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
13. SO Strategies
Use a firm’s
internal strengths
to take advantage
of external
opportunities
SO
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
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