Category

Strategy

Business Strategy: Strategy Formulation

In the strategy formulation process, an organization’s directors generate a general plan of what an organization should and should not do, given its market forces and its internal resources, in order to best meet its goals. Porter’s Generic Strategies: A firm should consistently choose one of Porter’s generic strategies. The first dimension is whether you…

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Business Strategy: Internal Analysis

After evaluating an industry’s attractiveness, we analyze the firm’s internal strengths and weaknesses for competing in that industry. The strengths and weaknesses identified by the internal analysis can also be displayed in a SWOT table. The internal analysis does not care about the product and the industry itself; it is concerned with the capabilities that…

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Business Strategy: External Analysis

Let me introduce a modified version of my favorite tool for performing external analysis: Porter’s Five Forces Model of Industry Attractiveness. Porter’s Five Forces Model is a framework for assessing long-term profitability in an industry. It is used to fill in the opportunities and threats sections of a SWOT table. It evaluates how profitable a well-positioned product…

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Introduction to Business Strategy

After covering the basics of marketing, I will cover the basics of strategic planning: the act of formulating a new strategic plan for an organization. Business strategy is all about formulating, implementing, and evaluating decisions that enable an organization to achieve its long-term objectives. Strategy formulation combines and converts three inputs – (1) long-term objectives, (2) external analysis,…

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