Class Notes: Strategic Management for CA Intermediat

1. Introduction to Strategic Management

Definition: Strategic management involves formulating and implementing major goals and initiatives,

considering resources and an assessment of the internal and external environments.

Importance: Ensures long-term direction, improves operational efficiency, helps in achieving goals,

and provides a competitive advantage.

2. Strategic Analysis

SWOT Analysis: Evaluates Strengths, Weaknesses, Opportunities, and Threats.

PESTLE Analysis: Assesses Political, Economic, Social, Technological, Legal, and Environmental

factors.

Porter's Five Forces: Analyzes competitive forces to understand the industry structure.

- Competitive rivalry

- Threat of new entrants

- Threat of substitutes

- Bargaining power of buyers

- Bargaining power of suppliers

3. Strategy Formulation

Corporate Level Strategy: Decisions about overall scope and direction of the organization.

- Growth Strategies: Expansion, diversification

- Stability Strategies: No change, pause/proceed with caution

- Retrenchment Strategies: Turnaround, divestment, liquidation

Business Level Strategy: Competitive strategies within a particular business unit.

- Cost Leadership

- Differentiation

- Focus Strategy

Functional Level Strategy: Detailed deployment of resources at the operational level.

4. Strategy Implementation

Organizational Structure: Aligning structure with strategy, decentralization, and delegation.

Leadership: Role of leaders in implementing strategies.

Corporate Culture: Developing a culture that supports strategic goals.

Change Management: Managing and adapting to change effectively.

5. Strategic Control

Types of Control: Premise control, strategic surveillance, special alert control, implementation

control.

Balanced Scorecard: Using financial and non-financial measures to assess performance.

Benchmarking: Comparing practices with industry bests and improving performance.

6. Strategic Management Models

BCG Matrix: Analyzing business units based on market growth and market share.

GE Matrix: Multi-factor portfolio matrix evaluating business units on industry attractiveness and

business strength.

Ansoff Matrix: Market penetration, market development, product development, and diversification

strategies.

7. Case Studies and Practical Examples

Real-world application of strategic management principles.

Analysis of successful and failed strategies of well-known companies.