chapter three : EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT :)

next entry is about chapter three "EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT". 

first, we've learnt about PESTEL. what is PESTEL? PESTEL analysis focuses on the six principal components of strategic significance in the macro-environment. this is POLITICS, ECONOMICS, SOCIALS, TECHNOLOGY, ENVIRONMENTAL AND LEGAL. The macro-environment encompasses the broad environmental context in which a company’s industry is situated that includes strategically relevant components over which the firm has no direct control. 

second, we've learnt about Five Competitive Forces. 

Competition from rival sellers
Competition from potential new entrants
Competition from producers of substitute products
Supplier bargaining power
Customer bargaining power

third, we've learnt about FACTORS ARE DRIVING INDUSTRY CHANGE, AND WHAT IMPACTS WILL THEY HAVE. Driving forces are the major underlying causes of change in industry and competitive conditions.The most important part of driving forces analysis is to determine whether the collective impact of the driving forces will be to increase or decrease market demand, make competition more or less intense, and lead to higher or lower industry profitability.

  

Driving forces analysis has three steps:

Identifying what the driving forces are.

Assessing whether the driving forces are, on the whole, acting to make the industry more or less attractive.

Determining what strategy changes are needed to prepare for the impact of the driving forces.

fourth, we've learnt about HOW ARE INDUSTRY RIVALS POSITIONED IN THE MARKET ? A strategic group is a cluster of industry rivals that have similar competitive approaches and market positions. Strategic group mapping is a technique for displaying the different market or competitive positions that rival firms occupy in the industry. Strategic group maps reveal which companies are close competitors and which are distant competitors.

        

A Strategic Group Map Example

that's all for this entry. see you in the next entry. ASSALAMUALAIKUM :)

chapter two : THE BUSINESS VISION AND MISSION :)

sorry for late to continue chapter two. actually this chapter also in week two. i  separate this entry because i don't have idea to write for chapter two. so i study, study, and study to understand more about chapter two. exactly this chapter about THE BUSINESS VISION AND MISSION. 

A vision statement should answer the basic question, “What do we want to become?”. The vision statement should be short, preferably one sentence, and as many managers as possible should have input into developing the statement.

A mission statement should a declaration of an organization’s “reason for being.” Answers the pivotal question “What is our business?”. Essential for effectively establishing objectives and formulating strategies. Reveals what an organization wants to be and whom it wants to serve. Also called a creed statement, a statement of purpose, a statement of philosophy, a statement of beliefs, and a statement of business principles.

VISION VERSUS MISSION Shared vision creates a commonality of interests that can lift workers out of the monotony of daily work and put them into a new world of opportunity and challenge. 

There are 9 mission statement components as following 

Customers

Products or services-how we entertain our customer

Markets

Technology-to produce product (quantity with quality)

Concern for survival, growth, and profitability

Philosophy

Self-concept

Concern for public image-its related with CSR (corporate service responsibility) 

Concern for employees

that's all for this entry. see you in the next entry. ASSALAMUALAIKUM :)

chapter one : DEFINITION OF STRATEGIC MANAGEMENT :)

Time so fast. This week the second week of learning. what I learnt this week? today lecture must be compulsory about DEFINITION OF STRATEGIC MANAGEMENT. STRATEGIC MANAGEMENT is used synonymously with the term strategic planning. Sometimes the term strategic management is used to refer to STRATEGY FORMULATION, IMPLEMENTATION AND EVALUATION with strategic planning referring only to strategy formulation. A strategic plan is a company’s game plan. A strategic plan results from tough managerial choices among numerous good alternatives, and it signals commitment to specific markets, policies, procedures, and operations.

STRATEGY FORMULATION includes developing a vision and mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue.

STRATEGY IMPLEMENTATION requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed

often called the action stage.

STRATEGY EVALUATION reviewing external and internal factors that are the bases for current strategies, measuring performance, and taking corrective actions.

That's all for chapter one. See you in chapter two for next entry. ASSALAMUALAIKUM :)

MISS UMMI :)

oh no ! Why i must create this blog ? This is so complicated for me to start NEW LIFE as a BLOGGER. I still remember the word from Miss Ummi " this is way to increase your writing and grammar in english ". oh my english !  it's okay. I hope this is one way to improve my english. I love you MISS UMMI :) LET'S SPEAK BETTER ENGLISH ! 

What i learnt in the first week ? First week is just relax and steady. Miss Ummi asked us to built a tower from newspaper within 10 minutes. We are asked to built a strong tower. All students are excited to do this activity. 10..9..8..7..6..5..4..3..2..1.. END ! Ten minutes has ended. All tower must placed at the front of the class. One by one tower rejected by Miss Ummi. The essence of the activity is basically a good strategic followed by an cooperation from group members.

That's all for this entry. See you in the next entry. ASSALAMUALAIKUM :)