STUDY UNIT 1: STRATEGY
Evaluation criteria:
Briefly explain and understand value creation process
Understand, at overview level, strategy management process model:
What is vision, mission, strategic objectives and strategy;
Understand external environment;
Understand internal environment;
Understand strategy implementation;
Understand strategy development.
Identify various stakeholder groups of enterprise such as:
Shareholders
Financiers (including lenders)
Customers
Suppliers
Employees
Public interest
Natural environment
Corporate Strategy:
Corporate strategy involves setting out company's mission and objectives, understanding
business environment, and aligning financial management decisions with it.
It involves creating sustainable competitive advantage in each sector, focusing on low-cost or
differentiation strategies.
Companies should decide on their business areas and make decisions that increase their value,
sometimes diversifying poor-performing divisions.
Understanding competitive landscape and future sector developments is crucial for increasing
company's value.
Management incentives should align with strategy, using models like Porter's Five Forces, SWOT
analysis, and PESTEL analysis.
Strategic management process model:
Created in Effie (Trial)
, Step 1- Strategic intent:
Mission statement outlines purpose and values of enterprise, outlining its
fundamental objectives.
It aids management in strategic analysis, communicates objectives to stakeholders,
and fosters desirable company culture.
Vision statement provides long-term vision for future and should be integrated into
company's value chain.
Strategy is process that enables company to use its resources and capabilities to
achieve its goals and meet stakeholder needs, interests, and expectations in best
interest of the company.
Step 2- Strategic analysis:
Company conducts strategic analysis using models like Porter's Five Forces, PESTEL
analysis, and SWOT analysis.
These models assess company's internal (PORTER- value chain analysis ) and
external (PESTEL - macro-economic analysis and PORTER- competive industry
advatage analysis) environment, SWOT including both internal and external
environments.
PESTEL analysis is macro-economic framework considering political, economic,
social, technology, environment, and legal factors.
SWOT analysis reports company's strengths, weaknesses, opportunities, and threats,
assessing positive and negative impact of these factors on its performance.
Created in Effie (Trial)
Evaluation criteria:
Briefly explain and understand value creation process
Understand, at overview level, strategy management process model:
What is vision, mission, strategic objectives and strategy;
Understand external environment;
Understand internal environment;
Understand strategy implementation;
Understand strategy development.
Identify various stakeholder groups of enterprise such as:
Shareholders
Financiers (including lenders)
Customers
Suppliers
Employees
Public interest
Natural environment
Corporate Strategy:
Corporate strategy involves setting out company's mission and objectives, understanding
business environment, and aligning financial management decisions with it.
It involves creating sustainable competitive advantage in each sector, focusing on low-cost or
differentiation strategies.
Companies should decide on their business areas and make decisions that increase their value,
sometimes diversifying poor-performing divisions.
Understanding competitive landscape and future sector developments is crucial for increasing
company's value.
Management incentives should align with strategy, using models like Porter's Five Forces, SWOT
analysis, and PESTEL analysis.
Strategic management process model:
Created in Effie (Trial)
, Step 1- Strategic intent:
Mission statement outlines purpose and values of enterprise, outlining its
fundamental objectives.
It aids management in strategic analysis, communicates objectives to stakeholders,
and fosters desirable company culture.
Vision statement provides long-term vision for future and should be integrated into
company's value chain.
Strategy is process that enables company to use its resources and capabilities to
achieve its goals and meet stakeholder needs, interests, and expectations in best
interest of the company.
Step 2- Strategic analysis:
Company conducts strategic analysis using models like Porter's Five Forces, PESTEL
analysis, and SWOT analysis.
These models assess company's internal (PORTER- value chain analysis ) and
external (PESTEL - macro-economic analysis and PORTER- competive industry
advatage analysis) environment, SWOT including both internal and external
environments.
PESTEL analysis is macro-economic framework considering political, economic,
social, technology, environment, and legal factors.
SWOT analysis reports company's strengths, weaknesses, opportunities, and threats,
assessing positive and negative impact of these factors on its performance.
Created in Effie (Trial)
