The Essentials of Contemporary Strategy Analysis: Text Only (7th Edition).rar - A Summary and Review
What is Contemporary Strategy Analysis?
Strategy analysis is the process of examining the current situation and performance of an organization, identifying its goals and objectives, and formulating and evaluating alternative courses of action to achieve them. Strategy analysis helps managers and organizations to make better decisions, allocate resources effectively, and gain competitive advantage in their markets.
Contemporary Strategy Analysis: Text Only (7th Edition).rar
Contemporary strategy analysis is the application of strategy analysis to the emerging challenges that businesses face in an increasingly complex and dynamic environment. These challenges include globalization, technological change, social and environmental issues, ethical dilemmas, stakeholder expectations, and industry disruption. Contemporary strategy analysis aims to provide managers and organizations with the tools and frameworks to cope with these challenges and create value for their customers, shareholders, employees, and society.
Definition and scope of strategy analysis
According to Robert M. Grant, the author of the best-selling textbook Contemporary Strategy Analysis, strategy analysis can be defined as "the identification of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals" . Strategy analysis covers both the formulation and implementation of strategies at different levels of an organization.
The scope of strategy analysis depends on the type and size of the organization, its industry and market position, its vision and mission, its culture and values, and its external and internal environment. However, some common elements that are typically involved in strategy analysis are:
The identification and evaluation of the opportunities and threats in the external environment
The assessment of the strengths and weaknesses of the organization's resources and capabilities
The formulation of business-level strategies to compete in specific markets or segments
The formulation of corporate-level strategies to manage a portfolio of businesses or activities
The implementation of strategies through organizational structure, systems, processes, culture, leadership, and change management
The main components of strategy analysis
Strategy analysis can be divided into five main components:
External analysis is the process of scanning and evaluating the external environment of an organization, such as its industry, competitors, customers, suppliers, regulators, society, etc. External analysis helps managers to identify the opportunities and threats that affect the organization's performance and potential. Some common tools for external analysis are PESTEL analysis (political, economic, social, technological, environmental, legal), Porter's five forces model (industry attractiveness), competitor analysis (strengths, weaknesses, opportunities, threats), customer analysis (needs, preferences, behavior), and stakeholder analysis (interests, expectations, power).
Internal analysis is the process of examining and evaluating the internal environment of an organization, such as its resources, capabilities, core competencies, value chain, culture, etc. Internal analysis helps managers to assess the strengths and weaknesses of the organization's ability to create and sustain competitive advantage. Some common tools for internal analysis are VRIO framework (value, rarity, imitability, organization), value chain analysis (primary and support activities), core competency analysis (unique and valuable skills or assets), and SWOT analysis (strengths, weaknesses, opportunities, threats).
Business-level strategy is the process of formulating and selecting the best strategy for a single business unit or product line within an organization. Business-level strategy focuses on how to compete effectively in a specific market or segment, and how to create value for customers and differentiate from competitors. Some common tools for business-level strategy are Porter's generic strategies (cost leadership, differentiation, focus), Ansoff matrix (market penetration, market development, product development, diversification), and Bowman's strategy clock (price and perceived value).
Corporate-level strategy is the process of formulating and selecting the best strategy for a multi-business or multi-activity organization. Corporate-level strategy focuses on how to manage a portfolio of businesses or activities, and how to create value through synergy, diversification, integration, or restructuring. Some common tools for corporate-level strategy are BCG matrix (growth-share matrix), GE-McKinsey matrix (industry attractiveness-business strength matrix), Ansoff matrix (market penetration, market development, product development, diversification), and Porter's three tests (attractiveness test, cost of entry test, better-off test).
Strategy implementation is the process of executing and monitoring the chosen strategy in an organization. Strategy implementation involves aligning the organizational structure, systems, processes, culture, leadership, and change management with the strategic objectives and actions. Strategy implementation also requires evaluating the results and outcomes of the strategy, and making adjustments or corrections if necessary. Some common tools for strategy implementation are balanced scorecard (financial, customer, internal process, learning and growth perspectives), McKinsey 7S framework (strategy, structure, systems, skills, style, staff, shared values), Kotter's 8-step model (create urgency, form coalition, create vision, communicate vision, empower action, create quick wins, build on change, anchor change), and Lewin's 3-stage model (unfreeze-change-refreeze).
Why is Contemporary Strategy Analysis important?
Strategy analysis is important for managers and organizations because it helps them to:
Understand their current situation and performance in relation to their goals and objectives
Identify the key factors that affect their success and failure in their external and internal environment
Formulate and evaluate alternative courses of action to achieve their goals and objectives
Select and implement the best strategy that creates value for their stakeholders
Monitor and measure the results and outcomes of their strategy
Learn from their experience and improve their future decisions and actions
Contemporary strategy analysis is especially important for managers and organizations because it helps them to cope with the emerging challenges that they face in an increasingly complex and dynamic environment. These challenges include:
Globalization: The increasing integration and interdependence of markets, economies, cultures, and societies across the world. Globalization creates both opportunities and threats for managers and organizations in terms of market expansion, cost reduction, innovation diffusion, competition intensity, customer diversity, cultural differences, political risks, etc.
Technological change: The rapid development and diffusion of new technologies that transform the way people communicate, work, learn 71b2f0854b