Strategic Management Tools Case Study Paper
Strategic Management Tools Discipline: Concept/Tool/Framework Description Used in Discipline (Yes or No)? How Used Should be adopted or dropped? Why? Vision, mission and strategic and financial objectives Statements describing the organizations purpose, long-term aspirations and near term (quantitative) objectives. Resource based view and VRIO test Assessment of the sustainable competitive advantage of a firm’s internal resources (tangible and intangible) based on their value, rarity, imitability, and organization. SWOT analysis Analysis of a firm’s capabilities based on its internal strengths and weaknesses and its environment based on its external opportunities and threats. Value Chain Analysis Review of the internal architecture of an organization, based on decisions made on primary and secondary tasks to complete in-house or outsource and how that helps to gain a cost or differentiation advantage. PESTEL Framework Study of political, economic, social, technological, environmental, and legal factors in the macro-environment to determine opportunities and threats in achieving a competitive advantage, acquiring needed resources, building essential capabilities etc. Five Forces Model Analysis of an organization’s competitive strategy based on the five forces (suppliers, rivals, substitutes, buyers, and new entrants) that impact profitability (private sector) or access to resources (especially financial, in the public and not for profit sectors). Strategic Group Map Identification of competitors that employ similar competitive strategies to determine an organization’s closest rivals, alternative paths to success, and untapped opportunities. Strategic position Basis on which the organization competes, manages costs and raises revenues (budgets in the public sector, donations for non-profits). Could be differentiation, low cost, focus or a combination strategy.