Professional Documents
Culture Documents
Management
MID 2 LT 2 Managing Strategy
MD Asif Hossain
1
Today’s Topic
4
Importance of Strategic Management
5
The Strategic Management Process
7
Components of a Mission Statement
8
Strategic Management Process (Cont.)
External
► Opportunities
► Threats
10
SWOT Analysis
11
Strengths Opportunities
-What does your organisation do better - What political, economic, social-cultural,
than others? or technology (PEST) changes are taking
-What are your unique selling points? place that could be favorable to you?
-What do you competitors and customers in - Where are there currently gaps in the
your market perceive as your strengths? market or unfulfilled demand?
-What is your organisations competitive - What new innovation could your
edge? organisation bring to the market?
Weaknesses
Threats
-What do other organisations do better
than you? -What political, economic, social-cultural,
or technology (PEST) changes are taking
- What elements of your business add place that could be unfavourable to you?
little or no value? - What restraints to you face?
What do competitors and customers in - What is your competition doing that
your market perceive as your weakness? could negatively impact you?
12
Strategic Management Process (Cont.)
14
Corporate Strategies
► Diversification-.
► Related diversification happens
when a company combines with
other companies in different, but
related, industries
► Unrelated diversification is when a
company combines with firms in
different and unrelated industries
Example- Tata Company- Owning
IT/Communication)
17
Horizontal
and Vertical
Integration
18
Example: Different Brands Under One Parent
Company
19
Market Share Example
20
How Are Corporate Strategies Managed?
► When an organization’s corporate strategy
encompasses a number of businesses, managers can
manage this collection, or portfolio, of businesses
using a tool called a corporate portfolio matrix
► This matrix provides a framework for understanding
diverse businesses and helps managers establish
priorities for allocating resources
► BCG matrix - a strategy tool that guides resource allocation
decisions on the basis of market share and growth rate of
SBUs.
21
BCG Matrix
Dogs
Cash Cow
23
24
Business-Level Strategy
► Business-Level Strategy
► Strategic Business Unit (SBU) - the single independent
businesses of an organization that formulate their own
competitive strategies.
25
The Role of Competitive Advantage
26
New Types of Competitive Strategies
28
New Types of Competitive Strategies
► Social Media as a Competitive Advantage
► Real time Response
► Influencer/bloggers
► Brand monitoring
► Engaging customers
► Marketing & Advertising
► Sustaining Competitive Advantage
► Should be able to keep the competitive advantage through
proper management of resource to keep edge over
competitors.
► https://study.com/academy/lesson/sustainable-competitiv
e-advantage-definition-concept-examples.html 29
Competitive Strategies
► Cost Leadership Strategy
► – Seeking to attain the lowest total overall costs relative to other
industry competitors
► Differentiation Strategy
► – Attempting to create a unique and distinctive product or
service for which customers will pay a premium
► Focus Strategy
► – Using a cost or differentiation advantage to exploit a particular
market segment as opposed to a larger market
Stuck in the Middle
► Organizations that are unable to develop a cost or differentiation
advantage 30
Poter’s Five
Force Model
31
Poter’s Five Force Model (Cont.)
33
Effective Strategic Leadership
34
Strategies for Today’s Environment
► E-Business Strategy
► Reduce Cost
► Use updates software to keep track of inventory
► Low cost in handling customers
► Customer Service Strategies
► Winning customer through providing excellent customer
service.
► Innovation Strategies
► Continuously innovating. Adding value to product
► First Mover
35
Advantages & Disadvantages of First
Mover
36
ANY QUESTIONS ?
Further Reading
38