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Final+ Strategy
Final+ Strategy
The development and implementation of the primary goals and initiatives undertaken by an
assessment of the internal and external environments in which the organization operates, is
Strategic management which entails identifying the organization's goals, developing plans and
policies to achieve those goals, and then allocating resources to carry out the plans, gives a
corporation its overall direction. Academic researchers and working managers have developed a
range of models and frameworks to help with strategic decision-making in the context of
complex settings and competitive dynamics. Because strategic management is dynamic, models
could also include a feedback loop to monitor results and direct future planning Michael Porter
Achieving "fit" through coordinating firm operations to advance the selected plan
From a portfolio viewpoint, corporate strategy entails deciding what line of business to
enter. How will we compete in this market is a topic that corporate strategy must address.
management theory and practice, with operational management being primarily concerned with
increasing efficiency and containing expenses within the parameters established by the
organization's strategy.
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KEY LESSONS:
Strategic management is a tool that can be used by businesses, colleges, nonprofits, and
Organizations that are flexible may find it simpler to modify their organizational structure
and plans, whereas companies that are rigid may struggle in a changing climate.
A strategic manager can develop strategies for firms to achieve their benchmark goals
Strategic management is the term used in the management field to describe the creation
and execution of the main objectives and initiatives undertaken by an organization's managers on
behalf of stakeholders, based on consideration of resources and an assessment of the internal and
determining the organization's goals, creating plans and policies to achieve those goals, and then
allocating resources to carry out the plans. A variety of models and frameworks have been
the context of complex environments and competitive dynamics. Due to the dynamic nature of
strategic management, models might potentially incorporate a feedback loop to track outcomes
and guide future planning. Organizational leaders concentrate on studying the environment
broadly and learning from previous methods as a result of this reality. In order to ensure that the
entire organization is moving forward, future strategies are then developed using the collective
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Strategy & Management
knowledge, and employee behavior is subsequently directed by it. For these reasons, both an
In order to ensure that the organization achieves the objectives outlined in its strategic
management plan, strategic management encompasses both internal and external communication
Strategic management includes the examination of internal and external influences, the
management of resources, and the development of strategies. One of five key phases can be used
A business must first establish clear, doable goals. The organization's objectives must
state what it wants to achieve and why. Once the goals have been established, the company may
subsequently identify the targets or the methods for achieving them. At this point, the company
can outline its vision and its objectives, both long-term and short-term.
The ability to assess, grasp, and describe how internal and external elements impact an
organization's operations, goals, and capacity for competition follows. Analytical methods like a
Based on the results of the study, the firm may then develop its strategy, outlining how it
will achieve its goals. At this stage, the firm will decide on the necessary staff, tools, and
resources, as well as how they will be allocated among various tasks and the performance
standards that will be utilised to assess success. Getting the backing of important stakeholders
out—implements the strategy. In this phase, the resources are used in line with their designated
The last stage of strategic management is evaluating the effectiveness of carried out
activities using predefined metrics. The company will also assess whether outdated strategies
need to be swapped out for more successful ones. The company should maintain its tried-and-
true business strategies while keeping an eye on both its internal operations and the external
business environment.
For instance, a for-profit technical college wants to increase new student enrollment and
enrolled student graduation rates over the course of the next three years. By making the college
the best value out of the five for-profit technical colleges in the area, the goal is to increase
revenue.
Then, strategic management entails ensuring that the institution has the funds to create
state-of-the-art classrooms and hire the best teachers. The college also invests in its programmes
for marketing, student recruitment, and retention. The management of the college routinely
For instance, a for-profit technical college wants to increase new student enrollment and
enrolled student graduation rates over the course of the next three years. By making the college
the best value out of the five for-profit technical colleges in the area, the goal is to increase
revenue.
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Strategy & Management
Then, strategic management entails ensuring that the institution has the funds to create
state-of-the-art classrooms and hire the best teachers. The institution also invests in its
programmers for marketing, student recruitment, and retention. The management of the college
The goal of strategic management is to assist a company in finding ways to increase its
level of competitiveness. The most crucial part of planning itself is, therefore, putting strategic
management plans into action. Plans are put into action by setting benchmarks, realigning
financial and human resources, and appointing leadership resources to manage the development,
areas for operational improvement. They frequently have two options: either they can use an
analytical method to find prospective risks and possibilities, or they can just adhere to broad
management depending on the nature of the business. A prescriptive model outlines tactics for
creation and implementation. A descriptive approach, on the other hand, explains how a business
organizational structures and the business environment, developing and implementing strategies,
characteristics.
1) They advocate for an important choice that has to be made at the highest levels of the
neighborhood's public health system and community. 3. They put a lot of emphasis on what will
2) A conflict or tension that has to be resolved is the root of the majority of strategic issues.
Disparities between the current state of capabilities and those necessary to provide the Essential
Services, the roles of the local health agency and other community agencies, the needs of the
community and the resources available to meet those needs, and others may be the root of these
tensions or conflicts.
3) There isn't a single, obvious optimum solution to strategic issues. If there is a simple, quick
solution to an issue, think about finding out why it hasn't been applied yet. More often than not,
these issues will be operational concerns for particular organizational members rather than
4) The strategic issue must be able to be handled by the neighborhood public health system. If
the neighborhood public health system is unable to handle an issue, it may be strategic but not at
the community level. On a national scale, issues like attaining universal healthcare, abolishing
poverty, or curing a contagious disease would be seen as strategic, but few towns would have the
capacity to handle them. How to Recognize Strategic Issues You can use the following
SWOT
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Strategy & Management
The most fundamental type of strategic analysis is the SWOT. Just enumerate the
Of all the strategy analysis tools and methodologies, the SWOT Analysis is unquestionably the
operations and comprehending how they contribute to value generation is the value chain.
Recognizing the value they offer, and Identifying a company's sources of difference and
competitive advantage
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The illustration below illustrates a typical value chain as initially defined by Porter:
Naturally, this value chain reflects a typical company that deals in tangible commodities.
Manufacturing or distributions are examples. A service organization's value chain could look
Finding the processes that best represent each action is crucial for getting the most out of
value chain analysis. Every company should be distinct. Therefore, even at this high level, each
The book "Blue Ocean Strategy" popularized the Strategy Canvas. It can help you
premium brand in order to compete on quality rather than price. Of course, in reality, things are
rarely so straightforward, so you'll need to seek for a special mix of elements rather than just one.
And here is where the Strategy Canvas's visualization technique really shines
(based on an analysis from "Blue Ocean Strategy"). It demonstrates how Southwest Airlines built
out its strategic differentiator by combining the ease, affordability, and lack of fuss of driving
with the quickness and welcoming service of an aircraft. In reality, Southwest was able to
enhance the level of service and speed they provided by eliminating the airline add-ons. I won't
go into further depth here because you can read a lot of case studies on Southwest Airlines.
You may create your own Strategy Canvas in 4 rather easy steps.
To create a Strategy Canvas, you must first identify your competitors. In actuality, this is
crucial to any kind of strategic thought. You might be able to identify specific competitors by
name depending on the nature of your industry, or, as in the case of the example above, you
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could find it simpler to divide them into fewer semi-homogeneous categories. Regardless of
whether you are currently on the market or not, don't forget to mention your own company.
Always consider the issue from the viewpoint of the consumer when finding rivals. Who
or what else could meet your customers' needs? Southwest Airlines would not have realized that,
in many situations, customers are deciding between flying and other forms of transportation if
they had not done this instead of simply listing the other airlines. If they had not adopted this
wider perspective, it is doubtful that they would have gained the insight that resulted in their very
effective plan.
The next stage is to determine the criteria your clients use to select the goods or services
you are providing. These are the pricing, meals, lounges, seating options, etc. in the
aforementioned scenario.
There are several research techniques you may do, but speaking with your target audience
directly is the simplest method to achieve this. Keep in mind that it's crucial to target customers
who already use your product or service, those who do so but from a rival, and potential
customers who don't now use it but could in the future (especially if your strategy is successful).
Also keep in mind that sometimes individuals are unsure about what they want, so you might
draw a line indicating how well they do in relation to each of the attributes that your consumers
value.
Strategy Canvases created on this premise might differ greatly, and if handled effectively,
To obtain a more precise and unbiased image, you may question your clients directly by
Your new plan is now ready to be mapped out on the Canvas. The goal is to draw a line
that differs significantly from any rivals' or organizations’ lines. Your competitive differentiator
Then consider:
For instance, Southwest Airlines did away with in-flight catering and seating options.
For instance, IKEA introduced the option to pick up furniture from the shop the same day
you made the purchase rather of placing an order and then having to wait for production and
delivery.
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Of course, any differentiation won't enough. To maintain your business goals, you must
choose a combination that a sizable portion of your target clients will find appealing. You'll
definitely need to use a variety of different strategy tools from your toolbox to do this.
It takes skill to create a Strategy Canvas that is truly useful, but with a little effort, anyone
can master the art of creating diagrams that are truly perceptive. When you do, they are an
4. PESTEL
Making sure you take into account a wide range of potential sources of opportunities and
dangers is made easier by using the PESTEL framework. The letters stand for the firm's
environment's potential and risks in the areas of politics, economy, society, technology, the
A PESTEL analysis:
An organization's important external risks and opportunities are identified, categorized, and
and "legal."
5. Pareto Analysis:
The Pareto Principle states that 80% of earnings are generated by 20% of the items,
services, consumers, or distribution. An effective visual representation for this is a Pareto chart.
However, the accuracy of it is dependent on how trustworthy your cost allocation system is.
The 80:20 rule is another name for the Pareto principle. According to this rule, 20% of
the input results in 80% of the outcome. It may be used in many different types of strategic
analyses.
The most widely used example is that 80% of a company's income come from 20% of its
customers. See For instance, your firm is profitable, but are you? This is closely connected to the
idea that 80% of a company's income come from 20% of its goods or product lines. However,
other uses may also be quite valuable. For instance, Wired Magazine says in The Good Enough
Revolution: When Cheap and Simple is just OK that consumers may attach 80% of a product's
worth to 20% of its features. They claim that just 20% of the functionality in Microsoft Office
programmers are used by the majority of users. They thus increasingly rely on less feature-rich
office programmers like Google Documents. These have different benefits but less features.
Naturally, "80:20" is only a figure of phrase. Any number might be used. They aren't
even required to add up to 100% and aren't constrained by it either. Therefore, it's possible that
15% of the items generate 110% of the revenue. According to this illustration, a 10% loss is
caused by the remaining 85% of the items. (This reduces the total profit to 100% once more.)
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Strategy & Management
In a Pareto analysis, the value produced (the outputs) is identified and attributed to the inputs. It
In order to achieve this attribution, good Pareto analysis depends on a cost accounting system,
A company can use Pareto analysis to make judgments on where to direct its resources
and attention. Finding loss leaders uses it particularly well. These then may be:
I frequently hear that loss leaders must continue to operate merely because they help
cover overhead and fixed expenditures. However, if you take into account that over time, all
expenses are changeable, this argument falls apart. Loss leaders, though, could make sense in
situations where they draw clients who go on to purchase more lucrative goods. It is also helpful
for businesses seeking for a focus point to help them reposition themselves in the market after
6. BCG Matrix
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Any organization with many product or service lines, or multiple consumer segments, can
use the BCG Matrix. Plot each product, service, or market segment's market share vs. its pace of
expansion. Afterward, take into account tactical alternatives based on their relative placement on
the chart.
The Boston Consulting Group is honored in the name of the BCG matrix. It is a
technique for strategy analysis that aids in understanding the strategic possibilities offered across
a variety of different:
Business divisions
Products
Services
Clientele groups
Channels
The model demonstrates that a portfolio business's component elements are not all
The BCG matrix, in its most basic version, plots each source of value according to:
networks. In other words, you would select one of these factors, like product, and then create a
A preliminary division into four quadrants can then be made for the resulting portfolio
In the first technical essay on our new website, we will discuss four well-known strategic
planning tools, including their applications, abuses, and limits. They are all genuine and
important tools, but when used improperly, they may be highly harmful and present a very false
impression.
You must first have a thorough grasp of your line of business in order to be able to design
a sensible and viable plan or strategies. You can discover as you get this insight that you are in
investigation may reveal that some of these enterprises are at best minor, contribute nothing to
there. It creates a strong visual representation of the company's status by categorizing aspects and
performing an evaluation (Strengths and Opportunities are positive, Weaknesses and Threats are
negative) However, when employed alone, SWOT analysis can be a little shallow, frequently
SWOT does not rate the variables it discovers or draw conclusions about the consequences of the
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variables it identifies. Ranking the elements and identifying and addressing their consequences
are necessary for SWOT to be effective. E.g. what major trends or themes were found in the
SWOT analysis? Is the company out of balance, responding slowly, or losing its competitive
edge? Do some of the threats target the company's weak points, making it more vulnerable? Are
there any possibilities emerging specifically in regions where the company is particularly strong,
Understanding the external impacts on the business is crucial since the external
environment may have a substantial impact on it. This goes along with knowing where the firm
In order to analyze these outside impacts or changes, PEST analysis is useful. The letters
P, E, S, and T stand for political (and regulatory) influences or changes, economic changes,
social (and demographic) changes, and technological advancements. As not all components have
visible effects, PEST analysis needs to be reviewed often. While the political and economic
effects of a sovereign debt crisis are pretty evident, other contributing factors—trends that may
be small right now but gradually gain strength over time—are less obvious.
The five primary forces at play in the immediate market in which your company operates
are examined using Porter's Five Forces analysis since they may have a significant impact on
profitability. These five forces are supplier power, substitutes, buyer power, entrance barriers,
and competitive obstacles. Having an advantage over competitors may result from knowing how
While each of the aforementioned tools is significant and useful in its own right, when
developing a strategy, their combined use yields the best results. When each tool is used with the
Wheelmen, T.L., Hunger, J.D., Hoffman, A.N. and Bam ford, C.E., 2017. Strategic
enterprises. Rutledge.
Punt, A.E., Butterworth, D.S., de Moor, C.L., De Oliveira, J.A. and Haddon, M., 2016.
Den Hoyer, G., 2011. New public management: A strategy for democratic police reform