- Make a list of the key performance indicators for the company over the 3-year period and present these in tabular or graphic form. We suggest the four key indicators are likely to be turnover (= revenue), profit, market share and share price.
To set these results in context and add more dimensions to your analysis, show them in comparison to a key competitor. (Make notes about why you chose this competitor).
Make notes on what these performance indicators tell you about the trend in the company’s performance and how this compares with their key competitor.
2. Identify the key strategic goals for the company over the period, the key actions it took in support of these and anything else significant that happened to the company over that period that may have impacted on its strategic direction.
Likely sources for this will be: the company website, company reports (the narrative), commercial reports on IBISWorld and Marketline, quality press e.g. the FT.
3. Identify what major macro and competitive environment factors will have impacted on the company over the period.
Use the analytical tools we covered in the module.
We suggest:
- PEST(LE) (identify the key factors in the period)
- Industry Life Cycle and Porter’s 5 Forces (perhaps show at the start and the end of the period if different)
- Strategic Groups Analysis
Once you have this information you will know in general terms the story of the company over the period.
- Next we suggest you decide whether to examine the company’s overarching strategic actions or just those in a particular market or to meet a particular goal. This decision will be impacted on by the nature and scale of the company.
- Once you have decided this you can begin your critical analysis of its actions weaving in the strategic management knowledge/tools you have learnt in this module.
Make a selection of the tools/theories you will use based on your chosen focus:
Tools/ concepts to analyse the strategic choices made in the 3 year period:
- Overview
Strategic drift/ strategic fit
SAFe
- Corporate strategies adopted
Portfolio management:
3 horizons
Portfolio management e.g. Boston Consulting Group Matrix
Product/ market scope:
Ansoff’s matrix
Geographical scope:
CAGE – idea of “distance” defined in 4 ways
Uppsala Model – idea of “psychic distance” – > incremental approach + progressive approach to entry modes
Entry modes (organic growth vs mergers/ acquisitions/ alliances)
- Business Strategies adopted
Porter’s generic strategies
Strategy Clock
Blue vs red ocean strategy
Assess (using a resource based view) using analysis of the internal environment of the company:
VRIO – link to competitive advantage
Capability plot – can be paired effectively with VRIO
Concepts – dynamic, distinctive and threshold capabilities
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