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Strategic Management (UNIT III (internal analysis shloud inlude the…

- - - - private x public
    - - geographic area
        
        regional
        
        national
        
        local
        
        multinational
    - - combination of products and markets
      - functions or needs
      - target customer groups
      - technologies
    - - according to the legal status of company
        
        limited liability companies
        
        cooperatives
        
        public limited companies
        
        etc.
    - - relation between firms at the same factor
      - size of company
        
        Medium
        
        Large
        
        Smaill
    - - it depends of the historical stage of moment, which the firm was start to operate
        
        adolescent
        
        developed or balanced
        
        Start-up
        
        mature or adult
        
        anaemic or old
  - - - A comparison is made with the profile (s) of the competitor
      - The ideal profile is drawn, which is no more than the profile that the compaThrough this profile, you can easily verify the strengths and weaknesses of the company and, at the same time, compare them with those of the competitors and with the ideal.
      - 1.Each key aspect studied is valued, giving an assessment between 1 and 5, with 1 being a weak point 5 a strong point. Next, the corresponding strategic profile is drawn
    - - List of variables
        
        strenght and weaknesses of the company are found to achieve its objectives
        
        these variables are selected by functional areas
        
        the functional and variable areas to be considered depend on each company
      - Valuation of the variables
        
        it must be done by the top management
        
        its subjective
        
        a satisfied or too critical vision doesnt help prepare the company to face its challanges successfully
        
        its static
        
        it represent the image of the company at a certain moment
        
        its relative
        
        a company will have strengths or weaknesses to the extent the its activities develop better or worse than those of its rivals
  - - - continuous and systematic process through which a company or organisation measure products, services, processes, pracitces, etc.
      - its not a easy process
      - First, we must have the consent and collaboration of the company that serves as a reference. Secondly, it is necessary to have the right team of analysts capable of learning from external references and applying them
      - company has to make a list of counterparts:
        
        alliance strategies
        
        hiring of key personnel of the leading company
        
        Integration of companies, margers, arquisitions
        
        hiring a consulting company, which could have information about the model company
        
        Contrapartida monoteria
    - - BENCHMARKETING WITH COMPETITORS
        
        the comparative evaluation can be carried out externally with competitors
        
        although more complicated is to be evaluated comparatively with direct competitors
        
        the objective is to compare with the companies that move in the same markets with more competitive products, services or work processts
      - FUNCTIONAL BENCHMARKETING
        
        a benchmarking can be carried out with other companies belonging to the same industrial sector, which can offer the same products or services, but which do not compete in it
        
        the benchmarking of the industry tends to establish comparisons between companies that share the same technological and market characteristics and to concentrate on specific functions
      - INTERNATIONAL BENCHMARKETING
        
        The objective of the internal benchmarking is to identify and compare the levels of internal execution in an organization
        
        One of the simplest benchmarking exercises is to compare these internal operations
        
        In most large companies, similar functions are performed in different departments
        
        The objective of the internal benchmarking is to identify and compare the levels of internal execution in an organization
      - GENERIC OF PROCESS BENCHMARKETING
        
        the benchmarking of the industry tends to establish comparisons between companies that share the same technological and market characteristics and to concentrate on specific functions
  - - - the primary activities are those that form the productive cycle of the company, the primary activities collect in turn a set of activities that, in broad strokes, are: internal logistics, production process, external logistics, marketing and after-sales service:
        
        Operations, which includes all activities aimed at obtaining quality products, time and cost of finished products under ideal conditions
        
        Outbound logistic, That correspond to the storage activities of finished products and their subsequent physical distribution
        
        Inbound logistics, They cover all the activities necessary to carry out the reception of factors (whether raw materials or auxiliary materials), their storage, the control of stocks and the subsequent handling of the materials until the start of manufacturing
        
        Marketing and sales, They are the ones in this functional area
        
        Service, These are the activities necessary to maintain the conditions of use of the product sold
      - with respect to support activities, they are those that provide the factors of production and the infrastructure that allows the operation of primary activities, which are: infrastructure, human resources management, technological development and provisioning.
        
        firm management, includes those activities normally grouped as management, that is, activities to formulate strategies, planning control, administrative processes, global quality management, organization, management, information, etc
        
        human Resource Management, all those related to recruitment, training, skills development, incentive systems, participation, promotion, promotion of the organizational climate, etc
        
        technology development: This includes activities aimed at the acquisition and subsequent management of technologies, whether in Product or in process, in which the company, among other elements, will design its strategy
        
        procurement, they refer to the same purchasing function of all the factors necessary to develop the production process, whether they are components of the product or auxiliary elements
  - - - MATERIALS
      - FINANCIALS
    - - HUMAN
      - NON HUMAN
        
        TECHNOLOGICAL
        
        ORGANISATIONAL
  - - - Cultural
      - Functional
    - - two possibilities
        
        collective nature of capabilities and the individual one of resources
        
        stock nature of resources as posed to the flow nature of copabilities
  - - - 1.SCARITY
      - 2.RELEVANCE
- - - - objectives and values
      - environmental analysis
    - - competitive strategies
    - - evaluation
      - implement ation
      - strategic control
  - - - government stability and general policies of public administrations
    - - macro-economic indicators
    - - beliefs, values, attitudes and life-styles of the people and cultural, ecological, demographic, religious, educational and ethnic conditions
    - - scientific and technological framework
    - - preserving the natural environment
    - - administrative, legal and regulatory factors
  - - - Types of agents:
        
        Business dedicated to the same activity
        
        Different types of institutions
        
        Businesses located upstream and downstream activities in relation to the main or focus product
        
        Business in related industries
  - - - potential entrants
      - buyers
      - suppliers
      - substitutes
  - - - SUPPLIERS
        
        concentrated suppliers
        
        small- scale purchases
        
        differentiatted products
        
        high switching costs
        
        real threat of forward integration
        
        there are no substitute product
        
        product cannot be stockpilled
        
        product of importance to the costumer
        
        supplier has full information
      - COSTUMERS
        
        concentrated customers
        
        large-scale purchases
        
        non-differentites products
        
        low switching costs
        
        real threat of backward integration
        
        there are substitute products
        
        product can be stockpilled
        
        product of little importance to the customer
        
        buyer has full information
- - - - Limit of technology
    - - Base
        Technology
    - - Emerging
        Technology
    - - Key
        Technology
  - - - Intangible
        Factors/External
        Factors
        
        Organizational culture
        
        Industrial competence level
        
        Technological Development
        
        Trade opening
      - Intangible
        Factors/Internal
        Factors
        
        Industrial Design
        
        Total quality
        
        Strategic attitude
        
        Innovation: R&D
        
        Internationalisation
      - Tangible
        Factors/Internal
        Factors
        
        Profitability
        
        Productivity
        
        Growth
        
        Size
      - Tangible
        Factors / External
        Factors
        
        Unit labor costs
        
        Real effective exchange rate
        
        Inflation (Exchange rate)
        
        GDP(exchange rate)
  - - - Dynamism of the industry
      - Ability to imitate
      - Barriers to imitation
    - - Porter
        
        Differentiation
        
        Low costs
      - definition
    - - Sustainable
      - Substantial
      - Key factor of success
  - - - The strategy of the follower
      - Rationalization
      - The innovative strategy
      - The technological strategies of niche
      - Incremental innovations or evolutionary change
      - Radical or revolutionary innovations
    - - Protection of innovation
      - Availability of complementary resources
      - Competence in the time factor: the advantage of being the first.
      - Control the technical standard:
      - Achievement of technology:
      - Exploitation of innovation.
  - - - Intensity of current competition.
      - Potential competitors
      - Alternate products
      - Power of negotiation of suppliers and clients.
    - - Substitution of one industry for another.
      - Creation of new industrial sectors.
      - Limitation of growth or decline potential..
      - Revitalization of existing industries..
- - - - External analysis + Internal analysis
      - Firm´s mission and goals
      - :!!: Basic focus to the company and focus to the strategic decision of making process
      - :!!: SWOT: Strengths, Weaknesses, Opportunities, Threaths
    - - Design of strategic options
      - :!!: Based on formulate design corpotate (specialisation, diversification, internationalisation) and competitice strategies (cost leadership, differentiation and concentration)
    - - Strategic control
      - Implementation
      - Strategy assessment and selection
      - :!!: Suitability, feasibility, acceptability.
        
        :!!:Organisational structure, planning and functional strategies
        
        :!!:Stategic decision-making process
  - - - MISSION : : :lock:
        
        Definition of the company
        
        Identification of core capabilities
        
        Values, beliefs, attitudes and other staff of corporate culture
      - VISION :lock:
        
        Incorporate a profound sense of success
        
        Stability over time
        
        Make the workforces´s effort and commitment to its achievement wortwhile
    - - Realistic
        
        Challenging
        
        Successive
        
        Set in time
        
        Appropriate
        
        Specific
        
        Measurable
      - Value Creation and Stakeholders
        
        IMPORTATNT QUESTION???
        
        Who is involved or may take a part in setting objectives?
        
        How ate potential conflict of interest in setting objectives?
        
        What is the firm´s underlying objective?
      - types of Strategic Objectives
        
        TIME HORIZONT
        
        Long-term
        
        Short-term
        
        DEGREE OF SPECIFICATION
        
        Open
        
        Closed
        
        NATURE
        
        Strategic
        
        Financial
        
        SCOPE
        
        Ambitious
        
        Impossible
        
        STRATEGIC LEVEL
        
        Competitive
        
        Functional
        
        Corporate
  - - - Mission, Vision and Strategic aims
      - searching opportunities for value creation or for grow or develop in the future
    - - competitive in some activity like in business or in strategic bussines
      - creating and sustaining a competitive advantage
      - creation, improvment and exploitation of valuable resources and capabilities
    - - about using and applying resources to the each operational area
      - environment like: marketing, operations, financing, HR, technology
- - - - Scale economics.
      - New technologies.
      - Experience effect.
      - Control access to raw materials.
      - Learning effect.
    - - competitors
      - customers
      - suppliers.
    - - Customers who are particularly price sensitive and there are no exchange costs.
      - Intense price competition in the industry, being a key success factor.
      - Standardized product and offered by multiple suppliers.
      - Negotiation of high power of the clients.
    - - Standardize and move away from the new tastes of customers.
      - Appearance of substitute products.
      - Imitation.
      - Reduction of added value.
      - It demands a constant cost control
  - - - Related diversification.
      - Unrelated diversification.
    - - Internal
      - External
  - - - respond to:
        
        Development method.
        
        Development direction.
      - Strategies or directions of development.
        
        Consolidation.
        
        Restructuring.
        
        Vertical integration.
        
        Diversification.
        
        Expansion.
      - Market penetration:
        
        Potential customers
        
        New customers
        
        Current customers
      - Product development
        
        Expand the range of a basic product.
        
        Technological innovations in traditional products.
      - Market development:
        
        New geographical areas.
        
        New applications for products
        
        New segments of the industry.
    - - Clients that renounce differentiation by price.
      - Imitation.
      - Reduction of the value perceived by the client.
    - - Differentiation.
      - Characteristics of the company.
      - Characteristics of the market
      - Product characteristics
    - - High level of creativity.
      - Complex relationships.
      - .Difficulty imitating.
    - - Accelerated technological change.
      - Difficulty imitating distinctive characteristics.
      - Same criterion of differentiation.
      - The customers give it a lot of importance.