Boundless alternative to
Principles of Marketing 14th Edition
by Philip Kotler, Gary Armstrong
- Used by millions of students
- Recommended by
- Gives Boundless an A+
Preview of Chapter 18
Section 1Strategic Management
What is a Strategy?
A strategy is a plan of action designed to achieve a specific goal.
The Importance of Strategy
Strategic management is critical to the development and expansion of all organizations, as it aligns the mission and vision with operations.
Making Strategy Effective
Effective strategy achieves its desired results and is often developed using models to predict if the strategy will be effective.
Differences Between Strategic Planning at Small Versus La...
Strategic management can depend upon the size of an organization, with larger firms typically using a more structured model than smaller firms.
External versus Internal Analysis
Analysis of internal factors (resources and capabilities) and external conditions (opportunities and/or threats) is important to crafting a strategy.
Section 2External Inputs to Strategy
Porter's Five Forces
Michael Porter, a leading business analyst and professor, has identified Five Forces that affect the strategy of any industry.
Limitations of the Five Forces View
Porter's five forced model is a business tool to analyze an industry that has been challenged on the basis of its assumptions.
PESTEL and SCP Frameworks
PESTEL and SCP frameworks are strategic tools for understanding market growth/decline and potential, and industry structure.
Crafting an effective strategy requires understanding the competitive dynamics of the space in which the business competes.
Section 3Internal Analysis Inputs to Strategy
The Core Mission
A mission statement defines the fundamental purpose of an organization or enterprise.
The Overall Strategy
A strategy is a plan of action designed to gain a position of advantage or to best exploit emerging possibilities toward some desired goal.
Porter's Competitive Strategies
Michael Porter has described competitive strategies including those of cost leadership, differentiation, and market segmentation.
SWOT analysis allows businesses to see internal strengths and weaknesses and external opportunities and threats.
Forecasting is the process of making statements about events whose actual outcomes (typically) have not yet been observed.
Resource Based View
In the resource-based view (RBV), the basis for competitive advantage lies primarily in the application of the firm's bundle of resources.