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Strategic management - Coggle Diagram

- - - - Growth: expansion into new products and markets
        
        Define: seeking to increase the organization's business by expansion into new products and markets
        
        Types of growth strategies
        
        vertical integration
        
        Backward vertical intergration: attempting to gain control of inputs (become a self-supplier)
        
        Forward vertical integration: attempting to gain control of output through control of the distribution.
        
        Horizontal intergration : combining operations with another competitor in the same industry to increase competitive strengths and lower competition among industry revivals
        
        Concentration: focus on primary line of business and increasing the number of products offered or market
        
        Diversification
        
        related diversification: expanding by combining with firm in different, but related industries that are "strategic fits"
        
        unrelated diversification: growing by combining with firm unrelated industries where higher finance return are possible
      - Stability: maintenance of status quo
        
        that mean a strategy that seeks to maintain the status quo to deal with the uncertainly of a dynamic environment, when the industry is experiencing slow or no growth conditions, or if the owners of the firm elect not to grow for personal reason
      - Renewal: addressing decline performance
        
        Turnaround: addressing critical long term performance problems through the use of strong cost elimination measures and large scales organizational restructuring solutions
        
        Retrenchment: focusing of eliminating non-critical weaknesses and restoring strengths to overcome current performance problems
        
        define: developing the strategies to encounter organization weaknesses that are leading to performance declines.
        
        What is the difference? Turnaround is bigger scale
        than Retrenchment
  - - - cost of leadership strategy
      - Differentiation strategy
- - - - Cost leadership strategy: seeking to attain the lowest total overall costs relative to other industry competitors
      - Differentiation Strategy: is a business strategy attempting to create an unique and distinctive product or service for which customers willing to pay a premium
      - Focused-cost strategy: using a cost advantage to exploit particular market segment rather than larger market.
      - Focused-differentiation Strategy: Using differentiation advantage to exploit a particular market segment rather a larger market.
      - Best Cost Strategy: combine a strategic emphasis on low-cost with a strategic emphasis on differentiation
- - - - Identify the organization's current mission, goals, and strategies
        
        Mission: the firm's reason for being
        => the scope if its products and services
        
        i.g. Our mission: HANU is education research, and technology transfer institution providing high-quality bachelor and master level graduates into labor force who have significant expertise, high foreign language proficiency, and IT literacy, responding to the labor market demands in country and internationally.
        
        Goals: measurable management targets
        
        Our visions: Hanoi University is striving to become prestigious University in the country and region by specializing in applied training, research and handed-down technology in the fields of language and culture, economic and business administration, banking, tourism management, international studies, information technology and communication, built on a strong tradition in foreign language.
        
        Strategies: having a basis for assessing whether they need to be changed
        
        Core value:
        
        Proactiveness and dynamism
        
        Faithfulness and reponsibility
        
        Independent Mindset and Critical Thinking
        
        Ceaseless Inovation and Creativity
        
        Adaptability to the global context
    - - Extenal Analysis: The environment scanning of specific and general environments
        
        Opportunities: Positive Trends
        
        Threats: Negative Trends
        
        General enviroment (PESTEL)
        P: policy=> goverment policy, political stability, corruption, labor law, trade restrictions
        E: Economics => economic growth, exchange rate, interest rate, inflation rate, disposable income, unemployment rate,...
        S: social => population growth rate, Age distribution, Career attitudes, Safety emphasis, Health consciousness, lifestyle attitudes, and cultural barriers.
        T: technology => technology incentives, level of innovation, Automation, R&D technology change, Technology awareness.
        E: Environment => weather, climate, Enviroment polices, climate change, pressure from NGO's (non-governmental organization: các tổ chức phi chính phủ)
        L: Law or legal => discrimination Laws, Antitrust Laws, Employment Laws, Customer protection Laws, Copyright and patent Laws, Health and safety Laws.
        
        Five force analysis by Michael Porter
        
        Threat of entrants: the ease or difficulty with which new competitors can enter an industry (cost advantages, access to inputs, economies of scale and strong brand identity)
        
        threat of substitute products: the extent to which switching costs and brand loyalty affect the likelihood of customer adopting substitutes products and services (ex. switching cost)
        
        Bargaining power of buyers: the degree to which buyers have the market strength to hold sway over and influence competitor in an industry. customers have power when they are fewer in the number but there are plentiful sellers and its easily for customers to switch.
        
        Bargaining power of suppliers: the relative number of buyers to suppliers and threats from substitutes and new entrants affect the buyer-supplier relationship.
        
        Current rivalry: Intensity among rivals increases when industry growth rate slow, demand falls, and product prices descend.
    - - Internal analysis: Assessing the organizational sources, capabilities, and activities
        
        Strengths: create value for the customers and strengthen the competitive position of the firm
        
        Weaknesses: can place the firm at a competitive disadvantages
    - - Formulating strategies
        
        Develop and evaluate strategic alternatives
        
        Select appropriate strategies for all level in the organization that provide relative advantage over competitors
        
        Match organizational strengths with environmental opportunities
        
        Correct weaknesses and guard against threats
    - - Implementing strategies
    - - Evaluating results
        
        How effective have the strategies been at helping the org achieve its goals
        
        What adjustment are necessary?