Stenden University of Applied Sciences, study IHM, module Strategic (3rd year)
This summary is derived from several books recommended for this module; Exploring Strategy, Finance book and another Strategic book. This summary will help you with the test at the end of the module as well as with the a...
Module Strategic
End of module test
GENERAL
Strategy: 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.
Strategy should have three main themes: the fundamental goals (mission, vision, objectives) that
statements: the organization seeks; the scope1 or domain of the organization’s activities; the
particular
advantages or capabilities it has to deliver all of these.
Levels of There are three levels of strategy, namely: corporate-level strategy, business-level
strategy : strategy and functional strategies
Corporate-level concerned with the overall scope of an organization and how
value is added to the constituent businesses of the organizational whole.
Business-level how the individual businesses should compete in their market
Functional concerned with how corporate- and business level strategies are
actually delivered.
SWOT analysis:
provides a general summary of the Strengths and Weaknesses explores in an analysis of resources and
capabilities (internal) and the Opportunities and Threats explored in an analysis of the environment. This
analysis can be useful as a basis for generating strategic options and assessing future courses for action.
In relation to the Business Model, SWOT can be used to fine-tune the business model that will best align,
fit, or match a company’s resources and capabilities to the demands of the environment in which it
operates.
Strengths: That the company can rely on in order to compete. Resources that an organization
possesses and capabilities that the organization has developed. Both can be exploited
and developed into a sustainable competitive advantage.
what do you better, what do guests see as strength, advantages, USP
Weaknesses: That need to be corrected or minimized as competitive factors. Resources and capabil-
ities that are lacking or deficient and prevents an organization from developing a
sustainable competitive advantage.
what can be improved/should be avoided, what factors lose you sales
Opportunities: External factors that an organization can use to give it a competitive advantage
changes in technology, government policies, social patterns, lifestyle, events
Threats: External factors that have the potential to harm an organization
obstacles, what are competitors doing, debt
1 An organization’s scope refers to three dimensions: customer/clients, geographical location and the extent of
internal activities.
, TOWS matrix:
If you use the SWOT analysis to discuss future choices, a TOWS matrix can be used. This builds directly on
the information in a SWOT exercise. Each box of the TOWS matrix can be used to identify options that
address a different combination of internal factors (strengths and weaknesses) and the external factors
(opportunities and threats). The following strategies can be derived:
SO strategic option: options that use strengths to take advantage of opportunities
ST strategic option: options that use strengths to avoid threats
WO strategic option: options that take advantage of opportunities by overcoming weaknesses
WT strategic option: options that minimize weaknesses and also avoid threats
INTERNAL (S and W)
Mission : Aims to provide employees and stakeholders with clarity about what the organization
is fundamentally there to do.
Vision: Concerned with the future the organization seeks to create
Objectives: Exact steps your company must take to reach its goal. They are measurable and
quantifiable. They are realistic and attainable and have an associated timeline.
Objectives are used to measure success and progress towards goals set.
Goal: Statement about the future of your business. Does not specifically say how you can meet
your goal. Setting goals helps to define the direction that a business will take. They
should align with the business mission and vision statements, which are even more
abstract.
Policies: A policy is a deliberate system of principles to guide decisions and achieve rational
outcomes
Procedures: Procedures describe how each policy will be put into action in your organization.
Canvas Business Model (Osterwalder, Pigneur).
A strategic management tool which shows the structure of a company, divided in nine building blocks.
Building a Business Model Canvas should be done in a certain way Customers, Value propositions,
Channels, Customer relationship, Revenue, Key activities, Key resources, Key partners, Cost. So first start
with the right side of the canvas, followed by the left side
Customers: Who are our most important customers? For whom are we creating value?
Value propositions: What value do we deliver? Which customer needs do we satisfy?
Channels: How do we communicate and deliver value?
Customer relationship: How do we maintain different kinds of relationships with customers?
Revenue: Money comes in when Customers pay for Value provided
Key activities: Actual tasks and actions required to create and deliver value, customers etc.
Key resources: Assets needed to create and/or deliver value, customers and revenue
Key partners: Outsourced activities and recourses acquired outside the organization
Costs: Expenses for acquiring resources, performing activities and working with partner
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