Strategy Formulation

Topics: Strategic management, Management, SWOT analysis Pages: 17 (3804 words) Published: November 3, 2012



Programme Corporate Management Development
Programme (CMDP)


Module Environment of a Manager

Cohort G3

Name Barbara Chinzunza

Lecturer Stanlake Hove

Word Count 2950

Due Date 12/12/2011

Table of Contents

0.0 Executive Summary3
1.0 Introduction5
1.1 Vision, Mission Statement and Objectives5
2.0 TPS Environment5
2.1 Macro Environment6
2.2 Industry9
2.2.2Threat of Entry10
2.2.4Competitive Rivalry11
2.2.5The sixth force – Complementators11
2.2.6Criticisms of the Five Forces Model12
2.3 The organisation12
2.3.1 SWOT (Strengths, weaknesses, opportunities and threats) Analysis12 2.4 Current Strategic Position14
2.4.1.E-V-R (environment- values- resources) Congruence14
2.4.2The consciously incompetent organization15
2.4.3 Strategic Drift16
2.4.4Boston Consulting Group (BCG) growth/share matrix17
2.4.4Criticism of the BCG growth/share matrix18
2.5 Repositioning for TPS18
2.5.1 Recruitment of experienced and competent resources18 2.5.2 Development of new products to suit the buyers needs18 2.5.3 MNOs should reduce physical cards in the market18
2.5.4 Develop Partnerships with till suppliers18
2.5.5 Aggressively look for business for hardware repairs.18 2.5.6 Reduce cost base on software development18

0.0 Executive Summary

Transaction Payment Solutions (TPS) was founded in Zimbabwe in 1992. TPS’ core business is the provision of electronic funds transfer (EFT) solutions for the African market. TPS is part of the UK-based Liquid Telecom Group and has its head office in Port Louis, Mauritius. In line with its growth strategy, TPS has opened support offices in Mauritius, South Africa Botswana, Zambia and Kenya.

TPS serves more than 20 financial institutions in more than 10 African countries, where we have deployed in excess of 10,000 Point of Sale (POS) terminals.

TPS is a:

* Reseller for Postilion for Africa since 1998. Postilion International Limited is a global payment software company that delivers integrated payment processing and self service banking solutions.

* VeriFone International Partner for Africa since 1992. VeriFone is the worldwide market leader in providing secure electronic transaction solutions-including hardware, software and services for debit, credit, cheque and smart cards in over 100 countries of the world.

* Ingenico Partner for Africa since 2003. Ingenico offers end to end solutions incorporating hardware, software, and services that can be adapted for integration into new secure transaction payment solutions.

This document seeks to give a clear picture of the environmental forces that are affecting the TPS. Different frameworks have been used to do the analysis and they include the following techniques: * PESTEL

* Porter’s five forces model.
The definition of each technique is explained in the body of the document. Each technique was critically analyzed to highlight its strength and weaknesses. After the application of the above techniques; strategic gaps were identified and recommendations were made. Scope

The scope of this document is limited to TPS’ customer in Zimbabwe and one business unit of POS terminals is discussed. This business unit consists of the following services and products: * Terminal sales

* Software Development and Licenses
* Airtime sales
* hardware repairs


1.0 Introduction

TPS is an ISO 9001:2008 certified organisation that has got its Vision , mission statement and objectives clearly stated as highlighted below. 1.1 Vision, Mission Statement and Objectives...
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