Chapter 1 : Foundations of Strategic Management
1. Strategy (General Definition)
Strategy is the set of long-term decisions that determine the direction and scope of an
organization. It aims to achieve a sustainable competitive advantage by aligning resources with
the environment.
2. Corporate Strategy (Business Strategy Origin)
Corporate strategy defines the long-term direction of a company and the markets in which it
operates. It focuses on creating value by managing a portfolio of activities and allocating
resources effectively.
3. Competitive Advantage
Competitive advantage is the ability of a firm to outperform its competitors by offering greater
value to customers. It results from unique resources, capabilities, or positioning in the market.
4. Strategic Decisions
Strategic decisions are high-level choices that affect the entire organization and its long-term
future. They are complex, non-routine, and involve a high level of uncertainty and risk.
5. Tactical Decisions
Tactical decisions focus on the management and allocation of resources to implement strategies.
They are medium-term decisions that support strategic objectives.
6. Operational Decisions
Operational decisions deal with the day-to-day activities of an organization. They are repetitive,
short-term, and ensure the efficient functioning of operations.
7. Strategic Levels
a. Corporate Level Strategy
Corporate strategy determines the overall scope and direction of the organization. It involves
decisions about diversification, internationalization, and resource allocation.
b. Business Level Strategy
Business strategy focuses on how a company competes within a specific market or industry. It
aims to achieve a competitive position through cost leadership, differentiation, or focus
strategies.
c. Functional Strategy
Functional strategy refers to the actions taken within specific departments like marketing,
production, or HR. It ensures the effective implementation of corporate and business strategies.
Chapter 2 : The Strategic Process
1. Strategic Process
The strategic process is a structured approach used by organizations to define, choose, and
implement strategies. It consists of three main phases: diagnosis, strategic choice, and
implementation.
2. Strategic Diagnosis
Strategic diagnosis is the analysis of an organization’s internal strengths and weaknesses and
external opportunities and threats. It helps determine the company’s current strategic position.
3. Strategic Business Unit (SBU / DAS)
A Strategic Business Unit is a part of an organization with its own resources, competitors, and
success factors. It requires a specific strategy adapted to its environment.
4. External Analysis
External analysis evaluates the attractiveness of the environment by identifying opportunities
and threats. It examines market trends, competition, and macro-environmental factors.
5. PESTEL Analysis
PESTEL analysis examines Political, Economic, Social, Technological, Environmental, and
Legal factors affecting an organization. It helps understand the macro-environment.
6. Porter’s Five Forces
Porter’s Five Forces model analyzes the competitive intensity within an industry. It evaluates
threats and bargaining power to determine profitability.
7. Internal Analysis
Internal analysis assesses the strengths and weaknesses of an organization. It focuses on
resources, capabilities, and competencies across the company.
8. Value Chain
The value chain analyzes the activities that create value within an organization. It helps identify
sources of competitive advantage and cost efficiency.
9. Key Success Factors (KSF)
Key Success Factors are the elements that determine success in a specific industry. Companies
must master them to compete effectively.
10. SWOT Analysis
SWOT analysis combines internal strengths and weaknesses with external opportunities and
threats. It provides a global view for strategic decision-making.
Chapter 3 : Strategic Analysis Tools
1. LCAG Model
The LCAG model is a strategic framework that links internal strengths and weaknesses with
external opportunities and threats. It provides a structured process for formulating and
implementing strategy.
2. External Analysis (LCAG)
External analysis identifies opportunities and threats in the environment affecting the
organization. It focuses on market conditions, competition, and key success factors.
3. Internal Analysis (LCAG)
Internal analysis evaluates the company’s strengths and weaknesses. It helps identify distinctive
competencies and internal capabilities.
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4. SWOT Analysis
SWOT analysis is a tool that combines internal strengths and weaknesses with external
opportunities and threats. It helps generate strategic options by matching internal and external
factors.
8. Porter’s Strategic Model
Porter’s model focuses on analyzing industry structure and competitive forces. It helps firms
choose strategies to achieve a strong competitive position.
9. Porter’s Five Forces (+1)
Porter’s Five Forces model analyzes competition through five main forces and an additional
role of the state. It evaluates industry attractiveness and competitive intensity.