MGT 300 1st Edition Lecture 7 Outline of Current Lecture II. StrategyIII. PositioningIV. SWOTV. PorterCurrent LectureBASICS- Strategy o large-scale action plan that sets the direction for an organization- Strategic management o process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goalsPositioning- attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company- “performing different activities from rivals, or performing similar activities in different ways”- Few needs, many customers- Broad needs, few customers- Broad needs, many customers- Growth strategyo involves expansion - as in sales revenues, market share, number of employees, or number of customers- Stabilityo involves little or no significant change- Defensiveo involves reduction in the organization’s effortso retrenchmentSWOTThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Environmental scanningo carefully monitoring of an organization’s internal and external environments to detect early signs of opportunities and threats that may influence the firm’s planso Organizational strengths  skills and capabilities that give the organization special competencies and competitive advantages in executing strategies o Organizational weaknesses  drawbacks that hinder an organization in executing strategies in pursuit ofits mission Examples culture, IT infrastructure, company imageo Organizational opportunities  environmental factors that the organization may exploit for competitive advantageo Organizational threats  environmental factors that hinder an organization’s achieving a competitive Examples technological change, government interventionPorters 5 forces- Threat of new entrants- Bargaining power of supplierso easy supplier switching- Bargaining power of buyerso bigger customers get better deals- Threat of substitute products or services- Rivalry among competitorso level of