The exercise calls for an analysis of the external environment using appropriate strategic models and frameworks (such as the PESTEL Framework, Five Forces Framework and Industry life Cycle Model), which will be discussed at class lectures and tutorials. This section also requires the identification of the Critical Success Factors for the industry. Finally, deriving from external analyses, you should then discuss the likely opportunities and threats for the subject company.
PART II Internal Analysis This section entails an internal analysis which is more specifically concerned with the company relative to its competitive environment. Here, models such as the Competency Framework, VRIN Framework and Value Chain Model can be used to analyse resources and competencies that currently exist for the company (and those which might further need to be addressed) in the pursuit of sustainable competitive advantage.
The final part of this section calls for a comparative analysis of the company’s Internal Capabilities matched against the Critical Success Factors for the Industry (as previously identified by you in Part I). PART III Issues & Challenges Facing the Company This section involves providing a synopsis of the issues and challenges facing the subject company which should emerge from both the external and internal analyses. The focus here must be squarely on the current impediments/caveats the subject company is facing in its drive to remain competitive.
PART IV Generation of Strategic Growth Options From this vantage point, you will then need to generate a number of Strategic Options (two or three) that the company could pursue in its efforts to continue to grow and develop (and in response to the issues and challenges identified in Parts I and II). The ANSOFF Matrix will be a useful analytical tool here. You should clearly describe each option and provide some rationalisation for your choice. PART V Evaluation of Strategic Growth Options.
The purpose of this section is to evaluate each of the strategic growth options (previously identified by you in Part IV) using the SAF Framework. Please note that evaluation must comprise both evaluation criteria and a ranking mechanism in order to emerge with best option/(s) for the company it its pursuit of growth and development. It is not sufficient merely to state your results but rather you will need to provide good analytical justification for your chosen option/(s). PART VI Description of Selected Strategy You will now have selected a chosen strategic option/(s) from among the 2-3 previously selected.
You now need to provide more detailed reasons why you have selected this option/(s) (making reference to the evaluation criteria and addressing environmental issues and concerns). Include some discussion of whether your selected strategic option is consistent with the subject company’s generic strategy. Your discussion must also involve an assessment of whether the subject company has the internal capabilities (or access thereto) to carry out this strategy successfully and the resources (or access thereto) required for successful implementation.
Discuss also whether this strategy will provide real sustainable competitive advantage for the subject company and/or allow for its growth and development into the future. PART VII Conclusion Provide a brief summary of the major findings arising out of your analyses and leading on to your final recommendations for the chosen strategic option/(s). Include any caveats or challenges the company may face in trying to sustain a competitive advantage over its rivals.
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