This document outlines several tools and techniques for strategic management, including the BCG matrix, GE multifactor portfolio matrix, PESTLE analysis, SWOT analysis, balanced scorecard, VRIO analysis, Mintzberg's 5Ps of strategy, and Porter's five forces model. It provides a brief description of each technique, explaining what factors are considered and how each can be used to analyze an organization's strategy, environment, resources, and competitive position.

1. TOOLS AND TECHNIQUES OF
STRATEGIC MANAGEMENT
1. CRITICAL QUESTION ANALYSIS
2. BCG MATRIX
3. GE MULTIFACTOR PORTFOLIO
MATRIX
4. PESTLE ANALYSIS
5. SWOT ANALYSIS
6. BALANCED SCORECARD
7. VRIO ANALYSIS
8. MI N T Z B E R G ’ S 5 P S O F S T R A T E G Y
9. P O R T E R ’ S F I V E F O R C E S MO D E L

2. Critical Question Analysis
Formulating appropriate organizational strategy is
a process of critical question analysis.
Answering the following four basic questions:
1) What are the purpose(s) and objectives of the
organization?

3. Contd..
2) Where is the organization presently going?
3) In what kind of environment does the
organization now exist?
4) What can be done to better achieve organizational
objectives in the future?

4. SWOT Analysis
o A useful technique for analyzing a firm's position in the
market.
o Considers the firm's internal strengths and weaknesses
against external opportunities and threats.
o This can allow a firm to exploit opportunities using its
strengths, while at the same time improving upon its
weaknesses in order to avoid external threats.

5. Contd..

6. Boston Consulting Group (BCG) Matrix
 The Boston Consulting Group Matrix is the most
common tool for performing a portfolio analysis.
 Considers products and services according to
two dimensions: market growth and relative
market share.

7. Contd..
 According to the BCG Matrix, products and
services with high growth and high market share
are the most desirable, while those with low
growth and low market share are undesirable.

8. Contd..

9. GE Multifactor Portfolio Matrix
• Based on- Industry attractiveness & Business
strength.
As examples, Industry Attractiveness might be
determined by such factors as:
 No. of Competitors in the Industry
 Rate of Industry Growth
Weakness of Competitors within an Industry

10. Contd..
Business Strengths might be determined by such
factors as:
 Company’s Financial Solid Position
 Its Good Bargaining Position over Suppliers
 Its high level of Technology Use.

11. PESTLE Analysis
It’s a way of working out what is going on ‘out there’
so you can then respond to it.
PESTLE stands for Political, Economic, Social,
Technological, Legal and Environmental

12. Contd..
Political Environment :
 Environmental protection/legislation
Consumer protection
 Government’s attitude
Competition regulation
 Advertising standards

13. Contd..
Economic Environment :
 Economic growth
 Taxation international trade
Exchange Rate
Employment law
 Health and Safety law
 Inflation
Minimum wage

14. Contd..
Social :
 Income distribution
Demographics
 Lifestyle changes
 Education
 Health & Welfare
 Living conditions

15. Contd..
Technological :
 Changes in physical sciences
 Internet
Energy use and costs
 Rates of technological obsolescence
 Government and Industry focus on technology
Government spending on research

16. Contd..
Legal :
Employment law
 Health and Safety
 Taxation both corporate and consumer
Other regulations
 International trade barriers
 Strength of the rule of law

17. Contd..
Environmental :
How people’s perception and reaction to
environmental issues can affect a business.

18. Balanced Scorecard
Developed by Robert S. Kaplan and David P.
Norton.
Used by organization to measure its performance.
Includes both financial and non-financial metrics of
the organization’s performance.
Includes various non-financial measures like
customer, business process and learning measures.

19. Contd..
•The balanced scorecard suggests to view the
organization from four perspectives, and to develop
metrics, collect data and analyze it relative to each of
these perspectives.

20. VRIO Analysis
It was developed by Barney, J.B (1991).
Used to analyze firm’s internal resources and
capabilities to find out if they can be a source of
sustained competitive advantage.
VRIO is an acronym for the four questions- the
question of Value, the question of Rarity, the
question of Imitability, and question of
Organization.

21. Contd..
The Question of Value: -"Is the firm able to
exploit an opportunity or neutralize an external
threat with the resource/capability?“
The Question of Rarity -"Is control of the
resource/capability in the hands of a relative few?“
The Question of Imitability - "Is it difficult to
imitate, and will there be significant cost
disadvantage to a firm trying to obtain, develop, or
duplicate the resource/capability?"

22. Contd..
The Question of Organization -"Is the firm
organized, ready, and able to exploit the
resource/capability?"

23. Mintzberg’s 5Ps of Strategy
Developed by Henry Mintzberg in 1987.
Each of the 5Ps of Mintzberg framework has
different approach to strategy.
The 5Ps are – Plan, Ploy, Pattern, Position
and Perspective.
By understanding each P, the organization and
take advantage of its full capabilities and
strengths.

24. Contd..
Strategy as a Plan – Strategy is developed
consciously and purposely for a future situation.
Strategy as a Ploy - Mintzberg says that
getting the better of competitors, by plotting to
disrupt, dissuade, discourage, or otherwise
influence them, can be part of a strategy.
Strategy as a Pattern – With strategy as a
pattern, we learn to appreciate that what was
successful in the past can lead to success in the
future.

25. Contd..
Strategy as a Position – With position,
strategy is about how the organization relates to
its competitive environment, and what it can do
to make its products unique in the marketplace.
Strategy as a Perspective - Perspective
emphasizes the substantial influence that
organizational culture and collective thinking
can have on strategic decision making within a
company.

26. Porter’s Five Forces Model
Developed by Michael E. Porter.
An important tool for assessing the potential for
profitability in an industry. With a little
adaptation, it is also useful as a way of assessing
the balance of power in more general situations.
It works by looking at the strength of five
important forces that affect competition

27. Contd..

28. Contd..
Supplier Power- The power of suppliers to
drive up the prices of your inputs.
Buyer Power - The power of your customers
to drive down your prices.
Competitive Rivalry - The strength of
competition in the industry.

29. Contd..
The Threat of Substitution - The extent to
which different products and services can be
used in place of your own.
The Threat of New Entry - The ease with
which new competitors can enter the market if
they see that you are making good profits.
By thinking about how each force affects you,
and by identifying the strength and direction of
each force, you can quickly assess the strength
of your position and your ability to make a
sustained profit in the industry.

30. THANK YOU
Presented by: Saumya singh
1321760
Christ university