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Master Strategy Notes

Strategic management involves analyzing environments, formulating and implementing strategies, and evaluating effectiveness for long-term success. Key concepts include the distinction between strategy and tactics, competitive advantage, and various analytical frameworks like SWOT, BCG Matrix, and Porter's Five Forces. Additionally, it emphasizes the importance of corporate governance, business ethics, and aligning with sustainability goals.

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0% found this document useful (0 votes)
4 views3 pages

Master Strategy Notes

Strategic management involves analyzing environments, formulating and implementing strategies, and evaluating effectiveness for long-term success. Key concepts include the distinction between strategy and tactics, competitive advantage, and various analytical frameworks like SWOT, BCG Matrix, and Porter's Five Forces. Additionally, it emphasizes the importance of corporate governance, business ethics, and aligning with sustainability goals.

Uploaded by

wajatum943
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Strategic Management

Strategic management involves analyzing internal and external environments, formulating


strategies, implementing them, and evaluating their effectiveness to maintain competitiveness and
long-term success.

Strategy
A long-term plan to achieve competitive advantage by aligning objectives, resources, and actions
toward desired outcomes.

Strategy vs Tactics
Strategy focuses on long-term goals and competitive positioning, while tactics involve short-term
actions and operational execution.

Mintzberg's 5 Ps of Strategy
Plan, Ploy, Pattern, Position, and Perspective—the different dimensions in which strategy can be
understood and applied.

Strategic Planning Questions


Organizations must ask: Where are we now? Where do we want to be? How will we get there? How
will we measure success?

Strategic Management Process


Consists of five steps: goal-setting, environmental scanning, strategy formulation, implementation,
and evaluation.

Competitive Advantage
Achieved through innovation, customer insight, new technologies, regulatory shifts, or cost structure
advantages.

Porter's Generic Strategies


Cost Leadership, Differentiation, and Focus strategies used to outperform competitors.

Levels of Strategy
Corporate level (what industries to operate in), Business level (how to compete), and Functional
level (how departments support strategy).

Organic vs Inorganic Growth


Organic growth comes through internal expansion, while inorganic growth includes mergers and
acquisitions.
Ansoff Matrix
Market penetration, market development, product development, and diversification as four growth
strategies.

Porter's Five Forces


Analyzes industry attractiveness based on rivalry, suppliers, buyers, substitutes, and entry barriers.

Value Chain Analysis


Evaluates primary and support activities that contribute to competitive advantage through cost
efficiency or differentiation.

VRIO Framework
Assesses whether resources are Valuable, Rare, Inimitable, and Organized to provide sustained
competitive advantage.

BCG Matrix
Classifies business units into Stars, Cash Cows, Question Marks, and Dogs based on market
growth and share.

GE McKinsey Matrix
Uses industry attractiveness and business strength to guide investment decisions across nine cells.

SWOT Analysis
Identifies internal strengths and weaknesses along with external opportunities and threats.

ETOP Analysis
Profiles environmental threats and opportunities by categorizing external influence sectors.

McKinsey 7S Model
Aligns strategy, structure, systems, skills, staff, style, and shared values for organizational
effectiveness.

Balanced Scorecard
Measures performance across financial, customer, internal process, and learning perspectives.

Corporate Governance
Ensures accountability, transparency, and ethical management through board structures and
regulatory compliance.
Business Ethics & CSR
Addresses ethical responsibility, social welfare, sustainability, and stakeholder impact.

Sustainability & SDGs


Aligns business practices with environmental protection, social equity, and UN Sustainable
Development Goals.

Strategic Intent, Mission, Vision


Defines long-term aspirations, organizational purpose, values, and measurable objectives.

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