Business Strategy and Management
Strategy and organisational management
Candidates should understand the strategic management process: mission, vision, objectives, environmental analysis (PESTLE, Porter's five forces), internal analysis (resources, competences, value chain, SWOT), strategy formulation at corporate, business and functional levels, and strategy implementation and evaluation. Know generic strategies (cost leadership, differentiation, focus), Ansoff's growth matrix, portfolio tools, and the role of structure, culture and change management. Management content includes motivation theories, leadership styles, group dynamics, communication and control systems.
Traps to watch
- SWOT analysis is not a strategy; it is an input to strategy.
- Cost leadership is not simply low price; it requires a sustainable cost advantage.
- Structure must fit strategy; changing strategy without changing structure often fails.
- Motivation theories are distinct: Maslow (needs hierarchy), Herzberg (hygiene vs motivators), Vroom (expectancy).
- Stakeholder analysis must differentiate power and interest.
Worked example
A firm faces intense rivalry, powerful buyers and low switching costs. Porter's five forces suggest weak industry attractiveness. A differentiation strategy, building brand and service quality, may reduce buyer power by creating switching costs; a pure cost strategy may fail if scale advantages are unavailable.
Rule of thumb
Always link analysis to a decision: name the tool, state the finding, and state the strategic implication.