George H. Tompson
Setting Strategic Direction
Industry and External Analysis
Company and Internal Analysis
Corporate-level & Business-level Strategy
Designed for incoming M.B.A students.
Abstract: The purpose of this package is to provide managers with fundamental strategy principles.
Chapter 1 defines strategy and then discusses elements to help one set a strategic direction. The concepts of mission and vision, goals and objectives and characteristics of strategic decisions lead into the strategy process. The chapter concludes with a discussion of the origin of strategy.
Chapter 2 explains some useful techniques for understanding the external environment –any trends, facts, or forces that exist outside the organization that are mostly beyond the organization’s control, but will often influence the outcomes of the organization.s strategy.
Chapter 3 explains internal analysis and how it corresponds to the strategy process cycle. The concepts of financial ratio analysis, balance sheet, equity and interpreting financial ratios are discussed in the chapter. The chapter covers other steps in internal analysis such as supply chain analysis, support activities, using the value chain and VRIO analysis.
Chapter 4 strategy formulation and the interdependent levels of strategy which include corporate level strategy and business level strategy.
Chapter 5 focuses on the implementation of strategy by understanding organizational structures, divisional structures and corporate culture.