Strategic Analysis

STRATEGIC
ANALYSIS
-Do a SWOT Analysis for The Westminster School
-
GROUP 1- (TWS)
GROUP 2- (EMIRATES)
GROUP 3- (SPLASH)
GROUP 4- (COLDSTONE)
STRATEGIC ANALYSIS
PEST ANALYSIS
PEST ANALYSIS focuses on analyzing the macro-environment factor that could influence
a firm’s future strategies
POINTS TO REMEMBER
 Do a PESTLE Analysis before a SWOT Analysis to get a
‘bigger picture’
 PEST & SWOT Analysis are two different perspectives

 PEST Analysis focuses on macro environment of a business
 SWOT Analysis focuses on micro environment of a business
MAIN ACTIVITY- ANALYSIS OF PEST AND SWOT
ANALYSIS
1. Conduct a macro-environment scanning by using PESTLE analysis.
2. Analyze the macro-environment of the business.
ALSO,
 Develop two strategies to overcome a weakness using opportunity

 Develop two strategies to overcome threat with strength
 Develop two strategies based on PESTLE Analysis
ALL STRATEGIES TO BE DEVELOPED KEEPING IN MIND THE
COMPETITIVE ADVANATGE OF THE BUSINESS
STRATEGIC ANALYSIS – MISSION & VISION
MISSION STATEMENTS- The core purpose of the organization which is phrased in a way to motivate
employees and to stimulate interest from outside groups as well.
VISION STATEMENTS- Vision Statement deals with where is that the organization is willing to see
itself in the long term or what it wishes to accomplish in the long term.
The link of Mission, Vision with Strategic Analysis:

1. Without the link of these two concepts no new strategy can be planned or implemented
effectively.
2. Without these statement, an organization will not have a clear picture of what is to be achieved in
the long term for which what kind of strategy needs to be adopted?
3. Vision and Mission statement gives a sense of purpose within the organization which is important
for strategy implementation.
BOSTON MATRIX- BY BOSTON
CONSULTING GROUP
Boston Matrix – method of

analyzing the product portfolio of
a business in terms of market
share and market growth
STEP 1- CATEGORIZING
AXES OF THE BOSTON
MATRIX
STARS
KEY STRATEGIC DECISION
FOR STARS
EVALUATION- BOSTON
MATRIX
 Boston Matrix can give a prediction, but only through sheer
research we can estimate the success of failure of the product.
 Boston Matrix is only a planning tool- it cannot guarantee the
product success.
 Boston Matrix assumes that high rate of profit are related with
high market share- this is not necessarily the case when sales are
gained by reducing prices and profit margins.
PORTER’S FIVE FORCES
ANALYSIS
Developed by Michael Porter , the model

describes about five forces that influence an
industry
2. Power of Buyers
EXAMPLE -FUTURE PREDICTION OF AN INDUSTRY THROUGH
PORTERS FIVE FORCES MODEL
PORTERS FIVE FORCES HELPS IN STRATEGIC DECISIONS
 By analyzing new markets through PFF- helps to analyze whether to enter or not, helps to
learn about the competitive situations of the industry.
 By analyzing existing markets- business decisions such as:
a. Do we stay in these markets in future?

b. What is level of competitiveness in the industry?
c. How to increase profitability?
 By analyzing competitive rivalry- understand about current competitive situations and develop
future competitive advantage like:
a. Buying out some competitors
b. Focus on market segment which competitor is not focusing
c. Communicate and collude with rivals to reduce competition
EVALUATION OF THE PORTERS FIVE FORCES MODEL
It is criticized for certain drawbacks:

 It analyzes an industry through one moment of time-
present BUT an industry is often dynamic- many industries
are rapidly changing through various other factors.
 Model can get complicated to analyze modern type of
industries- joint ventures, multiple product groups,
mergers and acquisitions .
CORE COMPETENCIES
It can be defined as "a harmonized combination of multiple resources and
skills that distinguish a firm in the marketplace" and therefore are the
foundation of companies' competitiveness.
They argued that if a business develops core competencies, then it may gain
competitive advantage over the firms.
A core competency should:

 Provide recognizable benefit to consumers
 Not be easy for other firms to copy e.g. patented design
 Be applicable to a range of different products and markets.
STRATEGIC
CHOICE
Choice is the center of any strategic formulation
Careful evaluation of different strategies and choosing the

OPTIMUM strategy make the decision making process
effective
ANSOFF’S MATRIX
CHOICES TO BE MADE
MARKET PENETRATION
MARKET DEVELOPMENT
PRODUCT DEVELOPMENT
DIVERSIFICATION
Diversification is the name given to the growth strategy where a
business markets new products in new markets.
 This is an inherently more risk strategy because the business is
moving into markets in which it has little or no experience.
 For a business to adopt a diversification strategy, therefore, it must
have a clear idea about what it expects to gain from the strategy and
an honest assessment of the risks. However, for the right balance
between risk and reward, a marketing strategy of diversification can
be highly rewarding.
LEWIN’S FORCE-FIELD ANALYSIS
STRATEGIC
IMPLEMENTATI
ON
BUSINESS PLAN
CORPORATE PLAN
KEY PLANNING QUESTIONS
CORPORATE CULTURE
TYPES OF CORPORATE CULTURE
REASONS- CHANGING ORGANIZATIONAL CULTURE
PROBLEMS ON CHANGING ORGANIZATIONAL CULTURE
Resistance to change always exists, BUT finding the ‘best way’ to bring about change to
an organization’s culture can be done through these approaches:
 Concentrate on the positive aspects on the business
 Obtain full commitment of people at the top of the business and all key personnel
 Establish new objectives and new mission statements that reflect the new values and
attitudes
 Encourage ‘bottom-up’ participation of workers when defining existing problems
 Train staff and workers to work to reflect the changed values systems of business.
 Change old staff reward system – people need to be reassured that if they adjust to the
new approach then they will gain from it.
LINK BETWEEN CORPORATE CULTURE &
STRATEGIC IMPLEMENTATION
 Different organizations with different culture will introduce changes
differently.
e.g. A company with power culture, will not really seek other’s opinion while
implementing change.
e.g. A company with task culture, will encourage active participation in
implementing major strategic.
 When culture is strong or weak
e.g. When culture is strong (sharing of common beliefs, practices and norms
within the business) it facilitates successful strategy implementation while weak
culture does not.
HOW TO IMPLEMENT, MANAGE AND CONTROL CHANGE?
1. Understand what change means- Change happens whether we encourage

and welcome it or not. Change can be positive /negative as well.
(Refer to types of changes on page 577)
Adopting Business process re-engineering- fundamentally rethinking and
redesigning the process of a business to achieve a dramatic improvement in
performance
2. Recognize the major cause of change- (Technological change/ Macro-

economic change/ legal changes/ competitor’s action)
3. Understand the stages of the change process- Some checklist which
managers must look into while implementing change
a. Where are we now and why is change necessary?
b. New vision and objectives
c. Ensure that resources are in place to enable change when it happens
d. Give maximum information to staff about the change
e. Involve staff in the plan for changes and its implementation
f. Introduce initial changes that will bring quick results
g. Focus on training
h. Sell the benefits
i. Always remember the effect on individuals
j. Check how individuals are coping and remember to support them
4. Lead Change, not mange it
5. Project Champions- Basically a person assigned to support and drive

a project forward, who explains the benefits of change and assists and
supports the team putting change into practice.
6. Project groups or teams – During the period of change, employees

will be resist to change and may need more information from specialized
group of people. Hence, project groups or teams are created.
CONTINGENCY PLANNING
Preparing an organization’s resources for

unlikely events
KEY STAGES ON
CONTINGENCY PLANNING
 Identify the potential disasters that could effect the
business – e.g. oil industry must plan for leak of oil
tankers sinking, exploding at refineries etc.
 Assess the likelihood of these occurring
 Minimize the potential impact of crises
 Plan for continuous operations of the business
Refer benefits and limitations of contingency planning – page 581

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STRATEGIC

 PEST & SWOT Analysis are two different perspectives

 Develop two strategies to overcome a weakness using opportunity

The link of Mission, Vision with Strategic Analysis:

Boston Matrix – method of

Developed by Michael Porter , the model

a. Do we stay in these markets in future?

It is criticized for certain drawbacks:

A core competency should:

Careful evaluation of different strategies and choosing the

1. Understand what change means- Change happens whether we encourage

2. Recognize the major cause of change- (Technological change/ Macro-

5. Project Champions- Basically a person assigned to support and drive

6. Project groups or teams – During the period of change, employees

Preparing an organization’s resources for

Refer benefits and limitations of contingency planning – page 581

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