Unit-3 Strategy Analysis

Program Semester Subject Code Subject Name Unit number

: MBA : IV : MB0052 : Strategic Management &Business Policy :3

Unit Title
Lecture number Lecture Title

:Strategy Analysis
:3 :Strategy Analysis

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Unit-3 Strategy Analysis

Strategy Analysis

Objectives

The objective of this lecture is to discuss: Strategy analysis The external and internal environmental analysis The industrial and competitive analysis The organisational position and strategic advantage profile Strategic management model

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Unit-3 Strategy Analysis

Lecture Outline
Introduction Environmental Scanning Techniques Organisational Position and Strategic Advantage Profile Strategic Management Model Summary Check Your Learning Activity

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Unit-3 Strategy Analysis

Introduction

Strategy analysis is defined as a process of conducting research on the business environment within which an organisation operates to formulate strategy. Importance of strategy analysis : Understanding risks, profitability and competitive advantage Forecasting future performance Measuring the success of an organisation

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Introduction contd..
Environmental Appraisal
Environmental scanning implies monitoring, evaluating and circulating

information from external and internal environments to the key

people in the organisation. External analysis Internal analysis

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Environmental Scanning Techniques

External scanning techniques are:

SWOT analysis
ETOP analysis PEST analysis

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Environmental Scanning Techniques contd..

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis identifies the organisations distinctive

competencies and also the opportunities that the organisations are

unable to take advantage of due to the lack of appropriate resources. Strengths Weaknesses Opportunities Threats

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Environmental Scanning Techniques contd..

ETOP is Environmental Threat and Opportunity Profile. ETOP analysis provides a summary of the environmental factors that are most critical to

the organisation.
ETOP analysis includes: Monitoring or identifying environmental factors Scanning, selecting and grouping relevant factors Defining variables for analysis Using different methods, tools, and techniques for analysis Analysing environmental factors and forecasting

Designing profiles
Strategic positioning and report writing

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Environmental Scanning Techniques contd..

PEST stands for Political, Economical, Social, and Technological. It is useful for understanding market growth or decline, business position,

need for environmental appraisal, potential and direction for operations

of an organisation. Political Economical Social Technological

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Environmental Scanning Techniques contd..

Internal environment analysis:

Value chain analysis Financial and non financial analysis

Core competency
Resource audit Quality management and benchmarking Balance Scorecard

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Environmental Scanning Techniques contd..

Industry analysis refers to an in-depth examination of key aspects within
an organisation task environment. Competitive analysis evaluates the organisations position among the competitors.

Porters Five Force Model

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Organisational Position & Strategic Advantage Profile

Strategic Advantage Profile (SAP) shows the strength and weakness of an
organisation. Portfolio management tools are : BCG portfolio matrix Igor Ansoff growth matrix

McKinsey/GE growth pyramid

BCG portfolio matrix

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Organisational Position & Strategic Advantage Profile contd..

Igor Ansoff growth matrix

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Unit-3 Strategy Analysis

Organisational Position & Strategic Advantage Profile contd..

McKinsey/GE growth pyramid

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Unit-3 Strategy Analysis

Strategic Management Model

Strategic management model is also known as strategic planning model and it is used to devise and implement the strategic management plan of

a particular organisation.
Components of a strategic management model are: Environmental scanning analysis Strategy formulation Strategy implementation Strategy evaluation and control

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Unit-3 Strategy Analysis

Summary

Strategy analysis is defined as a process of conducting research on the business environment within which an organisation operates to formulate strategy.

Environmental scanning is the process of formal searching to obtain information for a specific purpose, using certain methodologies.

Strategic Advantage Profile (SAP) specifies the strength and weakness of an organisation.

Strategic management model devises and implements the strategic

management plan.

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Unit-3 Strategy Analysis

Check Your Learning

1. Define strategy analysis

ANS: A process of conducting research on the business environment

within which an organisation operates to formulate strategy. 2. What is Balance Scorecard? ANS: It is a framework that allows organisations to manage and measure the delivery of their strategy. 3. Which portfolio management tool used in product life cycle ANS: BCG matrix

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Unit-3 Strategy Analysis

Activity
A global company is planning to introduce a particular product which will benefit the customers of a particular country. As a marketing strategist,

identify those factors that will help the company in analysing strategies
suitable for that country.

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