[CB DRAFT] BUS501: Strategic Management
Topic outline
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When someone says their "strategy" in basketball is simply to win, they're not describing a strategy. A strategy is a deliberate, goal-oriented plan of action. For example, a more accurate basketball strategy might be: "I will apply defensive pressure to force turnovers and capitalize on the opponent's mistakes to increase our chances of winning." Strategy begins with clearly defining your goals; only then can you create a plan to achieve them.
In business, strategy operates much like in sports, politics, or even warfare. Many early business strategists studied military strategy to gain insights into competition and tactics. While the science of strategy has evolved, the core idea remains: success requires a thoughtful, intentional approach.
Strategic management is setting goals, analyzing the environment, formulating strategies, and implementing them effectively. It starts with defining an organization's mission, purpose, and future direction. From there, the process includes conducting internal and external analyses (like SWOT or PESTLE), identifying opportunities and threats, and crafting strategies that align with the organization's strengths and values. Once developed, strategies must be executed, monitored, and refined based on performance and changing conditions.
For instance, if a company sets a goal to increase sales by 50% in three years, the real challenge lies in determining how to reach that goal. Will it lower prices, acquire a competitor, expand into new markets, or pursue a different path entirely? And if lowering prices is the chosen strategy, how will the company maintain profitability? These are the types of critical questions that strategic managers must answer.
This course serves as the capstone of the Saylor University Business Administration program because it integrates concepts from all previous courses. If you've completed those, much of the content will be familiar, but you'll learn to connect the dots and apply that knowledge strategically here. The course begins by defining strategy, then moves through each component of the strategic process: establishing mission and values, conducting internal and external analyses, developing a competitive advantage, crafting strategies, and finally, implementing and monitoring them. It also covers important considerations like leadership, ethics, and adaptability. By the end, you'll have a comprehensive understanding of thinking strategically and leading effectively in dynamic business environments.
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Before you can design a successful strategy for your organization, starting with a strong foundation is essential. This unit introduces key terms like strategy, markets, firms, and management that will be explored in greater depth throughout the course. Understanding these core concepts is critical for grasping how organizations navigate competitive environments and develop strategies based on these environments. This unit will address some basic definitions of strategic management, provide a high-level introduction, and consider economic factors, such as market structures, before we move on to developing strategies.
Completing this unit should take you approximately 3 hours.
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As you learned in the last unit, the strategic management process is not stagnant, but instead, one that changes based on the organization's needs. However, we can outline the basic process as: performing external analysis, performing internal analysis, strategy development (based on organizational goals), and strategy execution. In this unit, we will focus on goal setting, visions, missions, and external and internal analysis as first steps in the process. This includes setting goals and performing SWOT and PEST analyses. As you read through these resources, consider that every company will probably utilize a slightly different process and strategic management steps. Despite this, the basics of strategic management are the same: knowing the strengths of your business, the external market, and what goals you hope to achieve. These are the building blocks of your strategic plan! As you read, consider how different industries might focus more heavily on certain areas of their mission, vision, and internal and external analysis.
Completing this unit should take you approximately 6 hours.
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Now that we've addressed the meaning of strategy, the first aspects of strategy development (vision and mission), and internal and external analysis, we can address strategy selection. Many tools can be used, but the main goal of most strategies is to create a competitive advantage. The success of a strategy depends on the firm's competitive advantage, or whether its position in a competitive market allows it to achieve its goals, which might include higher returns on investments, greater efficiency, or superior effectiveness compared to competitors. Let's address some considerations for creating a competitive advantage and some models we can use to formulate a strategy.
Completing this unit should take you approximately 3 hours.
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As we continue with our discussion on strategic plans, we will now address the last step: execution of strategy. Execution is the actual implementation of the strategy, and all decisions must occur to ensure the strategy is effectively executed. This might include organizational design, or it might include focusing on methods for growth.
Completing this unit should take you approximately 4 hours.
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So far in this course, we have addressed the strategy development process, which includes goal setting, like creating a mission and a vision, external and internal analysis, strategy development, and tools for strategy execution. In this unit, we will address some other important considerations when creating and implementing business strategies. This can include elements like effectively motivating and leading, ethical considerations, and technological changes that can help us develop strategic plans.
Completing this unit should take you approximately 6 hours.
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This study guide will help you get ready for the final exam. It discusses the key topics in each unit, walks through the learning outcomes, and lists important vocabulary. It is not meant to replace the course materials.
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Take this exam if you want to earn a free Course Completion Certificate.
To receive a free Course Completion Certificate, you will need to earn a grade of 70% or higher on this final exam. Your grade for the exam will be calculated as soon as you complete it. If you do not pass the exam on your first try, you can take it again as many times as you want, with a 7-day waiting period between each attempt. Once you pass this final exam, you will be awarded a free Course Completion Certificate.
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