What is strategy?

Strategic Management : Match resources and capabilities to the need of the external environment to gain competitive edge.

• Analyse current situation
• Formulate strategy
• Implement strategy

End result is competitive advantage.

Strategic Analysis :

• Analyse general environment and competitive environment
• Analyse internal and external environment
• Identify gaps and opportunities
• Evaluate organisation's position w.r.t. competitors

Formulation :

• Based on analysis be creative to gain insights
• Formulate more than one competing strategy and evaluate them to get the best one.
• Corporate level, Business level, Functional

Implementation :

• Requires organisation to be flexible in structure and design
• Communicate, coordinate with internal and external stakeholders
• Empower managers to respond to opportunities

Vision, Mission, Values, Purpose and Goals

Changes in approach :

1950s

• Stable market with less competition
• Focus on price not innovation
• Usually five year plans were made

1960s

• Capture market share
• Diversify into new business
• Enter new markets
• Ansoff's growth matrix