Strategic Management

Q1:How Well Is the Company’sPresent Strategy Working?Must begin by understanding what the strategy is#Identify competitive approacH#Low-cost leadership#Differentiation#Focus on a particular market niche#Determine competitive scope#Broad or narrow geographic market coverage?#In how many stages of industry’s production/distribution chain does the company operate?#Examine recent strategic moves#Identify functional strategies.Approaches to Assess How Wellthe Present Strategy Is WorkingQualitative assessment –Is the strategy well-conceived?Covers all the bases?Internally consistent?Makes sense?Timely and in step with marketplace?Key Indicators of How Wellthe Strategy Is Working#Trend in sales and market share#Acquiring and/or retaining customers#Trend in profit margins#Trend in net profits, ROI, and EVA#Overall financial strength and credit ranking#Efforts at continuous improvement activities#Trend in stock price and stockholder value#Image and reputation with customers#Leadership role(s)Technology,qualitY,innovation,e-commerce,etc. Q2:What Are the Company’s Strengths, Weaknesses, Opportunities and Threats ?SWOTrepresents the first letter inStrengthsW eaknessesOpportunitiesThreats For a company’s strategy to be well-conceived, it must beMatched to its resource strengths and weaknessesAimed at capturing its best market opportunities and erecting defenses against external threats to its well- beingIdentifying Resource Strengthsand Competitive CapabilitiesA strength is something a firm does well or an attribute that enhances its competitiveness#Valuable skills, competencies, or capabilities#Valuable physical assets#Valuable human assets#Valuable organizational assets#Valuable intangible assets#Important competitive capabilities#An attribute placing a company in a position of market advantage#Alliances or cooperative ventures with partnersExamples: Distinctive CompetencieSToyotaLow-cost, high-quality manufacturing of motor...