Strategy and Entrepreneurship Complete Summary (MBA BP - 2021)
33 views 1 purchase
Course
Strategy & Entrepreneurship
Institution
Katholieke Universiteit Leuven (KU Leuven)
A complete summary of all the course content for the Strategy and Entrepreneurship class for KUL's Bridging Programme in 2021. Including all graphs/ images from the slides and additional comments made by the lecturer.
,Strategy & Entrepreneurship
Table of contents
Part one: introduction to strategy
Chapter one : definition and importance of strategy ............................................................................................... 7
1.1 What do we mean by strategy? .................................................................................................................... 7
1.2 What is strategy about? ............................................................................................................................... 7
1.3 Strategy and competitors ............................................................................................................................. 8
1.4 Identifying a firm’s strategy – pattern ........................................................................................................... 8
1.5 The quest for competitive advantage ............................................................................................................ 9
1.5.1 Efficiency versus effectiveness ............................................................................................................... 9
1.5.2 Why an organisation’s strategy evolves over time ................................................................................... 9
1.5.3 Strategic management principle ............................................................................................................ 9
1.5.4 Is competitive advantage sustainable in the 21st century? ....................................................................... 9
1.6 The evolving nature of an organisation’s strategy ........................................................................................ 10
1.7 A company’s business model ...................................................................................................................... 10
1.7.1 Business model elements .................................................................................................................... 10
1.7.2 The business model and the value-price-cost framework....................................................................... 11
1.8 A winning strategy ..................................................................................................................................... 11
1.8.1 Crafting and executing strategy are important ...................................................................................... 11
1.8.2 Why organisations need a strategy ...................................................................................................... 12
Chapter two : strategy, vision & mission .............................................................................................................. 13
The strategy-making, strategy-executing process .............................................................................................. 13
2.1 Stage one : purpose and mission ................................................................................................................ 13
2.1.1 Purpose .............................................................................................................................................. 13
2.1.2 Mission .............................................................................................................................................. 14
2.1.3 Vision ................................................................................................................................................. 14
2.1.4 Values ................................................................................................................................................ 16
2.2 Stage two : setting objectives ..................................................................................................................... 16
2.2.1 The need for short-term and long-term objectives ................................................................................ 16
2.2.2 Setting financial objectives .................................................................................................................. 17
2.2.3 Setting strategic objectives .................................................................................................................. 17
2.2.4 The balanced approach to objective setting .......................................................................................... 17
2.2.5 Good strategic performance = key to a better financial performance ..................................................... 18
2.3 Stage three : crafting a strategy .................................................................................................................. 18
2.3.1 Strategy making .................................................................................................................................. 18
2.3.2 Who is involved?................................................................................................................................. 18
, 2.3.3 Strategic management principle .......................................................................................................... 18
2.3.4 Achieving effective corporate governance ............................................................................................ 19
2.3.5 Strategy-making hierarchy ................................................................................................................... 19
2.4 The strategy execution process .................................................................................................................. 20
2.5 Evaluating performance and initiating corrective adjustments ..................................................................... 20
2.6 CSR as strategy .......................................................................................................................................... 20
2.6.1 Narrow view ....................................................................................................................................... 21
2.6.2 Broad view ......................................................................................................................................... 21
2.6.3 Stakeholder approach ......................................................................................................................... 21
2.6.4 Corporate social responsibility ............................................................................................................. 22
Part two: internal and external analysis
Chapter three : external analysis ......................................................................................................................... 23
3.1 The external environment .......................................................................................................................... 23
3.2 Thinking strategically about the industry and environment .......................................................................... 23
Q 1 : does the industry offer attractive opportunities for growth? .................................................................. 23
Q 2 : What kinds of competitive forces are industry members facing, and how strong are they? ...................... 24
Q 3 : what factors are driving industry change, and what impacts will they have? ........................................... 27
Q 4 : how industry rivals are positioned = who is strongly positioned and who is not ....................................... 28
Q 5 : what specific moves are rivals likely to make next? ............................................................................... 29
Q 6 : what are the key factors for future competitive success? ....................................................................... 30
Q 7 : does the industry offer good prospects for attractive profits? ................................................................ 30
Chapter four : internal analysis ............................................................................................................................ 30
4.1 Evaluating a form’s internal situation .......................................................................................................... 30
Q 1 : How well is the organisation’s present strategy working? ..................................................................... 30
Q 2 : what are the organisation’s competitively important resources and capabilities ..................................... 32
Q 3 : is the organisation able to capture market opportunities and guard against external threats? ................. 34
Q 4 : are prices and costs competitive? ......................................................................................................... 36
Q 5 : is the organisation competitively stronger or weaker than key rivals?..................................................... 39
Part three: strategy development
Chapter five : generic strategies .......................................................................................................................... 40
5.1 Low-cost provider strategies ...................................................................................................................... 40
5.1.1 Major avenues for achieving cost advantage ........................................................................................ 41
5.1.2 Cost-efficient management of value chain activities .............................................................................. 41
5.1.3 Revamping the value chain system to lower costs ................................................................................. 41
5.1.4 When a low-cost provider strategy works best...................................................................................... 41
5.1.5 Pitfalls of a low-cost provider strategy.................................................................................................. 42
5.1.6 Key debate ......................................................................................................................................... 42
5.2 Differentiation........................................................................................................................................... 42
5.2.1 Broad differentiation strategies ........................................................................................................... 43
, 5.2.2 Uniqueness drivers.............................................................................................................................. 43
5.2.3 Revamping the value chain system to increase differentiation ............................................................... 43
5.2.4 Delivering superior value via a broad differentiation strategy ................................................................ 43
5.2.5 Differentiation: signalling value............................................................................................................ 44
5.2.6 Strategic management principle .......................................................................................................... 44
5.2.7 When a differentiation strategy works best .......................................................................................... 44
5.2.8 Pitfalls of a differentiation strategy ...................................................................................................... 44
5.3 Focused (or market niche) strategies .......................................................................................................... 44
5.3.1 When a focused low-cost or focused differentiation strategy is attractive .............................................. 45
5.3.2 The risks of a focused LW or D strategy ................................................................................................ 45
5.4 Best-cost provider strategies ...................................................................................................................... 45
5.4.1 When a best-cost provider strategy works best..................................................................................... 46
5.4.2 The big risk of a best-cost provider strategy : getting squeezed on both sides ......................................... 46
5.5 The contrasting features of the competitive strategies ................................................................................ 46
5.5.1 Successful competitive strategies are resource-based ........................................................................... 47
Chapter six : measures to support strategy........................................................................................................... 47
6.1 Maximising the power of a strategy ............................................................................................................ 47
6.1.1 Going on the offensive ........................................................................................................................ 47
6.1.2 Defensive strategies : protecting market position and competitive advantage ........................................ 48
6.1.3 Timing a firm’s strategic moves ............................................................................................................ 49
6.1.3 Strengthening a firm’s market position via its scope of operations ......................................................... 49
6.2 Outsourcing strategies ............................................................................................................................... 52
6.2.1 The risks of outsourcing value chain activities ....................................................................................... 52
6.2.2 Key debate: innovation: inside or out ................................................................................................... 52
6.3 Strategic alliances & partnerships ......................................................................................................... 52
6.3.1 Factors that make an alliance “strategic” .............................................................................................. 52
6.3.2 Why and how strategic alliances are advantageous ............................................................................... 53
6.3.3 Reasons for entering into strategic alliances ......................................................................................... 53
6.3.4 Principal advantages of strategic alliances ............................................................................................ 53
6.3.5 Strategic alliances vs outsourcing ......................................................................................................... 53
6.3.6 Capturing the benefits of strategic alliances.......................................................................................... 53
6.3.7 Achieving long-lasting strategic alliance relationships............................................................................ 54
6.3.8 The drawbacks of strategic alliances and partnerships........................................................................... 54
6.4 Mergers and acquisitions ........................................................................................................................... 54
6.4.1 Organic growth vs growing through M&A ............................................................................................. 54
6.4.2 SMEs and M&A ................................................................................................................................... 54
Extra chapter : corporate – start-up collaboration ................................................................................................ 55
Corporate venturing ........................................................................................................................................ 55
Why? Corporate perspective........................................................................................................................ 56
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MBASurvivor. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.61. You're not tied to anything after your purchase.
