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Contents

Abstract iv
Acknowledgement v
Research Methodology vi
Glossary of Terms vii
List of Tables xi
List of Figures xiii
List of Photos xiv

Part 1 Analysis and Discussion


1. Introduction
Say something about strategy

2. Internal Analysis
2.1 Historical Analysis
2.1.1 Strategic Choices
2.1.2 VMOST
Vision and Mission
Statement What Company is doing? Achieved/ Not Achieved

Strategy
Observed Strategies Alignment to
Vision and
Mission

Tactics
Observed Tactics Alignment to
Vision and
Mission
2.1.3 Product Portfolio
Show Product Portfolio
BCG Matrix (Cash Cow, Star, Problem Child, Dog)
Product Position

2.1.4 Market Definition and Location


Competitors (Rank)..
Rank # Co Market Strength Weaknesses Strategic
Share % options
for
Company
COMPANY
Pepsi
Dr Pepper

2.1.5 Current Competitive Position.


Product Positioning (See MDI Slides)

Company's Aggressiveness Strategy


Company Company Observation Strength/
Behaviour Weakness
Market Leadership Yes/No
Market Follower
Market Challenger
Market Defender
2.1.6 Current Competitive Strategy

VRIO Framework
See Lynch p133 (Note cite Barney as reference)
Resource Valuable Rare Costly to Organized Comparative
Capability Imitate to exploit Implications
COMPANY
Technology
Marketing
Teams
Financial
Performance
Brand
Reputation
Customer
Service
Highly
Skilled
Product
Development
Staff

Ansoff Matrix for Company (See MDI Slides)

2.1.7 Green Strategy

2.1.8 Summary of Historical Analysis


2.2 Financial Analysis
Extract of Financial Data
Accounting Ratios
Strategic Companyss indicators Observations Measure Strength/
Financial (1-10) Weakness
Analysis
Element
Income

Acid Test

Current
Ratio
Gross Profit
Ratio
Net Profit
Margin

Cost Ratios

Average
Stock
Turnover
Share Price
to Earnings
Ratio
Dividend
Payout Ratio
Debt/Equity
(Gearing)
Debtor
Turnover

Summary of Ratio Analysis

Evaluation of COMPANY Financial Position using the CAMELS Framework (Find


online)
COMPANY Measure (1-10) Strength/Weakness
position
C
A
M
E
L
S

2.2.1 Summary of Financial Analysis


2.3 Value Chain Analysis
Porters Value Chain
(Assess each element of the Porters Value Chain in a Matrix)
Element Impact on Measure (1-10) Strength/ Weakness
COMPANY

2.4 Core Competencies Lynch p 137


Do a table like above

2.5 McKinseys 7-S Framework


Maylor, 2010, p 28 (Project Management Text Book)
Do a table like above with all 7 elements from the 7-S Framework
Element What the company does Measure Strength/
(1-10) Weakness

Hard Elements
Strategy
Structure
Systems
Soft Elements
Skills
Staff
Style
Shared Values

2.6 Summary of Strengths and Weaknesses


Strengths and Weaknesses are those identified by the exercises above.
(List main ones)

3. External Analysis
Lynch (2015, p66-69) (Nine Analytical Tools)
For each element below, do a table like the one below from the elements drawn from the
identified pages. Note the sources of the relevant theories when referencing.
Element Particulars Impact on the Measure Strength/
company (1-10) Weakness

3.1 Environment Basics Lynch (2015, p70);


3 elements are listed PLUS Market Segmentation
3.2 Customer Analysis and Market Segmentation Lynch (2015, p98)
(Immediate customer base and wider customer franchise)

Also, customer base must be Lynch (2015, p100):


Distinguishable
Relevant to purchasing
Sufficiently large
Reachable

And, Lynch (2015, p100) Table 3.5 Bases of Market Segmentation

3.3 Competitor Analysis


Customer profile Lynch (2015, p96-97) (bullet points)

3.4 Cooperative Environment


Four Links Model Lynch (2015, p93-94)
Element Companys Links Measure Strength/
(1-10) Weakness

And also apply Porters Diamond elements in a separate table

3.5 Competitive Industry Environment


Analyze using Porters 5 Forces (in a table format)
3.6 Key Factors for Success Lynch (2015, p83- 84)
Using the 3 Cs do a table for each of the Cs which are outlined in pages 84 and 85

3.7 Industry Life Cycle Lynch (2015, p78-79)


(No table to build here)

3.8 PESTEL Analysis Lynch (2015, p73)


3.9 Degree of Turbulence in the Environment Lynch (2015, p72)
Element Degree of Impact on the company Measure Strength/
turbulence in the (1-10) Weakness
industry

3.10 Summary of Opportunities and Threats


Opportunities and Threats are those identified by the exercises above.
(List main ones)

4. Strategic Fit Analysis


Refer to Lynch (2015, p 406-408)

4.1 SWOT Analysis


4.2 EVR Congruence
Element Congruence of the company Measure Strength/
(1-10) Weakness
4.3
Environment
Value
Resources
Balanced Scorecard (Lynch, 2015, p458)
Elements listed 1-4 on page 459
Element Influence on the company Measure Strength/
(1-10) Weakness
4.4

Summary of Strategic Fit


(Current strategy in fit or not in fit)

Part 2 Recommendations
Based on the strategic fit analysis and other evaluations, prescriptive and emergent options for company
to improve competitiveness are listed below.

5. Trend and Sensitivity Analysis


Environmental scenario for the next 3 years (Use Pestle as elements for the table)
Element Particulars Sensitivity Opportunity/
Issues Threat

PESTLE

6. Risk Management
Use PRAM guidelines for Project Risk Analysis and Management. There are 5 options for
treating with risks.
Major risks analysed below.
Option 1 Option 2 Option 3 Option 4 Justification
of choice
P Rating (1-10) Rating Rating Rating
E
A
R
L
S
Risk Management Analysis using PRAM

Risk Effect on the Risk Mitigating


company Rating factors
(1-10)
State risk effect rate PRAM option
with an
explanation.

7. Strategic Options
Based on analyses the following strategic options FOR GROWTH are recommended.
(List strategic growth options)

Evaluate the options in a comparative table using PEARLS

(Option with the highest total rating is best option)

8. Strategic Direction
State what the selected option is

8.1 Suitability Suitable to whom and what

Suitability to Resources and Capabilities (Lynch 2015, p112-113)


Use the diagram at Lynch (2015, p113) to create a table for analysis based on the Three
broad categories. (Fig 4.3)
Element Comments/Observations Suitable/ Not Suitable

Try and answer the five questions.


8.1.1 Suitability to Resource Base (Lynch 2015, p132) Fig 4.8 7 elements
Element Comments/Observations Suitable/ Not Suitable

8.1.2 Suitability to Culture


Apply Lynch (2015, p143 and 145)
And Johnson and Scholes Cultural Web.
Use the Cultural Web to construct the analytical table.
Element Comments/Observations Suitable/ Not Suitable

8.1.3 Suitability to Purpose of the Company


Use Lynch (2015, p195-220)
Element Comments/Observations Suitable/ Not Suitable

8.1.4 Suitability to Stakeholders


Use Lynch (2015, p206-207)
Element Comments/Observations Suitable/ Not Suitable

8.1.5 Summary of Suitability

8.2 Acceptability
Build tables to analyse each sub-area below

8.2.1 Acceptability of Business Model


Lynch (2015, p657) 20.2.2 and 20.2.3

8.2.2 Acceptability to Ethics and Social Responsibility


Lynch (2015, p214) 6.5.1

8.2.3 Acceptability to Knowledge Management


Lynch (2015, p235) Exhibit 7.3

8.2.4 Acceptability to Technology


Lynch (2015, p245-246) (1-5)

8.2.5 Acceptability using Blue Ocean Strategy


Lynch (2015, p256) (1-3)

8.2.6 Summary of Acceptability Analysis

8.3 Feasibility
8.3.1 Internal Feasibility Checklist
10 point Internal Feasibility Checklist (Lynch (2015, p337)
1. Capital Investment Required
a. Current Situation
b. Do they have the funds required for future projects/expansion?
2. Projection of cumulative profits (based on strategic choices)
3. Working Capital Requirements
4. Tax Liabilities and Dividend Payments
a. Is the company paying its taxes?
b. Does the company pay dividends?
5. Number of current employees? Redundancy? Is the company over-
staffed? (Cost of purchase a company will include VSEP to send home
redundant workers..)
6. New technical skills; new plants, etc
7. New products and how they are to be developed (Ansoff Matrix)
8. Amount and timing of market investment
9. Possibility of acquisition, merger, joint venture, etc
10. Communication of ideas to all those involved (Network marketing,
social marketing)

8.3.2 External Feasibility Checklist


4-point checklist on external feasibility (Lynch, 2015, p338)

8.3.3 Financial Feasibility Checklist


Lynch (2015, p339)

8.3.4 Financial Evaluation


Lynch (2015, p345-346) (1-5 Financial techniques)
For Cash Flow Projection use Break Even Point 2-3 years
8.3.5 Summary of Feasibility

8.4 Summary of Suitability, Acceptability and Feasibility

9. Internal Development
Tackle internal weaknesses and build on strengths

10. E-Commerce

11. Implementation and Control


Reference Lynch (2015, p408)

11.1 Alignment of Company Structure


Lynch (2015, p409-411) 9 elements

11.2 Elements of the Implementation Process


Lynch (2015, p442-443) 4 basic elements
Implementation plan Lynch (2015, p447) Adapt Fig 13.3

11.3 Project Management Approach


Maylor 2010 5C and 4D models to be used

11.4 Project Monitoring and Control


Lynch (2015, p457) Fig 13.42

11.5 Green Strategy


Lynch (2015, p480) 14.3.3

11.6 Managing Change


Influence change - Lynch (2015, p502) Fig 15.3
Change Management - Lynch (2015, p514) Fig 15.7
11.7 Managing Strategic Leadership
Lynch (2015, p549) Fig 16.4
Lynch (2015, p550) The headlines

Link to
11.8 Business Plan
Lynch (2015, p574) Fig 17.5 (10 elements of a business plan)

11.9 Execution Plan for Chosen Strategic Option


List about 10 key tasks in the project to implement your chosen strategic option and do
a Gantt Chart or Network Diagramspread over a 1 year timeline.
12. References 103
13. Bibliography 106
List of Tables
Table 2.1 1: Analysis of Company's Corporate Definition/Vision and Mission.
Table 2.1 2: Analysis of Company's Business Strategy.
Table 2.1 3: Analysis of Company's Tactics.
Table 2.1 4: Company's Product Portfolio.
Table 2.1 5: Global Product Sales 2015 by Relative Market Share.
Table 2.1 6: Company's Aggressiveness Strategy
Table 2.1 7: VRIO Framework Analysis for Company Inc
Table 2.2 1: Extract of Financial Data 2011 to 2016.
Table 2.2 2: Accounting Ratios for Company (2011-2016)
Table 2.2 3: Summary of Ratio Analysis
Table 2.2 4: Evaluation of Company's Financial Position using the CAMELS Framework
Table 2.3 1: Value Chain Analysis
Table 2.4 1: Company's Core Competencies
Table 2.5 1: Analysis of Company's management using McKinsey's 7-S Framework
Table 3.1 1: Environment Basics
Table 3.2 1: Identification of Company's Customers and Potential Markets
Table 3.2 2: Bases for Market Segmentation (Consumer Products)
Table 3.3 1: Competitor Profile
Table 3.4 1: Company's Cooperative Network using the Four Links Model
Table 3.5 1: Analysis of Competitive Industry Environment using Porter's 5 Forces
Table 3.6 1: Analysis of Customers' Wants KFS
Table 3.6 2: Analysis of Competition KFS
Table 3.6 3: Analysis of Corporation KFS
Table 3.8 1: PESTEL Analysis
Table 3.9 1: Degree of Turbulence of the Environment
Table 4.1 1: SWOT Analysis for Company
Table 4.2 1: EVR Congruence Analysis
Table 4.3 1: Balanced Scorecard Analysis
Table 4.4 1: Trend and Sensitivity Analysis
Table 4.4 1: Risk Management Analysis (PRAM)
Table 4.4 1: Evaluation of Emergent Strategic Options (PEARLS)
Table 8.1 1: Suitability of Company's Resource Base
Table 8.1 2: Suitability Analysis using Resource-based View
Table 8.1 3: Analysis of Suitability to Culture
Table 8.1 4: Suitability to Purpose
Table 8.1 5: Analysis of Suitability to Stakeholders
Table 8.2 1: Analysis of Acceptability of External Business Model
Table 8.2 2: Analysis of Acceptability of Internal Business Model
Table 8.2 3: Analysis of Acceptability to Ethics and Corporate Social Responsibility
Table 8.2 4: Analysis of Acceptability of Knowledge Management
Table 8.2 5: Analysis of Acceptability to Technology
Table 8.2 6: Acceptability Analysis using Blue Ocean Strategy
Table 8.3 1: Analysis of Internal Feasibility
Table 8.3 2: Analysis of External Feasibility
Table 8.3 3: Financial Feasibility Analysis
Table 8.3 4: Cash Flow Projection for Investment Period
Table 8.3 5: Financial Evaluation
Table 11.1 1: Alignment of Company's Structure for the Strategy
Table 11.3 1: Application of Five C's to Implementation of Strategic Option
Table 11.3 2: Project Implementation using 4-D Model
Table 11.5 1: Company's 3-year Green Strategy
Table 11.6 1: Change Management using the Five Factor Model
Table 11.7 1: Managing Strategic Leadership
Table 11.2 1: Implementation Plan - Key Tasks and Responsibilities
List of Figures
Figure 2.1 1: BCG Matrix for Companys Product Portfolio
Figure 2.1 2: Smartphone Product Positioning for top brands
Figure 2.1 3: Laptop Product Positioning for top brands
Figure 2.1 4: Ansoff Matrix
Figure 2.3 1: Porter's Value Chain
Figure 2.4 1: McKinsey's 7-S Framework
Figure 2.6 1: Nine basic analytical tools for analysing the strategic environment.
Figure 3.3 1: The Four Links Model
Figure 3.5 1: Porter's Five Forces Model
Figure 3.6 1: Ohmae's Three Cs Model
Figure 3.7 1: Product Industry Life Cycle
Figure 8.1 1: Five Key questions related to strategic resources and capabilities
Figure 8.1 2: Johnson and Scholes Cultural Web
Figure 11.1 1: Ringi-Sho Consensus Culture of Japanese Organizations
Figure 11.2 1: Basic Implementation Process
Figure 11.2 2: Implementation Plan for Company over 3 years
Figure 11.3 1: The 4-D Project Management Model
Figure 11.4 1: Hierarchy of Control Systems
Figure 11.6 1: People and pressure points for influencing strategic change
Figure 11.6 2: The Five Factors in the successful management of strategic change
Figure 11.7 1: The five elements of successful and effective strategic leadership
Figure 11.8 1: Entrepreneurial Strategy: The 10 Elements of a Business Plan
Figure 11.9 1: Gantt Chart - Implementation of Chosen Option

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