MNG301A STUDY GUIDE
UPDATED 2023.
STRATEGIC PLANNING.
TOPIC 1 - 7
DEPARTMENT OF BUSINESS
MANAGEMENT
UNIVERSITY OF SOUTH AFRICA.
.
, CONTENTS
PAGE
OVERVIEW ...................................................................................................................................... iv
TOPIC 1: AN OVERVIEW OF STRATEGIC MANAGEMENT .......................................... 1
Study unit 1.1 A review of our existing knowledge of business management ................................... 1
Study unit 1.2 The strategic management process and strategic planning ........................................ 33
Study unit 1.3 Benefits and risks of strategic management .............................................................. 38
TOPIC 2: SETTING STRATEGIC DIRECTION: VISION, MISSION AND
STRATEGIC INTENT ........................................................................................... 45
Study unit 2.1 Strategic direction ...................................................................................................... 45
TOPIC 3: CORPORATE GOVERNANCE AND STRATEGIC MANAGEMENT ........... 77
Study unit 3.1 Corporate governance ................................................................................................ 77
TOPIC 4: INTERNAL ENVIRONMENTAL ANALYSIS ........................................................ 97
Study unit 4.1 The importance and challenge of internal analysis ................................................... 97
Study unit 4.2 Resource-based view ............................................................................................... 105
Study unit 4.3 Value-chain analysis .................................................................................................112
Study unit 4.4 Functional approach .................................................................................................116
TOPIC 5: EXTERNAL ENVIRONMENTAL ANALYSIS.................................................. 121
Study unit 5.1 The macroenvironment ............................................................................................ 121
Study unit 5.2 The industry or market environment ....................................................................... 139
TOPIC 6: FORMULATING LONG-TERM GOALS ......................................................... 149
Study unit 6.1 Formulating long-term goals .................................... 149
...........................
Study unit 6.2 Generic strategies 155
.............. ....................................
...........................
TOPIC 7: GRAND STRATEGIES ........................................................................................ 163
Study unit 7.1 Grand strategies ....................................................................................................... 163
BIBLIOGRAPHY ........................................................................................................................... 170
APPENDIX A: GLOSSARY OF TERMS ..................................................................................... 173
APPENDIX B: COPY OF A PAST EXAMINATION PAPER .........................................................177
,FOREWORD - iii -
MNG301A/1/2011–2013
, OVERVIEW
Dear Students
1. WELCOME
Welcome to strategic management. We urge you to begin your studies by reading this overview in
detail. You may find that you need to refer back to it as you progress through this module, since it will
definitely make studying this module a lot easier.
Strategic management is about surviving in a changing environment and this module will introduce
you to the first stage in the strategic management process, namely, strategic planning. The learning
content and activities contained in this learning guide will provide you with opportunities to explore
the latest developments and practices in this field. This module is as close as you will ever get to the
real world of business.
2. THE PURPOSE OF THIS MODULE
The purpose of this module is to introduce students to the challenges faced by top management to
ensure that the organisation survives in a volatile business environment. We also want to provide
you with insight into strategic planning concepts and help you develop an understanding of strategic
planning as the first stage in the strategic management process.
3. LINK TO OTHER COURSES/MODULES
This module does not stand alone – it forms an integral part of the field of study known as “business
management”. This module builds on the concepts learnt in general management (MNG2016) and
business management (MNB101D and MNB102E). Strategy implementation (MNG302B) is directly
linked to this module, since it covers the second and third stages in the strategic management process.
4. LEARNING OUTCOMES FOR THIS MODULE
Unisa follows an outcomes-based approach to education. The focus of this module is therefore on
the achievement of specific learning outcomes and not on memorising the chapters of the prescribed
textbook. The learning outcomes are linked to the activities, the assignments and the examination.
Learning outcomes for MNG301A
After working through this module, you should be able to:
◼ explain what strategic management is and how it fits into the contemporary business management
field
◼ explain how success is measured in strategic management terms
◼ explain and interpret the strategic direction of an organisation
◼ analyse and interpret the results of an assessment of the internal and external environment
UPDATED 2023.
STRATEGIC PLANNING.
TOPIC 1 - 7
DEPARTMENT OF BUSINESS
MANAGEMENT
UNIVERSITY OF SOUTH AFRICA.
.
, CONTENTS
PAGE
OVERVIEW ...................................................................................................................................... iv
TOPIC 1: AN OVERVIEW OF STRATEGIC MANAGEMENT .......................................... 1
Study unit 1.1 A review of our existing knowledge of business management ................................... 1
Study unit 1.2 The strategic management process and strategic planning ........................................ 33
Study unit 1.3 Benefits and risks of strategic management .............................................................. 38
TOPIC 2: SETTING STRATEGIC DIRECTION: VISION, MISSION AND
STRATEGIC INTENT ........................................................................................... 45
Study unit 2.1 Strategic direction ...................................................................................................... 45
TOPIC 3: CORPORATE GOVERNANCE AND STRATEGIC MANAGEMENT ........... 77
Study unit 3.1 Corporate governance ................................................................................................ 77
TOPIC 4: INTERNAL ENVIRONMENTAL ANALYSIS ........................................................ 97
Study unit 4.1 The importance and challenge of internal analysis ................................................... 97
Study unit 4.2 Resource-based view ............................................................................................... 105
Study unit 4.3 Value-chain analysis .................................................................................................112
Study unit 4.4 Functional approach .................................................................................................116
TOPIC 5: EXTERNAL ENVIRONMENTAL ANALYSIS.................................................. 121
Study unit 5.1 The macroenvironment ............................................................................................ 121
Study unit 5.2 The industry or market environment ....................................................................... 139
TOPIC 6: FORMULATING LONG-TERM GOALS ......................................................... 149
Study unit 6.1 Formulating long-term goals .................................... 149
...........................
Study unit 6.2 Generic strategies 155
.............. ....................................
...........................
TOPIC 7: GRAND STRATEGIES ........................................................................................ 163
Study unit 7.1 Grand strategies ....................................................................................................... 163
BIBLIOGRAPHY ........................................................................................................................... 170
APPENDIX A: GLOSSARY OF TERMS ..................................................................................... 173
APPENDIX B: COPY OF A PAST EXAMINATION PAPER .........................................................177
,FOREWORD - iii -
MNG301A/1/2011–2013
, OVERVIEW
Dear Students
1. WELCOME
Welcome to strategic management. We urge you to begin your studies by reading this overview in
detail. You may find that you need to refer back to it as you progress through this module, since it will
definitely make studying this module a lot easier.
Strategic management is about surviving in a changing environment and this module will introduce
you to the first stage in the strategic management process, namely, strategic planning. The learning
content and activities contained in this learning guide will provide you with opportunities to explore
the latest developments and practices in this field. This module is as close as you will ever get to the
real world of business.
2. THE PURPOSE OF THIS MODULE
The purpose of this module is to introduce students to the challenges faced by top management to
ensure that the organisation survives in a volatile business environment. We also want to provide
you with insight into strategic planning concepts and help you develop an understanding of strategic
planning as the first stage in the strategic management process.
3. LINK TO OTHER COURSES/MODULES
This module does not stand alone – it forms an integral part of the field of study known as “business
management”. This module builds on the concepts learnt in general management (MNG2016) and
business management (MNB101D and MNB102E). Strategy implementation (MNG302B) is directly
linked to this module, since it covers the second and third stages in the strategic management process.
4. LEARNING OUTCOMES FOR THIS MODULE
Unisa follows an outcomes-based approach to education. The focus of this module is therefore on
the achievement of specific learning outcomes and not on memorising the chapters of the prescribed
textbook. The learning outcomes are linked to the activities, the assignments and the examination.
Learning outcomes for MNG301A
After working through this module, you should be able to:
◼ explain what strategic management is and how it fits into the contemporary business management
field
◼ explain how success is measured in strategic management terms
◼ explain and interpret the strategic direction of an organisation
◼ analyse and interpret the results of an assessment of the internal and external environment
