Businesss strategy journal report
Unit 1: The Strategic Management Process
An introduction to the strategic management process.
This unit addresses particularly the meaning of strategy and strategic management. It considers why they are so important and what distinguishes them from other organisational challenges, tasks and decisions.
In this unit we shall:
• Consider the meaning of strategy
• Investigate the components of strategic management
• Consider the content of strategy as a field of study
• Consider the nature of strategy as a job
• Explore the concept of strategy lenses
On completion of this unit you will be able to:
• Understand the characteristics of strategic decisions and what is meant by strategy and strategic management, distinguishing them from operational management
• Understand how strategic priorities vary by level: corporate, business and operational
• Understand the basic vocabulary of strategy
• Understand the kinds of people involved in strategy – managers, in-house specialists and strategy consultants – and the work they do
• Unit 1 introduces the concept of strategy, why it is important, and the different ways in which it can be defined and perceived, depending on which school of thought one follows.
• To help with this, the core text introduces the idea of lenses. Students should consider these lenses and also how previous modules (such as Marketing, HRM, and Leadership) apply to the Business Strategy module. Key terms in this unit are: strategy, core competences, strategy lenses.
Unit 2: The Environment
The overall theme of this unit is how managers analyse the uncertain and increasingly complex world around them.
This is addressed by considering various layers of influence of the business environment from macro environment issues to specific forces affecting the competitive position of the firm.
In this unit we shall:
• Introduce the concept of the macro environment and consider its role in strategy formulation
• Consider the influence of industries and sectors, competitive forces, competitors and markets in strategy development and formulation
• Analyse the roles of opportunities and threats in strategy formulation
On completion of this unit you will be able to:
• Analyse the broad macro-environment of organisations in terms of political, economic, social, technological, environmental and legal factors
• Identify key drivers in this macro-environment and use these key drivers to construct alternative scenarios with regard to environmental change
• Use five forces analysis in order to define the attractiveness of industries and sectors for investment and to identify their potential for change
• Identify strategic groups, market segments, and critical success factors, and use them in order to recognise strategic gaps and opportunities in the market
• Units 2 to 5 look at the current strategic position – i.e. “Where we are now?” In Unit 2, the external environment is broken down into macro and micro levels. PESTEL analysis applies to the macro-environment, and Porter’s Five Forces applies to the markets in which a business competes.
• Students shall need to understand the difference between these and how to use them both meaningfully to establish where opportunities and threats may exist. Key terms in this unit: micro and macro environments