Business Strategy

1. Strategy Formulation
   1. Vision and Mission Statements
      1. Definition of Vision and Mission
         1. Vision Statement: Long-term goals and aspirations of a company
         2. Mission Statement: Core purpose and focus that normally remains unchanged over time
      2. Importance of Vision and Mission
         1. Guides decision-making and strategic planning
         2. Communicates the organization’s purpose and values to stakeholders
      3. Steps in Developing Vision and Mission Statements
         1. Assessment of organizational core values
         2. Identification of market and competitive landscape
         3. Integration of stakeholder inputs
      4. Best Practices in Crafting Vision and Mission Statements
         1. Clarity and Conciseness
         2. Inspirational Tone
         3. Alignment with strategic capabilities
   2. Setting Strategic Goals and Objectives
      1. Defining Strategic Goals
         1. Long-term achievements an organization aims for
         2. Alignment with vision and mission
      2. SMART Objectives Framework
         1. Specific, Measurable, Achievable, Relevant, Time-bound
      3. Role in Performance Measurement
         1. Key Performance Indicators (KPIs)
         2. Milestones and Benchmarks
      4. Balancing Short-term and Long-term Goals
         1. Ensuring sustainable growth
         2. Reactive vs Proactive goal setting
   3. Environmental Scanning
      1. Purpose and Importance
         1. Understand external opportunities and threats
         2. Inform strategic decision-making
      2. Tools and Methods
         1. SWOT Analysis
            1. Strengths, Weaknesses, Opportunities, Threats
            2. Internal vs External factors
         2. PESTEL Analysis
            1. Political, Economic, Social, Technological, Environmental, Legal
            2. Impact on strategic choices
         3. Porter's Five Forces Model
            1. Competitive Rivalry, Supplier Power, Buyer Power, Threat of New Entrants, Threat of Substitutes
            2. Understanding industry dynamics
      3. Continuous Monitoring and Adaptation
         1. Regular updates to maintain relevancy
         2. Leverage technological tools for real-time insights
   4. Core Competencies Identification
      1. Concept of Core Competencies
         1. Unique strengths differentiating a company from its competitors
         2. Rooted in resources and capabilities
      2. Identifying Core Competencies
         1. VRIO Framework: Value, Rarity, Imitability, Organization
         2. Internal analysis and benchmarking
      3. Leveraging Competencies for Competitive Advantage
         1. Aligning with business strategy
         2. Innovation and market positioning
   5. Competitive Advantage Development
      1. Understanding Competitive Advantage
         1. Factors that enable a firm to produce goods/services better or more cheaply than rivals
      2. Strategies to Develop Competitive Advantage
         1. Cost Leadership: Achieving lowest operational costs
         2. Differentiation: Unique characteristics through products/services
         3. Focus: Targeting specific market niches
      3. Sustaining Competitive Advantage
         1. Innovation and Continuous Improvement
         2. Strengthening Brand Name and Customer Loyalty
      4. Analyzing and Adapting to Competitor Moves
         1. Competitive intelligence gathering
         2. Strategic response planning