Strategic Analysis

Front 1

Def of strategic analysis

Back 1

Conducting research into the business environment and the business itself to help form future strategies

Front 2

What does strategic analysis help to answer

Back 2

By undertaking effective strategic analysis, a business should be able to answer :

1) where is the business now ?

2) how might external events impact on the business ?

3) how could the business respond to these events ?

Front 3

What’s swot analysis

Back 3

A form of strategic analysis that identifies and analyses the main internal strengths and weakness and external opportunities and threats that will influence the future direction and success a business

Front 4

What are the components of SWOT

Back 4

Strengths : these are the internal factors about that a business that can be looked upon as a real advantage

Weakness: These are the internal factors about a business that can be seen as a negative factors, such as poorly trained workforce, limited production capacity

Opportunity: these are the potential areas for example of the business and future profits, such as exports markets explain

Threads: these are also external factors. Such as globalisation driving down prices, changes

Front 5

Benefits of SWOT

Back 5

this approach helps mangagers asses the most likely successful future strategies and the constraints on them, but it’s rarely sufficient. Further analysis and planning are needed before strategic choices Can be made.

As well, subjectivity is often limitation of SWOT analysis as no two managers would necessarily arrive at the same assessment if the company they work for.

Front 6

Explain why SWOT analysis is important when considering new strategies

Back 6

It is an important form of strategic analysis that focuses on the internal features of a business that might influence which future strategies it could adopt ( strengths and weakness). It also identifies the opportunities/ risks that exist external to the business in the market it operates in. This analysis will influence with strategies are considered for t future operation of the business.

Front 7

Should a business decide to take advantage of every opportunity indentifird? If not why not

Back 7

No probably too expensive. It might be advised to consider those opportunities that take advantage of its core competencies

Front 8

Def of PEST analysis

Back 8

The strategic analysis of a firms macro environment - political, economic, social and technological factors

Front 9

Evaluation of PEST

Back 9

this focuses on analysis the macro environment in which a business operates in which the strategy has to operate and be successful. However, it may be constantly updated and reviewed especially in a rapidly wider environment. In addition, some information may be based on inaccurate forecast, such as economic changes.

Front 10

Evaluation of PEST

Back 10

this focuses on analysis the macro environment in which a business operates in which the strategy has to operate and be successful. However, it may be constantly updated and reviewed especially in a rapidly wider environment. In addition, some information may be based on inaccurate forecast, such as economic changes.

Front 11

Suggest social factors for a soft drink business to analyse before starting operations in your own country

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1) Mean/ median age of population

2) cultural diversity og population

3) average family size

Front 12

Difference between vision statement and mission

Back 12

Vision statement is what the organisation would like to achieve in the long term.

While, mission statement refers the business core purpose and focus to be communicated to external stakeholders the central purpose of the business

Front 13

Link between vision statement, mission stamens and strategic analysis + evaluation

Back 13

Vision and mission statement give the sense of purpose to an organisation, that can prevent it from drifting from the objectives of the business. These need to be applicable to the business, understood by employees and convertible into genuine strategic actions

Front 14

Def of Boston Matrix

Back 14

This is a method of analysing the product portfolio of a business in terms of market share and market growth

Front 15

Def of Boston Matrix

Back 15

This is a method of analysing the product portfolio of a business in terms of market share and market growth

Front 16

What are the four Boston Matrix product classification

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1) product a: “Cash cow” - low market growth, high market share. This is for well established product in a mature market. Sales are high and has low promotional cost because of high consumer awareness . The cash from this product can be injected into some of the other products in the portfolio.

2) product B: Star. High market growth, high market share. This is a successful product as it performing well in an expanding market. The firm would want to lengthen the period of its success, therefore promotion cost are high to help reinforce the brand imagine and differentiate the product.

Product c” Problem Child”, low market share, high market growth. If it’s newly launched product, it is going to need heavy promotion cost to help become established. The future of the product, however, is uncertain so quick decision must be takes if sales don’t improve

4) product D: Dog- low market share, low market growth. This offers a little to the business because the market is not growing. It may need to be replaced shortly or to be withdrawn by the market

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Uses of Boston Matrix

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This helps to give an analytical performance and current position in the market. As well, it encourages managers to take strategic decisions about existing products such as:

1) Build problem children for example with the cash obtained by cash cow

2) Divest” intending these worst performing dogs and stop the production and supply of these

3) Hold or support start products to lengthen the period of success. Work may be needed to “freshen”the product in the eyes of the consumers

Front 18

Evaluation of Boston matrix

Back 18

It doesn’t provide strategic choices for a business, but it analyses a business products portfolio and highlights those products that might need action to be taken. However, it cannot explain why a product in in the position it is, and assumes high market shares are always more profitable that low market shares. High profit margins is made on a low volume product

Front 19

What is the five forces analysis

Back 19

Micheal Porter models that an industry is influenced by five forces and by undertaking the forces that determine competitive rivalry, it can attempt to establish a competitive advance over rivals

Front 20

Name the five forces of analysis

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1) Barriers to enter. This is the ease with which other firms can join the industry. For E.g., the level of economies of scale, technology, legal restriction in entry, product differentiat

2) The Power if buyers

3) the power of suppliers

4) the threat of substitutes

5) competitive rivalry

Front 21

Uses of porters Five Forces

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1) it helps to analyse whether the firm should enter or not

2) Business can develop strategies that might improve their own competitive position. These includes :

I)product differention

ii) Focusing on different segments that might be less competitive

iii) communicate and collide with rivals to reduce competition

3) it helps to analyse which best decision can be taken such as “ how would we reduce the level of competitive rivalry in these markets “

Front 22

Evaluation

Back 22

Porters model enables managers to think about the current competitive structure and is a good starting point

1) it’s a static analysis

2) model can become complex ehrj trying to analysis modern industries

Front 23

Def of core competence

Back 23

This is an important business capability that gives a firm competitive advantage

Front 24

Def of core competence

Back 24

This is an important business capability that gives a firm competitive advantage

Front 25

What does the business have do if they want to be commercial and profitable

Back 25

)1 provide recognisable benefits to consumers

2) not to easy to be coped I) patent design

3) be applicate to a range of different products and markets

Front 26

What happens after establishing a core competence

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Once a core competence has been established, it opens up strategic opportunities for developing new core products and consumer products. Core products are products based on the firms competence.

However, it raises the question, should business only pursue stargies based on a firms core competence?