UNIT 4: RECENT TRENDS IN MANAGEMENT – MICRO NOTES

1. STRATEGY & STRATEGIC MANAGEMENT
Strategy: Integrated & coordinated actions to exploit core competencies for competitive advantage. Word from Greek 'strategos' (military general).
Strategic Management: Set of decisions & actions to formulate & implement strategies to achieve objectives.
Features of Strategic Plan: Long-term focus, Uncertain outcome, Action-oriented, Single-use plan, Formulated by top managers, Aims for competitive advantage, Pervasive (affects all departments).
2. STRATEGIC GROUP MAPPING
Meaning: Technique to visualize competitive position of firms in an industry based on two strategic dimensions (e.g., price & location).
Benefits: Identifies direct competitors, Assesses mobility barriers, Spots future opportunities (empty spaces on map), Ensures customer-centric approach.
3. SWOT ANALYSIS
Meaning: Tool by Albert Humphrey to audit strategic position by matching internal & external factors.
S (Strengths): Internal advantages – Strong brand, patented tech, loyal customers.
W (Weaknesses): Internal disadvantages – High debt, narrow product range, poor online presence.
O (Opportunities): External chances – New technology, growing market, favorable laws.
T (Threats): External challenges – New competitors, recession, rising costs.
Use: Use strengths to grab opportunities, fix weaknesses, avoid threats.
4. BCG MATRIX
Meaning: Portfolio planning tool by Boston Consulting Group based on Market Growth Rate & Relative Market Share.
Stars (High Growth, High Share): Invest/grow (iPhone in early boom).
Cash Cows (Low Growth, High Share): Harvest/milk (Microsoft Windows, Coca-Cola).
Question Marks (High Growth, Low Share): Build/assess (new AI startup).
Dogs (Low Growth, Low Share): Divest/exit (DVD players, old software).
5. STRATEGY vs STRATEGIC MANAGEMENT
Strategy: Plan to achieve advantage (what to do), static, specific point in time.
Strategic Management: Process of formulating & implementing strategy (how to do), dynamic, ongoing & continuous. Strategy is part of Strategic Management.
6. PORTER'S FIVE FORCES MODEL
Meaning: Tool by Michael Porter to analyze industry competition.
1. Rivalry among existing competitors: Intensity of competition (High in airlines).
2. Threat of new entrants: Ease of entry (Low if high capital needed).
3. Bargaining power of suppliers: Supplier control (High if few suppliers like Boeing/Airbus).
4. Bargaining power of buyers: Customer control (High if price-sensitive, many choices).
5. Threat of substitute products: Alternatives available (Trains/buses for short flights).
OTHER MODERN TRENDS
McKinsey 7S Framework: 7 internal elements (Strategy, Structure, Systems, Shared Values, Style, Staff, Skills) for organizational effectiveness.
Six Sigma Analysis: Data-driven method to eliminate defects (99.9966% quality target).