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CA Intermediate · Financial Management & Strategic Management

Introduction to Strategic Management

Chapter 5 · 0 formulas · 4 exam-critical pointers

Core concepts

  1. 01Strategy: long-term direction & scope to achieve advantage through resource configuration.
  2. 02Levels: Corporate, Business, Functional.
  3. 03Vision, Mission, Goals, Objectives — hierarchy.
  4. 04Strategic Management Process: Environmental Scanning → Formulation → Implementation → Evaluation.
  5. 05Competitive advantage from cost leadership, differentiation, or focus (Porter).

Flowchart

Strategy Hierarchy Corporate | Business Unit (SBU) | Functional (Marketing, Finance, Ops, HR) Process: Scan -> Formulate -> Implement -> Evaluate

Exam-critical pointers

  • Distinguish strategy (Ans 'How') from objectives ('What').
  • BCG matrix: Stars, Cash Cows, Question Marks, Dogs — relative market share vs growth.
  • Ansoff Matrix: Market Penetration, Product Development, Market Development, Diversification.
  • Strategic Intent — Vision + Mission + Business Definition + Objectives + Goals.

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