MNG3701 STUDY SUMMARY NOTES And EXAM PREPARATION.
This document is a complete and an all-inclusive guide to MNG3701 - Strategic Management
SSTRATEGY
Strategy can be defined as the direction provided by the actions and decisions of strategists in
pursuit of organisational goals .
It encompasses...
9.3 Sociocultural factors ............................................................................................................. 10
9.4 Technological factors ............................................................................................................ 11
9.5 Factors relating to the natural environment ........................................................................ 11
10 Analysing the market/industry environment – Porters 5 forces model + 2 ............................. 11
10.1 Customers ............................................................................................................................. 11
10.2 Power of suppliers ................................................................................................................ 11
10.3 Existing competitors.............................................................................................................. 12
10.4 Potential competitors ........................................................................................................... 12
10.5 Substitute providers .............................................................................................................. 12
10.6 Government intervention ..................................................................................................... 12
10.7 Complementors .................................................................................................................... 12
11 Analysing the Internal (micro-) environment ........................................................................... 13
11.1 Resources, capabilities & core competencies ....................................................................... 13
11.1.1 Resources ...................................................................................................................... 13
11.1.2 Capabilities .................................................................................................................... 13
11.1.3 Core Competencies ....................................................................................................... 13
11.2 Resource-based view ............................................................................................................ 14
11.3 Value-chain analysis .............................................................................................................. 14
11.4 Functional approach ............................................................................................................. 14
12 Challenges of doing business in Africa ...................................................................................... 15
12.1 Lack of infrastructure ............................................................................................................ 15
12.2 Lack of industrial development ............................................................................................. 15
12.3 Political instability ................................................................................................................. 15
12.4 High levels of poverty ........................................................................................................... 15
12.5 Corruption ............................................................................................................................. 15
12.6 An inefficient public sector ................................................................................................... 15
12.7 Lack of key skills .................................................................................................................... 15
13 Investing in Africa ...................................................................................................................... 16
13.1 Local customs and customer preferences ............................................................................ 16
13.2 Legislation ............................................................................................................................. 16
13.3 Political considerations ......................................................................................................... 16
13.4 Creative supply chain management ...................................................................................... 16
13.5 Invest heavily in talent .......................................................................................................... 17
14 Role of government in enhancing business conditions in Africa .............................................. 17
Downloaded by JAMIE MEYER (jmeyleigh@gmail.com)
, lOMoARcPSD|8575266
11 STRATEGY
S ,,STRATEGIC PLANNING &&
STRATEGIC MANAGEMENT
T
MANAGEMENTT
Past Exams: 2015-10 Q2, 2015-06 Q2
1.1 STRATEGY
S
Strategy can be defined as the direction provided by the actions and decisions of strategists in
pursuit of organisational goals .
It encompasses a set of actions an organisation takes to create competitive advantage. It is the long-
term direction of the organisation – the things the business does, the paths it follows and the
decisions it takes in order to reach certain goals. It provides members of the organisation with a
framework to guide their decision making.
Strategy is what people do, not what organisations have, and is not solely the domain of top
management, but includes any individual or group in the organisation that controls key or
precedent-setting actions.
1.2 STRATEGIC
S PLANNING
P
The process of setting the strategic direction of the organisation, analysing the internal and external
environment, setting strategic goals, and developing and choosing the strategies that will help them
attain strategic goals.
This is the “thinking” part of the strategic management process and is mostly done by top
management. It involves the following decision stages:
• Deciding on the future of the organisation
o Formulate a vision & mission statement
• Analysing the organisation’s internal & external environments
o Strengths & Weaknesses, Opportunities & Threats
• Formulating the long-term goals, then selecting the appropriate competitive strategies to
achieve these goals
1.3 STRATEGIC
S MANAGEMENT
M
Strategic management is the process for planning, implementing and controlling strategy for the
organisation.
Its purpose is to ensure the organisation applies these 4 key elements of a successful strategy:
• Clear and consistent long-term strategic direction
• Profound understanding of the competitive environment
• Objective knowledge of the key resources and capabilities the organisation possesses
• Proper alignment of structure, systems and culture to ensure proper implementation of
strategy
Fundamentally, strategic management is about strategies that will enable organisations to
outperform their rivals in dynamic and increasingly competitive markets. The primary objective of
strategy therefore is to gain a sustainable competitive advantage in satisfying one’s customers’
needs better than one’s rivals, which should result in superior profitability and growth.
Downloaded by JAMIE MEYER (jmeyleigh@gmail.com)
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 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 SOLUTIONS2024. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.68. You're not tied to anything after your purchase.
