Syllabus of Strategic Management;

1. Introduction
(What is strategic mng? 5
Stages of SM 6
Adapting to change 8
Key terms 9 to 14
Benefits of SM 16 to 18
Why some firms do NO strategic planning 18 to 19
Pitfalls in strategic planning 19)
2. Mission statement components 51 to 52
With examples as we did in class
3. EFE Matrix 80
4. CPM 81
5. IFE 122
6. Porter's Five forces model
7. Types of strategies (except defensive strategy) 136
Conceptual paper
Mam may provide data from which we have to make matrixes or may she will provide matrix and we
have to do analysis (conclusion)

What do we mean by 'Strategic Management'?

The art & science of formulating, implementing and
evaluating cross-functional decisions that enable an
organization to achieve its objectives

What does a STRATEGIST do? (his job function)

-Track industry and competitive trends
-spot emerging market opportunities
-identify threats
-develop creative plans

What question goes with 'Mission Statement' ?

What is our business?

What question goes with 'Vision Statement' ?

What do we want to become?

Give the steps of the strategic management process or

model? (from Fred R. David)

strategy formulation
strategy implementation
strategy evaluation

Name 3 non-financial tangible benefits that strategic

management offers to companies?
identifying and prioritizing of opportunities
Provides objective view of management problems
Control activities

Mention 4 of the 9 components of Mission Statement...

Customers (who are the company's customers)
Product or services (what is the company's product)
Market
Technology

What are the 5 categories of EXTERNAL factors?

Economic forces
Governmental forces
Social, cultural forces
Technological forces
Competitive forces

Name the Five forces model of Porter that is used for

developing strategies?
Rivalry among competing firms
Potential entry of new competitors
Potential development of substitute product
Bargaining power of suppliers
Bargaining power of consumers

What is the purpose of Porter's Model?

To determine if the industry is attractive/profitable

Make an EFE Matrix

Mention External factors THREATS and OPPORTUNITIES
individual WEIGHT (the sum equals 1)
individual RATING(1-5)

Draw a CPM (Critical Profile Matrix)?

Horizontally all the competitors
Vertically the critical success factors (strengths)
Individual WEIGHT (the sum equals 1)
Per country different RATING (1-5)

What can you do with an IFE-matrix?

Summarizes and evaluates the major strengths and
weaknesses of the company and evaluating relationships
among them

How would you pay a manager based on short-term and

long-term objectives?
25% short-term / 75% long-term because managers must
base their decisions on how the company can be successful
in couple of years not this year

What is meant by "Forward Integration"?

Gaining control over Distributors or Retailers or selling

What is meant by "Horizontal Integration"?

Gaining control over your competitor
Merging

Name 2 of the 6 guidelines for a business to use

DIVERSIFICATION strategy?
When a company is in a no-grow or slow-grow industry
When adding new related product increases the sale of
CURRENT products

What are the 3 defensive strategies?

Retrenchment
Divestiture
Liquidation

Why can Porter's DIFFERENTATION strategy be

dangerous?
-Unique product may not be valued highly enough by
customers
-Competitors can copy the differentating features

What is a Joint Venture? (Cooperative Arrangements)

When two companies form a partnership to capitalize on an
opportunity

What are other forms of "cooperative arrangements" ?

R&D partnerships and Cross-distribution agreement

What 4 strategies can come from a TOWS matrix?

SO = use internal strength to make use of opportunity

ST = use internal strength to avoid threats or reduce risk
WO = improve weakness by taking an opportunity
WT = reducing weakness and avoiding threats

Why do organizations use BCG-matrix?

They can examine the market share and industry growth
rate of each division relative to all divisions

Draw a BCG - matrix ....

stars, question mark, cash cows, dogs
Horizontal is MARKET SHARE
vertical is MARKET GROWTH

Draw the IE - matrix ....

Horizontal is "IFE total weighted score"
Vertical is "EFE total weighted score"
First cell: Grow and Build (backward, forward, horizontal
integrations)
Middle Cell: Hold and Maintain (product development)
Last Cell: Harvest or Divest (retrenchment)

What is one positive feature of QSPM?

Unlimited number of strategies can be examined at once

What is one negative feature of QSPM?

It is not exact due to intuition

What input is needed from stage 1 & 2 for QSPM?

...

Structure follow strategy or Strategy follows Structure?

Structure follows strategy!
Structure should be designed to facilitate the strategic
pursuit of a firm and therefore follows strategy

Difference between restructuring and reengineering?

Restructuring is concerned about shareholder well-being
rather than employee. (changing the way of work)
Reengineering is concerned about employee well-being
rather than shareholder (short-term ta

Organizational Culture, mention 4 elements of CULTURE

+ Cultural product

Language (rude or polite)

Stories (story about foundation of company)
Rituals (Christmas Party)
Symbols (huge car, private plane)