Principles of management

Week 5Strategic Management• Competition and advantage• Strategic process• Corporate-level Approaches:

• Strategic reference point theory• Portfolio strategy• Boston• Grand strategy

• Industry-level Approaches• Porter• Positioning strategies• Adaptive• Industry type

• Firm-level Approaches• Direct competition

Management, 2017, Prof. Dr. P. Zamaros 1

The act or process of gaining advantage:

• Competitive

• Comparative

• Sustainable

Management, 2017, Prof. Dr. P. Zamaros

Planning Competition & Advantage

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Management, 2017, Prof. Dr. P. Zamaros

Planning Process

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Assessing the need for strategic change

Conducting a situational analysis

Choosing strategic alternatives

Management, 2017, Prof. Dr. P. Zamaros

Planning Corporate-level Approaches

Strategic reference point theory

4

Management, 2017, Prof. Dr. P. Zamaros

Planning Corporate-level Approaches

Portfolio strategy

5

Management, 2017, Prof. Dr. P. Zamaros

Planning Corporate-level Approaches

Boston Matrix

6

Management, 2017, Prof. Dr. P. Zamaros

Planning Corporate-level Approaches

Grand strategies

7

Management, 2017, Prof. Dr. P. Zamaros

Planning Industry-level Approaches

Forces - Porter

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Management, 2017, Prof. Dr. P. Zamaros

Planning Industry-level Approaches

Positioning strategies

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• Producing a product of acceptable quality at consistently lower production costs than competitors

Cost leadership

• Providing a product or service that is different from competitors’ offerings that customers are willing to pay a premium price for it

Differentiation

• Using cost leadership or differentiation to produce a specialized product or service for a specially targeted group of customers

Focus strategy

Management, 2017, Prof. Dr. P. Zamaros

Planning Industry-level ApproachesAdaptive – Miles & Snow

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Passive

Dynamic

Non-competitive

Management, 2017, Prof. Dr. P. Zamaros

Planning Industry-level Approaches

Industry type - Zamaros

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Management, 2017, Prof. Dr. P. Zamaros

Planning Firm-level Approaches

Direct

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