General scheme
of Organization
Strategic Management
Strategic Analysis Process
THE
ENVIRONMENT
:
•Competitive
•Economic
•Social
•Political
•Legal
Organizational
Mission / Vision
Organizational
Objectives
Organizational
Strategies
Organizational
Current situation
6
Organizational
Mission
THE
ENVIRONMENT
:
•Cooperative
•Competitive
•Economic
•Social
•Political
•Legal
1. Organization´s history:
a. large, small, profit,
nonprofit, policies, etc.
2. Organization´s distinctive
competencies:
a. Abilities, things that
does well:
manufacture,
distribute, searching,
etc.
3. Organization´s
environment:
a. Opportunities,
7
constraints, threats,
etc.
Organizational
Objectives
THE
ENVIRONMENT
:
•Cooperative
•Competitive
•Economic
•Social
•Political
•Legal
1. Are the end points of the
organization´s mission;
2. Are what the organization
seeks through the
ongoing, long-run
operations;
3. They must be:
a. Specific;
b. Measurable;
c. Action commitments;
d. Provide direction;
e. Facilitate management8
control;
Organizational
Strategies
THE
ENVIRONMENT
:
•Cooperative
•Competitive
•Economic
•Social
•Political
•Legal
1. Are the “grand design” to
achieve the objectives and
complete the mission;
2. Based on:
a. Products: present or
new;
b. Markets: Present
customers or new
customers;
3. Competitive Advantage:
a. Based on
differentiation;
9
b. Based on cost;
Organizational Portfolio
Plan
THE
ENVIRONMENT
:
•Cooperative
•Competitive
•Economic
•Social
•Political
•Legal
1. The specific consideration
of the Strategic Business
Units of the organization;
2. Strategic Business Units
(SBUs) to build , maintain,
grow or eliminate
10
Internal Analysis: Components
Resources:
Tangible
Intangible
Capabilities:
Teams of
resources
Strategic
Competitiveness:
Above Average
Return
Core Competencies:
Sourcing of competitive adventage
Sustainable Competitive Adventage:
Gained through core
competencies
25
Internal Analysis: Components
Core Competencies.-
Valuable Capabilities.- Are those that help a firm
exploit opportunities and/or neutralize threats in its external
environment.
Rare Capabilities.- Are those possessed by few, if any;
current or potential competitors.
Costly imitate capabilities.- Are those than other
firms cannot develop easily.
30
Situation (SWOT) analysis
General Environment
Demographic
Economic
Sociocultural
Industry
Environment:
Political/legal
A. Intensity of rivarly
B. Threat of new
entrants
C. Product substitutes
D. Power of suppliers
E. Power of buyers
Global Environment
Technological
16
Industry Environment
Threat of new entrants
Means additional production capacity
Which are the entry barriers?
Product
differentiation
Capital requirements
Goverment policy
Barriers to entry:
Economies of scale
Industry
Access to distribution
channels
Product tech; access raw material
18