Summary
Summary Strategic Management (BM22MIM)
- Course
- Institution
Well-organised summary of the readings, lecture notes, as well as notes for in-class exercises. All information you need in one docs!
[Show more]
Seller
Follow
yumemirutaiyou
Content preview
Strategic Management NotesWeek 1
Are you sure you have a strategy? - Donald C. Hambrick and James W. Fredrickson
1. WHAT IS STRATEGY?
a. a set of coordinated decisions that will allow an organisation to realise its mission
(the objecives that it wants to achieve.)
2. 5 Elements of Strategy
a. Arenas: Who are our customers?
b. Vehicles: How should we reach our customers?
c. Differentiators: How can we be different from our competitors?
d. Staging: What are the steps we should take?
e. Economic logic: How can we win the competitions and make a profit?
i. Why would customers choose us over competitors?
ii. How do we ensure that happens?
iii. Why is it profitable?
3. 5 elements are equally essential
4. 5 elements are important for choices, preparation and investment
5. 5 elements must encourage each other.
6. Strategies should be flexible so that they can be adjusted over time.
7. WHAT IS THE DIFFERENCE BETWEEN DIFFERENTIATORS AND ECONOMIC
LOGIC?
a. Economic logic includes profits but differentiators do not.
8. 2 MAIN STRATEGY
a. Low-cost strategy
i. Risk: Risk of losing customers by not offering the least expected service.
b. Differentiation strategy
i. Risk: Customer preferences changes.
c. Hybrid strategy
i. Difficult to keep the balance between costs and differentiate.
,d. Focus strategy (niche strategy)
i. Risk: Very small scale.
, What is Strategy? - Michael E. Porter
-Operational effectiveness (OE) is not strategy: competition to become more cost-effective is not a
good strategy.
-OE: doing the same activities by doing it better than opponents.
-Managers have been putting so much focus on OE. <= Not good.
-Strategic Positioning: doing different activities or the same activities but in different ways. <=
strategy
-3 elements of strategic positioning
1. Variety-based positioning: make the most of what the company have and what it can do.
2. Needs-based positioning: provide a complete solution for a specific group of consumers.
3. Access-based positioning: categorise consumers into different groups based on how they can
be reached.
-A sustainable strategic position requires a trade-off: 3 characteristics of trade-off.
1. Inconsistencies in image or reputation: if a company wants to create and maintain its
reputation, it cannot do something that goes against its position.
2. Different positions require different implementation: Once a company decided their position,
doing something against it would be ineffective.
3. Fails to manage internal coherent: not sticking to a company’s position would cause
misunderstanding within a company.
-Strategy is in other words, choosing what NOT to do.
-Fit is important when choosing its position
-3 types of fit
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 yumemirutaiyou. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.68. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now