,© 2019 University of South Africa
All rights reserved
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
MNG3701/1/2020
70680256
InDesign
MNB_Style
,CONTENTS
1 Page
LESSON 1: The relationship between general management principles and strategic
management 1
1.1 The purpose of a business organisation 2
1.2 The primary outcomes of the business organisation 3
1.3 The role of managers in achieving the outcomes of the organisation 4
1.4 The various levels and areas of management 7
1.5 The hierarchy of organisational plans 9
1.6 The difference between a competitive advantage, a
sustainable competitive advantage and a transient competitive advantage 11
1.7 Conclusion 14
LESSON 2: The role of strategic management in an organisation 16
2.1 Introduction 16
2.2 Strategic management and its components 17
2.3 The universal principles of strategic management 19
2.4 The role of strategic management in realising the desired outcomes
of an organisation 20
2.5 The different levels of strategy in the organisation 21
2.6 The meaning of strategic success 22
2.7 A contemporary strategic management framework 23
2.8 Conclusion 24
LESSON 3: Setting strategic direction 26
3.1 Introduction 26
3.2 The process perspective on strategic management 27
3.3 Criticising the process perspective on strategic management 27
3.4 Explain the role of strategic direction in strategic planning 29
3.5 The last two steps in the strategic planning process 36
3.6 The last two phases in strategic management 37
3.7 Conclusion 37
(iii) MNG3701/1
, LESSON 4: Analysing the external environment of the organisation 39
4.1 Introduction 39
4.2 The purpose of environmental analysis in strategic management 40
4.3 Analysing the remote environment 41
4.4 Analysing the market environment of an organisation 49
4.5 Strategic responses to changes in the external environment 54
4.6 Conclusion 55
LESSON 5: Analysing the internal environment of the organisation 57
5.1 Introduction 57
5.2 The importance of resources, capabilities and core competencies in
strategic management 58
5.3 How do resources and capabilities become core competencies? 63
5.4 The resource-based view of internal analysis 66
5.5 Identifying the resources, capabilities and core competencies of an
organisation 68
5.6 The contribution of resources, capabilities and core competencies
towards competitive advantage and sustainable competitive advantage 70
5.7 Capturing the value generated by resources and capabilities 71
5.8 Conclusion 71
LESSON 6: developing appropriate business-level strategies 74
6.1 Introduction 74
6.2 Business-level strategic options 75
6.3 Best-cost provider strategy 78
6.4 Focus strategy 78
6.5 Evaluating strategic choices 80
6.6 Conclusion 82
(iv)
All rights reserved
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
MNG3701/1/2020
70680256
InDesign
MNB_Style
,CONTENTS
1 Page
LESSON 1: The relationship between general management principles and strategic
management 1
1.1 The purpose of a business organisation 2
1.2 The primary outcomes of the business organisation 3
1.3 The role of managers in achieving the outcomes of the organisation 4
1.4 The various levels and areas of management 7
1.5 The hierarchy of organisational plans 9
1.6 The difference between a competitive advantage, a
sustainable competitive advantage and a transient competitive advantage 11
1.7 Conclusion 14
LESSON 2: The role of strategic management in an organisation 16
2.1 Introduction 16
2.2 Strategic management and its components 17
2.3 The universal principles of strategic management 19
2.4 The role of strategic management in realising the desired outcomes
of an organisation 20
2.5 The different levels of strategy in the organisation 21
2.6 The meaning of strategic success 22
2.7 A contemporary strategic management framework 23
2.8 Conclusion 24
LESSON 3: Setting strategic direction 26
3.1 Introduction 26
3.2 The process perspective on strategic management 27
3.3 Criticising the process perspective on strategic management 27
3.4 Explain the role of strategic direction in strategic planning 29
3.5 The last two steps in the strategic planning process 36
3.6 The last two phases in strategic management 37
3.7 Conclusion 37
(iii) MNG3701/1
, LESSON 4: Analysing the external environment of the organisation 39
4.1 Introduction 39
4.2 The purpose of environmental analysis in strategic management 40
4.3 Analysing the remote environment 41
4.4 Analysing the market environment of an organisation 49
4.5 Strategic responses to changes in the external environment 54
4.6 Conclusion 55
LESSON 5: Analysing the internal environment of the organisation 57
5.1 Introduction 57
5.2 The importance of resources, capabilities and core competencies in
strategic management 58
5.3 How do resources and capabilities become core competencies? 63
5.4 The resource-based view of internal analysis 66
5.5 Identifying the resources, capabilities and core competencies of an
organisation 68
5.6 The contribution of resources, capabilities and core competencies
towards competitive advantage and sustainable competitive advantage 70
5.7 Capturing the value generated by resources and capabilities 71
5.8 Conclusion 71
LESSON 6: developing appropriate business-level strategies 74
6.1 Introduction 74
6.2 Business-level strategic options 75
6.3 Best-cost provider strategy 78
6.4 Focus strategy 78
6.5 Evaluating strategic choices 80
6.6 Conclusion 82
(iv)
