Business Strategy: SWOT - Mission

MGMT510 Business Environment

Questions:

A Framework for Examining Business Strategy (2 of 2)

SWOT
acronym used to describe the particular strengths, weaknesses, opportunities, and threats that are potential strategic factors for a specific company
Strategy = opportunity/capacity
Opportunity has no real value unless a company has the capacity to take advantage of that opportunity.

Criticisms of SWOT Analysis (2 of 2)
It uses a single point in time approach.
There is no tie to the view from the customer.
There is no validated evaluation approach.

Mission and Objectives (1 of 2)
The mission statement must enable a common thread to highlight and focus the energy of everyone in the organization in the direction that the top management team believes is best for the business

Porter’s Competitive Strategies (2 of 8)
Should we compete head-to-head with our major competitors for the biggest but most sought-after share of the market, or should we focus on a niche in which we can satisfy a less sought-after but also the profitable segment of the market?

Porter’s Competitive Strategies (7 of 8)
Differentiation
involves the creation of a product or service that is perceived throughout its industry as having passed through the elements of VRIO.
Lowers customers sensitivity to price
Increases buyer loyalty
Can generate higher profits

Issues in Competitive Strategies (1 of 2)
Stuck in the middle
when a company has no competitive advantage and is doomed to below-average performance

Industry Structure and Competitive Strategy (1 of 3)
Fragmented industry
many small and medium-sized companies compete for relatively small shares of the total market
Products are typically in early stages of product life cycle.
Focus strategies are used.

Cooperative Strategies
used to gain a competitive advantage within an industry by working with other firms
collusion, strategic alliances

Marketing strategy
deals with pricing, selling, and distributing a product

Marketing Strategy (4 of 6)

Brand extension
using a successful brand name to market other products
Push strategy
spending a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets
Pull strategy
advertising to “pull” products through the distribution channels

Financial Strategy (1 of 2)
Financial strategy
examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action
The management of dividends and stock price is an important part of a corporation’s financial strategy.

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