1-business enivornment of strategic management

Understanding the business environment is a crucial aspect of strategic

management. The business environment consists of internal and external factors that
can influence the organization's strategies and performance. Here are key
components of the business environment in the context of strategic management:

1. Internal Environment:
• Organizational Culture: The values, beliefs, and norms that shape the
behavior of individuals within the organization.
• Resources and Capabilities: Assessing the internal strengths and weaknesses,
including human resources, technology, and financial capabilities.
• Leadership and Management: The effectiveness of leadership in setting the
strategic direction and managing resources.
2. External Environment:
• Political Factors: Government regulations, stability, and policies that can
impact business operations.
• Economic Factors: Economic conditions, inflation, interest rates, and other
economic indicators affecting the market.
• Social and Cultural Factors: Demographic trends, cultural values, and
societal changes influencing consumer behavior.
• Technological Factors: Innovations, advancements, and the rate of
technological change impacting industry and competition.
• Environmental Factors: Sustainability concerns, climate change, and
ecological considerations.
• Legal Factors: Laws and regulations affecting the industry and business
operations.
3. Industry Environment:
• Porter's Five Forces: Analyzing the competitive forces in the industry,
including the threat of new entrants, bargaining power of buyers and
suppliers, and the intensity of competitive rivalry.
• Competitor Analysis: Understanding the strengths, weaknesses,
opportunities, and threats posed by competitors.
4. Market Environment:
• Customer Analysis: Understanding the needs, preferences, and behaviors of
customers.
• Supplier and Distribution Channels: Assessing the power and relationships
with suppliers and distribution channels.
5. Global Environment:
• Globalization: Considering opportunities and challenges associated with
operating in a global market.
• Political and Economic Risks: Assessing risks related to political instability
and economic fluctuations in global markets.
6. SWOT Analysis:
• Identifying the organization's strengths, weaknesses, opportunities, and
threats to inform strategic decision-making.

2)competitive advantages of strategic management

Strategic management is a vital process that can contribute to an organization's

competitive advantage in several ways. Here are some key ways in which strategic
management can lead to competitive advantages:

1. Clear Direction and Focus:

• Strategic Vision: Strategic management helps in defining a clear vision for
the future, outlining where the organization wants to go. This clarity ensures
that everyone in the organization understands the direction and purpose.
2. Effective Resource Allocation:
• Resource Optimization: Strategic management involves evaluating and
allocating resources efficiently. This ensures that an organization optimally
utilizes its human, financial, and technological resources to achieve its
objectives.
3. Adaptability to Change:
• Environmental Scanning: Strategic management involves monitoring and
analyzing the external environment. This enables organizations to identify
changes and trends early, allowing for proactive responses to market shifts
and emerging opportunities or threats.
4. Innovation and Differentiation:
• Innovation Strategies: Strategic management encourages organizations to
invest in research and development, fostering a culture of innovation. This can
lead to the creation of unique products or services that differentiate the
organization in the market.
5. Competitive Positioning:
• Competitive Advantage: Strategic management helps identify and build on
the organization's competitive advantages. This could be achieved through
cost leadership, differentiation, or focus strategies, positioning the
organization favorably against competitors.
6. Efficient Decision-Making:
• Informed Decision-Making: Strategic management provides a structured
approach to decision-making. It ensures that decisions align with the overall
strategy, promoting coherence and consistency in actions across the
organization.
7. Risk Management:
• Risk Assessment: Strategic management involves assessing and managing
risks. Organizations can proactively identify potential risks and develop
 strategies to mitigate them, enhancing their ability to navigate uncertainties in
the business environment.
8. Enhanced Performance Measurement:
• Key Performance Indicators (KPIs): Strategic management often involves
the establishment of key performance indicators. These metrics help measure
the success of strategic initiatives and provide feedback for continuous
improvement.
9. Organizational Learning:
• Continuous Improvement: The strategic management process promotes a
culture of continuous improvement. Learning from past experiences and
adjusting strategies accordingly ensures that the organization remains
adaptive and resilient.

3)VISION, MISSION, SETTING OBJECTIVE/TARGET IN STRATEGIC MANAGEMENT

In strategic management, vision, mission, and objectives/targets are fundamental
elements that guide an organization in defining its purpose, direction, and goals.
Here's an overview of each:

1. Vision:
• Definition: A vision statement outlines the desired future state or long-term
aspiration of the organization. It communicates the organization's overarching
purpose and what it hopes to achieve.
• Characteristics:
• Inspirational: It inspires and motivates stakeholders.
• Future-Oriented: It focuses on where the organization aims to be in the
future.
• Broad and Timeless: It is generally broad and enduring, transcending
short-term goals.
Example: "To be the global leader in sustainable innovation, providing solutions that
enhance the well-being of people and the planet."
2. Mission:
• Definition: A mission statement articulates the organization's core purpose,
reason for existence, and the value it provides to its stakeholders.
• Characteristics:
• Concise: It is clear and succinct.
• Specific: It defines the organization's scope of activities.
• Reflective of Values: It often reflects the organization's core values.
Example: "To empower individuals and businesses through innovative technology
solutions that simplify and enrich their lives."
3. Setting Objectives/Targets:
 • Definition: Objectives are specific, measurable, achievable, relevant, and time-
bound (SMART) goals that an organization sets to achieve its mission and
move towards its vision.
• Characteristics:
• Specific: Objectives are clear and specific.
• Measurable: They can be quantified or assessed.
• Achievable: They are realistic and attainable.
• Relevant: They align with the organization's mission and vision.
• Time-Bound: They have a defined time frame for achievement.
Example: "Increase market share by 10% within the next fiscal year" or "Reduce
carbon emissions by 20% over the next five years."

4)ENIVORNMENTAL SCANNING AND ORGANISATION SCANNING IN STRATEGIC

MANAGEMENT

Environmental Scanning:

Definition: Environmental scanning involves monitoring, evaluating, and interpreting

external factors and trends that could impact an organization's performance. This
includes the analysis of the macro-environment (external factors beyond the
industry) and the industry environment.

Key Components:

1. PESTEL Analysis:
• Examining Political, Economic, Social, Technological, Environmental, and Legal
factors that could affect the organization.
2. Industry Analysis:
• Assessing the competitive forces within the industry using tools such as
Porter's Five Forces.
3. Scenario Planning:
• Developing scenarios based on various possible futures to anticipate potential
changes and challenges.
4. Competitor Analysis:
• Evaluating the strengths, weaknesses, opportunities, and threats (SWOT) of
key competitors.

Purpose:

• Identify opportunities and threats in the external environment.

• Anticipate changes and trends that could impact the industry.
 Organizational Scanning:

Definition: Organizational scanning involves examining and assessing internal

factors and resources within the organization.

Key Components:

1. Resource Analysis:
• Evaluating the organization's tangible and intangible resources, including
human resources, technology, financial capabilities, and intellectual property.
2. Capabilities and Competencies:
• Identifying core competencies that provide a competitive advantage.
3. Culture and Structure:
• Understanding the organizational culture and structure to assess how well
they support strategic objectives.
4. Performance Analysis:
• Assessing the organization's financial performance, operational efficiency, and
key performance indicators.

Purpose:

• Identify strengths and weaknesses within the organization.

• Assess the organization's ability to leverage its resources and capabilities for strategic
advantage.

5)FUNCTIONAL, BUSINESS AND CORPORATE LEVEL STRATEGIES IN STRATEGIC

MANAGEMENT

In strategic management, organizations deploy strategies at different levels to

achieve their overall objectives. These levels include functional, business, and
corporate levels. Here's an overview of each:

1. Functional Level Strategy:

Definition:

• Functional level strategies focus on specific functional areas within the organization,
such as marketing, operations, finance, human resources, and others.
• The aim is to optimize the performance of each functional area to contribute to the
overall success of the organization.
 Purpose:

• Ensure that each functional area is aligned with the overall business strategy.
• Enhance the efficiency and effectiveness of individual departments.

Business Level Strategy:

Definition:

• Business level strategies are concerned with how a business unit or a strategic
business segment competes within a specific market or industry.
• They involve choices regarding the target market, differentiation, cost leadership, and
competitive advantage.

Purpose:

• Gain a competitive advantage within a particular market or industry.

• Create value for customers and generate sustainable profits.

Corporate Level Strategy:

Definition:

• Corporate level strategies concern the overall scope and direction of the entire
organization. They involve decisions about which businesses to pursue and how to
allocate resources among them.
• Corporate level strategies often involve diversification, mergers and acquisitions, and
portfolio management.

Purpose:

• Ensure that the organization as a whole is positioned for long-term success.

• Achieve synergy and create value across multiple business units.
 6)ELEMENTS IN STRATEGIC MANAGEMENT PROCESS

The strategic management process involves several key elements that organizations
follow to formulate, implement, and evaluate their strategies. Here are the key
elements in the strategic management process:

1. Environmental Analysis:
• Description: Understanding the external environment is crucial. This involves
analyzing the macro-environment (PESTEL analysis) and the industry
environment (Porter's Five Forces) to identify opportunities and threats.
• Importance: Helps the organization anticipate changes, spot trends, and
prepare for challenges.
2. Internal Analysis:
• Description: Assessing the organization's internal strengths and weaknesses.
This involves evaluating resources, capabilities, core competencies, and
organizational structure.
• Importance: Identifies areas where the organization excels and areas that
need improvement.
3. Strategy Formulation:
• Description: Developing strategies based on the information gathered from
environmental and internal analyses. This includes defining the mission,
setting objectives, and generating strategic options.
• Importance: Provides a roadmap for achieving the organization's goals.
4. Strategy Implementation:
• Description: Putting the formulated strategies into action. This involves
allocating resources, designing organizational structure, policies, and
processes to support the chosen strategies.
• Importance: Ensures that strategies are executed effectively and efficiently.
5. Strategic Control:
• Description: Monitoring the implementation of strategies to ensure they are
on track. This involves setting performance metrics, comparing actual results
with planned results, and taking corrective actions if needed.
• Importance: Helps in identifying deviations and making adjustments to keep
the organization on the right path.
6. Evaluation and Feedback:
• Description: Assessing the outcomes of the implemented strategies. This
involves evaluating whether the objectives were met and learning from the
experience.
• Importance: Provides insights for future strategic planning and helps in
continuous improvement.
 7)MINTZBERG 7P OF STRATEGIC MANAGEMENT
Henry Mintzberg, a renowned management scholar, proposed a strategic
management framework known as the 5 Ps in his book "Strategy Safari." Later, the
framework was expanded to include two more Ps. These seven elements or Ps
provide a holistic view of the various components involved in the strategic
management process. The 7 Ps of strategic management by Mintzberg are:

1. Plan:
• Description: The traditional approach to strategic management involves
formal planning processes where organizations set objectives and develop
detailed plans to achieve them.
• Role: Plans are seen as a blueprint for the organization's future actions.
2. Ploy:
• Description: This element refers to specific actions or tactics employed by an
organization to gain a competitive advantage. It involves making moves to
outsmart competitors.
• Role: Ploys are strategic maneuvers aimed at achieving short-term goals and
gaining an advantage in the marketplace.
3. Pattern:
• Description: Patterns emerge over time based on the consistent actions and
decisions of the organization. These patterns may not be explicitly planned
but can reveal the organization's strategy.
• Role: Identifying and understanding patterns helps in recognizing the implicit
strategy of the organization.
4. Position:
• Description: Positioning involves choosing a unique and favorable place in
the market where an organization can effectively compete. It emphasizes the
need for a distinctive market position.
• Role: Positioning is about finding a niche or segment in the market where the
organization can excel.
5. Perspective:
• Description: This refers to the collective mindset or viewpoint of the
organization's leadership regarding its mission, values, and purpose. It
involves the organization's overall philosophy.
• Role: Perspective influences how the organization perceives its role in society
and shapes its strategic decisions.
6. Pretext:
• Description: Pretext refers to the underlying motivations and intentions
behind strategic actions. It involves understanding the deeper reasons for
strategic decisions.
• Role: Recognizing pretexts helps in understanding the true purpose behind
the organization's strategic choices.
7. Practice:
• Description: Practices are the actual actions and behaviors that occur in the
organization. They may or may not align with the planned strategies but
reflect the real-life implementation of strategy.
• Role: Examining actual practices provides insights into how strategies are
executed and whether there is alignment with intended plans.

8) SWOT ANALYSIS, TWOS MODEL, CORE COMPETENCY IN STRATEGIX MANAGEMWNT

• SWOT analysis is a strategic planning tool used to identify an organization's internal

strengths and weaknesses, as well as external opportunities and threats.

Key Components:

• Strengths (S): Internal factors that give the organization a competitive advantage.
• Weaknesses (W): Internal factors that place the organization at a disadvantage.
• Opportunities (O): External factors that could positively impact the organization.
• Threats (T): External factors that could negatively impact the organization.

Purpose:

• SWOT analysis helps in formulating strategies that leverage strengths, address weaknesses,
exploit opportunities, and mitigate threats.

2. TOWS Model:

Definition:

• The TOWS model is an extension of SWOT analysis. It involves using the identified SWOT
factors to develop specific strategic actions.

Key Components:

• SO Strategies (Strengths-Opportunities): Leverage internal strengths to exploit external

opportunities.
• WO Strategies (Weaknesses-Opportunities): Overcome internal weaknesses to exploit
external opportunities.
• ST Strategies (Strengths-Threats): Use internal strengths to counteract external threats.
• WT Strategies (Weaknesses-Threats): Mitigate internal weaknesses and avoid external
threats.

Purpose:
• TOWS helps in translating SWOT analysis into actionable strategies by combining internal
and external factors.

3. Core Competency:

Definition:

• Core competency refers to a unique capability or set of capabilities that provides a

competitive advantage to an organization. It's something the organization does
exceptionally well.

Key Components:

• Unique Capability: Core competencies are distinctive and set the organization apart.
• Value Creation: They contribute to the creation of value for customers.
• Difficult to Imitate: Competitors find it challenging to replicate core competencies.
• Strategic Focus: Core competencies align with the organization's strategic direction.
• Long-Term Advantage: They provide sustained competitive advantage over time.

Purpose:

• Core competencies guide strategic decisions, helping organizations focus on what they do
best and build a sustainable competitive advantage.