EXCEL BUSINESS ACADEMY

ASSIGNMENT ON: STRATEGIC MANAGEMENT

SUBMITTED TO: PROF. DEEPA

SUBMITTED BY: LOVELY CHOUKSEY

How can value chain analysis help to identify a company's strength and weakness?
Answer:
Porter's Value Chain Model identifies the areas/activities where the business is "adding value" to the customers. This model specificslly focuses on customer oriented activities. For example if a car manufacturing company produces such a car which will help its customers save on fuel costs, this is such an activity which adds value to the customer. As far as it's about strengths and weaknesses, this model will help organisation identify those areas where they are adding value to the customer(strength areas) and those areas where they need attention to add values because value chain is all about how you do something extra for your customers which your competitors can't or don't.

How does SWOT Analysis Compared with Portfolio Analysis? Answer:

Comparison of SWOT Analysis with Portfolio Analysis: Analysis tools can be extremely valuable to a small business owner. Whether you are starting out or you have already developed a business, it is useful to assess your business and your decisions using analysis methods. Two business analysis methods are the SWOT analysis and portfolio analysis. While these methods differ significantly, they can both be used for the benefit of your business. Purpose A SWOT analysis is used at the level of the individual business to identify the company's strengths and weaknesses, as well as external opportunities and threats. Portfolio analysis, on the other hand, is performed at the market level by analyzing the performance of a portfolio of stocks. A SWOT analysis is used to improve the performance of a specific business, while a portfolio analysis is used to improve investments in several businesses. Method Portfolio analysis is a method of mathematical modelling based in financial and economic theory. Portfolio analysis relies purely on numbers without the need to make assumptions. Conversely, a SWOT analysis combines both quantitative and qualitative measures. A SWOT analysis will take cold hard facts, like financial data, but these must be interpreted by the analyst who determines the strengths, weaknesses, opportunities and threats to the business. Benefits A SWOT analysis benefits a firm by allowing it to find potential opportunities in the market that can be exploited using its strengths. It is, therefore, a very beneficial tool for small businesses that are looking to expand. Portfolio analysis is generally used by investors and fund managers, but it can also be used by businesses to determine their own investments; for example, it can be used to select a portfolio of projects or external businesses to invest in. History Harry Markowitz first developed portfolio analysis in his 1952 article "Portfolio Selection" published in "The Journal of Finance." Subsequently, his ideas were further developed by researchers throughout the latter half of the 20th century. The origins of the SWOT analysis are less clear, although Albert Humphrey, a researcher a Stanford University, is generally credited for the creation. He led a research project through the 1960s and 1970s that ultimately resulted in the development of the model

How does policy related to strategy? Explain. Answer:

A policy is a guide to thinking and action for those responsible for making decisions. On the other hand, a strategy deals with the allocation and deployment of physical and human resources so as to achieve the desired goals in the face of environmental pressures. A strategy may exist without a policy. Strategy and policy may in some cases be coextensive. A strategy deals primarily with environmental constraints and oppor-tunities whereas a policy is concerned mainly with internal management. A policy is a contingent decision and it lays down the response to be made whenever the specified contingency arises. But a strategy is designed to deal with situations about which all facts are not known and, therefore, alternatives cannot be evaluated in advance. The implemen-tation of policy can be delegated but the execution of strategy cannot be delegated because it requires a last minute executive-decision. The process of their formulation is similar. In strategic decisions the identification and analysis of the factors bearing on the problem are more difficult than in case of policy decisions. In essay way, the text views policies as the link between strategy formulation and implementation. They are the broad guidelines to be used in the implementation of strategy. The text takes the position that the dividing line between formulation and implementation is the difference between the planning activities of formulation and the action-oriented activities of organizing, directing, and controlling. Since the development of policies primarily involves planning, not action, they more properly belong within strategy formulation.