STRATEGIC MANAGEMENT NOTES PART - 5 FOR M.COM, MBA, NET JRF COURSES BY RASHID JRF

 STRATEGIC MANAGEMENT NOTES PART - 5 FOR M.COM, MBA, NET JRF COURSES BY RASHID JRF

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**Model for Strategic Analysis:**

**McKinsey 7S Model:**

- Developed by the consulting firm McKinsey & Company, the 7S model assesses an organization's effectiveness by analyzing seven interconnected elements.

- The seven elements include Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff.

- The model emphasizes the need for alignment and congruence among these elements to achieve strategic success.

**The Emerging Theory of Manufacturing:**

- This theory focuses on improving manufacturing processes and operations to achieve competitive advantage.

- It emphasizes the importance of continuous improvement, quality control, and adopting innovative manufacturing practices.

**Michael Porter’s Model for Industry Analysis:**

- Developed by Michael Porter, this model analyzes the competitive forces within an industry to determine its attractiveness and profitability.

- The five forces include Threat of New Entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitute Products or Services, and Intensity of Competitive Rivalry.

- The model helps organizations understand the industry dynamics and formulate effective strategies.

**Value Chain Approach:**

- Introduced by Michael Porter, the value chain concept identifies the sequence of activities that an organization undertakes to create and deliver value to customers.

- The value chain includes primary activities (inbound logistics, operations, outbound logistics, marketing, sales, and service) and support activities (procurement, technology development, human resources, and infrastructure).

- This approach helps organizations identify opportunities to enhance efficiency and create competitive advantage at each stage of the value chain.

**BCG Matrix:**

- The Boston Consulting Group (BCG) matrix categorizes an organization's products or business units into four quadrants based on market growth rate and relative market share.

- Quadrants include Stars (high growth, high share), Question Marks (high growth, low share), Cash Cows (low growth, high share), and Dogs (low growth, low share).

- The matrix aids in allocating resources and making strategic decisions for each product or business unit.

**GE Model (General Electric Matrix):**

- Similar to the BCG matrix, the GE model assesses business units based on market attractiveness and competitive position.

- Business units are plotted on a two-dimensional matrix, helping organizations prioritize investment decisions and resource allocation.

**PIMS Model (Profit Impact of Market Strategy):**

- Developed by the Strategic Planning Institute, the PIMS model analyzes the relationship between various business strategies and their impact on profitability.

- It considers factors such as market share, pricing, product quality, and competitive advantage to determine strategic success factors.

**SWOT Analysis:**

- SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

- It is a structured framework for assessing an organization's internal strengths and weaknesses, as well as external opportunities and threats in its environment.

- SWOT analysis guides organizations in formulating strategies that leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats.

These strategic analysis models provide organizations with structured frameworks to analyze their internal and external environments, make informed decisions, and develop effective strategies to achieve competitive advantage and long-term success.