CHAPTER 1 | STRATEGIC MANAGEMENT

• STRATEGY- a set of goal-directed actions to firm takes to gain and sustain superior performance relative to competitors.
• EXAMPLE OF STRATEGY AND ACROSS IN DIFFERENT SECTORS:

  NEW VENTURES

  EXISTING COMPANIES

  CHARITIES (NON-PROFIT ORGANIZATION)

  UNIVERSITIES (ACADEMIC INSTITUTIONS)

  SPORTS TEAM

  CELEBRITIES (PUBLIC FIGURE)
• ANALYSIS- diagnosis of the competitive challenge
• FORMULATION- guiding policy to address the competitive challenge
• Implementation- set of coherent actions to implement the firm's guiding policy
• WHAT IS GOOD STRATEGY?

  Analysis

  Formulation

  Implementation
• COMPETITIVE ADVANTAGE- superior performance relative to other competitors in the same industry or the industry average
• SUSTAINABLE COMPETITIVE ADVANTAGE- a firm that is able to outperform its competitors or the industry average over a prolonged period
• Competitive Disadvantage- a firm that underperform its rivals or the industry average
• COMPETITIVE PARITY- two or more firms that perform at the same level
• PROFITABILITY & MARKET SHARE- the rewards of superior value creation and capture
• STRATEGIC POSITIONING- staking out unique position within an industry that allows the firm to provide value to customers, while controlling costs
• VALUE CREATION - COSTS = ECONOMIC CONTRIBUTION
• WHAT STRATEGY IS NOT?

  1. grandiose statements
  2. A failure to face a competitive challenge
  3. Operational effectiveness, competitive benchmarking or tactical tools
• CUSTOMER CENTRIC PERSPECTIVE- approach involves understanding and addressing the needs and preferences of customers and focusing delivering value to them
• SWOT ANALYSIS- understanding the company's strengths and weaknessses opportunities and threats
• VISION


  captures an organization's aspiration. What do we want to accomplish?
• MISSION


  describes what firm actually does to fulfill its vision. How do we accomplish the goals?
• VALUES


  what commitments do we make, and what guardrails do we put in place, to act both legally and ethically as we pursue our vision and mission?
• CUSTOMER-ORIENTED VISION STATEMENTS- allow companies to adapt to changing environments. Define business in terms of providing solutions to customer needs, firms can more easily adapt to changing circumstances
• PRODUCT-ORIENTED VISION STATEMENTS- defines business in terms of good or service provided, they tend to force messengers to take more myopic view of the competitive landscape, less flexibility
• CORE VALUES STATEMENT- statement of principles to guide an organization as it works to achieves its vision and fulfill its mission, for both internal and external interactions; it often includes explicit considerations
• ORGANIZATIONAL CORE VALUES- ethical standards and norms that govern the behavior of the individuals within a firm or organization
• STRATEGIC MANAGEMENT- an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage
• AFI FRAMEWORK- embodies the view of strategic management, used to gain and sustain competitive advantage
• BRAND STRATEGY


  developing and managing the brand to create a unique and favorable perception in the minds of consumers organization often use this tactical tools as a part of their growing strategic approach they help in addressing specific challenges
• CUSTOMER CENTRIC STRATEGY

  allow organization to adapt more effectively to changing market conditions and identify opportunities beyond their current product or service offering
• Industry Average

  Key indicator of a company competitive advantage assessing. This advantage involves a comparison of the firms performance with that of its competitors in the same industry. 
• Analysis

  • involves a throughout analysis of the external and internal factors that affect the firm
• Formulation 


  This is strategic plan outlines the directions of the company
• PRICING STRATEGY OPERATIONS

  • is a strategy or brand strategy tactical tools represent specific strategies or approaches employed by companies to address particular aspect of their business
• UNIQUE STRATEGIC POSITION

  • The key to successful strategy
  •   Requires combining activities  
• BRAND STRATEGY

  • It is developing and managing the brand to create a unique and favorable perception in the minds of customers 
• STRATEGIC ALIGNMENT

  • This is the elements align the organizational internal and external stakeholder
• AFI STRATEGY FRAMEWORK

  • is comprehensive and interdependent framework that explain and predicts differences in firm performances