This material may include additional sections or templates that are not required or able to be completed, depending on the contents of the relevant case study. You fill out what you need to! 1. Summary [Note: keep this section brief – this is your broad overview of the organisation in the case] Type of organisation Structure Ownership History Products Location Purpose of organisation Vision Note: the case might only have a vision or mission – many companies don’t have both.] Mission Values Goals [These might be written in the case as “strategy” or “targets” or another word. You are looking for the specific few lines that outline what the organisation wants to achieve in terms of actual business performance] Industry definition [Note: the definition may be given to you in the case or you may need to consider your own one] Industry (product / geography?) Sub-industries? Organisation’s position in the industry? [Small or large player? New or well established? Market leader or struggling to survive?] Approach to strategy Which approach to strategy does the organisation take? [Rational, processual? Explain why] – 2. Remote environment Industry life cycle analysis Life cycle position Evidence? [Is there low – medium – high growth? Are there new companies entering the market or companies exiting? Is rivalry intense? Is a lot of cash needed for investment?] Industry value chain analysis Value chain summary [Note: Also consider where is the organisation in the value chain? Do they occupy more than one segment now?] Integration opportunities [how could the organisation being analysed integrate up or down the chain? Think about whether they have the resources to do this or the ability to buy or partner with another company to get those resources. Don’t just say they should integrate upstream and do the manufacturing if that is not a feasible or a logical option for them to do] Industry’s growth Historical Growth summary Industry sales or revenue or profit: [Note: We are talking about the industry here and not the organisation. You may have information on all three but probably not. Analyse all or the ones you think are most important. This table is just one example of what you might be able to analysis. Do it in excel and copy and paste that table over this one if you want.] Industry sales analysis Historical and/ or Future PESTEL [Note: it might be applicable that you look at PESTEL factors from the past to how they might change in the future – only do this if there is information in the case to back it up] Factor Issue + Evidence +/- Effect on Growth Relative Importance Political Overall Political Factors [Note: make sure you summarise the whole impact so you have the sentence ready to use in the exam] Economic Overall Economic Factors Social/Cultural Overall Social/Cultural Factors Technological Overall Technological Factors Environmental / Sustainability Overall Sustainability Factors Legal Overall Legal Factors PESTEL summary Industry environment Industry rivalry Porter’s Five Forces model [only do this if there is information in the case to back it up. Don’t go and make statements based on your opinion only] Force Factor (+ Description / Evidence) Impact (High / Med / Low) Threat of New Entrants Power of Suppliers Power of Buyers Power of Substitutes Intensity of Rivalry Historical industry profitability [If there is information about issues or factors that have affected industry profitability in the past note them down – there is a good chance of a question about why industry profitability has changed] Future industry profitability   Basis of competition Market segment analysis Definition: What makes up the market? Needs: What does this market need? Preferences: What extras would be appreciated? Current solutions: What currently meets those needs? Market size: How big is it? Market Growth: What is the growth history of market? Basis of competition questions What drives demand for the products and services of the industry? What drives price, product performance and supply availability? How is price determined in the industry? What are the main drivers of cost in the industry? What are the current and potential risks? Summary of basis of competition Industry Success Factors Success factor 1 Success factor 2 Success factor 3 Product segments Product segments Segment market share analysis (current): Segment Description Volume share % Revenue share % Sales analysis commentary Industry competitor analysis Competitor comparative performance figures [Note: You may have a lot of data in the case or little to help you analyse competitors. Only use case information! Make sure you can answer the comparative performance and what sort of strategies are the different competitors using? This should lead you to ask why one competitor is doing better than another. Is it operational efficiency? Is it that their product has a better value proposition for the customer? Is it differentiated in a way that gives them a unique position in the market?] Key competitors Non-competitors Competitor market share analysis by segment: Market share % Segment 1 Segment 2 Segment 3 Segment 4 Total market share Competitor 1 Competitor 2 Competitor 3 Focal organisation Total 100.0% 100.0% 100.0% 100.0% 100.0% Analysis of key competitors: Competitor Generic Strategy Value Proposition Strengths Weaknesses Future Competitive Position o o o o o o o o o o o o o o o o o o o o o o o o Focal Organisation o o o o o o Other notes 3. Business strategy Stated current/future strategy Business strategy: key questions Question Response How does the company plan to grow (profitably)? [ What products/services will it provide to drive that growth? In what markets will it operate? ○ Customer/Geographic What generic strategy is adopted? ○ Create competitive advantage to be unique; ○ Do something different from competitors; ○ Do something better than competitors do it. [Note: make sure you consider the different generic strategies that Porter writes about. Is it differentiation or differentiation focus? Same with cost approach – broad or narrow? Consider also the other strategies such as value disciplines, flexibility or effective execution] Is the organisation currently using strategies and initiatives that are strategic fits or strategic stretches? What about the future strategies being proposed? Strategic driver analysis [Note: this is a small table in its size but you will probably write a lot in it so look for the information!] Industry & markets Products / Services Customers Channels Competitive advantage Big Data [Note: Think about the organisation and industry and what data there is available to help analyse strategic drivers like customers, channels, products. Think about what advantages data analysis could have for the organisation.] How does the organisation use data now to run its operations? What data could it use to improve its operations or to differentiate itself from competitors? Qualitative Analysis SWOT analysis: Strengths Weaknesses Opportunities Threats Gap analysis: External environment – business strategy gaps Remote environment gaps Industry environment gaps Industry competitors’ gaps Internal environment – business strategy gaps Key stakeholders gaps Strategic driver gaps Organisational performance gaps Capability gaps Strategic capabilities [Note: first identify a range of capabilities the organisation has and then secondly, use the four tests to decide if they are strategic or not] Functional analysis: Organisational function Description of functions/activities Resource analysis: Organisational resources Description of resources Process & system analysis: Organisational processes Description of processes Strategic capability: Four tests Capability Valued by the customer? Is it rare? Not easily replicated? Non-sub-suitutable? < Capability 1> ○ ○ < Capability 2> ○ ○ < Capability 3> ○ ○ Competitors strategic capabilities 4. Key stakeholders Stakeholder analysis: Who are the stakeholders? What is their objective? Aligned with strategic goals? ○ ○ ○ ○ ○ ○ 5. Balanced scorecard Perspective Measures Performance Financial Revenue Growth – Gross Margin – EBIT – ROA – ROE – Other – Customer Market Share – Customer Satisfaction – Customer Retention & New – Other – Internal Processes Innovation – Utilisation – Wastage – Quality – Cost/Unit – Productivity – Other – Learning & Growth Product Development – Training – Staff Retention – New Developments – Succession Planning – Other – Summary of performance   6. Strategic position summary [Note: this is an important section because if you can’t quickly complete this summary based on your earlier analysis then you need to go back and re-do it or read the study guide properly. You don’t need to write paragraphs here, just key bullet points that would enable you to summarise the position if an exam question asked for it. This might be the front sheet you print out and have on top of your analysis when you walk into the exam.] Summary of current strategic position: Strength rating Markets Capabilities Value chain Competitive advantage Customers Financial performance Growth Issues Key strategic issues Strategy gaps? Competitors? Stakeholders? Capabilities? Other? 7. Identify strategic options Question 1: Growth or defend/reduce options Growth? [Note: Put down which segment(s) or channel(s) the organisation would look to for growth. Justify why.] Defend territory? Reduce? [Note: Could the organisation divest part of their business? Link back to whether all their products align with their vision and values. Or are there other factors like financial stress or PESTEL factors such as political, social or environmental that could force them to get rid of some products or businesses] Questions 2 & 3: Product & market business options Ansoff matrix [Note: There may only be one product and market to consider or multiple ones. Do each one separately] Product 1 [Note: For the Ansoff quadrant you select make sure you justify why with information from the case] Product 2 Product 3 Generic strategy options Competitive strategy? [Note: You need to decide whether the organisation should be focusing on being low cost or selling a differentiated product. In one to two sentences explain why.] Preferred position? [Note: refer back to the competitive matrix if you completed one. Look where the organisation is positioned now and determined if it should stay there or be positioned elsewhere that gives it a unique differentiation from competitors.] New product development [Note: if the case discusses new products being developed or recently released to market then you may be asked to discuss success factors in new product development or issues that could arise with product development strategies] Evaluating success factors for new product development: Success factor Explanation Understanding user needs [developing the wrong product or service is one key reason product development fails] Effort put into marketing and public relations [do they do a proper launch with enough resources or a disorganised and cheap one?] Efficiency of product development [look for inadequate planning and control as one key reason this factor is not met] Effective use of outside technology and communications [do they partner with other companies to get the technology they need? How they use tools like social media to develop their products?] Support of senior management and level of collaboration across organisation [often here you will find some management support and others the opposite because the new product threatens their patch] Innovation [Note: Consider if the organisation in the case has a focus on innovation. If it does then you should analyse which category of innovation they are operating in and what the effects on cashflow might be. It’s unlikely they will be in more than one category] Innovation category Explanation Mandatory projects Breakthrough innovation Incremental innovation High growth business Entering new markets Key factors to be considered Explanation Is there alignment with the long term vision or goals? Do they have enough cash to do it? Can they leverage location specific advantages? Do they have the capabilities to do it or can they buy them? Does the potential for growth in a new geographic or customer market outweigh staying in their current market? Mode of entry Advantages Risks Exporting Licensing Franchising Strategic alliance Joint Venture Wholly owned Acquisition 8. Evaluate strategic options Selecting strategic options Compare actual strategy with Vision, goals, values Vision [Note: you are looking here to see whether it lines up. Many cases have stories about companies who are pursuing strategies that don’t align with the vision/mission, company values or perhaps goals. When this happens there is likely to be resistance to change when the strategy needs to be implemented] Company values Key systems and mechanisms Key functional areas and any deficiencies [Note: the study guide doesn’t cover this that well but it’s still good to do. You may be given information in the case that talks about projects or initiatives for different operational divisions. If so, do those projects make sense in delivering the overall strategy or do they seem misaligned? If so, go back and look at Rumelt’s again. Maybe there isn’t internal consistency or perhaps feasibility hasn’t been covered off.] Organisational functional areas Key activities in strategic plan Comments / Deficiencies ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ 1. Rumelt’s criteria [note: if the case has already given you a strategic option then it may be an expansion/new product development/new market. Or it could be defending the market the organisation is already in. You can roll up strategic options to a theme and use Rumelt’s on that. But they often don’t specify a theme so you then do the strategic option.] 1. Defend current market share Recommendation Analysis Internally consistent? Externally consistent? Feasible? Competitive advantage? 2. Reduce costs to try and become a low cost producer and increase profitability Recommendation Analysis Internally consistent? Externally consistent? Feasible? Competitive advantage? 3. One of Ansoff’s matrix options – market penetration, product development, market development, diversification – if you more than one option copy and paste the box below and complete it for each possible option. Recommendation Analysis Internally consistent? Externally consistent? Feasible? Competitive advantage? [Note: make sure you identify all the relevant risks, define the consequences and likelihood, before you give them a risk rating. In the risk management section you are identifying what actions the organisation could take to minimise the risks. It’s unlikely that they can completely eliminate them but they can reduce them to lower levels.] Risk assessment • Identify • Cause • Consequence • Likelihood • Rating Risk management Actions management should take to minimise the risks Recommendations on which strategy to take: Recommendation Explanation 9. Implementation issues/plans Adopted strategy 2. Rationale behind strategy Why was the strategy adopted? Is it a good strategy fit? Handling of plans in relation to Kotter’s framework for strategic success and successful change Kotter’s eight key areas How addressed in expansion plan Comments / Deficiencies Establishing a sense of urgency ○ ○ Forming a powerful guiding coalition ○ ○ Creating a vision ○ ○ Communicating the vision ○ ○ Empowering others to act and eliminating obstacles ○ ○ Planning for and creating short-term wins ○ ○ Consolidating improvements and producing still more change ○ ○ Institutionalising new approaches ○ ○ 3. Key issues and resolutions Framework for analysing strategy implementation issues – McKinsey 7-S model Strategy: Issue/requirements to consider Suggested actions Structure: Issue/requirements to consider Suggested actions Systems: Issue/requirements to consider Suggested actions Style: Issue/requirements to consider Suggested actions Staff: Issue/requirements to consider Suggested actions Shared Values: Issue/requirements to consider Suggested actions Skills: Issue/requirements to consider Suggested actions 4. Monitoring change implementation [Note: This section in the study guide is a bit here and there but there is still a good chance of a question] Monitoring performance Resistance Reward systems Politics of change 10. Strategic leadership Role of leadership in implementation Assess the current type of leadership displayed according to Collins and also identify whether leaders appear to using their traits or a behavioural approach to leadership Level Explanation Traits or behavioural approach? Organisational life cycle Stage Evidence? Assess the style of leadership required for successful implementation according to Blanchard, Zigarmi and Zigarmi Style Explanation [Which part of the organisational life cycle is the organisation in and does the leadership style fit or not? If it doesn’t fit what problems are likely to occur?] Assess the four types of decision making style outlined by Gleeson towards the strategic decisions required Command Collaborative Consensus Convenience Identify the phase of transformational leadership required Phase Explanation Obstacle-solution grid to implementation issues Internal Influences Impact Strategy Solution 1. 2. External Influences Impact Strategy Solution 1. 2. Eisenhardt’s characteristics of effective strategic decision makers. Build collective intuition Issues/impact Strategy Solution Stimulate quick conflict Impact/impact Strategy Solution Maintain a disciplined pace Impact/impact Strategy Solution Defuse political behaviour Impact/impact Strategy Solution Succession planning – role requirements, importance and assessment of replacements Role requirements Relative importance Summary Recommendation