STRATEGIC MANAGEMENT

LEVELS OF STRATEGY
Corporate  Functional  Business

CORPORATE STRATEGIES

Grand Strategy
– – – Stability Growth Retrenchment

Portfolio Matrix

BCG MATRIX
Market Share
HIGH HIGH LOW

STARS

QUESTION MARKS

??
Growth
CASH COWS DOGS

LOW

BUSINESS-LEVEL STRATEGY
5 forces  SWOT  Generic Strategies

Entry Barriers Economies of Scale Brand Identity Capital Requirements Determinants of Supplier Power

Switching Costs Supplier Volume Impact Forward Integration

New Entrants Industry Competitors Intensity of Rivalry

Rivalry Determinants Industry Growth Fixed Costs Product Differences Brand Identity Exit Barriers

Suppliers

Buyers
Determinants of Buyer Power

Determinants of Substitution Threat

Relative Price Performance Switching Costs

Substitutes

Buyer Concentration Buyer Volume Backward Integration

S.W.O.T. ANALYSIS

S W O T represents the first letter in
– – – –

S trengths W eaknesses O pportunities T hreats

S O

W T

Strategy-making must be well-matched to both
– –

A firm’s resource strengths and weaknesses A firm’s best market opportunities and external threats to its well-being

4 GENERIC STRATEGIES
Lower Cost Broad Target Cost Leadership Differentiation

Differentiation Differentiation Focus

Scope
Cost Focus
Narrow Target

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