Strategic management .

Strategic management .

Strategic management all is about

identification and
description of the strategies that
managers can
carry
so achieve better and a
to
performance competitive
as

advantage for their

organization
OR

strategic management can also be

defined as a bundle

of decisions and acts which a undertakes which

manager ,

decides and
the result
performance of the
firm .
 Strategic management simply means looking at a
bigger
picture all of different aspects of the business
,
must

utalised
be
for plan to be successful
a .

Where are we what is How will the

Now the
goal .

goal be achieved

strategic management occurs at three

different levels .

Functional
1
strategy
specific strategy for a
functional area such as
marketing
-

operations etc .

Decisions methods
on the
specific of achieving a
-

particular objectives .
 Business
2
strategy
division
General
strategy for the or area
of the
-

business .

Decisions made to the

-

complement corporate strategy

3
Corporate strategy
Overall
purpose and general direction
-
.

and directions
- is the base
for all
further strategies .
Levels
of strategy
-

Corporate level
strategy
Is concerned with the overall purpose and scope
and how added
of an
organisation
value will be

business the
to
different parts of
units
of organisation
.

Business level
strategy .

Is about how the various businesses included in the

corporate should
strategy compete in their particular ,

markets ,
business
strategy is sometimes called as
competitive strategy

-
Operational strategies .

Are concerned with how the

component parts of an

and business
organisation deliver
effectively the
corporate
level and
strategies in terms
of resources
, processes
people
.
 The need
for strategic management -

Relate actions Identify strengths

to resources .
Weaknesses ,

opportunities and
threats
Need
for
Strategic
Management

enables measurement

Enables
of progress .

Informed
decisions and
planned
actions .
Chandlers assertion that should determine
strategy
organisational structure .

Chandlers assertion is
strategic
that
management
decisions lead to the the business
structure
of , as

decisions made the

the are at Centre or the top
and Communicated to lower
of the
organisation are levels

of the business ,
the business structure
adapts to

needs decision
meet the
of new .

lndiviual
management strategy communication

decided at the head to Junior business units

of the business managers are free to

and deisicn
decide own
makers .

tactics within

strategy .
 strategic Analysis .

Strategic analysis is the

process of conducting research
into the business envoirmcent within which
organisation
an .

operates ,
and into the
organisation itself ,
to
help form
future strategies .

The is concerned with

topic .

i PEST
analysis / Enuoir mental
analysis .

SWOT
2
analysis
3 Boston matrix .

4 Core competence
Porter
5
five forces .
 PEST
Analysis PESTEL .

Pest
analysis identify and classify external
factors
and their potential
influence on the business .

Political .
Economical Social Technological .

home
govt regulations economy lifestyle trend Research
-
- - -

trend
funding
rate
-

demographics
govt policies <
growth
Training cost
-

-
Consumer attitude -

G. P and
opinions
-
D.
→ war / conflicts -

Inflation _ ethical issues .

-

Technology
and Trends legislation
-

govt term -

Exchange rate _

change Seasonality media views

-
_
-

maturity of
funding / grants taxation religious factors technology
.
-
- _ _

and
Current legislation Interest rate -

fashion
Technology
-
-

models
-

trading policies _ home

situation
economy
role
acceptance
.

-
home market
market and
_

Buying access .

replacement
lobbying
-
-
.

trade cycle . solutions .

PEST
analysis of
Starbucks .
PEST
analysis of Samsung
.

Political
In most of the markets where Samsung operates, the political environment is conducive to its
operations and though there are minor irritants in some of the foreign markets like India, overall
Samsung can be said to be operating in markets where the political factors are benign. However, in
recent months, it has faced significant political headwinds in its home country of South Korea
because of the country’s tensions with North Korea wherein the company has had to take into
account not only the political instability but also the threat of war breaking out in the Korean
Peninsula. Apart from this, Samsung faces political pressures in many African and Latin American
countries where the political environment is unstable and prone to frequent changes in the
governing structures. Of course, this is not yet a major cause for worry as the company has more or
less factored the political instability into its strategic calculations.
Economic
This dimension is especially critical for Samsung, as the opening up of many markets in the developing world has
meant that the company can expand its global footprint. However, this dimension is also a worry since the ongoing
global economic crisis has severely dented the purchasing power of consumers in many developed markets forcing
Samsung to seek profitable ventures in the emerging markets. The key point to note here is that the macroeconomic
environment in which Samsung operates globally is beset with uncertainty and volatility leading to the company
having had to reorient its strategies accordingly. The saving grace for the company is that it has adjusted rather well
to the tapering off of the consumer disposable incomes in the developed world by expanding into the emerging and
the developing markets. Indeed, this is the reason Samsung has begun an aggressive push into the emerging
markets in the hope of making up for lost business from the developed world.

Socio-Cultural
Samsung is primarily a South Korean Chaebol or a family owned multinational. This means that
despite its global footprint it still operates from the core as a Korean company. Therefore, there are
several aspects to its global operations some of which include adapting itself to the local
conditions. In other words, Samsung being a Global company has had to act locally meaning that it
has had to adopt a Glocal strategy in many emerging markets. Apart from this, Samsung has had
to tailor its products to the fast changing consumer preferences in the various markets where it
operates. The key point to note here is that Samsung operates in a market niche that is strongly
influenced by the lifestyle preferences of consumers and given the fact that socio cultural factors
are different in each country; it has had to reorient itself in each market accordingly.
Technological
Samsung can be considered as being among the world’s leading innovative companies. This means that
the company is at an advantage as far as harnessing the power of technology and driving innovation for
sustainable business advantage is concerned. This has translated into an obsessive mission by the
company to be ahead of the technological and innovation curve and a vision to dominate its rivals and
competitors as far being the first to reach the market with its latest products is concerned. however, as
we shall discuss later, this has also resulted in the company cutting corners with its imitation of the
legendary Apple’s product design and this has brought legal and regulatory scrutiny and troubles for the
company. There is a lesson here for other technology driven companies from Samsung’s experiences
and it is that no matter how fast you are to reach the consumer in this age of Big Bang Disruption, doing
the basics right is still the key to success.
Legal
As mentioned in the last section, Samsung has had to face heavy penalties for its alleged imitation of the
Apple’s iPad and iPhone and this has led to the company taking a beating as far as public perceptions
and consumer approval of its strategies are concerned. It remains to be seen as to how the company
would wriggle out of the legal maze that it finds itself in the developed markets because of the various
lawsuits.
Environmental
With the rise of the ethical consumer who wants his or her brands to source and make the products in a
socially and environmentally responsible manner, Samsung has to be aware of the need to make its
products to satiate the ethical chic consumer. This means that it has to ensure that it does not
compromise on the working conditions or the wages it pays to its labor who are engaged in making the
final product.
Conclusion
The preceding analysis clearly indicates that Samsung has its task cut out for itself as it navigates the
treacherous global consumer market landmine. Indeed, as the company prepares to expand its global
footprint, the stakes could not have been higher in a recessionary era and an uber competitive
technological market landscape.
Boston matrix ( Bca ) Product Portfolio analysis .

Boston Which
matrix is a
four celled matrix ,
allows the

analyst to
identify
and create
at what
stage
to
of the
life cycle the

product is
strategies maximise the

potential if appropriate by matching promotional

sales

activities and
spend to the product useful for managing
a
large product portfolio .

STARS Question
High mark

market

growth
Cash
Low Cows Dogs

High Low
market share .
Market Business unit sales this
leading
share
year competitors
=

sales this
year
.

Market Shares Business Sales ✗ 1W

Total market sales

market
growth =

Industry
last
sales this
year ,
Industry sales

year
.

Stars

business units
Stars
represent having large market share

in
fast growing industry They •

may generate cash

of fast growing
but because market .
Stars require
huge lead
investments to maintain their Nut
cashflow
sak e
.

modest business located

usually ,
units in this cell
are attractive as
they are in a robust
industry , if
successful ,
a star will become a cash cow when the

industry matures .

Cash cows .

Cash cows represents business units

having a
large
market share in a mature slow
growing industry . Cash

cows require little investment and generate cash that

can
utilized business
be
for investment in other units .

of cash and
These business units
key are source are

specifically the core business , they the base

of are an

usually follow stability strategies

businesses
organisation , ,

when cash cow loose their

appeal and towards move

detonation be pursued
then retrenchment
policy
a must .

,
Question mark .

Question mark
represent business units
having low

relative market shore and located in a high growth

industry They require huge
.
amount
of
cash to maintain

determine
or
gain market share
They require
attention to
•

can viable Question

if the venture be .
marks are new

goods which have

good prospective, there is no
specific
strategy adopted . . Most businesses start as
question
mark the tries to enter a
high growth
company
as

in
market which there is
already a market shore
If .

ignored then question marks

may
become
dogs ,
while
if
investment is made then have
huge ,
they potential of
becoming
stars
Dogs ,

Dogs represent businesses

having weak mark shores

in low market
growths .

They neither generate cash

Due to low market

nor
require huge of amount cash .

share ,
these business unit
face cost disadvantages Generally .

retrenchment
strategies are
adopted b/c these firms can
gain market share only at the expense of rival firms Unless
.

dogs have any

other strategic aim ,
it should be
liquidated
if there is
fewer prospects for it to
gain
market share .

avoided
Number
of dogs should be and minimized in

organisation
an .
 SWOT
Analysis
SWOT and
for
is
analysis a tool audit analysis of overall

the and its

strategic position of . business envoirment .

Its
key purpose is to
identify the
strategies that will

create a
firm specific business model .
that will best

and capabilities
align
organisation to
an resources

the
requirements of the envoirment in which
firm
operates .

An overview
of four factors
the

s
strengths
w
weaknesses

0
Opportunities
T Threats
strengths
-

the
strengths
are
qualities that enable us to
accomplish
the
organisation
's mission ,
strengths can either be

these
tangible or
intangible , are what
you are

versed what have in

Strengths
in
well or
you expertise .

the
beneficial
the
are
aspects of organisation
or the

includes
capabilities of an
organisation ,
which

human competencies , process capabilities ,

financial resources

products and services customer goodwill

,
and brand loyalty .

Weaknesses .

Weaknesses the
are
qualities that
prevent us
from
accomplishing our mission and
achieving
our
full potential .

These detonate
weaknesses
influences on the
organizational
success and growth weaknesses in an
organisation may
.

be
depreciating machinery ,
insufficient research
,
narrow product range , poor decision making , dependency
weaknesses controllable
on
supplier . are
,
they must

be minimised or eliminated .

Opportunities .

Opportunities presented
are
by the envoirment within

operates These
organisation
which our -
arise when an

conditions its
organisation
can take
benefit of in envoirment

to
plan and execute
strategies that enable it to become

more
profitable Organisations should be careful and
-

recognize the opportunities and grasp them whenever they

_

arise
Opportunities may arise from market competition
.

, ,

and
industry / government technology -
Threats .

Threats arise when conditions in external cenuoirment

may
harm the business
They compound the
vulnerability
.

Threats
they
when relate to weaknesses - are Uncontrollable ,

when threat the and survival

comes ,
stability can be at

stake recession
,
for e.g ,
unrest
amoung employees , ,

exchange rate ,
changing technology .

Advantages of SWOT
.

of information for strategic planning

i It's a source .

2 Reverse it 's weaknesses .

its
3 Maximise response
to
opportunities -

4 Overcome threats

5 It helps
knowing Past present
, ,
future
 Disadvantages of SWOT
analysis .

i price Increase

2 Input / raw material

Government
3
legislation
4 Economic envoirment

s Poor Industrial relation

6
Insufficient research and development -

SWOT Framework
analysis . .

Internal External

Strength Opportunities
weaknesses .

Threats .
SWOT
analysis of NIKE .

Strengths
*
* The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It”
slogan for its brand epitomizing its attitude towards business. The company was founded on the principle that it
would make shoes for anyone who could walk or run and this has been the guiding philosophy behind Nike.
Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a
“Can Do” company.

* Strength of the company is that it has outsourced all aspects of its production to overseas facilities and thereby,
does not have any manufacturing outlet of its own. This has helped the company focus on higher value adding
activities like design and research and development and at the same time, it has saved the high labor costs that
are part of the traditional manufacturing sector.

* Apart from this, the other big strength of Nike is that it is a globally recognized brand that has top of the mind
recall among consumers and the youth in particular. Further, the Nike brand is synonymous with quality and
resilience as well as endurance and fitness, which makes it the brand of choice for athletes and anyone who
wishes to run.

* Finally, Nike stands to benefit from the current disarray among its competitors because of the fragmentation of
the market wherein Nike with its USP or Unique Selling Proposition can standalone among them.
Weaknesses
*
* Nike is almost exclusively driven by its footwear business and therefore, the footwear market contributes to a lion’s share
of its revenues making it dependent on this segment for its survival. In these recessionary times, it is not a good business
practice to be overly dependent on one segment and hence, Nike ought to diversify horizontally as well as vertically and
include apparel and other accessories.

* Though we have mentioned the fact that it has outsourced its manufacturing aspects completely as strength, the
negative publicity that Nike got because of labor unfriendly conditions in its overseas outlets has badly dented its brand
image. Indeed, the name “Sweatshops” is used to mockingly describe the abhorrent conditions in its overseas
manufacturing facilities.

* The company does its business through retailers who stock other brands as well. This means that the assiduously
cultivated exclusivity is sometimes sacrificed because it has not yet spread its wings to include exclusive retailer outlets
as part of its business strategy.

* Nike is perceived by some consumers as being too premium and a luxury brand. While this is necessarily not a bad
thing, the current market scenario is such that consumers are migrating to the middle tier of the luxury scale as they are
becoming price conscious and quality focused.
Opportunities
*
* The biggest opportunity for Nike is from the emerging markets of China and India where
the Billion Plus new consumers are now aspiring to western lifestyles which means that
they would be more receptive to brands like Nike. As the company is associated with
premium branding and segmentation, it can be said that capturing the “emerging market
newly affluent consumers’ prize” could well be a game changer for the company.

* In recent years, Nike has begun to diversify into accessories and other premium products
apart its signature footwear segment. This is a step in the right direction and something,
which would stand the company in good stead as it attempts to look for revenues beyond
its traditional offerings.

* The emphasis on design of higher end footwear seems to be paying off for Nike that is
increasingly being seen as a must have product for anyone who walks or runs and as the
company was founded on the principle that it would serve anyone with legs, this strategy
seems to have hit the right notes.
Threats
*
* The fact that the company has a global supply chain means that it is subject to the vicissitudes of international trade
practices including labor strikes in its overseas locations, currency fluctuations that decrease its margins, as well as lack
of control over the geopolitical events happening around the world which have the potential to disrupt its global supply
chain.

* Nike must improve on its image wherein it is being seen as resorting to exploitative business practices in its overseas
outlets. Already, it had to pay a heavy price (monetarily as well as metaphorically) because the emerging generation of
consumers are socially and environmentally conscious which means that they would not like to buy a product that is the
result of dubious business practices.

* The ongoing recession has taken a heavy toll on Nike with consumers becoming more price conscious and retailers
demanding higher margins. The combination of retailing in third party outlets and competing brands cutting prices has
made the going tough for Nike.

* Finally, Nike has to ensure that it does not dilute its focus like some of its competitors who are now in the doldrums. For
instance, Reebok that promised a lot and was intensely competitive with Nike has seen its fortunes sag and hence, Nike
must not go Reebok’s way and instead, must define its core competence and implement its strategies accordingly.
swot
analysis of IKEA .

Strengths
*
* The biggest strength that IKEA has is its clear vision, which is to add value to its customers irrespective of the
market conditions. This has translated into an articulate and well-defined business strategy and an approach to
retailing, which is pioneering in its simplicity and deadly in its targeting of competitors and effective in its
positioning.

* Another key strength of the company is its clear concept which translates into an array of products that can be
assembled by the customers themselves leading to humungous cost reductions which are then passed on to the
customers. With its single-minded focus on cost leadership, IKEA has emerged as the world’s leading retailer of
furniture.

* IKEA measures its strengths using the metrics provided by the KPIs or the Key Performance Indicators that
include increased use of renewable materials, smarter use of raw materials, establishing and maintaining long-
term relationships with suppliers and leveraging the efficiencies and the synergies from the economies of scale.

Weaknesses
*
* Given the fact that IKEA operates in multiple countries around the world, it is a high
scale and a large size business meaning that it is difficult to control standards across
locations. Though the company tries its best to implement uniform quality across its
product range and throughout its locations, replicable and scalable control of quality is a
key weakness.

* With its obsessive focus on cost leadership, quality sometimes goes for a toss
especially in the present context where the costs of many inputs and raw materials has
gone up and which has impacted the profitability of the company. The point to be noted
here is that it is sometimes difficult to maintain quality in the context of increasing costs
and the need to replicate standards across its locations worldwide.

* There are environmental concerns about IKEA’s operations and the company faces
challenges in communicating and articulating its environmental policies to its customers,
shareholders, and other stakeholders.
Opportunities
*
* With its “green” business model, the company has a huge opportunity waiting in terms of attracting customers who like
to buy such products. The rise of the ethical consumer or the process of buying known as “Ethical Chic” which means
that customers would ideally like to buy products that are environmentally conscious is an opportunity waiting to be
tapped for the company.

* Perhaps the biggest opportunity that the company has is its cost leadership, which means a single-minded focus on
cost at the expense of everything else. While this has raised concerns about quality, the customers do not seem to mind
as they are getting their money’s worth and the addition of value to the customers is another significant opportunity.

* The other opportunity lies in the company’s expansion into the emerging markets and the developing world where it
has an untapped customer base that can be leveraged for effective profitability. IKEA is already drawing up plans to
enter markets like China and India with a clear strategy of cost leadership, which it hopes, would yield benefits to the
company.

Threats
*
* IKEA’s low cost business model has been imitated and copied by its rivals, which means that the company needs to
constantly innovate if it has to stay ahead of the competition. For instance, several regional and local companies have
caught on to the DIY bandwagon and are also focusing on costs which means that to stay nimble and agile, IKEA has to
come up with newer strategies.

* With the advent of the internet and online shopping, DIY as a key driver of strategic success is no longer the sole USP or
Unique Selling Proposition of IKEA and with the proliferation of online retailers who can provide even lower costs because
they do not have a physical presence means that they are snapping at the heels of IKEA.
Conclusion
IKEA is a well-known global trend and through its innovative business model and its focus on products, processes, and
systems, it has managed to stay ahead of the competition in the furniture retailing business. The company can diversify
into other products and product lines as it can replicate its business model in other realms as well. To do this would require
fresh thinking and a new approach to its strategy that would combine low cost leadership with additional drivers of
success like scalability and focus on quality. Finally, the company can enter the emerging markets where its products and
its business model are likely to be met with success and the untapped customer base can be leveraged.
Porters
five forces .

Porter regarded understanding both the

competitive forces
and crucial
the overall

decision
industry In
structure as

model
for effective
strategic making porters the
five
-
-

forces that
shape industry competition are .

Threat
of
1 new
entry
2
Bargaining power
of supplier
3
Bargaining power of
customer

Threat
4
of substitute

5
Competitive rivalry
 Threat
1
of new
entry .

This considers
force how
easy difficult
or it is
for
Join the it is
competitors to
marketplace The .
easier

for a new
competitor to
gain entry , the greater the

is established business 's

risk
of an market share

being depleted .
Barrier to
entry
include absolute

cost
advantage ,
access to
inputs ,
economies
of scale

and
strong brand identity .

2
Competitive Rivalry .

This
force examines how intense the
competition is

in It considers the
of existing
the market .
number

do
competitors and what each one can .

Rivalry competition
is high when there are
few business
selling
a

product or service , when the

industry is growing
and when consumers can
easily switch to competitor a 's

offering for and

little cost When
rivalry competition is high
-

advertising price wars ensue , which can hurt a

business bottom line .

The Power supplier

3
bargaining of
.

This
force analyzes how much power a business 's

supplier has and how much control it has over

its which in turn lowers

the potential to raise
prices , , ,

business It the
profitability also assesses number
of
a .

materials and that

suppliers of raw other resources

available The
are .

fewer supplier there are

,
the more

have Businesses
power they
.
are in a better position
when there are
multiple suppliers .
3
Bargaining power of customer .

and
This
force examines the
power of the consumer
,

and Consumers
their
effect on
pricing quality .
have

power when
they are
fewer in numbers but there

are
plentiful sellers and its
easy for consumers to

is low when consumers

switch
Conversely buying power
.

and the seller 's

purchase products in small amounts

product is
very different from that
of its competitors .

Threat Product
of substitute .

This
force studies how
easy
it is
for consumers to

switch
from a business
product to that
of competitor .

It examines the number

of competitors ,
how their
prices
and quality examined and
compare being
to the business ,

how much
of
the
profit those
competitors are
earning ,
 determine lower
which would
if they
can their costs

even more .
The threat
of substitute is
informed by
immediate
switching costs , both and
longterm ,
as well

consumers inclination to
as
change .

Example of Porter’s Five Forces

There are several examples of how Porter’s Five Forces can be applied to various
industries. The ultimate goal is to identify the opportunities and threats that could impact a
business. As an example, stock analysis firm Trefis looked at how Under Armour fits into
the athletic footwear and apparel industry.
* Competitive rivalry: Under Armour faces intense competition from Nike, Adidas, and
newer players. Nike and Adidas, which have considerably larger resources at their disposal,
are making a play within the performance apparel market to gain market share in this up-
and-coming product category. Under Armour does not hold any fabric or process patents,
hence its product portfolio could be copied in the future.
* Bargaining power of suppliers: A diverse supplier base limits supplier bargaining power.
Under Armour’s products are produced by dozens of manufacturers based in multiple
countries. This provides an advantage to Under Armour by diminishing suppliers’ leverage.
* Bargaining power of customers: Under Armour’s customers include wholesale customers
and end-user customers. Wholesale customers, like Dick’s Sporting Goods, hold a certain
degree of bargaining leverage, as they could substitute Under Armour’s products with
those of Under Armour’s competitors to gain higher margins. The bargaining power of end-
user customers is lower as Under Armour enjoys strong brand recognition.
* Threat of new entrants: Large capital costs are required for branding, advertising, and
creating product demand, which limits the entry of newer players in the sports apparel
market. However, existing companies in the sports apparel industry could enter the
performance apparel market in the future.
* Threat of substitute products: The demand for performance apparel, sports footwear and
accessories is expected to continue to grow. Therefore, this force does not threaten Under
Armour in the foreseeable future.
Core competencies ( Parahalad $ Hamel )

Core Competence

A is that
Core
Competence something unique a

has can do well

strategically
business ,
or .

Core links SWOT

closely analysis
with
competence
.

Strenghts weakness
source
of
competitive
advantage

opportunities Threats .
 Core competencies are .

Collective within the business

learning
- .

and technologies
Ability to
integrate skills
-

deliver products
-

Ability to
superior
-

Ways a business is
differentiated to be
competitive .

Some possible examples of core competencies .

Innovative
i IKEA =

design capabilities unique culture .

2 APPLE
Integrated eco-system of software $ device
=

design built around the user -

3 Dominos =
Integration of multi-channel
systems ,
a

model
profitable franchise .

4 Starbucks :
Localised customer experience differentiated
global brand -
 IS It CORE COMPETENCE

The conditions
three
key .

1 Does it provide customer

benefit
-

Is it
2 easier
for competitor to immitate .

3 Can it be
leveraged widely to
many products or

markets .

'

Lets three conditions to IKEA

apply
.

1 Provides consumer =
Phenomenal designs .

benefits
has done
2 Not
easy for competitors = No one it yet .

to immitate .

3
Leveraged widely to =
Whole household range .

products $ markets
many
What Parahalad $ do
hamel
suggested businesses to .

Focus core
competencies
I on .

2 Outsource non -
core activities .

Criticism
Of Core
Competencies Approach .

Overzealous
Outsourcing
1

2
Difficult to
identify core
competencies .

Possible
3
for a business to become complacent about its

core
competencies -
 Strategic Choice

This topic is concerned with .

An matrix
1
soft
2 Force
field analysis
3 decision Tree .

Investment appraisal appraisal is part

Investment
of
4 .

finance however when

making
choice
a over a
strategy we

use Investment
appraisal as

tools
one
of the
 Airsoft matrix .

17ns off describes the business strategies

matrix
growth .

It
focuses on weather
growth is driven by new
products
and
new markets , or both
offers insight into how
risky
a
given strategy might be .

The model is based on the assumption that there are

business
two
primary ways to
by selling
grow , new

products ( product development ) by targeting

or new

markets ( market development ] these

by combining
two
,

paths the airsoft offers four strategies for business

, growth .

Market
1

selling existing
penetration :
products in
existing market .

2 Market
development Selling existing products
= to new markets .

Product development to
Selling products existing
markets
3 = new .

4
Diversification =
Selling new products to new markets .
Market Penetration .

It involves
Increasing
sakes
of existing products in
existing
It is considered low risk it
markets .

strategy ,
since

does not involve the development of new

products or markets .

it around and
Instead revolves
improving existing product
their
promotions
.

Market development -

A
slightly business
riskier
growth strategy in the matrix

is market development .
The
goal of market development
existing products
is to sell in a new market .
New market

can be
geographic or
demographic . Another tactic in

market development might be to sell Consumer

products
to industrial markets or vice versa . This strategy is

considered Somewhat risky since it involves

venturing
into new markets .
Product development .

This products
growth strategy revolves around
selling new

Once considered
to
existing markets
again
.

risky
,
its
,

Since it
usually Involves significant investment into the

development and rollout of products Other product

new .

development technique include purchasing brands new or

brand products
licensing another .

Diversification .

The business
riskiest
growth strategy in the
airsoft
matrix is
diversification .
It involves
selling new products
to new markets ,
as a result diversification is both

product and market

development .
 Force
field analysis .

Force
field analysis is important contribution to the
an

the
theory of change management port of strategic
,

management that
tries to ensure that business a

in which it
responds to the enuoirment operates .

Driving forces .

Restraining forces .

Positives Interest
→
Self
-

Sense
Incentives
of Insecurity
- -

-
A
general sense
of doing
-

fear of unknown

better -

Low trust

need
- Natural
aging $ decline -

Disagreement over the

of
- Desire to increase
change
-

Training $ development -

Inadequate Information .

to employees .
 Strategic Implementation .

This topic is concerned with : .

1 Business plan .

Corporate and
2 culture
strategic Implementation .

3
Developing a
change culture .

and
4
managing controlling strategic change .

and
5
Contingency planning crises
management
.
 Business Plans .

ALL businesses have business weather

plans ,
they are

detailed or not -
Without business plans ,
all businesses will

struggle to implement strategy as an

effective plan will

contain the strategic analysis market conditions and

,
future
forecasts that will
give the whole
organisation an aim

that objectives derived

can be
from .

Key elements
of business Plans .

I Executive summary .

The
summary provides an overview
of the business
plan
as a whole and highlights what the business plan will

cover Its best write the

.

often to
summary executive

last so that
you
have
complete understanding of your
a

plan and can

effectively summarize it .
2 Business description .

comprehensive description
This
component provides a

of your business and its

product services and
goals , ,

should details
target customer base .

you also Include

regarding
and
the
industry your company will serve , and
any
trends

major competitors within the

industry .

Market analysis and

3
strategy .

The and
purpose of the market
analysis strategy component
and
identify
business is to research
of
a
plan a
company's
and where
find
primary target audience to the

audience .

where
your target
market is
geographically located
-

The
primary pain points experienced by your target customer
-

The most
prominent needs of your target market
-
.

- The demographics of your audience .

- where your audience spend most

of
the time .

@ g) Social
media
 and sales Plan
4
Marketing
.

This business plan should

part of your cover the
specifics
your product and
and
of how
you plan
to market sell

services .

Your and
anticipated marketing promotion strategies
-

pricing plans
-

Your strategies for making sales .

Strategies for making sales .

your
organisation unique selling proposal .

How and front

-

you will get your products services in

of
audience
your target
.

5 Competitive analysis .

Your business plan should also include a detailed

competitive analysis that

clearly outlines a
comparison
to outline
of your organisation your competitors .
 weaknesses and and
your competitors strengths how

you anticipate your company to

compare to these •

and
Management organisation description
6 .

It covers the details

of your
business
management and
Introduce leader and
organisation strategy company
.

your
within business
their
responsibilities your , you can

also include human and the

resource
requirements
legal structure
of your company
-

7- Product and service

description .

Detailed and
goods
about the services which
plan

company provides
the .
 9 Financial plan .

The
financial section details how
you anticipate bringing
and the
funding you 'll need
'
in revenue to get
and
started , it also includes
financial statements

projections
.

The value businesses

of business plan for
.

Plan
Whatever .
the
size of the business ,
there is value
for a business .

and
Often required for loan and
finance applications
-

presentation .

Gives and ideas and

examination
of
current
future business
-

prospects .

Shows commercial the product and the business

viability of
-

Provides direction
sense
of
-
a .

Good and the

- review
of resources ,
Requirements
chances success
of .
 Corporate culture and strategic Implementation .

CULTURE .

The collective
programming of the mind which
distinguishes
the members
of one
category of people from another .

The three at which understood

different levels culture can be .

I Behaviour

2
Artefacts ( dress codes)

3
Assumptions .

deepest of underlying factors

This is the set

which determine culture and the hardest to

manage
.
,

These to all
assumptions are not known
employees
-
Organisational Culture
Corporate Culture .

A
complex body of shared beliefs ,
attitudes and values

that
shapes behavioural
organisation
norms in an .

Who sets the

assumption of org culture .

1 The
founder
2 The Rnvoirment

The
history
3

4 The leader
 Different types of organisational culture .

1 Power culture God Zeus

2 Role culture God Apollo

3 Task culture Athena Godess

Person
4 Culture
Dionysus
Power Culture .

One and
company few procedures
man rules the rules
, ,

functional basis
,
all decisions are made
by one
person
so
quick to
change ,
best suited
for small businesses _

Role culture .

Role culture or
bureaucracy formal structure well
, ,
-

very efficient in stable envoirment and

established rules ,

when work is Predictable -

Task culture .

Principal concern is to
get the Job done , indiuiuab
is
who are
important are
experts ,
performance Judged by
results expensive experts demand
,
as market
price support,

matrix structure .

Person culture .

Serve the Interests

of indiviuals ,
rare ,
depends on the

talent the indiuiuals then

of ,
members are more
important
this culture values Roles ,
management , means
person ,

Owners, task .
 Strong $ weak culture .

There to
are
four Components an
organisation's culture ,

Beliefs
-

Behavioural rules

-
Tradition .

- Rituals .

The
degree to which these
components are present or

absent determines strength

the weaknesses
of culture
or a .

The
strength of any culture comes
from the degree of
its about
agreement people the
importance of
among
behavioural and
specific beliefs , rules
,
tradition rituals .

These culture that determine

the
things in how
are a

done
things get
.
 Weak culture .

A is its
belief
culture weak when ,
behaviour ,
rules traditions
,

and ritual its there

are not
apparent to members or

is in between stated values and behaviours

congruence
-

This can
happen for variety of a reasons ,
with no
knowledge
how
of
what the
organisation
stands
for or
things are

done weak
actually ,
culture works
against
the success
of
the
organisation
.

Characteristics
of weak culture .

I Narrow and isolated thinking .

avoids
This characteristic is evident when an
org looking
outside
for best practices and approaches People
itself .

believe
they
in these have all
organisation answers .

This
type of inward thinking can prevent org from
an

Procedural and cultural

making necessary change .
Resistance to
change .

This is evident is
org The suddenly
characteristic when an

confronted with a
rapidly changing Invoirment .

org
and
focuses on
maintaining
the

It
status
quo ,
avoiding risk

not
making mistakes .
is the
leadership in the culture
that allow these
factors to
prevade and paralyze the
than innovation and success
org
rather
focusing
on .

Political Internal envoirment .

In a
politically charged culture issues and problems get
resolved
along
the line vocal
of power ,
support or

opposition , personal Lobbying ,

and the
formation of
interested
coalitions in a
particular outcome stylus Change
-

internal
This
type of envoirment produces low performance
is
b/c it
scarifies what best
for the org for
a

particular desire
/ self interest
of particular players .
 Promotion Practice
Unhealthy
.

This characteristic is evident when a

org promotes a

dedicated
longtime employee management who is to
or

and good at
hard
working day to
day operations but ,

lacks leadership skills and the

vision ,
ability to think
strategically This type of promotion can create
.
vaccum a

regarding org ability

an to
develop longterm vision ,

build competencies and

-
new
generate new
strategies .

STRONG CULTURE .

A culture is considered
strong when there is cohesion .

around behavioural traditions and rituals

beliefs ,
rules
,
.

Strong culture
typically features their
beliefs ,

ritual
tradition ,
behavioural rules
,
and in
public display
so that
employee can use there cultural elements

for decision
making throughout the
org
.
 Characteristics
of strong culture .

ulture tool
reinforcing
I .

These like Ceremonies

include
things symbols language
, ,

behavioural and
Strong
cultures
rules policies .
use these

tools to
produce extraordinary performance from ordinary
and
people Strong what symbols
.
cultures use ceremonies

to
emphasize the value ceremonies and
company
symbols help recognize and celebrate high performance
and help create emotional bond
employees an
amoung
used and
all
employees .

Language
in
slogans policies
help illustrate the and
Companys primary values

provide shared
understanding workers
among
a .

2
Intensity People Oriented .

Organisation with
strong cultures
display their concerns

for their
employees in a
variety of ways ,
this includes
 Treating dignity and
'
with respect
employee
.

and
2
Granting
contribute
employees enough autonomy to excel

3
Holding managers
at
every
level accountable
for
growth and development of people who
report for
them

and
4
Using of a
full range of rewards consequences
to
reinforce high performance behaviours -

standards
Setting clear
for employees
5
performance
.
3 Result Oriented .

High cultures and

performance invest time
more

to that who and

resources ensure
employees excel

achieve
performance targets are
identified and rewarded .

Controls and
are
put in
place to collect , analyze
interpret employee performance data -

Quantitative
used select and
measures
of success are to

reward
employees
who can
perform outstandingly
.

4
Emphasis on achievement and excellence .

High performance cultures create an

atmosphere
where there is constructive to the
pressure be

best .

Management pursue practices , policies and invest

to
inspire people to do their best
necessary resources .
 The cultural web .

Alinging your organisational culture .

Elements cultural
of web .

The cultural web

identifies six inter-related elements

paradigm
"
that what call
help to make up we as

model
shift to the
By analyzing
"

pattern or .
the

factors in each ,
you
can
begin to see the
bigger
what isnt
picture of yourwhat
culture ,
what is
working ,

working
and needs to be
changed .

1 Stories .

The past events talked about inside and

, people
outside and
the
company , who what the
company
immortalize deal about it
chooses to
says a
great
and
value percieve a
great behaviour .
2 Rituals and Routines .

The and
daily behaviour actions
of people that signal
acceptable behaviour ,
this determines what is
expected
and valued
to
happen in
given situations what is
by
management
.

3
Symbols
visual
The
company including
the
representation of
logo 's
,
how plush the
offices are
,
the
formal or

informal dress code .

4
Organisational structure .

This includes both the structure

defined by the

power and
and unwritten
org
chart ,
the lines
of influence
that indicate whose contribution are most valued .
5 Control
system
.

The that the is controlled These

ways organisation .

include
financial systems quality and rewards
,
systems .

6 Power structure

The real This may

pockets of power in the
company
-

involve executive or even a

department -
The
key is

these have
that
people the
greatest amount
of
decisions
Influence on .
 The cultural web .

Stories

Power
Structure
The
Symbols
.

Paradigm .

I
organisation
structure .

Control

systems Rituals and

Routines .
 Using the Cultural web .

Analyzing it
'
culture as is now

Analyzing
2 culture as want it to be
you
.

3
mapping the
difference b/w two

and develop plan address

4
Prioritize changes
a to

them .
 Change management .

Change systematic approach to delaying

is
management
a

with the transition or

transformation of an organisational
goals processes or
technologies The purpose
of change management
.
,

is to
implement strategies for effecting change ,
controlling
and
change helping people to adopt change .

Context
of change
.

1
Scope : .
what areas or
things needs to be
changed .

Reason
bringing
What is the
2
Justification of change
-
.
•

Fine How needed

3
quickly change is
-
.

kind required
4
Capacity What
of resources are .
-

Resistance will the will resist

5 -
Who be
people who
orange
6 Power - How much Power the leader have .
 7-
Capability -
Do we have the
expertise for the
change .

NOTE

when discuss
change management org actually
about
we
,

need to
change indiuiual behaviour
if indiviual ,

behaviour isnt
successfully changed change management
,

isnt
successful .

Changing indiviual behaviour .

Unfreeze
I

2 Move

3
Refreeze
 Force
field analysis .

Force
field model is
important contribution to the
an

theory of change management The part of strategic

-

that tries to that business

management
ensure a

responds to the envoirment in which it

operates .

Force field analysis .

Driving forces Restraining forces -

.

i
positives .

Self interest
1 .

2 Incentives

doing
Sense
Sense
of insecurity
2
3
of better

4 Desire to increase 3
fear of Unknown
and
5
Training
to
development u Low trust

employees need
-

5
Disagreement .
over the

of change .
 Possible reaction to
change
. -

1
Acceptance
2
Indifferent .

3 Resistance .

Active Passive .

Five
stylus of change .

1 Direction
Coercion ( extreme order )
2
form of
.

3 Educate ( persuade )
4
Participation ( Involvement]

using of change agent

5 .
 Types of changes
.

\,

Incremental
↑
.

Adaptation .

Evolution .

gradual step by step mindset

New
.

Nature slowly

of change
Reconstruction .
Revolution
Bigbang Extensive at the time
↓
Crises
Immediate Of

Realignment Transformation .

small Big
Scope of change
.
.
 Crisis
management
-

Crisis can be
defined as an
unexpected event that

threatens the the Crisis

wellbeing of company
.
can be

predictable quantifiable
or it can be
totally unexpected
crisis .

Types of crisis .

1 natural disaster
2 Industrial accidents
3
product or service
failure
4
Technological crisis

5
financial crisis .
 crisis
Stages of
.
.

I Pre -
crisis = Prior to the event .

Indication that there is be an event liable

warning
2 or
may
= .

Crisis When cause the

3
point = an event starts to
impact
-

4
Recovery = The acute
stage of crises have passed .

5 Post Evaluation the

of effects
crisis to
=
repairs the
org
.
 Crises Role
management
Involves .

of a crisis
manager

1
Identification of crisis 1 Crisis assessment

Event
Planning tracking
2 2

response
a

3
Responding to a sudden event 3
managing human consideration

4
Limiting damage
the 4
Damage assessment

indiviual and 5
Selecting
5 communication
managing
teams
6 Co -
ordinate with external
6
Resolving crisis . bodies

Controlling information
7- -

Controlling expectation
8 .
 Advice on
handling risk .

I
Appoint a crisis
manager
2
Recognize that the crisis
manager
is
Likely to
adopt
a more autocratic style
3 Focus the activities that will eliminate the
on
problem
.

4 Look
for opportunities in the
aftermath
.

Dealing with
financial aspects of a crisis .

I Reschedule loans

2 Outsource noncritical operations

Reduce
3
expenses
Slow to creditors
4
up payments
Accelerate receivable discounts
5 by offering
.
 Contingency Plan .

The aim
of contingency planning is to
minimize the

impact of a
significant foreseeable event and to
plan
for how the business will resume normal operations after
the event -

Contingency planning . involve

Preparing for predictable and

quantifiable problems

Preparing for unexpected and unwelcome d event

-
.

How
Contigeney planning relates to risk
management .

Contingency planning is . one

of the three
approaches a

business can take to risk these

manage are .

Risk and
I
management =

Identifying dealing with the

risk
threatening a business .
2
Contingency planning
=
Planning for unforeseen event .

3 Crisis
management
=

handling potentially dangerous events

for a business -

what involved
is in
contingency Planning .

The involves
process of contingency planning
and how and might
1
Identifying what
things can
go
wrong

2
Understanding the potential effects of things go wrong

to with the
3
Devising plans cope threat -

is
Putting in
place strategies to deal with risk before
they happen .