Strategic Management Frameworks and Business Analysis
1. Strategic Process
Mission / Vision / Objectives → External analysis → Internal analysis → SWOT → Strategy choice → Implementation → Control
2. Mission, Vision, and Objectives
- Mission: Why the company exists.
- Vision: Where the company wants to go.
- Objectives: Specific, measurable goals.
- Values: Principles of behavior.
3. PESTLE: Macro Environment Analysis
- P — Political
- E — Economic
- S — Social
- T — Technological
- L — Legal
- E — Environmental
4. Porter’s Five Forces
Used to analyze industry attractiveness.
- Rivalry among competitors
- Threat of new entrants
- Threat of substitutes
- Bargaining power of buyers
- Bargaining power of suppliers
Key takeaway: The stronger the forces, the less attractive the industry.
5. Internal Analysis
Used to detect strengths and weaknesses by analyzing:
- Resources: What the company has.
- Capabilities: What the company can do.
6. Value Chain
Used to identify where value is created.
- Primary activities: Inbound logistics, operations, outbound logistics, marketing & sales, service.
- Support activities: Infrastructure, HR, technology, procurement.
7. VRIO Framework
Determines if a resource provides a sustainable competitive advantage:
- V — Valuable
- R — Rare
- I — Inimitable
- O — Organized
If all four are met: Sustainable competitive advantage.
8. SWOT Analysis
- Strengths: Internal positive factors.
- Weaknesses: Internal negative factors.
- Opportunities: External positive factors.
- Threats: External negative factors.
9. Porter’s Generic Strategies
- Cost leadership: Competing with low costs/prices.
- Differentiation: Offering something unique.
- Focus: Targeting a specific niche.
10. Ansoff Matrix
Used to determine growth strategies:
- Market penetration: Existing product / Existing market
- Market development: Existing product / New market
- Product development: New product / Existing market
- Diversification: New product / New market
Key takeaway: Diversification is the riskiest strategy.
11. Development Methods
- Internal development: Growing with own resources.
- M&A: Mergers or acquisitions.
- Strategic alliance: Collaboration without merging.
12. Internationalization
Entry modes:
Exporting → Licensing / Franchising → Joint Venture → Subsidiary → Acquisition
Key takeaway: More control equals more risk.
13. Strategy Implementation
Converting strategy into action requires: People, resources, budget, structure, KPIs, and control.
Key takeaway: A strategy without implementation is useless.
14. Strategy Evaluation
A strategy must be:
- Suitable: Fits the environment.
- Acceptable: Meets stakeholder expectations.
- Feasible: The company has the capacity to execute it.
Summary: A good strategy must fit the external environment, use internal strengths, create competitive advantage, and be implemented through people, resources, KPIs, and control.