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B302 Strategic Management - Unit 1 - Coggle Diagram
B302 Strategic Management - Unit 1
Block 1
Introduction to strategic management
Week 2
Vision, mission, values and goals
Mission
A set of principles
What drives organisation
What it actually does
Present offering
How it adds value
Motivates / influences employee behaviour
Highlights who benefits
Choices made can be
Measured against statement
Values
Beliefs maintained over time
Drive behaviour
of individuals within org
Showcases culture
May change
Due to learning / adaptation
Vision
Desired future state
To achieve
For itself
De Wit (2017)
Desired future organisational position
Industry outlook
Customers
New sales opportunities
Competitors
1 more item...
Envisioned industry environment
Position in market
Leader
Budget
Enter new markets
Envisioned contextual environment
STEEPLE analysis
Changes over time
Impacts what can be done
Time horizon
Goal completion to be accomplished
Variable
Might have no time specified
Statement typically made
Some businesses may forgoe
Where obvious
Where undecided
Goals
Measurable future states
Sometimes known as objectives
To be successful
Focused on crucial issues
Challenging but realistic
Precise and measurable
Time-bound
Required to achieve mission
Week 3
Understanding performance
Performance analysis
Measures goals vs strategy
Important because
Links to strategy
Assess what happened
And why
Achieved?
not achieved?
Were objectives met?
No
Partially
Yes
Undertsand strengths
And weaknesses
Enhance success
Timeline for measurement
Linked to business
Location
Age
Size
Position
Inputs
Activities
Outputs
Outcomes
The difference made
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Goals
Stakeholders
Results from organisational action
Actions to take
Efficiency
Ratio between inputs and outputs
Resources required
Competitive advantage
Offer something competition cannot
Current or potential
Added value
Or do it better
Value (Giarratana, 2013)
Creation
Process of cimbining resources
and activities
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B - C
B = perceived benefit by customer
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C = cost incurred by supplier
Customer surplus = B - P
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Curves
Customer's utility
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Firm's average cost
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Capture
Maximise shareholder value
Strategy feeds into goals
Short-term
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Long-term
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Balance against other stakeholders
CSR
Performance measures
Long-term
Profit growth
Increase over time
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Assess profitability ratios over time
Market value
Share price * number of outstanding shares
Short-term
Return on Capital Employed (ROCE)
Operating profit / capital employed * 100
ROS * AUR
Return on sales (ROS)
Operating profit / sales * 100
Return on Equity (ROE)
Net profit for year / equity * 100
Asset utilisation ratio (AUR)
Sales / capital employed
Industry specific
Week 1
What is strategy?
Definition
Course of action
Achieve goals
Terminology
Synonyms for business
Enterprises
Organisations
Firms
Company
Public sector
Government owned
Local councils
Civil servants
NHS
Education system
Public limited companies
Traded on stock market
Third sector
Non-profit
Non-government organisation (NGO)
Charity
Strategic management
Utilising available resources
Achieve specific outcome
Formulated by
Management team
2 more items...
People
Brands
Finances
Patents
The five P's
Position
What is unique?
Product?
Location?
Service?
Competition?
Perspective
World view
Drives belief
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Brand principles
Pattern
Consistent behaviour through time
Ploy
Defensive action
Against competition
Reactive or Proactive
Plan
Intended course of action
Mintzberg (1987)
Conventional approach
Strategy is a perspective
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Alternative approaches
Perspective of org exists
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Patterns formed according to experience
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Ongoing stable strategy
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Strategy has different meanings
Deliberate
Planned / intended
Pattern develops
becomes realised strategy
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Unpredicted change
Pattern does not develop
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Emergent
Unplanned
Low level management action
Alert to opportunities
Less likely to follow status quo
Less emotional investment in existing strategies
Unplanned changes by top management
Exploit new opportunities
Feel current is not working
Serendipity
Unexpected discoveries
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Combines with planned to become realised
Levels of strategy
Business
Strategic initiatives
Within specific industry
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Sometimes called
Competitive strategy
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Corporate
Industries a company is in
How to create coherence
And synergies
Consists of parent and daughter
Examples
Investments
1 more item...
Diversification
Network
Exists between companies
Working in same space
May be between competitors
Might be one platform
Functional
Departmental strategies
Focus on one area
Or process
Align with high level strategy
Week 4
Corporate social responsibility
Other factors
Not just profit
Stakeholder analysis (Hill, et al.)
External
Governments
Media
Creditors
Local communities
Competitors
General public
Customers
Suppliers
Internal
Board
Managers
Employees
Shareholders
Identify stakeholders
Identify interests and concerns
Identify claims likely made
Identify most important to firm
1 more item...
Non-market strategy
Triple Bottom Line (TBL)
Social performance
People
Environmental performance
Planet
Economic performance
Profit
Creating shared value
Porter and Kramer (2011)
Between
Business opportunities and threats
Social needs
Firm assets
Sustainable development goals
Consider long-term impacts
Balance with short-term
Strategic analysis
Block 2
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Block 3
Business strategy
Block 5
Strategy in action
Block 4
Corporate strategy
Decision-making