This upload contains a complete summary of the ICB Corporate Strategy subject and includes many pages of short theory and long questions and answers from previous year's exam papers to assist with preparation for exam.
8 Challenges that SA businesses face according to Anthony Manning
Rapidly increasing competition from new and unexpected sources
Changing demographics and psychographics
New technology
The new global economy
The shift from manufacturing to services
The proliferation or corporate stakeholders
Managing the new workforce
The rapid rise of the green movement
Strategic management = a theory and is also a dynamic process and a way of life for successful firms
Strategic management was also described by former CEO of General Electric Company (GEC) as:
Understanding where the business is at the moment
Having a clear view about where the business wants to be in future
Conducting a wide-scale debate about how it will reach it future destination
10 Major perspectives on management (7 examples) as per Mintzberg
Strategy formation is a formal process - follows a structured plan
Strategy formation is a process of conception – it’s about designing a future
Strategy formation is a visionary process – clarifies what the ideal future should be
Strategy formation is an analytical process – considers the current realities and makes
projections about the future
Strategy formation is a collective endeavour – involves various stakeholders
Strategy formation is a reactive process – responds to internal and external environments
Strategy formation is a process of transformation – requires change
Definitions:
Strategy (refers to a way a business gets from where it is to where it wants to be; A specific
“warfare” between set of actions used by a business against one or more rivals to attain
a company and its specific goals
rivals) “a plan of action designed to achieve a long-term or overall gain” –
(Soanes and Stevenson)
Strategem a plan or scheme, especially one used to outwit an opponent or achieve
an end
Strategic relating to the identification of long-term or overall aims and interests and
the means of achieving them
relating to the gaining of overall, long-term military advantage
Prepared by: Adèle Hassall
, Strategise an action or actions to devise a strategy or strategies
Strategist a person skilled in planning action or policy, especially in war and politics
A company’s strategy is made up of a series of competitive actions which are designed to:
Attract and satisfy customers
Compete to succeed
Grow the business
Conduct long-term and sustainable business operations
Achieve targets and goals
Management =
Leading, overseeing and mentoring
Assuming responsibility for and the control of an organisation
Ensuring that resources are allocated correctly to create products or deliver services
Ensuring that the business runs profitably and sustainably
Devise actions that will achieve the maximum results, with the least possible waste
Strategic management
= the identification of the purpose of the organisation and the plans of action to achieve that
purpose; game plan indicating the choices a manager needs to make (Lynch)
= the game plan indicating the choices a manager needs to make, for example how to attract and
meet customer needs, how to compete successfully, how to grow the organisation, how to manage
the organisational architecture and develop dynamic capabilities, how to achieve performance
targets by implementing strategies successfully (Thompson)
Important terminology relevant to strategic management process
Strategic management
Art and science of formulating, implementing and evaluating cross-functional actions that will enable
and organisation to achieve its objectives
Vision or strategic intent
Desired future state; aspirations of the organisation
Mission
Overriding purpose of the organisation
Goal
Specific aim that the organisation wants to achieve
Objective
Quantifiable goal which is to be achieved by a certain time
Prepared by: Adèle Hassall
, Unique resources or core competencies
Unique resources, processes or skills that provide the organisation with a “competitive advantage”
Competitive advantage
Edge that an organisation has over others
Strategies
Planned actions that an organisation implements in order to outperform its rivals and achieve long-
term objectives
Strategic control
Monitoring of strategies as they are implemented, in order to ensure that they are effective and
achieve the objectives; also involves the process of modifying and reviewing strategies if they are
not achieving the intended results
5 P’s of strategy (Mintzberg)
PLAN = management plans how to attain outcomes that will realise the organisations goals
And objectives
PATTERN = strategy develops a consistent pattern of consistent behaviour over time
POSITION = seeks to position the business within the marketplace
PERSPECTIVE = company’s unique way of doing things in order to remain competitive
PLOY = action or manoeuvre which is intended to outwit the competition
Competitive advantage = lies in the ability of an organisation to differentiate itself from all others
(Michael Porter)
8 Factors that a company must attend to in order to establish and maintain differentiation in the
market place (Porter)
TIME
Need for organisations to balance swift action with cautious action. Take time to evaluate
the opportunity and consider if from all possible angles. Evaluate costs and benefits
EXECUTION
How and how well a company does things.
4 Options when executing a task =
Company can do the wrong things wrong
Company can do the wrong things right
Company can do the right things wrong
Company can do the right things right
MANOEUVRABILITY
How quickly and effectively a company reacts to changing circumstances (internal or
external)
KNOWLEDGE
Refers to =
Knowledge that everyone in the company has regarding the products and services
Ability to find the right answers at the right time
Knowing where to find the best possible solution or resources at any given time
Prepared by: Adèle Hassall
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