Exploring Strategy
Chapter 1-4; 7-8
BTA
2022 Block A
,Contents
Chapter 1..............................................................................................................5
Strategy.............................................................................................................5
4 ways defining: Purpose of Strategy.....................................................................5
Scope/ Domain & Competitive Advantage...............................................................6
Strategy statements............................................................................................6
3 Levels Strategy.................................................................................................6
Business-level strategy.........................................................................................6
Corporate-level strategy 12..................................................................................6
Functional strategy 12..........................................................................................6
Exploring Strategy Framework..............................................................................6
Strategic position.................................................................................................7
Strategic choices.................................................................................................7
Strategy in action................................................................................................8
Working with strategy..........................................................................................8
Studying strategy................................................................................................8
Exploring strategy in different contexts..................................................................8
Exploring strategy through different “strategy lenses”..............................................9
Chapter 2 – Macro environment analysis.................................................................10
Layers of business environment...........................................................................10
Macro - environment..........................................................................................10
Macro Analysing Tools........................................................................................10
PESTEL.............................................................................................................11
Market...........................................................................................................11
Politics...........................................................................................................11
Economics......................................................................................................12
Social............................................................................................................12
Technological..................................................................................................13
Ecological.......................................................................................................13
Context and motives for ecological issues...........................................................13
Legal.............................................................................................................14
Key drivers for change (to identify after Pestel)........................................................15
Forecasting.......................................................................................................15
3 Forecast approaches........................................................................................15
Direction of change............................................................................................15
Scenario analysis...............................................................................................16
Chapter 3 – industry & sector analysis....................................................................16
Industry analysis...............................................................................................17
, The Five Competitive Forces Framework...............................................................17
Competitive rivalry..........................................................................................17
The Threat of Entry.........................................................................................18
The threat of substitutes..................................................................................18
The power of buyer.........................................................................................18
The power of suppliers.....................................................................................19
Complementors and network effects (sixth force)..................................................19
Implication of the Competitive Fives Forces...........................................................19
Industry types & dynamics..................................................................................19
Industry types (in reality overlapping)...............................................................19
Industry structure dynamic.................................................................................20
The industry life cycle......................................................................................20
Comparative industry structure analyses............................................................20
Competitors & markets.......................................................................................21
Strategic groups.............................................................................................21
Market segments............................................................................................22
Critical success factors: Strategy Canvas & “Blue Oceans”....................................22
Chapter 4 – Resources & capabilities analysis...........................................................23
Foundation resources & capabilities......................................................................24
RBV – Resources based view............................................................................24
Types Resources and capabilities (intangible assets)............................................24
VRIO................................................................................................................24
Organisational Support....................................................................................25
VALUE CHAIN....................................................................................................25
Organisations value chain...................................................................................25
SWOT...............................................................................................................26
Chapter 7 – Business Strategy & models.................................................................26
Strategies.........................................................................................................27
Generic competitive strategies.............................................................................27
Cost-leadership strategy..................................................................................27
Cost based strategies for generic strategies........................................................28
Differentiation strategy....................................................................................28
Focus strategy................................................................................................28
Hybrid strategy (complex!)...............................................................................29
Strategy Clock................................................................................................29
Interactive - Generic strategies............................................................................30
Interactive price & quality strategies.................................................................30
3 Key decisions of facing a low price competitor..................................................30
Collaboration.....................................................................................................31
, Game theory.....................................................................................................31
Two methods of game theory insights................................................................31
Prisoners Dilemma..........................................................................................31
Principles of Interdependent Competitors...........................................................31
Business model..................................................................................................32
Chapter 8 – Corporate strategy and diversification....................................................35
Diversification...................................................................................................35
Parenting Advantage.......................................................................................35
Ansoff’s product/market growth matrix..............................................................35
4 potentially value-creating drivers for diversification.............................................36
Synergies.......................................................................................................36
Diversification & Performance...........................................................................37
Diversification - Vertical Integration..................................................................37
Outsourcing....................................................................................................37
Divestment.......................................................................................................38
Value Creation & the corporate parent..................................................................38
Value Adding activities from corporate parent to keep shareholders.......................38
Value Destroying activities from corporate parent...............................................39
Positions & Responsibilities...............................................................................39
BCG matrix.......................................................................................................39
The directional policy (GE–McKinsey) matrix.........................................................40
The parenting Matrix..........................................................................................40
Chapter 1-4; 7-8
BTA
2022 Block A
,Contents
Chapter 1..............................................................................................................5
Strategy.............................................................................................................5
4 ways defining: Purpose of Strategy.....................................................................5
Scope/ Domain & Competitive Advantage...............................................................6
Strategy statements............................................................................................6
3 Levels Strategy.................................................................................................6
Business-level strategy.........................................................................................6
Corporate-level strategy 12..................................................................................6
Functional strategy 12..........................................................................................6
Exploring Strategy Framework..............................................................................6
Strategic position.................................................................................................7
Strategic choices.................................................................................................7
Strategy in action................................................................................................8
Working with strategy..........................................................................................8
Studying strategy................................................................................................8
Exploring strategy in different contexts..................................................................8
Exploring strategy through different “strategy lenses”..............................................9
Chapter 2 – Macro environment analysis.................................................................10
Layers of business environment...........................................................................10
Macro - environment..........................................................................................10
Macro Analysing Tools........................................................................................10
PESTEL.............................................................................................................11
Market...........................................................................................................11
Politics...........................................................................................................11
Economics......................................................................................................12
Social............................................................................................................12
Technological..................................................................................................13
Ecological.......................................................................................................13
Context and motives for ecological issues...........................................................13
Legal.............................................................................................................14
Key drivers for change (to identify after Pestel)........................................................15
Forecasting.......................................................................................................15
3 Forecast approaches........................................................................................15
Direction of change............................................................................................15
Scenario analysis...............................................................................................16
Chapter 3 – industry & sector analysis....................................................................16
Industry analysis...............................................................................................17
, The Five Competitive Forces Framework...............................................................17
Competitive rivalry..........................................................................................17
The Threat of Entry.........................................................................................18
The threat of substitutes..................................................................................18
The power of buyer.........................................................................................18
The power of suppliers.....................................................................................19
Complementors and network effects (sixth force)..................................................19
Implication of the Competitive Fives Forces...........................................................19
Industry types & dynamics..................................................................................19
Industry types (in reality overlapping)...............................................................19
Industry structure dynamic.................................................................................20
The industry life cycle......................................................................................20
Comparative industry structure analyses............................................................20
Competitors & markets.......................................................................................21
Strategic groups.............................................................................................21
Market segments............................................................................................22
Critical success factors: Strategy Canvas & “Blue Oceans”....................................22
Chapter 4 – Resources & capabilities analysis...........................................................23
Foundation resources & capabilities......................................................................24
RBV – Resources based view............................................................................24
Types Resources and capabilities (intangible assets)............................................24
VRIO................................................................................................................24
Organisational Support....................................................................................25
VALUE CHAIN....................................................................................................25
Organisations value chain...................................................................................25
SWOT...............................................................................................................26
Chapter 7 – Business Strategy & models.................................................................26
Strategies.........................................................................................................27
Generic competitive strategies.............................................................................27
Cost-leadership strategy..................................................................................27
Cost based strategies for generic strategies........................................................28
Differentiation strategy....................................................................................28
Focus strategy................................................................................................28
Hybrid strategy (complex!)...............................................................................29
Strategy Clock................................................................................................29
Interactive - Generic strategies............................................................................30
Interactive price & quality strategies.................................................................30
3 Key decisions of facing a low price competitor..................................................30
Collaboration.....................................................................................................31
, Game theory.....................................................................................................31
Two methods of game theory insights................................................................31
Prisoners Dilemma..........................................................................................31
Principles of Interdependent Competitors...........................................................31
Business model..................................................................................................32
Chapter 8 – Corporate strategy and diversification....................................................35
Diversification...................................................................................................35
Parenting Advantage.......................................................................................35
Ansoff’s product/market growth matrix..............................................................35
4 potentially value-creating drivers for diversification.............................................36
Synergies.......................................................................................................36
Diversification & Performance...........................................................................37
Diversification - Vertical Integration..................................................................37
Outsourcing....................................................................................................37
Divestment.......................................................................................................38
Value Creation & the corporate parent..................................................................38
Value Adding activities from corporate parent to keep shareholders.......................38
Value Destroying activities from corporate parent...............................................39
Positions & Responsibilities...............................................................................39
BCG matrix.......................................................................................................39
The directional policy (GE–McKinsey) matrix.........................................................40
The parenting Matrix..........................................................................................40
