1. Chapter 5: Strategizing Learning Objectives  See how strategy fits in the P-O-L-C framework  Discuss the concept known as SWOT  Understand how strategies emerge  Understand strategy as trade-offs, discipline and focus  Conduct internal analysis to develop strategy  Conduct external analysis to develop strategy  Be able to formulate organizational strategy with the strategy diamond

2. Understand How Strategy Fits in the P-O-L-C Framework

3. Where Strategy Fits in “Planning”

4. Strategic Management Process The process by which a firm manages the formulation and implementation of its strategy The coordinated means by which an organization achieves its goals and objectives

5. Strategizing in P-O-L-C

6. Corporate & Business Strategy

7. SWOT Analysis SWOT Analysis An audit of the company's internal workings and an examination of external opportunities and threats SWOT StrengthsWeaknessesOpportunitiesThreats

8. Effective strategies Sustainable competitive advantage take advantage of strengths minimize the disadvantages posed by any weaknesses An organization’s strengths cannot be easily duplicated or imitated by other firms

9. Internal Analysis Tools Value chain VRIO External Analysis Tools PESTEL Industry analysis

10. Intended, Deliberate, Realized, and Emergent Strategies

11. Mintzberg’s Conclusion

12. What is Strategic Focus? strategy as discipline strategy as trade-offs Strategic focus is seen when an organization is very clear about its mission and vision, and has a coherent, well-articulated strategy for achieving them

13. Porter’s Generic Strategies

14. What are Value Disciplines? Operational excellence Product leadership Customer intimacy Only One Discipline

15. The Value Chain

16. Building Blocks (VRIO) of Building and Maintaining Competitive Advantage ValueRarity InimitabilityOrganization

17. DEVELOPING STRATEGY THROUGH EXTERNAL ANALYSIS An external analysis tells the strategist what is outside the organization. Begin with the general environment Continue toward the focal industry

18. An external analysis helps answer the question, “what opportunities can we exploit?”

19. Six General Environmental Segments PESTEL Analysis political economic social technical environmental legal

20. AN ORGANIZATION’S MICRO-ENVIRONMENT A group of firms producing products that are close substitutes Industry industries that provide the raw material or inputs for the focal industry Upstream Markets industries (sometimes consumer segments) that consume the industry outputs Downstream Markets

21. Porter’s Five Forces

22. Porter’s Attractiveness and Profitability Analysis Likely to Profit Is the industry difficult to enter? Is there limited rivalry? Are buyers relatively weak? Are suppliers relatively weak? Are there few substitutes? Challenges to Profit Is the industry easy to enter? Is there a high degree of rivalry between firms within the industry? Are buyers strong? Are suppliers strong? Is it easy to switch to alternatives?

23. The Strategy Diamond