strat mgt-module~2
DESCRIPTION
pptTRANSCRIPT
![Page 1: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/1.jpg)
Environmental Analysis
Dr. T.K. Vijay Kumar
Strategic Management
Module ~2
![Page 2: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/2.jpg)
© Dr. T.K. Vijay Kumar
“Things are always Different—
the art is figuring out which differences matter….”
Laszlo Birinyi
“Analysis is the Critical starting point of Strategic thinking.”
~ Kenichi Ohmae
![Page 3: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/3.jpg)
© Dr. T.K. Vijay Kumar
THREE PRIMARY ASPECTS OF STRATEGIC BUSINESS MANAGEMENT
Industry and Competitive Analysis
Strategy and Competitive Advantage
Company Situation and Analysis
![Page 4: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/4.jpg)
© Dr. T.K. Vijay Kumar
Four Basic Elements
Strategic Management Basic model
Strategic management is the process of moving where you are to where you want to be in future – through
sustainable competitive advantages
Options onCompetitive Positioning
Learning points from deviations
![Page 5: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/5.jpg)
© Dr. T.K. Vijay Kumar
Situation AnalysisComponents of Internal & External Envt.
Two Considerations: Company’s External or
Macro-Environment Industry and Competitive conditions
Company’s Internal orMicro-Environment
Competencies, Capabilities, Resources Strengths and Weaknesses, and Competitiveness
![Page 6: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/6.jpg)
© Dr. T.K. Vijay Kumar
Thinking Strategically to Choosing a Strategy
![Page 7: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/7.jpg)
© Dr. T.K. Vijay Kumar
Scanning the Environment ~ STEEEPL…
Internal, External, Domestic and Global environment,
Macro Environmental Factors Demographic, Socio-Cultural, Economic, Political, Natural,
Technological, Legal, Govt. Policies…..
Environmental Analysis
![Page 8: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/8.jpg)
© Dr. T.K. Vijay Kumar
Analyzing the Industry & Competitive Environment
1. What are the industry’s strategy-shaping economic features?2. What kinds of competitive forces are industry members
facing, and how strong is each force?3. What forces are driving changes in the industry, and what
impact will these changes have?4. What market positions do industry rivals occupy?5. What strategic moves are rivals likely to make next?6. What are the key factors for future success?7. Does the outlook for the industry present the company with
sufficiently attractive prospects for profitability?
Ref: STEEEPL
![Page 9: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/9.jpg)
© Dr. T.K. Vijay Kumar
External and Internal AnalysesBy studying the firm’s (internal) capabilities & resources, firms identify what they can do (over time)
Unique Resources, Capabilities, and Competencies
(Sustainable Competitive Advantage)
![Page 10: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/10.jpg)
© Dr. T.K. Vijay Kumar
Internal Analysis (Resources, Capabilities)
How do we effectively manage current core competencies while simultaneously developing new ones? (Exploit/ Explore)
How do we assemble bundles of resources, capabilities and core competencies to create value for customers?
How do we learn to change rapidly?
![Page 11: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/11.jpg)
© Dr. T.K. Vijay Kumar
Assessing the firm’s capabilities/strengths & weaknesses in the various areas:
Finance / Marketing/ Human Resources / Operations/ R & D / General Management
Developing the strength-weakness profile Appraising the individual businesses/strategic business units
(SBUs) of the firm Identifying the competitive advantages and core competencies
and developing the competitive advantage profile (CAP) Examining the capability gap (gap between existing
capabilities and the ones needed for pursuing the spotted opportunities)
Internal appraisal (of the firm)
![Page 12: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/12.jpg)
© Dr. T.K. Vijay Kumar
Components of Internal Analysis
Identifying CoreCompetencies
Resources• Tangible• Intangible
Capabilities
CoreCompetencies
Identify sustainable competitiveadvantages
StrategicCompetitiveness
Four Criteriaof Sustainable
Advantage
• Valuable• Rare• Imitation/Substitutes = costly• Organized properly
ValueChain
Analysis
• In/Outsource• decisions
* Value-Add Info.
![Page 13: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/13.jpg)
© Dr. T.K. Vijay Kumar
Discovering CoreCompetencies
Resources• Tangible• Intangible
Tangible • Financial• Physical• Labor
Intangible• Technological• Innovation• Reputation• Organizational activity systems• Knowledge
![Page 14: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/14.jpg)
© Dr. T.K. Vijay Kumar
Discovering CoreCompetencies
CompetitiveCapabilities
Competitive Capabilities describe the firm’s ability to Create, Deploy, Modify, Reconfigure, and Leverage resources.
Valuable capabilities permit resources to be combined in unique ways to create Core Competencies
![Page 15: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/15.jpg)
© Dr. T.K. Vijay Kumar
Environmental Factors specific to the business concerned :~
Industry & Competition / Market/Customer / Technology Supplier Factors / Govt. Policies Spotting the opportunities & threats Checking the attractiveness and probability position of
these opportunities Highlighting those opportunities the pursuit of which will help
the firm bridge its strategic planning gap Developing the opportunities-threats profile (OTP)
Environmental Scanning Techniques
![Page 16: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/16.jpg)
© Dr. T.K. Vijay Kumar
Industry Analysis (Porter’s Model)
![Page 17: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/17.jpg)
© Dr. T.K. Vijay Kumar
SWOT ~ Analysis of Strengths, Weaknesses, Opportunities, & Threats.
![Page 18: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/18.jpg)
© Dr. T.K. Vijay Kumar © Dr. TK Vijay Kumar
TOWS Matrix
![Page 19: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/19.jpg)
© Dr. T.K. Vijay Kumar
MC KINSEY’S 7S FRAMEWORK
* Value-Add Info.
![Page 20: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/20.jpg)
© Dr. T.K. Vijay Kumar
Balanced Score Card Example
* Value-Add Info.
![Page 21: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/21.jpg)
© Dr. T.K. Vijay Kumar
BCG Matrix
BCG Matrix can help understand a frequently made strategy mistake: having a one-size-fits-all-approach to strategy,
* Value-Add Info.
![Page 22: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/22.jpg)
© Dr. T.K. Vijay Kumar
GE Matrix
* Value-Add Info.
![Page 23: Strat Mgt-Module~2](https://reader035.vdocuments.site/reader035/viewer/2022062502/577cc7681a28aba711a0d7a3/html5/thumbnails/23.jpg)
© Dr. T.K. Vijay Kumar
Thank U