LECTURE 2:

UKAM4023 & UKAM4024 INTEGRATED

CASE STUDY
 STRATEGIC
ANALYSIS
2 LECTURE 1: STRATEGY PART I
INTEGRATED CASE STUDY
STATEGIC
ANALYSIS
This is understanding where the
organisation stands in its
environment

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UNDERSTANDING THE
ENVIRONMENT

Macro-environment

Industry or sector
Competitors and
markets
The
organisation

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EXTERNAL
ENVIRONM
ENT 5
PESTEL

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PORTER’S DIAMOND

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 SEGMENTATION

Geographic

Demographic

Behavioural Psychographic
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 ANALYSIS
⊹ Identifies firms with similar strategic characteristics and plot
the position

Characteristic 1

9 Characteristic 2
INDUSTRY
⊹ An industry is a group of firms producing the same
product or products that are close substitutes for one
another
⊹ Industry convergence happens when two or more
industries come together and serve the same marketplace
× When this happens, there is a huge impact on the
industry

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 types of
industry
Fragmented Emerging

Maturity Declining
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 CONVERGENCE
Demand-led convergence
× Customers bring the industries together. (e.g. Designers and
developers)
× Customers doesn’t want to deal with 2 separate people when
creating his website

Supply-led convergence
× Suppliers bring the industries together.
× This happens a lot in the technology industries as they are
aware of the possibilities before the consumer

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competition
⊹ Competitors are firms operating in the same market,
offering similar products and targeting similar customers.
⊹ Competitive rivalry is the ongoing set of competitive
actions and competitive responses that occur among firms
as they manoeuvre for an advantageous market position
⊹ Competitive behaviour is the set of competitive actions
and responses a firm takes to build or defend its
competitive advantages and to improve market position
⊹ Multimarket competition occurs when firms compete
against each other in several products or geographic
markets 13
 Monopoly

Oligopoly
COMPETITIVE M onopol i s ti c
ENVIRONMENT ompe t ition
Direct Perfect C

Indirect

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PORTER’S FIVE
FORCES

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 STRATEGIC
CHOICE
3 LECTURE 2: STRATEGY PART II
INTEGRATED CASE STUDY
STATEGIC
CHOICE
Understanding the bases
guiding future strategy

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STRATEGIC CHOICE
⊹ Understanding how strategy options are generated
⊹ Understanding how the options are evaluated

⊹ Identifying the bases

⊹ Generating options
⊹ Evaluating options

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 JOHNSON & SCHOLES
SAF MODEL
SUITABLE ACCEPTABLE FEASIBLE
Effect on shareholder
Uses strengths M – word model
wealth
Overcomes  Machinery ・ Management ・
Cost / benefit Money ・ Manpower ・
weaknesses
Markets Material ・ Make-up
Meet objectives Effect on gearing
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CHOOSING A
STRATEGY
Choose generic Choose strategic Choose how to
strategy. direction. grow.

• A fundamental • Having decided • Two main

strategy the fundamental approaches:
• Three options: way in which the Organic or
cost leadership, organisation is Merger
differentiation, going to compete
and focus. it then must turn
to more detailed
matters.
• The organisation
can expand

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 Porter’s generic strategy

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BOWMAN’S
STRATEGIC CLOCK

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BCG
MATR
IX

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 DIVERSIFICATION AND
OTHER STRATEGIES
⊹ Globalisation
⊹ New product strategies
⊹ Leader vs Follower strategies
⊹ Lock-in strategy

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 ANSOFF
MATRIX

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 STRATEGIC
IMPLEMENT
ATION
4 LECTURE 2: STRATEGY PART II
INTEGRATED CASE STUDY
 IMPLEMENTATIO
N

Managing the change

× Strategy into action by the structure of the organisation
× Strategy into action by the planning of resources
× Strategy into action by the management of the change

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 “
“
WHY
CHANGE
External Internal

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STRATEGIC
CHANGE
Transformational
Incremental Change
Change

• Needs no structural • Big impact on the

reorganisation, the entity and its
entity should be workers.
able to adapt easily Restructuring
required and
change
management skills

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SCOPE & NATURE OF
CHANGES

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LEWIN CHANGE
PROVESS

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 FORCE FIELD
ANALYSIS

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HOW DO YOU
MANAGE
RESISTANCE TO
CHANGE?
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THE CONTEXT FOR
CHANGE Balogun and Hope
Bailey

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 MODEL

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HARMON’S PROCESS
STRATEGY MATRIX

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Thanks!
END OF
LECTURE.
UKAM4023 &
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