Marketing manager course chapter 07

Chapter Strategic Management... Learning ObjectivesAfter reading this chapter, you should be able to: z Implement the steps in the strategic management process.. z Conduct an analysis o

Chapter

Strategic Management

Learning Objectives

After reading this chapter, you should be able to:

z Implement the steps in the strategic management

process.

z Conduct an analysis of the firm’s strengths,

weaknesses, opportunities, and threats.

z Identify the factors that create a sustained competitive

advantage.

z Link external and internal environment data to

determine a firm’s strategic intent and mission.

The Strategic Management Process

z It is the job of top level management to

chart the course of the entire enterprise.

z It consists of:

¾ Analysis of the internal and external environment of the firm.

¾ Definition of the firm’s mission.

¾ Formulation and implementation of strategies to create or

continue a competitive advantage

The Strategic Management Process

(continued)

z Strategic management involves both long-range

thinking and adaptation to changing conditions.

z Strategies should be designed to generate a

sustainable competitive advantage.

z Competitors should be unable to duplicate what

the firm has done or should find it too difficult or

expensive.

Analyze the external and internal environments

Define strategic intent

and mission Formulate strategies

Implement strategies

Assess strategic outcomes

Components of the Strategic Management Process:

SWOT Analysis

z Step 1: Analyze the organization’s internal environment,

identifying its strengths and weaknesses

z Step 2: Analyze the organization’s external environment,

identifying its opportunities and threats

z Step 3: Cross-match

¾ Strengths with opportunities

¾ Weaknesses with threats

¾ Strengths with threats

The External Environment

z Company leaders must study the external

environment in order to:

¾ Identify opportunities and threats in the marketplace.

¾ Avoid surprises.

¾ Respond appropriately to competitors’ moves.

z A major challenge is to gather accurate market

intelligence in a timely fashion, and transform it

into usable knowledge to gain a competitive

advantage.

Components of External Analysis

Forecasting

A ssessing

Scope of the External Analysis

G eneral Environm ent

The Industry

Strategic

G roups

C om petitor

A nalysis