Strategic Management

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  • Internal triggering events are situations or scenarios intervening or disturbing the business org
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  • Change in ownership: the new owner may set a new culture and behavior within the firm, leading to a big change and impact on the business
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  • Monopoly: characterized by a single seller dominating the market
• The Product Life Cycle:

  • Also known as service life cycle or market/industry life cycle
• Experience Curve:

  • Suggests that as a business organization stays longer in the industry, it accumulates knowledge and experience that helps improve business operations
• Economies of Scale:

  • Postulates that there is a decline in the per unit cost of production as the volume of production is increased
• Best Operating Level:

  • In production management and engineering science, it refers to the point of machine use that leads to the best mix
• New CEO/President: New leadership results in changes, such as forming a new team
• Performance Gap: When performance does not meet expectations the tendency is to have a gap ,
• Optimum level of operating machines or using resources that can result in the lowest possible cost of production of a product or service
• Oligopoly: more than one producer or seller, with products that may be homogeneous or differentiated
• Monopolistic competition: many sellers offering similar products that are not perfect substitutes
• Perfect competition: characterized by many producers or sellers and a homogeneous product
• Management team shake up: the incumbent President or CEO may form a new management team comprising middle and senior-level managers
• Building competitive Strategies

  The theory behind the product life cycle or s-curve suggest that unless nothing is being done the ever changing market condition competitiveness
• External triggering events- are those factors external to the firm or matters

  where the business organization itself may not like or want to happen but

  there is nothing much it can do.
• Triggering Events make the firm competitive or to achieve certain strategic objective
• One thing is constant in this world is change itself
• The Dynamic nature of the market and the business one thing is constant in this world is change itself
• Example of dynamic nature

  • the ever changing market condition
  • The changing tase of the market
  • Sociopolitical changes
  • The impact of global development vis avis the local market
  • The changes in the conduct of business
• Performance Gap leading to falling sales numbers or decreasing income. Management will adjust strategies to address the gap
• Technology Development and Innovation

  Rapid development and Innovation in technologies have given so much impact upon the level of business competition anywhere in the world
• Technology Development and Innovation New invention and Innovation both in products and the way services are handled are in fact the key aspect that has given products substitute or dominant role in porter five