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Strategic management guide
By
Dr. Raafat Youssef Shehata
Environmental scanning models
Models for internal analysis
• SW(SWOT)
• Porter value chain model
• Mackinsey 7S model
• PLC
• BCG
Models for External analysis
• OT (SWOT)
• PESTEL
• Porter 5 force model
Mission- the purpose or reason for the organization’s existence
Vision- describes what the organization would like to become
Objectives- the end results of planned activity
Basic Elements of Strategic Management
Generating alternative strategies by using
TOWS matrix
SO Strategies
Use a firm’s
internal strengths
to take advantage
of external
opportunities
SO
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT
WO Strategies
Improving internal
weaknesses by
taking advantage
of external
opportunities
WO
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT
ST Strategies
Use a firm’s
strengths
to avoid or
reduce the impact
of external
threats
ST
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT
WT Strategies
Defensive tactics
aimed at reducing
internal
weaknesses &
avoiding
environmental
threats
WT
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT
Ch 5 -18
Types of Strategies
Operational Level
Functional Level
Division Level
Corp
Level
Ch 5 -19
Types of Strategies
Vertical
Integration
Strategies
Forward
Integration
Backward
Integration
Horizontal
Integration
Ch 5 -20
Types of Strategies
Intensive
Strategies
Market
Penetration
Market
Development
Product
Development
Ch 5 -21
Types of Strategies
Diversification
Strategies
Related
Diversification
Unrelated
Diversification
Ch 5 -22
Types of Strategies
Defensive
Strategies
Retrenchment
Divestiture
Liquidation
Michael Porter’s Generic Strategies
Cost Leadership Strategies
(Low-Cost & Best-Value)
Differentiation Strategies
Focus Strategies
(Low-Cost Focus &
Best-Value Focus)
First Mover advantage strategy
 Benefits a firm may achieve by entering a new market or developing a
new product or service prior to rival firms
Blue ocean strategy(BOS)= Value innovation
• Value innovation= value creation + innovation
• A strategy that makes the competition irrelevant
• BOS tools include:
Strategy canvas
4 actions
low
high
Industry Variables
Strategy Canvas
Four Actions: Eliminate/Reduce/Raise/Create
• Which of the factors that the industry takes for granted
should be eliminated?
• Which should be reduced?
• Which should be raised well above standard?
• Which factors should be created that have not existed
before?
11-29
• Return on Investment (ROI)
• Earnings per share (EPS)
• Return on equity (ROE)
• Operating cash flow
Primary Measures of Corporate Performance
Measuring performance
Balanced score card– combines financial measures that tell results of actions already
taken with operational measures on customer satisfaction, internal processes and
the corporation’s innovation and improvement activities
• Financial
• Customer
• Internal business perspective
• Innovation and learning
Strategic management guide raafat

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Strategic management guide raafat

  • 1. Strategic management guide By Dr. Raafat Youssef Shehata
  • 2.
  • 3. Environmental scanning models Models for internal analysis • SW(SWOT) • Porter value chain model • Mackinsey 7S model • PLC • BCG Models for External analysis • OT (SWOT) • PESTEL • Porter 5 force model
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Mission- the purpose or reason for the organization’s existence Vision- describes what the organization would like to become Objectives- the end results of planned activity Basic Elements of Strategic Management
  • 11.
  • 12. Generating alternative strategies by using TOWS matrix
  • 13. SO Strategies Use a firm’s internal strengths to take advantage of external opportunities SO Strategies Strengths Weaknesses Opportunities Threats SWOT
  • 14. WO Strategies Improving internal weaknesses by taking advantage of external opportunities WO Strategies Strengths Weaknesses Opportunities Threats SWOT
  • 15. ST Strategies Use a firm’s strengths to avoid or reduce the impact of external threats ST Strategies Strengths Weaknesses Opportunities Threats SWOT
  • 16. WT Strategies Defensive tactics aimed at reducing internal weaknesses & avoiding environmental threats WT Strategies Strengths Weaknesses Opportunities Threats SWOT
  • 17.
  • 18. Ch 5 -18 Types of Strategies Operational Level Functional Level Division Level Corp Level
  • 19. Ch 5 -19 Types of Strategies Vertical Integration Strategies Forward Integration Backward Integration Horizontal Integration
  • 20. Ch 5 -20 Types of Strategies Intensive Strategies Market Penetration Market Development Product Development
  • 21. Ch 5 -21 Types of Strategies Diversification Strategies Related Diversification Unrelated Diversification
  • 22. Ch 5 -22 Types of Strategies Defensive Strategies Retrenchment Divestiture Liquidation
  • 23. Michael Porter’s Generic Strategies Cost Leadership Strategies (Low-Cost & Best-Value) Differentiation Strategies Focus Strategies (Low-Cost Focus & Best-Value Focus)
  • 24. First Mover advantage strategy  Benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms
  • 25. Blue ocean strategy(BOS)= Value innovation • Value innovation= value creation + innovation • A strategy that makes the competition irrelevant • BOS tools include: Strategy canvas 4 actions
  • 27. Four Actions: Eliminate/Reduce/Raise/Create • Which of the factors that the industry takes for granted should be eliminated? • Which should be reduced? • Which should be raised well above standard? • Which factors should be created that have not existed before?
  • 28.
  • 29. 11-29 • Return on Investment (ROI) • Earnings per share (EPS) • Return on equity (ROE) • Operating cash flow Primary Measures of Corporate Performance
  • 30. Measuring performance Balanced score card– combines financial measures that tell results of actions already taken with operational measures on customer satisfaction, internal processes and the corporation’s innovation and improvement activities • Financial • Customer • Internal business perspective • Innovation and learning