1. Strategic Management I
RECAP

2. Vision and Mission Statement
What is strategy?
Vision and Mission Statement
Components of a good Mission statement

3. A firm’s theory about how to gain
competitive advantage
Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives

4. Components of a Good Mission Statement must address:
Who are the customers
What are the major products & services
Market- geography
Technology – currency
Is it committed to growth and financial soundness?
Philosophy – beliefs, values, ethics
Self concept – distinctive competence
Concern for public image- social community, and environment
Employees.

5. Measures of Performance
Financial measures
Adjusted measures

6. Evaluating External Environment
STEP
Porter’s Five Forces Model

7. Components of the General Environment
Economic
Demographic
Sociocultural
Competitive
Environment
Industry Environment
Political/Legal
Global
Technological 10

8. Forces Driving Industry Competition
Threat
of New
Entrants
Bargaining
Power
of Suppliers
of Buyers
Relative
of Unions,
Governments,
etc.
Potential
Threat of
Substitute
Products
or Services
Industry
Competitors
Rivalry Among
Existing Firms
Other
Stakeholders
Buyers
Substitutes
Suppliers
Prentice Hall, 2000
Chapter 3

9. Internal Evaluation Resource Based View The Value Chain
Competitive advantage is derived from firm’s development of resources and capabilities. Core competence
The Value Chain
Internal Factor Evaluation

10. Neither Porter’s model nor the RBV talk of the customer.
Delta Model strives to do this.
Read : The Delta Model – towards a Unified Framework of Strategy, Hax and Wilde, MIT Working Paper Sep. 2002

11. Strategy Analysis and Choice
SWOT / TWOS Matrix
SPACE – Strategic Position & Action Evaluation)
BCG Matrix for Portfolio of Products
Internal External matrix

12. Strengths-Opportunities (SO)
Weaknesses-Opportunities (WO)
Strengths-Threats (ST)
Weaknesses-Threats (WT)

13. Relative Market Share Position Industry Sales Growth Rate
BCG Matrix
Relative Market Share Position
High
1.0
Medium
.50
Low
0.0
Dogs IV
Cash Cows
III
Question Marks
(Problem child) I
Stars II
Industry Sales Growth Rate
High
+20
Medium
Low
-20

14. Business level Strategies
Vertical Integration
Cost Leadership
Product Differentiation
Flexibility
Tacit Collusion

15. Generic Strategies
Cost Leadership
Differentiation
Focus

16. Corporate Level Strategies
Strategic Alliance
Corporate Diversification
Mergers & Acquisitions

17. Soon…in 2nd semester Issues Implementation Evaluation Globalisation
Innovation