BUSINESS STRATEGY PORTER FIVE FORCES
AND MARKET STRUCTURE ASSESSMENT
SCRIPT 2026
◉ External Context for Planning
Answer: regulators | partners & shareholders | competitors |
suppliers | tech, econ, labor, society | communities | customers
◉ Internal Context for Planning
Answer: mgt's vision | mission/values | culture | people & workforce
diversity | technology | physical assets | intellectual property
◉ Planning is important because it...
Answer: 1. provides direction & basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
◉ Residual Uncertainty
,Answer: the unknowable; uncertainty that remains...important in
assessing risk
◉ Hierarchical (Tall) Organizational Structure
Answer: many layers of middle mgt | senior mgrs make most
operational decisions | information flows from top-down | stable
environment
◉ Flat (Networked) Organizational Structure
Answer: front-line employees empowered to make decisions |
information flows top-down AND bottom-up | few levels of middle
mgt | decentralized decision making | dynamic environment
◉ Strategic Plans
Answer: 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
◉ Functional Plans
Answer: 1. implementing strategic plans
2. interrelated
,3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
◉ Tactical/Operations Plans
Answer: 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
◉ SMART
Answer: Specific, Measurable, Attainable, Realistic, Timely
◉ Main objective of business strategy
Answer: achieve superior performance in marketplace
◉ Strategy
Answer: goal-directed actions a firm takes to gain & sustain superior
performance relative to competitors.
◉ Competitive advantage
Answer: superior performance relative to other competitors in same
industry OR industry average | temporary
, *people prefer your brand over another's so they are willing to pay
more (ie, Apple)
◉ Elements of Good Business Strategy
Answer: 1. diagnosis of competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
◉ Cost Leadership
Answer: lowest-cost producer in industry | pricing at or below
industry avg while leveraging a low "cost" advantage
◉ Differentiation
Answer: economic value created is greater than competitors |
uniqueness in an industry with broad market | making products
unique to allow charging premium price
◉ How Tesla does Differentiation
Answer: battery technology, autonomous driving, high performance,
supercharger network, wow factor
◉ Focus strategy
AND MARKET STRUCTURE ASSESSMENT
SCRIPT 2026
◉ External Context for Planning
Answer: regulators | partners & shareholders | competitors |
suppliers | tech, econ, labor, society | communities | customers
◉ Internal Context for Planning
Answer: mgt's vision | mission/values | culture | people & workforce
diversity | technology | physical assets | intellectual property
◉ Planning is important because it...
Answer: 1. provides direction & basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
◉ Residual Uncertainty
,Answer: the unknowable; uncertainty that remains...important in
assessing risk
◉ Hierarchical (Tall) Organizational Structure
Answer: many layers of middle mgt | senior mgrs make most
operational decisions | information flows from top-down | stable
environment
◉ Flat (Networked) Organizational Structure
Answer: front-line employees empowered to make decisions |
information flows top-down AND bottom-up | few levels of middle
mgt | decentralized decision making | dynamic environment
◉ Strategic Plans
Answer: 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
◉ Functional Plans
Answer: 1. implementing strategic plans
2. interrelated
,3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
◉ Tactical/Operations Plans
Answer: 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
◉ SMART
Answer: Specific, Measurable, Attainable, Realistic, Timely
◉ Main objective of business strategy
Answer: achieve superior performance in marketplace
◉ Strategy
Answer: goal-directed actions a firm takes to gain & sustain superior
performance relative to competitors.
◉ Competitive advantage
Answer: superior performance relative to other competitors in same
industry OR industry average | temporary
, *people prefer your brand over another's so they are willing to pay
more (ie, Apple)
◉ Elements of Good Business Strategy
Answer: 1. diagnosis of competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
◉ Cost Leadership
Answer: lowest-cost producer in industry | pricing at or below
industry avg while leveraging a low "cost" advantage
◉ Differentiation
Answer: economic value created is greater than competitors |
uniqueness in an industry with broad market | making products
unique to allow charging premium price
◉ How Tesla does Differentiation
Answer: battery technology, autonomous driving, high performance,
supercharger network, wow factor
◉ Focus strategy
