Topic 6 of 6 · Form 6
Strategic management
SWOT; PESTLE; Porter's five forces; core competencies (Prahalad and Hamel); the Boston Matrix; scenario planning.
Notes for this topic 1 file, in order
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Strategic analysis
SWOT; PESTLE; Porter's five forces; core competencies (Prahalad and Hamel); the Boston Matrix; scenario planning.
Strategic choice
Ansoff's matrix; Porter's generic strategies (cost leadership, differentiation, focus); decision trees (expected values); force field analysis; investment appraisal.
Worked example: Option A has a 0.6 chance of earning US$500 000 and a 0.4 chance of US$100 000, and costs US$200 000. Find the net expected value.
EV = 300 000 + 40 000 = 340 000 → net EV = US$140 000
Strategic implementation
Business plans, corporate culture (Handy's cultures), change management (resistance, Kotter's 8 steps, Lewin's force field), contingency planning and crisis management, the role of leadership in strategy.
Check yourself
- Name Porter's three generic strategies.
- Why might staff resist change?
- What is contingency planning?
Show answers
- Cost leadership, differentiation and focus.
- Fear of job loss, uncertainty, loss of status, lack of skills or poor communication.
- Preparing plans in advance to deal with possible crises or unexpected events.
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