Premium Essay

Business Strategy Tools

In: Business and Management

Submitted By theodorao
Words 1074
Pages 5
• Be competent in discussing the major concepts underpinning business level strategy

and applying these in business case settings.

• Be capable of applying a series of fundamental business strategy tools (including

industry analysis, competitive strategy and resource and capability tools) and

techniques to the formulation and analysis of value creation and capture at a strategic

level.

Porter 5 Force analysis

Porter framework assumes:

1. industry structure drives competitive behaviour

2. Industry structure is (fairly) stable.

[pic]

Case: Airline Industry ….
Porter’s 5 forces – purpose: Identifying the different stakeholders, or ‘forces’, which affect:

• The level of competition in an industry.

• The ability of a company to become powerful in that industry.

Threat of New Entrants :

• Company’s Point of view

• Industry Point of view

• Huge Capital Required

• High Maintenance Cost

• Brand Identity.

• Govt. Policy

Supplier’s Bargaining Power

• Aircraft Manufacturers

• Fuel Companies

Buyer’s Bargaining Power

• Travel Agents

• Business Travelers

Threat Of Substitute

• Railway service

• Bus service

• Water Transport

• Video conferences (for business flyers)

Competitive Rivalry

• Highly Competitive Industry.

• Can work as growth driver for Industry.

External Analysis: Porter’s Five Forces Threat of New Entrants HIGH Threat of Substitute Products MEDIUM Buyers’ Bargaining Power LOW Suppliers’ Bargaining Power LOW Industry Competitors Rivalry Among Existing Firms HIGH

Dynamic Competition

Competition changes industry structure:

– Schumpeterian Competition: A “perennial gale of creative destruction” –market leaders overthrown by innovation

– Hyper…...

Similar Documents

Premium Essay

Strategic Management Tools

...Running head: STRATEGIC MANAGEMENT ANALYSIS TOOLS Strategic Management Analysis Tools XXXXXXXXX XXXXXXX xxxxxxxx Abstract The number of strategic management analysis tools have increased dramatically in the last twenty years. This increase could be a result of a growing demand to meet the new demands this new global market. This literature review aims to outline these articles and findings by concentrating on the strategic management research tools and describing the tools that are the most useful for managers to use. Keywords: tools, strategic analysis, strategic management, strategic planning. Strategic Management Analysis Tools Brief History In recent decades, strategic management research has become so complex and expensive that managers have found it difficult to utilize it effectively. Increasing competition across all industries combined with the ever changing variables such as the economic realities of an expanding global community, have created this market for strategic market analysis tools. Hence, as a method to support managers needs to meet stockholders expectations, a number of tools and methods have been created. Essentially, the problem is there are so many strategic management analysis tools choosing the right one is challenging. Research on strategic analysis is not abundant, despite the numerous reviews on the subject matter. It should be noted that all of the authors of existing reviews state that strategic analysis is the......

Words: 2459 - Pages: 10

Premium Essay

Session1

...Definition and Concept ‘… a careful examination of the most important things which have an influence on the success of an organization.’ Longman English Business Dictionary ‘…an understanding of organization and its environment with respect to long-range perspective.’ Model of Strategic Analysis Tools Typology ‘…the process of conducting research on the business environment within which an organization operates and on the organization itself, in order to formulate strategy.’ BNET Business Dictionary ‘… a theoretical informed understanding of the environment in which an organization is operating, together with an understanding of the organization’s interaction with its environment in order to improve organizational efficiency and effectiveness by increasing the organization’s capacity to deploy and redeploy its resources intelligently.’ Professor Les Worrall, Wolverhampton Business School Definition of strategic analysis often differ, but the following attributes are commonly associated with it: 1. Identification and evaluation of data relevant to strategy formulation. 2. Definition of the external and internal environment to be analyzed. 3. A range of analytical methods (strategic analysis tools) that can be employed in the analysis. Example of analytical methods used in strategic analysis which will be discussed in this paper includes but not limited to the following: 1. SWOT analysis 2. PEST analysis 3. Porter’s...

Words: 2018 - Pages: 9

Premium Essay

Analysis

...Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 Prepared by Jim Downey and Technical Information Service 1 October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research. Topic Gateways are available electronically to CIMA Members only in the CPD Centre on the CIMA website, along with a number of electronic resources. About the Technical Information Service CIMA supports its members and students with its Technical Information Service (TIS) for their work and CPD needs. Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F.......

Words: 3971 - Pages: 16

Premium Essay

Student

...Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 Prepared by Jim Downey and Technical Information Service 1 October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research. Topic Gateways are available electronically to CIMA Members only in the CPD Centre on the CIMA website, along with a number of electronic resources. About the Technical Information Service CIMA supports its members and students with its Technical Information Service (TIS) for their work and CPD needs. Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F.......

Words: 3934 - Pages: 16

Premium Essay

Perceptual

...this report was to make Non- Profitable business into profitable one. My friend was running a business of retail shop of travel luggage products comprises of travel bags, uprights, accessories etc., where he was losing invested money as well the interests that he put to make his retail shop work successfully. One of the major factor behind failure of his business was lack of relevant directions which was missed and could not deliver the desired results for the success of business. This story is about my friend who was in a struggling phase for generating profits in his recently opened Luggage Retail store, the store was going through huge loss and was in a situation to get it closed in next 6 month of operation. As an advisor I went through his core business by using strategic marketing tools consisting of Porter’s 5 forces, positioning maps, strategic marketing grid to analyse the reasons for failure, using horizontal opportunities and untapped demand strategic tools to ascertain the treatment. I believed that by using such techniques and strategies, we could turn the loss making business into successful and highly profitable business. Launching of a retail shop in highly competitive retail industry is quite difficult because of large investments and infrastructure is involved. Lack of dedicated floor staff, availability of products, visual merchandising were another factors which contributed relevant role in making this business suffering the loss. So we decided......

Words: 3497 - Pages: 14

Premium Essay

Diageo

...Bringing the Balanced Scorecard to Life: The Microsoft Balanced Scorecard Framework White Paper By: Charles Bloomfield Insightformation, Inc. Published: May 2002 For the latest information, please see http://www.microsoft.com/business/bi/ Abstract This paper describes the Microsoft® approach to developing and implementing a Balanced Scorecard for enterprise performance management. It presents basic information on the Balanced Scorecard performance management methodology, and identifies key business issues that must be addressed in developing and deploying a balanced scorecard. The paper then presents the Microsoft Balanced Scorecard Framework (BSCF)—a comprehensive set of techniques, tools, and best practices to speed scorecard implementation using toolsets with which organizations are familiar. An extensive body of research and literature describing the Balanced Scorecard exists. That body of knowledge is constantly being expanded by The Balanced Scorecard Collaborative, Balanced Scorecard Institute, various consulting organizations, software companies, and client organizations. This paper cannot comprehensively cover such a complex topic or reflect accurately many of the nuances of scorecard development and implementation. Instead, it presents a basic conceptual overview of the Balanced Scorecard. Interested readers are encouraged to use the bibliography presented at the end of this paper as a guide to more detailed......

Words: 7549 - Pages: 31

Premium Essay

Able Corporation Management Strategies

...the leader in the US power tool market and provide the best services and make innovative products especially in the cordless product market where it has the core competence. To establish itself strongly in the manufacture of circular saws. ii) Designing a mission statement: To achieve our objectives along with delivering satisfaction to our customers in an environment of fairness, honesty and courtesy. “Meeting needs profitably” is the main concern. The values that drive the organization are pursuit of excellence. It commits to strive persistently to improve itself, their team, products and services. iii) Defining the business: The Company is involved in the manufacturing of full range of portable electric power tools. (PEPT) Power tools consist of products such as drills, circular saws, routers, planes, reciprocating saws and hammer drills. 805 of the power tools are corded while the remaining 20 % are cordless. It manufactures professional and consumer quality power tools and caters both consumer and industrial channels. The power tool market is divided in professional and consumer products, consumer and industrial channels, consumer and professional end users. A professional tool is characterized by high reliability, durability and better features. They are built to resist the rigidity and roughness of daily use by such tradesmen as carpenters, electricians, wood-workers and plumbers in the performance of their jobs. While a consumer tool is defined by lower......

Words: 1654 - Pages: 7

Premium Essay

“a Critical Analysis of Balanced Scorecard as a Performance Measurement Tool: an Overview of Its Usage and Sustainability”

...A critical analysis of Balanced Scorecard as a performance measurement tool: an overview of its usage and sustainability A iti al a alysis of Bala ed “ o e a d as a pe fo TABLE OF CONTENTS a e easu e e t tool: a o e ie of its usage a d sustai a ility TOPICS PAGE i ii iii iv-v LETTER OF TRANSMITTAL DECLARATOIN ACKNOWLEDGEMENT ABSTRACT CHAPTER ONE INTRODUCTION 1.1 Background of the study 1.2 Objective of the study 1.3 Scope of the study 1.4 Methodology 1.5 Limitations of the study BALANCED SCORECARD 2.1 Overview of the Balanced Scorecard (BSC) 2.2 Objective 2.3 Design 2.4 Original design method 2.5 Improved design method 2.6 Popularity 2.7 Variants and alternatives CRITICAL ANALYSIS ON THE CONCEPT & USING OF BALANCED SCORECARD WHETHER IT IS THE UNIVERSAL SOLUTION FOR THE BUSINESS MANAGEMENT? 3.1 Crucial investigation of the concept and using of Balanced Scorecard 3.2 A comprehensive new approach for the measurement and management 3.3 Is the Balanced Scorecard a universal key to the business management? 3.4 Balanced Scorecard: a question of conjecture and application CHAPTER FOUR: THE SUSTAINABILITY OF THE BALANCED SCORECARD 4.1 The Balanced Scorecard: an instrument for sustainability management 4.2 Different possible approaches of integrating environmental and social aspects 4.3 The process of formulating a sustainability Balances Scorecard 4-7 5 5 5 6 7 8-15 9-11 12 12-13 13 14 14 14-15 16-25 CHAPTER TWO CHAPTER THREE 17-21 21-22 22-23......

Words: 10563 - Pages: 43

Premium Essay

Performance Management

...Bringing the Balanced Scorecard to Life: The Microsoft Balanced Scorecard Framework White Paper By: Charles Bloomfield Insightformation, Inc. Published: May 2002 For the latest information, please see http://www.microsoft.com/business/bi/ Abstract This paper describes the Microsoft® approach to developing and implementing a Balanced Scorecard for enterprise performance management. It presents basic information on the Balanced Scorecard performance management methodology, and identifies key business issues that must be addressed in developing and deploying a balanced scorecard. The paper then presents the Microsoft Balanced Scorecard Framework (BSCF)—a comprehensive set of techniques, tools, and best practices to speed scorecard implementation using toolsets with which organizations are familiar. An extensive body of research and literature describing the Balanced Scorecard exists. That body of knowledge is constantly being expanded by The Balanced Scorecard Collaborative, Balanced Scorecard Institute, various consulting organizations, software companies, and client organizations. This paper cannot comprehensively cover such a complex topic or reflect accurately many of the nuances of scorecard development and implementation. Instead, it presents a basic conceptual overview of the Balanced Scorecard. Interested readers are encouraged to use the bibliography presented at the end of this paper as a guide to more detailed......

Words: 7549 - Pages: 31

Premium Essay

Marketing Strategy

...Marketing Strategy Template Research Tempess Barnett, Jennifer Bautch, Laura Bentem, Shana Estabrooks, Kenisha Sulker HCS/490- Health Care Consumer Trends & Marketing April 18, 2016 Dan Crawley Marketing Strategy Template Research Introduction (Tempess) Marketing & Communication Strategy Templates SWOT analysis is a situational assessment that can be used for marketing strategies for a business. SWOT analysis is the breakdown of the Strengths, Weaknesses, Opportunities and Threats for the business; they are able to utilize this breakdown to their benefit for marketing purposes. Another marketing strategy is Differential Advantage. Differential Advantage is a marketing strategy where an organization focuses on and promotes the benefits or expertise of their organization that other organizations do not have and consumers seek (Berkowitz, 2011). Communication strategies must be used in marketing as well. Integrated Marketing Communications (IMC) is a communication strategy that helps shift marketing solely from advertising to multi-media advertisement and consumer promotion for a strategic implementation of their brand or organization while aligning communication and marketing goals (Holm, 2006). Another communication strategy is in Public Relations (PR). Public Relations are the beneficial relationship between an organization and the community it is in. PR can promote the business to the public while also doing analysis of public......

Words: 768 - Pages: 4

Free Essay

Gsl Glossary

...Global  Strategy  &  Leadership  Semester  2  2013         Glossary   7-­‐S  model   Tool  for  testing  whether  a  proposed  strategy  will  achieve  its  aim  by  asking  whether  it  is  in  alignment  with  the   following  major  areas:  Strategy,  Structure,  Systems,  reSources,  Skills,  Style  and  Shared  values.     Ansoff  product-­‐market  matrix   Framework  for  considering  possible  alternatives  and  options  for  an  organisation’s  growth  based  on  the  product  and   market  focus     Balanced  scorecard   Performance  management  tool  organised  around  four  distinct  perspectives  which  balance  short-­‐term  and  long-­‐term   performance,  external  and  internal  performance,  financial  and  non-­‐financial  performance  and  different  stakeholder   perspectives.   BCG  (Boston  Consulting  Group)  Matrix   Tool  to  assess  the  organisation’s  products  in  terms  of  market  growth  and  the  organisation’s  market  share,  making  it   easier  to  identify  any  promising  product  areas  that  are  either  core  to  the  organisation ...

Words: 2623 - Pages: 11

Premium Essay

Competitive Profile Matrix

...Adel and Anchor, J.R The Use of Strategic Planning Tools and Techniques by Hotels in Jordan Original Citation Aldehayyat, Jehad S., Al Khattab, Adel and Anchor, J.R (2010) The Use of Strategic Planning Tools and Techniques by Hotels in Jordan. Working Paper. Emerging Markets Research Group University of Huddersfield, Huddersfield, UK. (Unpublished) This version is available at http://eprints.hud.ac.uk/7507/ The University Repository is a digital collection of the research output of the University, available on Open Access. Copyright and Moral Rights for the items on this site are retained by the individual author and/or other copyright owners. Users may access full items free of charge; copies of full text items generally can be reproduced, displayed or performed and given to third parties in any format or medium for personal research or study, educational or not-for-profit purposes without prior permission or charge, provided: • • • The authors, title and full bibliographic details is credited in any copy; A hyperlink and/or URL is included for the original metadata page; and The content is not changed in any way. For more information, including our policy and submission procedure, please contact the Repository Team at: E.mailbox@hud.ac.uk. http://eprints.hud.ac.uk/ The Use of Strategic Planning Tools and Techniques by Hotels in Jordan ABSTRACT Purpose This paper aims to understand the use of strategic planning tools and techniques and the nature of its......

Words: 6670 - Pages: 27

Premium Essay

Strategic

...working environment with in the company. First of all let's see what strategy is and why it is important? Basics of Strategy: Strategy decisions are different from other decisions taken for the company. They are distinguished on three levels; Scale: A strategic decision covers the whole circle. Strategy decisions are big decisions and concerns competitors, suppliers as well as customers. Time-span: These decisions mostly impact the medium term and long term objectives of the company although there out come can also be seen in short term. Dedication: This means resources commitment and investment that cannot be undone simply. This is done in the marketing of the company, operation changing etc. (Haberberg A. and Rieple, A. 2008) A company's strategy refers to the when, how and why of its existence and working. It basically entails the efforts that the company's management put in to achieve its objectives that pertains to selection of type of clientele, market situation and market form, what competitive advantage to follow and how to perform successfully in long term with taking into the its implications in short term. (Thompson, A.A. and Strickland, A.J. 2003) Strategic Analysis Strategic analysis is very important for any company, whether operating on small or large scale. If an organization has a vision for long term existence then it has to follow the ground rules. As taken from Business Dictionary, strategic development is an ongoing scheme of......

Words: 2900 - Pages: 12

Premium Essay

Conceptualizing a Business

...Conceptualizing a Business Tammie Dillard BUS/475 Aug. 29, 2011 Matt Nosbisch Introduction In present scenario, strategic direction plays a vital role in the overall success or failure of a business organization (Joyce & Woods, 2001). Key strategic elements guide the strategic direction of the organization. Alignment between strategic direction and business activities is essential to ensure the attainment of vision and mission. The selected company is beauty line organization to develop a strategic plan. It will cover vision, mission and guiding principles. Mission Statement A mission is the strategic direction that guides the organization to attain its business goals. To nourish and glow the skin of people will be the mission of beauty line business. To attain the mission, the organization will cover offer different beauty care products to the people. A wide range of beauty care products is offered that covers cosmetics, small instruments to improve beauty and beauty soaps (Joyce & Woods, 2001). Products are developed with a differentiated approach. It assists the company to develop competitive advantage in the respective industry. Vision Statement Vision is what the company wants to attain in its coming years. To become a market leader through differentiation will be the vision of the beauty line organization. To accomplish the vision, product differentiation will be used. An innovative thinking will be followed to ensure creativity in the......

Words: 1421 - Pages: 6

Premium Essay

Bosch vs Black& Decker

...and Bosch The U.S Market for Power Tools The power tools industry in United States generates approximately $8.6 billion in boost growth and profit margin. The U.S. power tools industry is dominated by these major companies: Black & Decker that posses 9.3% market share.,  China’s TTI, Bosch., DeWalt and Craftsman . Thanks to all largest home centers these manufactures dominated the model of supply structure of this power tool market. Power tools as drills, saws, routers, and lathes with motor attachment that helps to reduce the work charge that are difficult to perform if you are using your hands. Black & Decker and Craftsman are the most popular brands among equipment owners, Black & Decker report 72% owning Sears Craftman brand. Far Away we can position Dewalt in the list owning 32%. Bosch increase in the year 2007 their global sales, but the company stated that the power tool sales fell in United States all of this due to the economic crisis. Bosch still the cordless strongest seller in this division. In the United States mostly 64 % of the people own some power tool equipment. These people share certain characteristics. The males are the ones that possess the mayor roll in the market of power tools corresponding to them the 68 % , by age between 35-64 posses 68% , race 70% corresponding white people and with a household income above $50K which is the 72% of the power tool owners. In the Market of power tools in terms of profitability the......

Words: 2375 - Pages: 10