SM_Unit 3_PPT

18
C o n f i d e n t i a l Unit-3 Strategy Analysis Program : MBA Semester : IV Subject Code : MB0052 Subject Name : Strategic Management &Business Policy Unit number :3 Unit Title :Strategy Analysis Lecture number : 3 Lecture Title :Strategy Analysis HOME NEXT

Transcript of SM_Unit 3_PPT

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 1/18

C o n f i d e n t i a l

Unit-3 Strategy Analysis

Program : MBASemester : IV

Subject Code : MB0052

Subject Name : Strategic Management &Business Policy

Unit number :3

Unit Title :Strategy Analysis

Lecture number : 3

Lecture Title :Strategy Analysis

HOME NEXT

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 2/18

C o n f i d e n t i a l

Unit-3 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

Strategy Analysis

NEXTPREVIOUS HOME

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 3/18

C o n f i d e n t i a l

Unit-3 Strategy Analysis

• Introduction 

• Environmental Scanning Techniques

• Organisational Position and Strategic Advantage Profile

• Strategic Management Model

• Summary 

• Check Your Learning

• Activity 

Lecture Outline

NEXTPREVIOUS HOME

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 4/18

C o n f i d e n t i a l

Unit-3 Strategy Analysis

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

Introduction

NEXTPREVIOUS HOME

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 5/18

C o n f i d e n t i a l

Unit-3 Strategy Analysis

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

NEXTPREVIOUS HOME

Introduction contd..

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 6/18

C o n f i d e n t i a l

Unit-3 Strategy Analysis

External scanning techniques are:

•SWOT analysis

•ETOP analysis

•PEST analysis

NEXTPREVIOUS HOME

Environmental Scanning Techniques

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 7/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

SWOT is an acronym for Strengths, Weaknesses, Opportunities andThreats. SWOT analysis identifies the organisation’s 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

NEXTPREVIOUS HOME

Environmental Scanning Techniquescontd..

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 8/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

ETOP is Environmental Threat and Opportunity Profile. ETOP analysisprovides 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

NEXTPREVIOUS HOME

Environmental Scanning Techniquescontd..

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 9/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

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

need for environmental appraisal, potential and direction for operations

of an organisation.

•Political

•Economical

•Social

•Technological

NEXTPREVIOUS HOME

Environmental Scanning Techniquescontd..

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 10/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

Environmental Scanning Techniquescontd..

Internal environment analysis:

• Value chain analysis

• Financial and non financial analysis

• Core competency

• Resource audit

• Quality management and benchmarking

• Balance Scorecard

NEXTPREVIOUS HOME

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 11/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

Industry analysis refers to an in-depth examination of key aspects within

an organisation task environment. 

Competitive analysis evaluates the organisation’s position among the

competitors.

• Porter’s Five Force Model 

Environmental Scanning Techniquescontd..

NEXTPREVIOUS HOME

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 12/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

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

NEXTPREVIOUS HOME

Organisational Position & StrategicAdvantage Profile

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 13/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

Igor Ansoff growth matrix

Organisational Position & StrategicAdvantage Profile contd..

NEXTPREVIOUS HOME

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 14/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

McKinsey/GE growth pyramid

Organisational Position & StrategicAdvantage Profile contd..

NEXTPREVIOUS HOME

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 15/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

Strategic management model is also known as strategic planning modeland 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

PREVIOUS HOME

Strategic Management Model

NEXT

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 16/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

• 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 obtaininformation 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.

PREVIOUS HOME

Summary

NEXT

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 17/18C o n f i d e n t i a l

Unit-3 Strategy Analysis

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

PREVIOUS HOME

Check Your Learning

NEXT

7/29/2019 SM_Unit 3_PPT

http://slidepdf.com/reader/full/smunit-3ppt 18/18C f i d t i l

Unit-3 Strategy Analysis

A global company is planning to introduce a particular product which willbenefit 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.

PREVIOUS HOME

Activity