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P1- [C] Strategy (1;4;5;6) - Coggle Diagram
P1- [C] Strategy
(1;4;5;6)
1. Concepts of strategy
1.4 Objectives
A mission needs to be supported by more detailed objectives
SMART: Specific, measurable, achievable, results-focused, time-related
1.5 Strategic value
Ethics in business: decide bwt right & wrong
Corporate social responsibility (CSR): provide benefit to society rather than specific stakeholders
Corporate governance
1.3. Mission statements
Formal documents that state the organization's mission
1.2. Levels of strategy
Corporate: purpose, scope
Business-level: product, market
Operational: department
1.6 Strategic management
Strategic position (PESTEL, SWOT)
Strategic choices
Strategic action (implementing)
1.1 What is strategy?
The long-term direction of an organization
An operational plan
Measurable goals, high level initiating & other work items that will help achieve vision and mission
2. External environment
Drivers of change: assessing opportunities and threats
Strategic drift: failing to respond to change can cause strategic drift
2.3 Industry/sector environment
Analyse using Porter's five forces
=> Mitigate the threats and Promote the opportunities
Threat of new entrance
Substitutes
Bargaining power of customers
Bargaining power of suppliers
Competition and rivalry
Industry life cycle: Development -> Growth -> Shake out -> Maturity -> Decline
2.4 Customers and markets
Offering an attractive product to an attractive market
Customers
Markets: market attractiveness, business attractiveness
Market segmentation
2.2 National environment
Analyse national competitive environment using Porter's diamond (1990):
Factor conditions
Demand conditions
Related and supporting industries
Firm strategy, structure and rivalry
2.5 Scenario planning
View of how the environment could develop in future
Consider these when setting strategy
(Complexity of the external environment)
Identify key areas of uncertainty
Construct (xay dung) scenarios based on those key areas
Assess potential impact of different scenarios on the organisation
Develop strategies to adopt in different strategies
2.1 Macro environment
Analyse the overall business environment using PESTEL: framework for analysing sources of opportunities and threats
Political
Economic
Social
Technological
Environment
Legal
3. Strategic capability
Resources and competences: threshold resources and competences/unique resources and core competences
Competitive advantage: Competitive advantage is the term used to describe the ability of an organisation to generate greater returns than those of competitors over long term
3.2 Organisational knowledge
Knowledge is a major source of competitive advantage
Organizational learning: Culture that values intuition, argument from conflicting views and experimentation
Knowledge management: Exploit existing knowledge and to create new knowledge so that it may be exploited in turn
Knowledge management technology: Sophisticated IT systems to facilitate knowledge management
3.3 Porter value chain - 1985
Inbound logistics -> Operations -> Outbound logistics -> Marketing and sales -> Service
3.4 Value network
Set of inter-organizational links and relationships
Bargaining power/promote innovation
3.1 Strategic capability and sustainable competitive advantage
Four qualities (Value, Rarity (hiem), Inimitability (ko the bat chuoc), Organisational support)
Inimitability: Competitors cannot copy the resource/competence
Organisational support: the orgnisation must be able to support it's capabilities, including it's processes and systems
Rarity: Competitors cannot obtain same resource/competence
Dynamic capabilities: The ability to develop and change competences in response to changing environments
Value: Need to be valued by the customer and/or organisation
3.5 SWOT analysis
Strengths and weaknesses are internal
Opportunities and threats are external
4. Competitive advantage and strategic choice
4.4 Product-market strategy: direction of growth
Growth vector matrix: Market penetration, Product development, Market development, Diversification
4.5 Diversity of products and markets
Types of diversification
International diversification
4.3 Managing organizational portfolios
BCG matrix (growth rate & market share)
Dogs, Cash cows, Question marks, Stars
4.6 Methods of development
Business combinations: Acquisitions or Mergers
Partnering
Internal development
4.2 Sustainable competitive advantage
7 Ps: Product, place, price, promotion, people, processes, physical evidence)
Price-based, differentiation and lock-in (lock-in is achieved in a market when a product becomes the industry standard)
4.7 Suitability, acceptability and feasibility (kha thi)
<= Strategic choice
4.1 Porter's generic strategies
Differentiation is the exploitation of a product or service which the industry as a whole believes to be unique
Focus (or niche) strategy involves a restriction of activities to only part of the market (a segment)
Cost leadership means being the lowest-cost producer in the industry as whole