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Introducing Strategy and the Importance of Vision and Mission ,three themes that serve as the foundation for developing competency in strategic management. These are:
Firms and industries are dynamic in nature.
To succeed, the formulation of a good strategy and its implementation should be inextricably connected.
Strategic leadership is essential if a firm is to both formulate and implement strategies that create value.
The topic of vision, mission, and values; how they relate to strategy and how they are reflected in the properties of strategy called purpose and coherence.
The role of strategic leadership and stakeholder analysis and the impact of ethical and nonbiased judgments on strategic success.
The Internal and External Environments of Strategy
Introduction of the VRINE (value, rarity, inimitability, non-substitutability, and exploitability) framework as a strategic tool.
Value-chain activities are related to firm performance and competitive advantage.
Managers and strategic leaders have a critical role with respect to resources, capabilities, and value-chain activities.
External analysis is focused on an industry or segment but not on a firm and changes in the industry structure are inevitable.
The application of tools including PESTEL, the five-forces model, and scenario planning as critical to developing an understanding of a firm’s external environment.
Firms formulate business strategies that utilize their resources and capabilities to exploit opportunities in their competitive environment.
Strategies are not sound if they are not feasible; managers must take into account a firm’s
VRINE-based resources and managerial capabilities.
Firms compete in dynamic contexts which challenge them to continuously improve their game and perhaps even strive to rewrite the rules of competition.
Change may be gradual
Change may be rapid
Change is inevitable
Corporate and Global Strategies
Sound corporate strategies provide clear, coherent, and compelling answers to the questions:
Why these businesses?
How does corporate ownership add value to these businesses?
How does ownership of one business contribute to the competitive advantage of other businesses that the corporation owns?
Cultural and geographic differences make strategy formulation and implementation more complex than that experienced by purely domestic firms.
The strategy diamond is an effective tool to evaluate and design international strategies.
Strategic Alliances and Strategy Implementation
Alliances are vehicles for realizing strategy, they are not substitutes for strategy, and a firm needs to possess particular resources and capabilities to execute an alliance-based strategy well.
Strategy formulation and implementation are interdependent.
Implementation is a consequence and reflection of strategic leadership.
As strategies change and external threats and opportunities change, implementation of
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strategies must adapt to and facilitate these changes
MSINM015: Business Strategy
Industry analysis, Coopetition, Cost advantage, Differentiation advantage, Firm resources and capabilities, Sustainability of competitive advantage, Competitive dynamics, Global strategy, Strategy formulation, Strategy implementation.