STRATEGIC ANALYSIS

INTRODUCING THE TOPIC

 WHAT DID YOU WANT TO BE
WHEN YOU GREW UP?

Is it the same; did it change? Why?

 STRATEGIC ANALYSIS

“The process of conducting research into the business environment within which
an organization operates, and into the organization itself, to help form future
strategies”

• Basically:
• Looking in detail at your current position
• What is happening to you now
• What might happen in the future
• Then making sure your long-term plans/strategy fit in with the external analysis
 Strengths Weaknesses

SWOT

Opportunities Threats
 SWOT EVALUATION

• Is a QUALITATIVE way of measuring → no two managers would look at it the

same way
• The cost of correcting a weakness cannot be compared with the potential profit
• Should be used a management guide, not a prescription

• The value: clarification and mutual understanding that senior managers gain by
the focus that the SWOT analysis provides
Political (& Economic
legal)
PEST

Social Technological
 PEST EVALUATION

• This cannot just stop; needs to be constantly updated and reviewed

• For multinational → need to perform PEST for all countries
HOMEWORK: FIND MISSION AND VISION
STATEMENT OF FOUR DIFFERENT
COMPANIES; WRITE THEM DOWN
ACTIVITY 38.1
 MISSION, VISION, AND STRATEGIC
ANALYSIS

●
Statement of the business’s core purpose and focus, phrased in a way to motivate

Mission
employees and to stimulate interest by outside groups
●
What do we do?
●
For whom do we do it?
●
What is the benefit?

Vision Statement of what the organization would like to achieve or

●

accomplish in the long-term

 LINK AND EVALUATION

• Without the direction and focus provided by mission and vision, it’s like …
steering a ship with no idea where you are or where you should be going

• Refer to the examples you brought of mission and vision…

• What did you notice about them? Are the good, or not so? Why?
• What makes a good mission and vision statement?
BCG MATRIX
 BCG MATRIX AND STRATEGIC ANALYSIS

• Building – supporting ? With additional ads or further distribution outlets; finance can be
obtained from cash cows
• Holding – continued support for stars; might need to refresh products
• Milking – use positive cash flow to invest in other products
• Divesting – identify dogs and stop production for this

• Above can only be taken if the business has balanced portfolio

• If too many ? or dogs, overall shortage of cash will not allow to take appropriate action
 EVALUATION OF BCG

• Used for
• Analyzing performance of current position of existing product portfolio
• Planning action to be taken with existing products
• Planning the introduction of new products

• Is not helpful on its own

• Only a planning tool
• Not true: high market share = high profits
PORTER’S FIVE FORCES ANALYSIS