CHAPTER 3 : Evaluating A Company's External Environment

Let’s pray for our friend Kak Nazifah so that the operation goes smoothly and everything will be fine. Al-fatihah.

For the third class, we learn chapter 3 which is EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT. Basically this chapter tell us to thinking strategically about the company’s situation to choosing the best strategy. There are two important core concepts that should be focused which are the macro-environment and the PESTEL. PESTEL analysis focuses on the six principal components of strategic significance in the macro-environment:

Competitive pressure from rivals ;D 

After that, we have to know the five competitive force. For example competition from rival sellers, potential new entrants, producers of substitute products, supplier bargaining power and customer bargaining power.In business it is common situation of competitive pressures that increase rivalry among competing sellers. For instance buyer demand is growing slowly or declining, it is becoming less costly for buyers to switch brands and many more.

But, there must be solutions for every problem. Business should use the ‘weapon’ for competing the rivals like price discounting, clearance sale, using ads to enhance a company image or maybe building a bigger, better dealer network.Besides that, in a business operation they have to know competitive pressures from the sellers of substitute products, stemming from supplier bargaining power and also stemming from buyer bargaining power and price sensitivity. 

A company’s strategy is increasingly effective the more it provides some insulation from competitive pressures, shifts the competitive battle in the company’s favor, and positions firms to take advantage of attractive growth opportunities.

In addition, we have to know what is strategic group is. Strategic group is a cluster of industry rivals that have similar competitive approaches and market positions. Strategic group mapping is a technique for displaying the different market or competitive positions that rival firms occupy in the industry. There are typical variables used in creating group maps such as price/quality range, geographic coverage and so on.

In order to build a success business, of course we have to know the key success factors are the strategy elements, product and service attributes, operational approaches, resources, and competitive capabilities that are essential to surviving and thriving in the industry.

"Life is the continuous adjustment of internal relations to external relations."

--Herbert Spencer 

CHAPTER 2 : The Business Vision and Mission

17 September 2013

For the second lecture, we learn 2 chapters about The nature of strategic management and The business vision and mission. Basically, strategic management includes three stages which are formulation, implementation and evaluation cross-functional decisions that enable an organization to achieve its objective. On the other hand, strategic planning involve only formulating stages. And I sure, in order to make a good strategy there are so many aspects that need to be concerned.

These three strategies have their own benefits. For example, it is very useful in enhancing communication, improved understanding, and greater commitment and surely to help the firm succeed (the result).

Secondly, we proceed our lecture with second chapter. Roughly, it’s about vision and mission of business. In our life, we also need vision and mission to make sure that we get what we dream in the end. Similarly with business, it needs vision and mission to forming a journey of successful business. The vision statement is “what do we want to become?” and the mission statement is “how are you want to become?” .

                       Happy Malaysia Day!

Vision without action is a daydream. Action without vision is a nightmare.

-Old Japanese-

Syahirah ST

CHAPTER 1 : The Nature of Strategic Management

10^th September 2013.

My first class for strategic management. Personally I didn’t expect to get a young, active and very cute woman as my lecturer. For the first activity, Miss Ummi provide newspapers for each group and told us to build high tower. High as we can. The class become noisy as we laughing and screaming in order to build the best high tower. 

And finally, the champion is our classmate group, Ada. For me, it is such a fun and great starting for this subject. From this activity, we learn how to manage the time given in order to get the best result. Everyone in the group have to participate directly and give their own opinions and idea either he/she is the leader or the followers. Such a good and beneficial subject as we can apply what we learn in the class to our daily activities.

 "Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them."

—Paul Hawken, Natural Capitalism


Syahirah ST