Porter’s five forces analysis

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  Michal Porter’s five forces is an important strategic planning tool. It is a powerful tool that helps strategy analysts understand how competitive their industries are and their potential profitability. Porter has identified five competitive forces that shape every industry. This article explores each of Porter’s five forces. Who is Michael Porter? Michael Porter was born in 1947. He is one of the greatest thinkers on management and competitiveness. He is an American academic and is the author of 19 books and over 130 articles. Porter is the Bishop William […]

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Advantages and disadvantages of strategic planning

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What is strategic planning? Strategic planning is very important as it charts the direction of an organisation. Organisations often engage in strategic planning in order to develop, implement and evaluate their strategies. Strategic planning refers to the decision-making and planning process that guides the long-term direction of an organisation (Plunkett & Attner, 1994). However, there are some advantages and disadvantages of strategic planning that we need to be aware of. This article will address some of them. Advantages and disadvantages of strategic planning While strategic planning has a number of […]

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BCG matrix – definition and how to use BCG Matrix

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What is BCG matrix? BCG matrix is an important strategic planning  tool. It was developed by Bruce D. Henderson for the Boston Consulting Group (BCG) in the early 1970’s. BCG Matrix helps companies manage a portfolio of different business units (or major product lines) as they sometimes face challenges to allocate resources among their strategic business units. It should be noted that BCG Matrix is also known as Growth-share matrix, Boston matrix, and Portfolio diagram. How does the BCG growth-share matrix work? The BCG matrix considers two variables i.e. relative […]

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Strategic planning process

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Last updated: November 2016 What is strategic planning? Strategic planning is an important topic in strategic management. Organisations engage in strategic planning in order to develop, implement and evaluate their strategies. Strategic planning refers to the decision-making and planning process that guides the long-term direction of an organisation (Plunkett & Attner, 1994). The steps in strategic planning process Different writers have identified different stages in strategic planning. For example, Plunkett & Attner (1994) identified six stages which had subsequently been followed by many writers. The discussion that follows will focus […]

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Difference between strategic risk and operational risk

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Risk management is a very important topic in both Strategic Management and Operations Management. A business may face different types of risk. Not all risks will have an equal impact on the business. Therefore, it is important for managers to understand different types of risk. Definition of risk A risk usually refers to a situation that could be dangerous or have a bad outcome. It can also be defined as the possibility that something unpleasant will happen (Soanes, 2001). According to Canadian Centre for Occupational Health and Safety (2009), risk […]

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PESTEL analysis – definition of PESTEL analysis

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Last updated June 2016 Organisations need to carry out a situation analysis before making any strategic decisions. PESTEL is one the tools which many strategic planners find useful in situation analysis. It helps analysts understand external factors which may impact on the business. The discussion that follows focuses on what PESTEL analysis is and how it works. Brief history of PESTEL analysis PESTEL is also known as PEST, STEEPLE, SLEPT and PESTLE. It is very difficult to establish the true history of PESTEL analysis. However, according to Mind Tools (2016), […]

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What is corporate strategy?

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Strategies are usually divided into three broad categories, namely corporate strategy, business strategy, and operational strategy. Corporate strategic decisions are taken by the highest level of management in an organisation. This mini article focuses on the concept of corporate strategy along with some examples. Definition of corporate strategy Corporate strategy is the direction a company takes with a view to achieving a long-term business success. According to Johnson, Scholes, and Whittington (2006) corporate level strategy is concerned with the overall scope of an organisation and how value will be added […]

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