Remember strategy is about the long-term direction of an organisation and addresses three basic questions:
1. Where do we compete?
2. How do we compete?
3. How will we implement it?
Analyse the external (Porters 5 Forces, PESTEL) and internal environments (
Analyse the sustainability of the organisations current competitive advantage: diversification, differentiation
Analyse the method of pursuing the strategy: organic growth, acquisition, strategic alliance
How competitive advantage could be developed and sustained.
Evaluate the current strategy and future options (of entrepreneurs/owners)
1. Intro – including definition of terms in question
2. Discuss analysis
3. Make assumptions
4. Justify conclusions and recommendations
5. Intro – including definition of terms in question
6. Discuss analysis
7. Make assumptions
8. Justify conclusions and recommendations
| Specific Frameworks
| Helps with Understanding
| External Environment
| PESTELpolitical, economic, social, technological, environmental, legalPorter’s Five ForcesCompetitors and Markets * Strategic groups * Market segments * Critical success factors * Niche markets * Blue Oceans * the threat of entry * the threat of substitutes * the bargaining power of buyers * the bargaining power of suppliers and the extent of rivalry between competitors
| Achieving competitive advantage through the positioning of an organisationAnticipate environmental change Opportunities and Threats
| Internal Environment:Strategic Capability
| Resources * Tangible * Intangible * Threshold or uniqueCompetencies * Threshold or uniqueCapabilities * Can be either resources or competencies * Threshold or uniqueThe Resource Based ViewVRIN Framework for assessing the value of strategic capabilitiesValue chainValue network
| Competitive advantage through superior capabilityStrengths and Weaknesses
| Strategic Purpose
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