Only study guide for
MNG3701
Semesters 1 & 2
Department of Business Management
University of South Africa, Pretoria
,© 2022 University of South
Africa All rights reserved
Printed and published by
the University of South
Africa Muckleneuk, Pretoria
MNG3701/1/2023
70680256
InDesign
MNB_Style
,CONTENTS
Page
LESSON 1: The evolution of management theories 1
1.1 The evolution of the management thought 2
1.2 Responsible management 6
1.3 Responsible management and strategic management 13
1.4 Conclusion 16
LESSON 2: The role of strategic management in an organisation 16
2.1 Introduction 18
2.2 Strategic management and its components 19
2.3 The universal principles of strategic management 21
2.4 The role of strategic management in realising the desired outcomes
of an organisation 22
2.5 The different levels of strategy in the organisation 23
2.6 The meaning of strategic success 25
2.7 A contemporary strategic management framework 26
2.8 Conclusion 27
LESSON 3: Setting strategic direction 29
3.1 Introduction 30
3.2 The process perspective on strategic management 30
3.3 Criticising the process perspective on strategic management 31
3.4 Explain the role of strategic direction in strategic planning 33
3.5 The last two steps in the strategic planning process 41
3.6 The last two phases in strategic management 42
3.7 Conclusion 42
(iii) MNG3701/1
, LESSON 4: Analysing the external environment of the organisation 44
4.1 Introduction 44
4.2 The purpose of environmental analysis in strategic management 45
4.3 Analysing the remote environment 47
4.4 Analysing the market environment of an organisation 56
4.5 Integrated external analysis of an organisation 61
4.6 Conclusion 62
LESSON 5: Analysing the internal environment of the organisation 63
5.1 Introduction 63
5.2 The importance of resources, capabilities and core competencies in
strategic management 64
5.3 How do resources and capabilities become core competencies? 69
5.4 The resource-based view of internal analysis 73
5.5 Identifying the resources, capabilities and core competencies of an
organisation 74
5.6 The contribution of resources, capabilities and core competencies
towards competitive advantage and sustainable competitive advantage77
5.7 Capturing the value generated by resources and capabilities 78
5.8 Conclusion 79
LESSON 6: Developing appropriate business-level strategies 81
6.1 Introduction 81
6.2 Business-level strategic options 85
6.3 Best-cost provider strategy 78
6.4 Focus strategy 86
6.5 Evaluating strategic choices 87
6.6 Conclusion 90
(iv)
MNG3701
Semesters 1 & 2
Department of Business Management
University of South Africa, Pretoria
,© 2022 University of South
Africa All rights reserved
Printed and published by
the University of South
Africa Muckleneuk, Pretoria
MNG3701/1/2023
70680256
InDesign
MNB_Style
,CONTENTS
Page
LESSON 1: The evolution of management theories 1
1.1 The evolution of the management thought 2
1.2 Responsible management 6
1.3 Responsible management and strategic management 13
1.4 Conclusion 16
LESSON 2: The role of strategic management in an organisation 16
2.1 Introduction 18
2.2 Strategic management and its components 19
2.3 The universal principles of strategic management 21
2.4 The role of strategic management in realising the desired outcomes
of an organisation 22
2.5 The different levels of strategy in the organisation 23
2.6 The meaning of strategic success 25
2.7 A contemporary strategic management framework 26
2.8 Conclusion 27
LESSON 3: Setting strategic direction 29
3.1 Introduction 30
3.2 The process perspective on strategic management 30
3.3 Criticising the process perspective on strategic management 31
3.4 Explain the role of strategic direction in strategic planning 33
3.5 The last two steps in the strategic planning process 41
3.6 The last two phases in strategic management 42
3.7 Conclusion 42
(iii) MNG3701/1
, LESSON 4: Analysing the external environment of the organisation 44
4.1 Introduction 44
4.2 The purpose of environmental analysis in strategic management 45
4.3 Analysing the remote environment 47
4.4 Analysing the market environment of an organisation 56
4.5 Integrated external analysis of an organisation 61
4.6 Conclusion 62
LESSON 5: Analysing the internal environment of the organisation 63
5.1 Introduction 63
5.2 The importance of resources, capabilities and core competencies in
strategic management 64
5.3 How do resources and capabilities become core competencies? 69
5.4 The resource-based view of internal analysis 73
5.5 Identifying the resources, capabilities and core competencies of an
organisation 74
5.6 The contribution of resources, capabilities and core competencies
towards competitive advantage and sustainable competitive advantage77
5.7 Capturing the value generated by resources and capabilities 78
5.8 Conclusion 79
LESSON 6: Developing appropriate business-level strategies 81
6.1 Introduction 81
6.2 Business-level strategic options 85
6.3 Best-cost provider strategy 78
6.4 Focus strategy 86
6.5 Evaluating strategic choices 87
6.6 Conclusion 90
(iv)
