‭Business core purpose‬

‭It tells the reason why company exist‬

‭Core competencies‬

‭It tells the reason what makes the business unique from others‬

‭BHAG goal‬

‭ BHAG, or Big Hairy Audacious Goal, is a long-term, aspirational goal‬

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‭that is both challenging and achievable. It is a goal that is so ambitious‬
‭that it requires the organisation to think big and to stretch its capabilities.‬

‭ HAGs are typically set for a period of 10 to 25 years. They are often‬
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‭used by organisations to provide a sense of direction and purpose, and‬
‭to motivate employees and stakeholders.‬

‭Vision statement‬

‭It tells what an organisation want to achieve in long term‬

‭Mission Statement‬

‭It tells what an organisation want to achieve in short term‬

‭Hambrick’s framework‬

‭Arenas‬

‭ he "Arenas" element refers to the markets or industries in which an‬

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‭organisation will compete. This includes decisions about which products‬
‭or services to offer, which geographic markets to enter, and which‬
‭customer segments to target.‬

‭Vehicles‬
‭ he "Vehicles" element refers to the ways in which an organisation will‬
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‭produce and deliver its products or services. This includes decisions‬
‭about the organisation's structure, processes, and technologies.‬

‭Differentiators‬

‭ he "Differentiators" element refers to the unique qualities that an‬

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‭organisation has that allow it to compete effectively in the marketplace.‬
‭This includes factors such as brand reputation, product quality, customer‬
‭service, and innovation.‬

‭Staging‬

‭ he "Staging" element refers to the sequence of moves that an‬

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‭organisation will make to implement its strategy. This includes decisions‬
‭about the timing and pace of new product introductions, market‬
‭expansions, and other strategic initiatives.‬

‭Economic Logic‬

‭ he "Economic Logic" element refers to the way in which an‬

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‭organisation will generate revenue and profits. This includes decisions‬
‭about pricing, cost structure, and profitability targets‬

‭First mover and last mover in business‬

‭ irst movers are the companies that are first to enter a new market or‬
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‭develop a new product or service. They often have a competitive‬
‭advantage over later entrants, as they are able to establish brand‬
‭recognition, build customer loyalty, and develop economies of scale.‬

‭ ast movers, on the other hand, are the companies that enter a market‬
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‭later than their competitors. They may be able to avoid some of the risks‬
‭and costs that first movers face, such as the cost of developing a new‬
‭product or service. However, they may also face challenges such as‬
‭establishing brand recognition and overcoming customer inertia.‬

‭Advantages of being a first mover‬

‭There are several potential advantages to being a first mover, including:‬

‭●‬ E ‭ stablishing brand recognition and customer loyalty:First movers‬

‭can often establish themselves as the industry standard, which can‬
‭make it difficult for later entrants to compete.‬
‭●‬ ‭Building economies of scale: First movers can often build‬
‭economies of scale, which can give them a cost advantage over‬
‭later entrants.‬
‭●‬ ‭Setting the market price: First movers can often set the market‬
‭price for a new product or service, which can give them a profit‬
‭advantage.‬
‭●‬ ‭Avoiding competition: First movers may have a period of time in‬
‭which they face little or no competition, which can allow them to‬
‭grow and expand their market share.‬

‭Disadvantages of being a first mover‬

‭ here are also some potential disadvantages to being a first mover,‬

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‭including:‬

‭●‬ R ‭ isk of failure: There is always a risk that a new product or service‬
‭will not be successful, and first movers are more likely to bear this‬
‭risk.‬
‭●‬ ‭Cost of pioneering: First movers may have to bear the cost of‬
‭pioneering a new market, such as the cost of developing new‬
‭technologies or educating customers.‬
‭●‬ ‭Difficulty in adapting to change: First movers may find it difficult to‬
‭adapt to changes in the market or industry, as they may be more‬
‭invested in their existing products or services.‬

‭Advantages of being a last mover‬

‭ here are also some potential advantages to being a last mover,‬

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‭including:‬

‭●‬ L ‭ earning from first movers: Last movers can learn from the‬
‭mistakes of first movers and avoid repeating them.‬
‭●‬ ‭Benefit from infrastructure: Last movers may be able to benefit‬
‭from infrastructure that has been built by first movers, such as‬
‭roads, telecommunications networks, and distribution channels.‬
 ‭●‬ L ‭ ower entry costs: Last movers may be able to enter a market at a‬
‭lower cost than first movers, as they may not have to bear the‬
‭same costs of pioneering.‬
‭●‬ ‭More information about the market: Last movers may have more‬
‭information about the market than first movers, as they have been‬
‭able to observe the market for a longer period of time.‬

‭Disadvantages of being a last mover‬

‭ here are also some potential disadvantages to being a last mover,‬

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‭including:‬

‭●‬ D ‭ ifficulty in establishing brand recognition: Last movers may find it‬
‭difficult to establish brand recognition, as consumers may already‬
‭be familiar with the products or services of first movers.‬
‭●‬ ‭Overcoming customer inertia: Last movers may have to overcome‬
‭customer inertia, as consumers may be reluctant to switch from‬
‭their existing products or services.‬
‭●‬ ‭Limited market share: Last movers may have to settle for a smaller‬
‭market share than first movers.‬

‭Agility‬

I‭n the context of business, agility refers to the ability of an organisation to‬
‭rapidly adapt to change and use new opportunities. It is about being able‬
‭to sense, respond to, and thrive in an ever-changing environment.‬

‭PESTLE‬

‭Political factors‬

‭ olitical factors can have a significant impact on businesses, as they can‬

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‭affect the regulatory environment, the stability of governments, and the‬
‭level of taxation. Some examples of political factors that can affect‬
‭businesses include:‬
 ‭‬
● ‭ overnment policy‬
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‭●‬ ‭Taxation‬
‭●‬ ‭Trade regulations‬
‭●‬ ‭Political stability‬

‭Economic factors‬

‭ conomic factors can also have a significant impact on businesses, as‬

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‭they can affect consumer spending, business investment, and the‬
‭availability of credit. Some examples of economic factors that can affect‬
‭businesses include:‬

‭‬
● I‭nterest rates‬
‭●‬ ‭Exchange rates‬
‭●‬ ‭Inflation‬
‭●‬ ‭Unemployment‬

‭Social factors‬

‭ ocial factors can affect businesses in a number of ways, such as by‬

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‭influencing consumer preferences, employee attitudes, and the‬
‭availability of skilled labor. Some examples of social factors that can‬
‭affect businesses include:‬

‭‬
● ‭ emographics‬
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‭●‬ ‭Lifestyle trends‬
‭●‬ ‭Consumer behavior‬
‭●‬ ‭Education levels‬

‭Technological factors‬

‭ echnological factors can have a significant impact on businesses, as‬

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‭they can create new opportunities and threats. Some examples of‬
‭technological factors that can affect businesses include:‬

‭‬
● ‭ ew technologies‬
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‭●‬ ‭The rate of technological change‬
‭●‬ ‭The availability of technology‬
‭●‬ ‭The cost of technology‬

‭Legal factors‬
‭ egal factors can affect businesses in a number of ways, such as by‬
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‭imposing regulations on products, services, and employment practices.‬
‭Some examples of legal factors that can affect businesses include:‬

‭‬
● ‭ onsumer protection laws‬
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‭●‬ ‭Environmental regulations‬
‭●‬ ‭Employment laws‬
‭●‬ ‭Health and safety regulations‬

‭Environmental factors‬

‭ nvironmental factors can affect businesses in a number of ways, such‬

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‭as by increasing costs, limiting resources, and changing consumer‬
‭preferences. Some examples of environmental factors that can affect‬
‭businesses include:‬

‭‬
● ‭ limate change‬
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‭●‬ ‭Resource scarcity‬
‭●‬ ‭Pollution‬
‭●‬ ‭Environmental regulations‬

‭SWOT‬

‭Strengths‬

‭ trengths are internal factors that give a company an advantage over its‬
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‭competitors. These can include:‬

‭‬
● ‭ nique resources or capabilities‬
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‭●‬ ‭A strong brand reputation‬
‭●‬ ‭A loyal customer base‬
‭●‬ ‭A highly skilled workforce‬
‭●‬ ‭Efficient operations‬

‭Weaknesses‬

‭ eaknesses are internal factors that put a company at a disadvantage‬

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‭compared to its competitors. These can include:‬
 ‭‬
● ‭ imited resources or capabilities‬
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‭●‬ ‭A weak brand reputation‬
‭●‬ ‭A shrinking customer base‬
‭●‬ ‭A low-skilled workforce‬
‭●‬ ‭Inefficient operations‬

‭Opportunities‬

‭ pportunities are external factors that a company can take advantage of‬
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‭to improve its competitive position. These can include:‬

‭‬
● ‭ ew market opportunities‬
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‭●‬ ‭Technological advancements‬
‭●‬ ‭Changing consumer trends‬
‭●‬ ‭Favorable government regulations‬

‭Threats‬

‭ hreats are external factors that could harm a company's competitive‬

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‭position. These can include:‬

‭‬
● ‭ ew competitors‬
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‭●‬ ‭Technological disruptions‬
‭●‬ ‭Changing consumer trends‬
‭●‬ ‭Unfavourable government regulations‬

‭The five forces are‬‭:‬

‭●‬ T ‭ hreat of new entrants: This refers to the ease with which new‬
‭companies can enter an industry. New entrants can bring new‬
‭capacity, new technologies, and new ideas to the market, which‬
‭can put pressure on existing companies to lower prices, improve‬
‭quality, or innovate.‬
‭●‬ ‭Bargaining power of suppliers: This refers to the ability of suppliers‬
‭to raise prices or reduce the quality of goods or services they‬
‭provide. Suppliers have more bargaining power when there are‬
‭few alternatives available to buyers, when the cost of switching‬
‭suppliers is high, or when the quality of the goods or services‬
‭supplied is essential to the buyer's business.‬
‭●‬ ‭Bargaining power of buyers: This refers to the ability of buyers to‬
‭negotiate lower prices, higher quality, or better terms from‬
‭suppliers. Buyers have more bargaining power when there are‬
 ‭ any suppliers available, when the cost of switching suppliers is‬
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‭low, or when the buyers are large and account for a significant‬
‭portion of the supplier's revenue.‬
‭ ‬ ‭Threat of substitute products or services: This refers to the‬
●
‭availability of products or services that can satisfy the same need‬
‭as the industry's products or services. Substitute products or‬
‭services can put pressure on existing companies to lower prices,‬
‭improve quality, or innovate.‬
‭●‬ ‭Competitive rivalry within the industry: This refers to the intensity of‬
‭competition between existing companies in the industry.‬
‭Competitive rivalry can be high when there are many companies in‬
‭the industry, when there is little differentiation between the‬
‭products or services offered, or when the cost of exit is high.‬

‭The External Factor Evaluation (EFE)‬

I‭t is a strategic management tool used to assess the external‬
‭environment of an organization and identify the opportunities and threats‬
‭that it faces‬
‭The Internal Factor Evaluation (IFE)‬
I‭t is a strategic management tool used to assess the internal strengths‬
‭and weaknesses of an organization.‬

‭VRIN‬

‭ RIN is a strategic management tool used to assess the value of a firm's‬

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‭resources and capabilities. The acronym stands for:‬

‭●‬ V ‭ alue: The resource or capability must provide a competitive‬

‭advantage to the firm.‬
‭●‬ ‭Rareness: The resource or capability must be rare among the‬
‭firm's competitors.‬
‭●‬ ‭Inimitability: The resource or capability must be difficult for‬
‭competitors to imitate/copy.‬
‭●‬ ‭Non-substitutability: The resource or capability must not be easily‬
‭substituted by another resource or capability.‬
‭Blue Ocean Strategy‬
I‭t is a business strategy that focuses on creating new market space and‬
‭making the competition irrelevant. It is based on the idea that firms can‬
‭restructure market boundaries and create new demand by focusing on‬
‭the untapped needs of customers.‬

‭Red ocean strategy‬

I‭t is a business strategy that focuses on competing in existing markets‬
‭and performing better than competitors to gain a greater share of‬
‭existing demand. It is based on the idea that firms can achieve success‬
‭by being better than their competitors at what they already do.‬

‭Value proposition‬
‭ value proposition is a clear and concise statement that summarizes‬
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‭why a customer should buy your product or service. It is the promise you‬
‭make to your customers that your product or service will provide them‬
‭with a specific benefit or value.‬

‭Operational strategy‬

‭ n operational strategy is a plan that outlines how a company will‬

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‭produce and deliver its products or services. It is a critical part of any‬
‭business strategy, as it ensures that the company has the resources and‬
‭capabilities it needs to meet its goals.‬

‭Revenue model‬

‭ revenue model is a plan that outlines how a company will generate‬

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‭income from its products or services. It identifies which revenue sources‬
‭to pursue, what value to offer, how to price the value, and who pays for‬
‭the value. Revenue models are an integral part of business models, as‬
‭they help companies to determine their pricing strategies and to track‬
‭their financial performance.‬
‭Feasibility analysis‬
‭ feasibility analysis is a process of evaluating the practicality, viability,‬
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‭and potential success of a proposed project or venture. It assesses the‬
‭various factors that could impact the project's outcome, such as‬
‭technical, economic, legal, and operational considerations. The purpose‬
‭of a feasibility analysis is to determine whether the project is worth‬
‭pursuing and whether it has a reasonable chance of success.‬