Strategic

Position
Part 1 Business Strategy

1.

What is strategy?

2.

Levels of strategy in an organization

3.

Elements of strategic management

4.

The importance of context

5.

The strategy lenses

What is strategy?

Johnson , Scholes and

Whittington (JS&W)
Strategy is:
the direction and scope of an organization over the long

term, which achieves advantage in a changing environment

through its configuration of resources and competences with
the aim of fulfilling stakeholder expectations. Strategic
decisions are made under conditions of complexity and
uncertainty; they have a wide impact on the organization
and often lead to major change.

The Mission
Statement

Communicating an entitys
values and Mission

Technical Article

June 2012 Q3

Levels Of Strategy

Strategic Management Process

Contextual Analysis

Overview of Strategy

The Firms Environment

1. Complexity
2. Stability

External Environment - PESTEL

Market Structure forces

Question Gallery : June 2012 Q1, June

2013 Q2, June 2015 Q1

Porters Diamond: national

Competitiveness

Scenario planning

Leading Factors

Scenario Analysis

Scenarios are detailed & plausible views of how the business environment of
an organization might develop in the future based on groupings of key
environmental influences and 'drivers of change', which have the potential to
have a significant impact on the company & are associated with high levels of
uncertainty.

Scenario Planning and

Forecasting

Time Series
Regression Analysis

Significance of industry, sector and convergence

Industry

Sector

Supply Led/
Demand Led

Competitive Analysis : Porters Five

Forces

Customer and Competition

Analysis

The cycle of competition : firm vs a new challenger.

Hyper-competition is an unstable state of constantly shifting short-term

advantage.

The industry life cycle has four phases: inception, growth,

maturity/shakeout and decline. Each phase has typical implications for
customers, competitors, products and profits.

Strategic group analysis examines the strategic space occupied by

groups of close competitors in order to identify potential competitive
advantage.

Attack
Terms

Frontal / head-on attack

Marketing mix attack

Flank attack Segment

Encirclement attack

Bypass attack

Guerrilla attack

Defense

Position defence

Mobile defence

Flanking defence

Contraction defence

Pre-emptive defence

Lifecycle model

Pricing
Buyer Group
Distribution
Review

product utility
Mergers/AQs/.
RPC

Strategic Positioning
- Timing market entry and
Exit
- Competitive strategy, cycles
of competition

Expansion
Brand creation
1st mover
protection

- Product redesigning

RPP
Distribution
1st mover
protection

Minimize
Spending,
Weed out
Lower inventory
What next?

Strategic groups and market

segmentation

Strategic Groups

Definition
Common Analysis

Strategic Space

Definition

Common Analysis

Customer Analysis (4 Ps of
Marketing)

Extended Marketing Mix

Customers

Basis of Classification

Rationality

Seasonality

Capital Outlay

Regulation

Cons
umer
Marke
t

Reselle
r
Market

Indus
trial
Mark
et

Customers

Exp
ort
Mar
ket

Gover
nment
Market

CSFs and KPIS

Strategic Thinking and Value creation

Porters value chain analysis

Investment
strategy

Financial
Strategy

Corporate
Strategy

Value Networks

SWOT AND TWOS ANALYSIS

SWOT Analysis

Maxi- Strengths
maxi
Opportunities

ii
in i
in
m ax
-m
m
i
ax
M

Weaknesses

Threats

Minimini

Assess different approaches to benchmarking

an organisations performance.[3]
Types

Internal

Industry Best Practice

Customer Benchmarking

Competitor Benchmarking