Business Strategy - 4MBS650

Exam Preparation / Revision

Slides

4MBS650 Business Strategy

Examination

Open book, based on a case : Whats

Wrong With The Company Strategy?
can bring in ANY written/printed material
can NOT bring in PC, PDA, mobile phone
careful preparation => concise set of notes
NO SUPPLEMENTARY RESEARCH

Case available for collection from U/G

office

What will be in the exam?

FOUR questions in 2 hours (each question

worth 25 marks)
Questions may relate to anything covered in the
module but you will need to draw definite
conclusions / recommendations
It is STRONGLY recommended that you use the
worksheets for the cases studied in the
seminars as the templates for structuring your
analysis of the case /examination preparation.

You should
Spend time fully analysing the case
Bring a concise set of notes containing
your analysis into the exam

Key to Case Analysis

I keep six honest serving men
(They taught me all I knew)
Their names are What and Why and
When;
And How and Where and Who.
(By Rudyard Kipling)

The best answers show

mature judgement

Focus on a few key RELEVANT points and

develop them IN DEPTH
Use theory as basis of precise analysis
But dont regurgitate it without applying it

Consider trade-offs, risks etc

JUSTIFY your views / decisions
Introduce ideas not mentioned in the case
Analysis as basis for independent thought

Clear conclusions we might disagree with!

Questions may require you to combine the results
of several analytical tools to form
CONCLUSIONS

Key Elements

Evaluating External Environment

Driving Forces
KSF
Industry Attractiveness

Internal Analysis
Core Competencies
Value Chain

Competitive stance / Strategic approach

Generic Strategies
Sustainability and strategic issues
Diversification

Strategy Implementation
Culture and Leadership
Building Organisation

What is the purpose of a

Business Strategy?

Business Strategy is concerned with

improving the competitive position of a
company in its business environment

NOW

FUTURE
Strategy

Put simply

Profit = Revenue Costs

Increase profit by increasing revenue
Have more attractive product offering than
competitors
Predicting / identifying customer needs
Satisfying these needs new product, new delivery
mechanism, new delivery channel, responding to
other concerns (e.g. environment etc)
Entering new markets

Increase profit by decreasing costs

Improving efficiency and effectiveness

What makes a winning

strategy?

Fit

With environment
Between strategy, resources and architecture

Distinctiveness

In competitive stance
In value chain (=> low cost and/or superior
products)

Sustainability

Enduring distinctiveness (reputation, know-how)

Means of sustaining fit and distinctiveness as
environment changes

Key Questions?
How will the industry / industries in
which it operates change over the next
few years?
What impact will this have on the
attractiveness of the industries?
Will there be any growth? If so where?
What are the opportunities and threats?

Key Questions Regarding the

Industry and Competitive
Environment
What are the
industrys
dominant
economic traits?

How strong are

competitive
forces?
What market
positions do
rivals occupy?
What moves will
they make next?

What forces
are driving
change in the
industry?
What are the
key factors for
competitive
success?

How attractive
is the industry
from a profit
perspective?

Industry
What are the
industrys
dominant
economic traits?

How strong are

competitive
forces?

What forces
are driving
change in the
industry?

Analyse Industry using

PEST
Porters 5 Forces
Industry Life Cycle

Key Questions Regarding the

Industry and Competitive
Environment

Analyse Market / Competitive

Environment by using
Porters Five Forces
Competitor Intelligence
Strategic Grids
What market
positions do
rivals occupy?
What moves will
they make next?

Combine results to get

What are the

key factors for
competitive
success?

How attractive
is the industry
from a profit
perspective?

Questions

How can the co maintain / retain profit

growth?
How can it keep its shareholders happy?
How can the co. exploit opportunities and limit
the impact of threats?
Internal Strengths and Weakness
Current Strategic approach / Strategy (Does this
need to change?)
Other Considerations

Analysis:
The Key Questions
1. How well is the companys
present strategy working?
2.
What are the companys resource
strengths and weaknesses and its
external opportunities and threats?- SWOT
3. Are the companys prices and
costs competitive?
4. Is the company competitively stronger
or weaker than key rivals? Competitive Strengths
Assessment
5. What strategic issues merit
urgent managerial attention?

The Five Generic Competitive

Strategies

A Companys Menu of Strategy

Options

Other Considerations

Expanding Markets

Fitting strategies to particular situations

Diversification

Corporate
Culture and
Leadership

Key Questions

What would you advice Cos

management to do?