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STRATEGIC MANAGEMENT (WHAT IS STRATEGY? (Parts of strategy (Mission - What…

- - - - Processes that use the resources, to be able to meet the changes in the markets, or even create new changes in them
  - - - Weaknesses
      - Opportunities
      - Stregths
      - Threats
    - - Industry specific performance indicators
      - Usually evaluated against competitors
- - - - Porter's Five Forces framework anaysis
        
        Bargaining power of buyers
        
        Bargaining power of suppliers
        
        Threat of substitutes
        
        Rivalry between competitors
        
        Threat of entry
    - - Shake-out
      - Maturity
      - Grwoth
      - Decline
      - Development
      - Porters five forces affect differently in each phase
  - - - Market segment - Group of customers inside a market, that have similar needs
        
        Where to focus?
        
        Blue ocean mindset: Find new market spaces, where there is no competition yet
- - - - Social / political
      - Technological
      - Community
      - Economic
      - Internal
    - - Legitimacy
      - Urgency
      - Power
  - - - Improving societal/environmental issues, with a clear scope of generating business opportunities
- - - - Portfolio matrices
        
        BCG: growth-share matrix
        
        McKinsey: Industry attractiveness-business strength matrix
    - - The benefits be had are as big as expected
      - Owning the necessary competencies
      - Evaluating if:
      - Benefits > costs
  - - - Extending a firms reach in some aspect
      - Enhancing capabilities
      - If not to buy, then alliancing
        
        Sharing resources and activities, in pursue of a similar strategy
        
        Synergies
- - - - PESTEL - Different views and aspects
        
        Social
        
        Technological
        
        Economic
        
        Environmental
        
        Political
        
        Legal
    - - Different level of uncertainty, different approaches
        
        Range
        
        Alternative futures
        
        Single point
      - Scenarios - How the operational environment might develop over time, PESTEL and key drivers of change as basis
    - - Non-market strategies
        
        Shaping the "playing field" where a company operates, not just reacting to events in it. Different from traditional business strategies, scope is larger.
- - - - DIfferentiation - Providing unique value, that customers are willing to pay extra for
      - Focus - target a small market segment (niche), and compete only there while utilising either cost or differentiation
      - Cost leadership - having the lowest operating costs, and also usually prices
    - - Value propositions of different parties (customers etc.)
      - Revenues and cost structures
    - - Might be hard to plan for long term competitive advantage
- - - - Cultural systems
      - Performance targets
        
        Goal setting
        
        Can be effective, but might also have negative effects
        
        Amount and scope of goals should be carefully selected
      - DIrect supervision
    - - Different levels have different responsibilities
        
        Top management
        
        Formulating the high-level strategy
        
        Modifying the organisation, so that strategy can be fulfilled
        
        Middle management
        
        Interpreting the high-level strategy, and applying it to a limited area
    - - Divisional
      - Matrix
      - Functional