Summary Mind map CPA Australia GSL (Just 8 Pages) for Semester 1, 2026

1. Introduction 2. Approaches

Evolution of Strategy Rational Processual Other strategy
 Strategos – art of planning &  Formal & rational  By nature complex,  Evolutionary approach
conducting war interactive &
 Porter 5 Forces  Systemic approach Introduction to
 Porter - ∏ depends industry adaptive
characteristic & position 1. Rivalry Strategy &
 Practice & action  Strategy perspectives : some
 Mintzberg – shud flexible dev. 2. Supplier bargain power implications for leader Leadership
continuosly, intuition & 3. New competition
creatiivity 4. Substitute product
5. Customer bargain power
Differentiating Strategy
 From improving day to day 3. Strategy Process
operations
 Porter – distinct, specific External environment
market niche, geo location,
 Remote & industry
specific type product
environment
Emergence of Strategy  PESTEL
 Means for senior mgmt to Internal environment
communicate task of  Strategy
coordinating complex act to  Key driver
 Operations
achieved goal
 People & Organization
Developing Strategy SWOT
 Role of Leadership Growth options in product & market
 Ethics in leadership
 Classical view Strategy options, theme &
 Socioecon view implementing final strategy
Leadership & Decision Making
6. Global Context of Business

Drivers of Globalization
4. Strategy Thinking
 Competitive Benefits
 Technological  Costs benefits
 Timing benefits Link strategy thinking & planning
 Social
 Political  Learning benefits Strategy Fit & Stretch
 Arbitrage benefits Strategy equation
Challenges
 Competition  Physical
 Distribution  Political
 Macro-econ  Sociocultural 5. Level of Strategy
 Socioeconomic  Labor
 Financial  Technological  Corporate
 Legal  Globalization Risk  Business
 Functional
Value of Localization
7. The role of Accountant
 As a strategic business driver 1

, Understanding The External Environment

Understanding The External Environment Environment Analysis Customer And Market
Who are customer?
Factor outside the organisation Define Market: A market is a group of consumers
Define External Remote Industry
that influence The Organisation with similar needs.
Environment Strategy Environment Environment
- Porter’s Five Forces of Industry
Define Industry A group of organisations or  P - Political Competitiveness
Customer Market Segmentation
business units participating in  E - Economic
-Wide/Narrow similar econ or commercial  S - Social
activities, producing similar  T - Technological Demographic Age, Language, Income Level, Genders,
Industry Value Chain products or providing similar  E - Environment Family Size, Race, Religion, Nationality
activities  L - Legal
Psychographic Lifestyle,, Cultures, Personality
- Comprises the business processes, people,
organisation, technologies & infrastructure Behavioral Usage level Brand/Loyalty
which transform RAW MATERIAL into FINISHED Online, supermarket, Convenience Store
Distribution Channel
GOOD/SERVICE.
A Manufacturing Industry Value Chain Geographic Distinct by their location
Raw Raw Purchasing Product Manu Logistics Marketing Retailing/
Material Material Design facturing and & Sales
Production processing Distribution retailing  Government What Basis Industry Compete?
 History  Life Cycle
 Market  Supplier’ Suppliers 1. Demand
Backward/Upstream Forward/Downstream  New Entrants  Buyer’ Buyers 2. Choice
 Suppliers  Competitors
 Industry Rivalry  Strategic Group 3. Price
Industry Life Cycle  Substitute  Customers 4. Cost
PESTEL
5. Current And Potential Risk.
1. Introduction - small industry, not well established
Step For Analysing An Industry
2. Start Up - No Substitute Political Tax policy, rebate, subsidy, political change
3. Growth - Rapidly grow, rivalry LOW, strong demand Step 1: Definition of Industry, Its Value Chain And Industry (GOVERNMENT POLICY TREND)
growth, cash needed for investment, average Segment
Economic Interest, Exchange, Growth, Inflation Rate
annual growth 8%. Step 2: The Industry Life Cycle Unemployment, Labour Cost, Price Down
Not much product differentiation.
Step 3: PESTEL ( Remote & Industry Analysis)
4. Maturity - normal growth rate, rivalry HIGH Social/ Behaviour of customer market
▪ Evolution of the industry to it CURRENT STATE &
- emphasis on cost control/product demographical
Key factors for historical growth/Profitability
differentiation/market segmentation e.g Nike
Step 4: PORTER’S FIVE FORCES MODEL Technological Globalisation & communication
5. Shake Out - rivalry LOW, some co. withdraw
▪ How factors affecting growth & profitability may (INFRASTRUCTURE & NEW DEVELOPMENT)
- other cut unprofitable operation
change, and the impact in future.
6. Decline - more co. withdraw from the market, Environment Energy Sources
reduce to small size
Step 5: BLUE OCEAN STRATEGY (BOS)
(Understanding customer and market) Legal Legislation (employment, environmental,
7. Renewal - threat of substitute is HIGH health & safety law)
- growth in demand due to radical innovation Step 6: COMPETITIVE POSITIONING MATRIX
- e.g: Low cost airlines ( The basis of competition )
What Industry Key Success Factor?
E.g Industry Product 4 Action Framework BOS
Industry segmentation segmentation
1. Strong Brand Name
Segmentation  Reduce
Airlines International Airline First Class  Create 2. Efficient Selling
Regional Airline Business Class
 3. Distribution Network
Define: characteristic of good/services Low Cost Airline Economy Class

Raise
Eliminate 2
4. Effective Brand –Support, Mktg, Strong Merchandising

, 1. Identify key stakeholder 4. Techniques for interacting
 Partner
2. Alignment of stakeholder needs
 Consult Step 3
3. Assess stakeholder groups  Inform Qualitative analysis
 Manage
Power/Interest Grid Future direction
Step 1
Subject Players Identify Key Stakeholder  The Growth Web
*Employees *CEO and Boards Assessing  Extended SWOT
*Retailers *Shareholders Internal
Interest




Environment
Context setters
Crowd
*Customers Desired outcomes
*Suppliers
*Governments Step 2 Gap Analysis VS
Assessing Performance Expectation
Power
1. Unexpected
i. Strategic Driver ii. Operational Driver 2. Incongruity
iii. People & Organisation
3. Process needs
1. Industry & market - Shareholder view 4. Structural changes
 Performance measures - Values
7 drivers of
in market/ind
2. Customers - Stakeholder view
 Effective date collection - Innovation & Learning creation & 5. Demographic
3. Product/Services BCG product matrix 6. Changes in
High  Help mgmt. develop & innovation
(Drucker) perception
- Effective measurement criteria implement strategy
7. New Knowledge
Question Marks Stars  Support decision making - Capabilities
 Motivate manager &
Market growth rate




4. Channels employer  From organizational resources to strategic capabilities

 Sales No  Communicate/signal to  Valuable? VRIN
Man’s Dogs Cash Cows stakeholders  Understanding strategic  Rare?
 Product Land
capabilities & resources
 Service Low - Competitive business environment benchmarks  Costly to imitate or
Low Company market share High
replicate?
 Profit & Revenue (by service line)  Non-substitutable?
5. Competitive advantage - Further analysis method  Cost
(Potter)  Analyzing functions
 Identifying Strategic capabilities
& resources
Differentiation Low Cost Balance Score Card
 Specific  Analyzing processes
 No-frills product  Customer & systems
 Product quality Setting goal when  Measurable
 Simple product design  Internal Process completed  Measuring performance of strategic capabilities
 Product reliability  Achievable
 Inexpensive location  Learning & Growth (SMART)
 Innovation  Relevant  unstructured
 Product range  Process innovation  Financial - Big data – deeper & faster analysis
 Timely  not easily coded/stored
 Service level  Purchasing low price
assets Goals should be: The sequence:  Difficulties & concern with for future analysis
 Features
 Financial info  Set objectives/goals big data  range of issues need to
 Brand name be managed (obsolete,
 Image Focus  Customer info  Determine measure of
 Problems costly, privacy)
 Distribution channels  Internal process performance
 Narrow product line
 Value discipline measures  Set target of performance  Established right systems
 Narrow customer
 Flexibility segment  Innovation, learning  Devise initiatives for achieving  Analyzing data
 Effective execution  Narrow geo segment & growth measures targets 3
 Remain competitive in faster/dynamic business
environment