Strategic Management: Formulate and Implement Strategies, Analyze the Competitive Environment and Make Strategic Decisions: Administration: The science of managing resources

Copyright © 2024 by Domingos Coimbra

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First edition, 2024

INTRODUCTION.............................................................................5

PRESENTATION OF THE TOPIC OF STRATEGIC MANAGEMENT AND ITS IMPORTANCE..................5

OBJECTIVE OF THE WORK AND THE IMPORTANCE OF FORMULATION AND IMPLEMENTATION OF BUSINESS STRATEGIES.....9

FUNDAMENTAL CONCEPTS OF STRATEGIC MANAGEMENT.........................................13

DEFINITION OF STRATEGIC MANAGEMENT AND ITS MAIN CHARACTERISTICS.......................13

ESSENTIAL ELEMENTS OF AN EFFECTIVE BUSINESS STRATEGY..................................16

THE RELATIONSHIP BETWEEN THE COMPANY'S MISSION, VISION AND VALUES AND STRATEGY........30

ANALYSIS OF THE COMPETITIVE ENVIRONMENT.................................................38

TOOLS AND METHODS TO PERFORM ANALYSIS OF THE COMPANY'S EXTERNAL AND INTERNAL ENVIRONMENT.....38

IDENTIFICATION OF OPPORTUNITIES AND THREATS IN THE COMPETITIVE ENVIRONMENT.............51

COMPETITION AND MARKET ANALYSIS TO SUPPORT STRATEGY FORMULATION.....................63

FORMULATION OF BUSINESS STRATEGIES.....................................................73

STRATEGIC FORMULATION PROCESS AND THE DIFFERENT STRATEGIC LEVELS.....................73

TYPES OF STRATEGIES AND THEIR APPLICATIONS.............................................81

ALIGNMENT OF STRATEGIES WITH COMPANY’S RESOURCES AND CAPABILITIES.....................91

STRATEGY IMPLEMENTATION................................................................98

BREAKDOWN OF STRATEGIES INTO OBJECTIVES, GOALS AND ACTION PLANS......................98

MANAGEMENT OF ORGANIZATIONAL CHANGE TO ENSURE THE EXECUTION OF STRATEGIES.........106

MONITORING AND CONTROL OF RESULTS TO ENSURE IMPLEMENTATION SUCCESS.................112

MAKING STRATEGIC DECISIONS.............................................................121

THE ROLE OF THE LEADER IN MAKING STRATEGIC DECISIONS..................................121

DECISION MAKING TECHNIQUES SUCH AS SWOT ANALYSIS, COST ANALYSIS-BENEFIT AND SCENARIO ANALYSIS.....127

DEALING WITH UNCERTAINTY AND RISKS IN MAKING STRATEGIC DECISIONS......................137

PRACTICAL CASES AND EXAMPLES..........................................................148

CASE STUDIES OF COMPANIES THAT HAVE SUCCESSFUL OR FAILURE IN STRATEGY FORMULATION AND IMPLEMENTATION.....148

ANALYSIS OF INNOVATIVE AND DISRUPTIVE STRATEGIES ADOPTED BY MARKET LEADING COMPANIES.157

ETHICS AND SUSTAINABILITY IN STRATEGIC MANAGEMENT......................................167

IMPORTANCE OF SOCIAL AND ENVIRONMENTAL RESPONSIBILITY IN THE FORMULATION OF BUSINESS STRATEGIES.....167

IMPACT OF STRATEGIES ON THE ENVIRONMENT, SOCIETY AND STAKEHOLDERS...................173

TRENDS AND CHALLENGES IN STRATEGIC MANAGEMENT........................................180

NEW APPROACHES AND METHODOLOGIES IN STRATEGIC MANAGEMENT.........................180

CHALLENGES FACED BY COMPANIES IN THE DIGITAL AND GLOBALIZED ERA.......................190

CONCLUSION............................................................................197

RECAPITULATION OF THE MAIN POINTS ADDRESSED IN THE WORK..............................197

THE RELEVANCE OF STRATEGIC MANAGEMENT FOR THE SUCCESS AND SUSTAINABILITY OF COMPANIES198

FINAL CONSIDERATIONS AND POSSIBLE FUTURE PERSPECTIVES FOR THE AREA...................200

INTRODUCTION

PRESENTATION OF THE TOPIC OF STRATEGIC MANAGEMENT AND ITS IMPORTANCE

Strategic Management is a fundamental approach to the success and growth of companies in today's competitive business environment. It is a set of practices and techniques that involve the formulation and implementation of strategies to achieve long-term objectives and competitive advantages.

At its core, Strategic Management is a process of careful planning, careful analysis and informed decision-making. Through this approach, companies can identify opportunities, anticipate challenges and direct their efforts in a focused manner that is aligned with their values ​​and objectives.

The relevance of Strategic Management is intrinsically linked to the ability to adapt to the constantly changing business environment. By setting clear goals and directing their resources intelligently, companies can face competition with more confidence and achieve sustainable long-term results.

Effective strategy formulation and implementation not only allows companies to achieve their goals, but can also directly influence business success. Companies that excel in Strategic Management are better prepared to face challenges, identify growth opportunities and build a solid competitive advantage.

Throughout this book, we will explore the fundamental concepts of Strategic Management, its main steps and the techniques used to make informed strategic decisions. We will highlight the importance of ethics and social responsibility in formulating strategies, as well as the trends and challenges that companies face in the digital and globalized era.

In short, Strategic Management is a powerful tool for companies to position themselves competitively, boost their growth and achieve a promising future. Let's dive into this journey and understand how this discipline can be applied in a practical and accessible way for business success.

Well-known Companies with Solid Strategic Management:

1. Apple Inc.:

Apple is an iconic example of success with solid Strategic Management. Under the leadership of Steve Jobs, the company adopted a strategy focused on innovation and differentiated product design, such as the iPhone and iPad. This strategic approach has allowed Apple to become a market leader in several segments, consolidating its position as one of the most valuable companies in the world.

2. Amazon:

Amazon is a reference in Strategic Management, having expanded from an online bookstore to an e-commerce, technology and cloud services giant. Its strategy of customer focus, competitive prices and efficient logistics has enabled the company's exponential growth and its influence in different industry sectors.

3. Toyota:

Toyota is recognized for its excellent Strategic Management, focusing on quality, efficiency and innovation. Toyota's lean manufacturing approach has revolutionized the automobile industry, making it one of the world's leading vehicle manufacturers.

Companies that Faced Problems Due to Failures in Strategic Management:

1. Kodak:

Kodak is a classic example of a company that faced problems for not adapting to the digital landscape. Although it was one of the pioneers in digital photography, the company failed to capitalize on the technology and remained focused on traditional film and analog camera products, which led to its decline and eventual bankruptcy.

2. Blockbuster:

Blockbuster, once a leader in the movie rental market, ran into trouble for not taking a strategic approach to keeping up with the shift to streaming content online. The company did not invest in digital platforms and was unable to compete with services like Netflix, resulting in its obsolescence and bankruptcy.

3. Nokia:

Nokia, once the leader in the cell phone market, lost its position due to Strategic Management failures during the transition to smartphones. The company was unable to keep up with rapid technological developments and failed to adopt competitive operating systems, resulting in its loss of market share and subsequent sale to Microsoft.

These examples illustrate the critical importance of Strategic Management for the success and survival of companies. A solid, adaptive approach can drive growth and innovation, while a lack of it can lead to decline and obsolescence in today's competitive marketplace.

OBJECTIVE OF THE WORK AND THE IMPORTANCE OF FORMULATION AND IMPLEMENTATION OF BUSINESS STRATEGIES

The purpose of this work is to provide readers with essential knowledge and practical insights about Strategic Management and its application in the business context. Throughout the chapters, readers will be able to understand the conceptual bases of Strategic Management, from its definition to its main characteristics. In addition, they will have access to techniques and methodologies for the formulation and effective implementation of strategies, including analysis of the competitive environment, alignment with the company's resources and capabilities and the management of organizational change.

By reading this work, readers will be enabled to understand the importance of Strategic Management, understanding how the formulation and adequate implementation of strategies are fundamental to the success and sustainability of companies in a dynamic and competitive business environment. Through case studies and practical examples, they will learn to identify opportunities for growth and innovation, as well as to anticipate challenges and threats that may affect company performance. They will also be able to apply strategic decision-making techniques, using tools such as SWOT analysis, scenario analysis and cost-benefit analysis to support their choices.

The work emphasizes the importance of ethics and social responsibility in formulating strategies, showing how the incorporation of these values ​​can positively impact the company's image and its relationships with stakeholders. Furthermore, it addresses the challenges of the digital and globalized era, preparing readers to deal with the changes and volatility of the modern business environment, where adaptation is essential for the survival of organizations.

The relevance of the topic is unquestionable, as strategic decisions can be decisive for the performance, competitiveness and survival of organizations. In a dynamic and highly competitive business environment, Strategic Management is the key to creating competitive advantages, identifying growth opportunities and adapting to market changes.

By mastering the concepts and practices of Strategic Management, readers will be able to position their companies strategically, ensuring a promising and sustainable future. This work therefore seeks to be a valuable source of knowledge and guidance for leaders, managers and entrepreneurs who wish to achieve business success through a solid and informed strategic approach.

The formulation of well-founded strategies is one of the most important pillars of Strategic Management, as it is the process by which a company defines its long-term objectives and identifies the ways to achieve them in a competitive and sustainable way. Solid strategies provide clear and consistent direction for the organization, aligning its actions with its vision and mission, and reflecting its core values ​​and principles.

A well-founded strategy takes into account the careful analysis of the company's external and internal environment, identifying growth opportunities and threats that could affect its performance. This involves a deep understanding of the market, competition, technological trends, customer preferences and regulatory changes, among other relevant factors. This informed analysis makes it possible to identify gaps and gaps that need to be addressed in your strategies.

Furthermore, strategy formulation requires a holistic approach, where all levels of the organization are considered: corporate, competitive and functional strategies. Corporate strategies define the scope of the company and the markets in which it intends to operate, while competitive strategies determine how the company intends to position itself in relation to competitors. Finally, functional strategies encompass specific action plans in each area of ​​the company to support the execution of global strategies.

Proper implementation is essential to transform strategies into concrete actions. There is no point in having a brilliant strategy if it is not executed with efficiency and discipline. Implementation involves the appropriate allocation of resources, the definition of goals and performance indicators, the definition of responsibilities and clear and aligned communication throughout the organization.

Successful implementation requires strong leadership, an organizational culture that values ​​execution and commitment from all team members. It is essential that leaders are engaged and dedicated to supporting the implementation of strategies, encouraging and motivating their teams to achieve the established objectives.

The relationship between formulation and implementation is one of interdependence. Well-crafted strategy formulation provides the roadmap to success, while proper implementation is the vehicle that will take the company to its desired destination. When formulation and implementation are aligned, the company is more likely to achieve its objectives, gain competitive advantages, and achieve sustainable success in a dynamic and competitive business environment.

FUNDAMENTAL CONCEPTS OF STRATEGIC MANAGEMENT

DEFINITION OF STRATEGIC MANAGEMENT AND ITS MAIN CHARACTERISTICS

Strategic Management is an essential management approach for the success of companies in the competitive business scenario. It is a planning and decision-making process that aims to direct the organization towards its long-term objectives, creating competitive advantages and ensuring the sustainability of the business.

The role of