Strategic Management Essentials: Strategy, Analysis & Governance
Posted on Feb 4, 2026 in Labor Relations and Human Resources
Module 1 — Introducing Strategy
| Topic | Key Points |
|---|
| Definition of Strategy | Allocation of resources to achieve competitive advantage and long-term value creation |
| Strategic Decisions | Long-term; environment-dependent; aims to gain or defend advantage |
| Strategy Statements | Vision: desired future • Values: stable principles • Objectives: measurable (financial, market, TBL) |
| Levels of Strategy | Corporate: scope & value across units • Business: how to compete • Functional: support strategy |
| Strategy Process | Understand → Decide → Execute |
Module 2 — External Analysis: Macro Environment
PESTEL Framework
| Factor | What to Analyze |
|---|
| Political | Government role, regulation, trade, political risk |
| Economic | Cycles, interest rates, income, FX, unemployment |
| Social | Demographics, culture, wealth, geography |
| Technological | Innovation, R&D, patents, new products |
| Ecological | Climate change, pollution, sustainability |
| Legal | Labor, consumer, competition, governance laws |
Output: Opportunities & Threats
Forecasting is used to anticipate future conditions and can take the form of single-point forecasts in stable environments, range forecasts under moderate uncertainty, or alternative future scenarios when uncertainty is high.
Scenario analysis is applied in highly uncertain contexts by identifying key uncertain drivers, constructing a limited number of plausible future scenarios, and testing strategic options against each scenario to assess robustness and flexibility.
Module 3 — External Analysis: Industry & Sector
Porter’s Five Forces
| Force | Meaning |
|---|
| Threat of Entry | Barriers to enter |
| Threat of Substitutes | Alternatives from outside industry |
| Buyer Power | Ability to force lower prices |
| Supplier Power | Ability to raise costs |
| Competitive Rivalry | Intensity among competitors |
Strong forces = low industry attractiveness
Industry Structures
| Type | Characteristics |
|---|
| Monopoly | One firm |
| Oligopoly | Few firms, cooperation preferred |
| Perfect Competition | Many firms, low margins |
Strategic Groups & Segments
| Concept | Use |
|---|
| Strategic Groups | Identify direct competitors & mobility barriers |
| Market Segments | Groups of customers with similar needs |
Blue Ocean Strategy
| Red Ocean | Blue Ocean |
|---|
| Intense competition | New uncontested space |
Module 4 — Internal Analysis: Resources & Capabilities
Core Concepts
| Element | Meaning |
|---|
| Resources | What we have (assets) |
| Capabilities | What we do (skills, processes) |
| Threshold | Qualifiers to compete |
| Distinctive | Sources of advantage |
VRIO Framework
| Test | Question |
|---|
| Valuable | Does it add value? |
| Rare | Do few competitors have it? |
| Inimitable | Is it hard to copy? |
| Organized | Is the firm organized to support it? |
Sustainable advantage mostly comes from capabilities.
SWOT
| SWOT | Meaning |
|---|
| Strengths / Weaknesses | Internal |
| Opportunities / Threats | External |
Module 5 — Stakeholders & Governance
Stakeholders
| Type | Examples |
|---|
| Economic | Shareholders, suppliers |
| Social / Political | Governments, NGOs |
| Technological | Standards bodies |
| Community | Local residents |
| Internal | Employees |
Stakeholder Mapping
| Dimension | Meaning |
|---|
| Power | Ability to influence |
| Attention | Criticality, channels, capacity |
Ownership Models
| Model | Focus |
|---|
| Public | Profit |
| State-owned | Policy + surplus |
| Entrepreneurial | Growth & survival |
| Family | Control & continuity |
Governance Models
| Model | Strengths | Weaknesses |
|---|
| Shareholder | Returns, innovation | Short-termism |
| Stakeholder | Long-term, stability | Slower decisions |
Boards of Directors: oversee strategy, ensure independence and control
