Strategic Management Lecture Notes

Class Introduction

• Good morning everyone!
• Welcome to live learning classes by Board of Studies.
• Today, we will focus on strategic management, specifically Chapter 2.
• Attendance: Gun Diva, Hardik, Shankaran, Jay, Kushi, Anisha, others.
• Festivities: Asking students how they are enjoying the festive season (Dura Puja, Navaratri).

Chapter Overview

• Current Status: Almost done with Chapter 2; the chapters are long but contain interesting concepts.
• Study Expectations: Engage with outside festivals while keeping up with studies.

Key Topics in Chapter 2

Strategic Analysis of External Environment

• Strategic analysis focuses on how organizations develop strategies according to their external environment.
• Components include analysis of internationalization, products, industries, and strategic risks.

Strategic Risk

• Importance of understanding opportunities and threats to inform business direction and competition strategies.
• Discussion of micro and macro environments influencing strategic risk analysis (PESTEL analysis).

PESTEL Analysis Framework

• Political: Influence of governmental policies and stability on businesses.
• Economic: Economic conditions affecting business performance.
• Social: Cultural trends impacting consumer behavior.
• Technological: Innovation and technological change as a competitive factor.
• Environmental: Environmental considerations and regulations.
• Legal: Compliance with laws affecting operational capabilities.

Internationalization of Businesses

• Case studies of successful Indian companies (TCS, Wipro, Reliance) that have gone global.
• Importance of global expansion for increased market share and reduced costs.

Product and Industry Analysis

• Differentiating between tangible (physical goods) and intangible products (services).
• Understanding customer needs and competitive product features in market success.
• Product Life Cycle: Introduction, growth, maturity, decline.

Strategic Tools and Concepts

SWOT Analysis

• A key tool for understanding organizational strengths, weaknesses, opportunities, and threats.

Competitive Strategy

• Building a competitive advantage based on unique offerings.
• Protecting competitive advantages through innovation and customer understanding.

Key Success Factors (KSFs)

• Factors that help organizations determine their competitive and financial success.
• KSFs vary per industry but commonly include product differentiation and customer relations.

Customer Analysis

• Importance of understanding customer behavior, desires, and demographics.
• Consumer Decision Making Process: External influences (advertising, peer recommendations), internal influences (psychological factors), and the decision-making process.

Conclusion

• Recap of major topics discussed: external analysis, internationalization, PESTEL, product analysis, competitive strategies, and customer behavior.
• Encouragement for self-study and being proactive in discussing concepts.
• Questions on understanding strategic analysis, market attractiveness, and competitive strategies discussed in open chat.

Next Steps

• Tomorrow's class: Focus on questions from Chapter 1 and 2, and start Chapter 3.