on their strategies and market positions.

Reviewer Notes

- This module provides a strong foundation for understanding industry analysis and its application to
strategic management.

- It's well-organized and covers important concepts in a clear and concise manner.

- Some additional points to consider for the reviewer:

- Practical Examples: Include real-world examples of industries and their competitive dynamics.

- Case Studies: Incorporate case studies to illustrate how companies apply these frameworks.

- Application to Different Industries: Demonstrate the versatility of these frameworks by applying them
to diverse industries.