This summary of the course "Strategic Management" given by Prof. dr. Elvira Haezendonck is based on the slides, book and class notes. Written in English. The class is given in English at the VUB.
Content
1. Part 1: Concepts & Evolution of Strategic « Schools of Thought” ................................................... 3
1.1. CH1 What is Strategy? ............................................................................................................. 3
2. Part 2: Boundaries of the Firm ...................................................................................................... 10
2.1. CH2 Horizontal Boundaries of the Firm................................................................................. 10
2.2. CH3 Vertical Boundaries of the Firm & CH4 Integration & its Alternatives (WHERE) ........... 21
3. Part 3 : Competition ...................................................................................................................... 25
3.1. CH6 Entry & Exit (WHO) ........................................................................................................ 25
3.2. CH7 Dynamics: Competing Across Time (HOW) .................................................................... 33
3.3. CH8 Industry Analysis ............................................................................................................ 42
4. Part 4 : Positioning & Dynamics .................................................................................................... 50
4.1. CH9 Strategic Positioning for Competitive Advantage .......................................................... 50
4.2. CH11 Sustaining Competitive Advantage .............................................................................. 60
4.3. CH13 Strategy & Structure .................................................................................................... 72
4.4. CH14 Environment, Power & Culture .................................................................................... 81
,Introduction
Evaluatie
- 15/20 : open book exam
- 5/20: group assignments → case studies in groups of 4/5
Calender
Deadlines !!!
- DL1 : Wed. 19/10/2022; upload on canvas before 15u
- DL2 : Mon. 21/11/2022; upload on canvas before 15u
- DL3 : Mon. 05/12/2022; upload on canvas before 15u
- Every member should know each part/question & answer
- Not just your own part
- Important for presentation & discussions in class
Aim
- Concepts, schools of thought, current trends
- Strategy instruments, analyses, frameworks
- Principles, limitations, practice/reality, links & assumptions
,4 Parts of this course
- P1 : Concepts & Evolution of Strategic “Schools of Thought” (WHAT)
- P2: Boundaries of the Firm (WHERE)
o Horizontal: company size, production
o Vertical: make-or-buy
o Corporate: on which markets are we active, where do we operate
- P3 : Competition (WHO & HOW)
o Type of market
o Interactions with rivals (how)
- P4 : Positioning & Dynamics (WHY)
o Where do we want to be, focus on low cost or differentiation?
o Competitive advantages + resources & capabilities for it
These are the 4 Big Issues of strategy
1. Part 1: Concepts & Evolution of Strategic « Schools of
Thought”
1.1. CH1 What is Strategy?
OVERVIEW
- General
o Strategy VS Tactics
o Characteristics of Strategic Decisions
o Role of Analysis
- Process/Plan/Framework
o Process
o Plan
o Framework
- Succes
o Sources
o Components
- Evolution SM
o Timeline
- Design VS Process
o Schedule
o Mintzberg’s Critique of Formal Strategic Planning
- Strategy Safari (Mintzberg)
o Overview
o Ten schools & their characteristics
, A. GENERAL
Allocation of the Issues
- Top of Hierarchy: top layer management decides the where-aspect
- Middle-layer management decides Who & How
- Lower-level management decides the Why & goes over value adding
Strategy VS Tactics
- Strategy = Overall design & philosophy to plan for using/deploying resources to establish a
favorable position or reach succès
o Rather a long term investment
o Irreversible
o Strong commitments from all layers of the Firm
- Tactics = scheme for a specific maneuver1
o Rather short term results
o Reversible
o Often impulsive, doesn’t require strong commitments
Characteristics of Strategic Decisions
- Any strat. Decision is important
- It involves a strong commitment of resources AND people → so the entire org.
- Not easily reversible ; defies your path for quite a while
Role of Analysis
- Improves & supports your decision processes
o Shows the reasons behind your decisions
- Supports your visions
- Doens’t give answers
- Identify & understand main challenges of the org.
- Helps to manage complexity
o Humans can only physically choose between 9 alternatives
o Simplicity helps
- Enhance flexibility & innovation by supporting learning
o Should be open to learn & improve your strategy
o Not a linear process, but a loop
B. PROCESS/PLAN/FRAMEWORK
Processes
- Different roles of strategy making in the company
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