session 8 Flashcards
Strategy formulation
concerned with developing a corporation’s mission, objectives, strategies, and policies
Situation analysis
the process of finding a strategic fit between external opportunities and
internal strengths
Key elements to strategic analysis
-external
-internal
external elements
- Environmental opportunities and threats
- Competitive situation
- Positioning
internal elements
- Internal strengths and weaknesses
- Resource characteristics
- Building competitive advantage
SWOT
-strengths
-weaknesses
-opportunities
-threats
INTERNAL ANAYSIS
What one can do
-STRENGTHS
-WEAKNESSES
EXTERNAL ANALYSIS
What needs to be done
-OPPORTUNITIES
-THREATS
Mission Statement
enable a common thread to highlight
and focus the energy of everyone in the organization in the direction
that the top management team believes is best for the business.
5 common elements mission statement
-must be short
-design must be simple
- provide direction
-what the company does and
what it does not do
-should be measurable
Business strategy
focuses on improving the competitive position of a company’s
Strategic Choices
-Corporate level choices
-Business unit level choices
-Functional level choices
Competitive strategies
1.Cost strategy
2. Differentiation strategy
3. Focus Strategy
Stuck in the middle
when a company has no competitive advantage
