Course Content
Strategic Management: Introduction
Strategic Management: Concept, Process, Decision and Types
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Strategies :Introduction
Basic Terminology
Terminology
Schools of thought on Strategy formulation
Modes of Strategic Decision Making: Mintzberg
Strategic Planning
Sgtrategic Decision Making : Introduction
External Strategic Analysis
External Analysis, PEST, Porter’s Approach to Industry Analysis
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What is Strategic Analysis
PEST Analysis: Multiple : Johnson and Scholes
Porter’s Approach to Industry Analysis
General Competitive Strategies: Michael Porter
Internal Strategy Analysis
Internal Strategy Analysis – Resource-Based Approach, Value Chain Analysis
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Resource Based Approach
VRIO Framework : J.B. Barney
GAP Analysis
Value Chain Analysis: Michael Porter
Strategy Formulation
Strategy Formulation: SWOT Analysis, Corporate Strategy – Growth, Stability, Retrenchment, Integration, and Diversification
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SWOT Analysis: Albert Humphrey
TOWS Matrix: Heinz Weirich
Corporate-Level Strategies :Introduction
Classification of Corporate-Level Strategies
Directional Corporate Strategies
Turnaround Strategy & Business Process Reengineering
Classification of Integration and Diversification Strategy
Business Portfolio Analysis
Business Portfolio Analysis - BCG, GE Business Model, Ansoff’s Product Market Growth Matrix
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What is a Portfolio Matrix?
BCG Matrix
Ansoff’s Product Market Growth Matrix : Igor Ansoff : 1957
Market Evolution Matrix: C.W. Hoffer and R. Schendel
Strategy Implementation
Strategy Implementation: Challenges of Change, Developing Programs, McKinsey 7s Framework
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Strategic Drift
Mintzberg’s View on Realized Strategy
Parenting Fit Matrix
🔴 Red Ocean Strategy vs 🔵 Blue Ocean Strategy
4-Box Business Model: Mark W. Johnson: 2010
Strategy Diamond: Hambrick and Fredrickson
7-S Approach : 1980 : McKinsey
Unit VI: Strategic Management

🎯 Directional Corporate-Level Strategy:

 

1. Concentration Strategies

  • Definition: Focus on a single business or industry to strengthen the company’s position in that particular market.

  • Goal: Grow by increasing market share, improving products, or expanding the customer base within the current industry.

  • How:

    • Market penetration (selling more to existing customers).

    • Market development (entering new geographic areas).

    • Product development (introducing new or improved products).

  • Example: A smartphone company focusing only on enhancing its smartphone models instead of diversifying.

2. Retrenchment Strategies

  • Definition: Reduce the company’s scope or size to improve financial stability or focus on core areas.

  • Goal: Cut costs, improve efficiency, and stabilize the company during tough times.

  • Example: Nokia selling its mobile phone division to focus on network infrastructure.

  • The reasons for pursuing a retrenchment strategy typically include:
    • Better opportunities in the environment are perceived elsewhere – Companies may focus on core competencies and exit underperforming areas.
    • The environment is seen so threatening that internal strengths are insufficient to meet the challenge – When external threats are significant, retrenchment allows firms to protect resources and avoid further losses.
    • The firm is not doing well or perceives itself as doing poorly – Retrenchment helps to address weaknesses and stabilize the company.

  • Types:

    1. Turnaround (revive a struggling business)

    2. Divestiture (sell off parts of the business).

    3. Liquidation (close and sell assets of the business).

    4. Downsizing (reduce workforce or operations).

3. Simultaneous and Sequential Strategies

  • Simultaneous Strategies:

    • The company pursues multiple strategies at the same time across different business units or markets.

    • Example: A conglomerate growing some businesses (growth strategy) while downsizing others (retrenchment strategy) simultaneously.

  • Sequential Strategies:

    • The company pursues strategies one after another in a planned sequence.

    • Example: A company might first stabilize its current operations (stability strategy), then invest in growth afterward.

4. Stability Strategies

  • Definition: Maintain the current business operations without significant change.

  • Goal: Consolidate and strengthen existing operations, avoid risk, and preserve current market position.

  • When used:

    • In mature industries with little growth.

    • When external conditions are uncertain or unfavorable.

    • When the company is performing well and wants to avoid unnecessary risks.

  • Example: A utility company continuing to operate its existing services without expanding or contracting.

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