End of module project – requirements
• Executive report for the Board of Directors
• An organisation or SBU you are familiar with
Ø Analyse its current position
Ø Evaluate the sustainability of its current strategy
Ø Make recommendations for future strategic development
Use appropriate theories, frameworks and models
• Details in the appendices
• Summary of key points in the main report
Tools and frameworks
• Analyse the current position – external
Ø Opportunities and threats
Ø Porter’s 5 competitive forces
Ø PEST analysis
• Analyse the current position – internal
Ø Strengths and weaknesses
Ø Porter’s value chain analysis
Ø Competencies and capabilities
• There may be overlap so place the detail in the
appendices and the key points in the main report
Analyse the current position
Appendix 1- PEST analysis
Political
§ Trade barriers in USA
§ Regional development subsidies withdrawn
Economic
§ Economic recession
Social
§ Local residents demand for clean air – furnace fumes not environmentally
friendly, though legal
Technological
§ Increased use of automation (CAM) by competitors
§ Rise of the internet
Appendix 2 - SWOT analysis
Strengths
§ Talented design team
Weaknesses
§ Small senior management team (downsized)
§ Inefficient manufacturing processes
§ Increasing debt and losses
Opportunities
§ Overseas markets
Threats
§ Competitors exploit new technology
§ Closure /divestment by parent company
An organization you are familiar with
If confidentiality is a concern, assume an alias
1. Introduction
HA Ltd is a wholly owned subsidiary of QR Ltd, a family owned business.
HA Ltd operates in a number of industry sectors in the UK: agricultural
utensils and accessories, manufacture of go-karts and catering trolleys, and
the design and manufacture of bespoke machinery, principally for its parent
company.
This report analyses and prioritises the main issues facing HA Ltd. It
identifies and evaluates the sustainability of its current strategy, and makes
recommendations for HA Ltd’s future strategic development
Analyse the current position
2. Strategic analysis – current position
2.1 Threats
Combines (SW)OT, 5 forces, PESTEL from the appendices
The economic downturn generated slow or negative market growth in all
sectors that HA Ltd operates in, and it is faced with increasing direct and
indirect costs causing rising selling prices and lower margins.
HA’s customers in the agricultural sector now wield greater buyer power
(Porter, 1980) through the formation of co-operatives and elimination of the
need for intermediaries, including HA Ltd.
The parent company, faced with its own problems, has no plans to place
further orders for machinery. This further weakens the product portfolio
(Appendix N).
Analyse the current position
2.2 Strengths and weaknesses
Combines SW(OT), value chain analysis, portfolio analysis, competencies and capabilities
from the appendices
HA Ltd has a loyal workforce, most of whom have been employed for over
25 years. With the exception of the development and design of bespoke
machinery, the work is unskilled or semi-skilled and new employees can be
easily trained if necessary.
Engineering knowledge for R&D resides in the CEO and one other
employee.
HA Ltd’s brand is well established in its sectors, but there is no obvious
possibility to leverage the brand in other industries.
Consider
Ø Methods and directions of growth (e.g. Ansoff)
Ø Corporate parenting
Ø Culture
Ø Organisation structure
Ø CSR
Evaluate the sustainability of its current strategy
Ø What is the current strategy?
§ Porter; Bowman; Hill and Jones
Ø Does it provide competitive advantage?
Ø Can it maintain or create competitive advantage?
• Suitability, Acceptability, Feasibility (SAFe)
Identify the current strategy
3. Current strategy
3.1 Agricultural utensils and accessories
HA Ltd’s competitive strategy has been one of cost leadership (Porter,
1980) based on the buyer power (Porter, 1980) generated by high volume
purchases from approved suppliers. HA’s growth has been organic, but
there has been no organisational growth during the past 4 years.
3.2 Design and manufacture of machinery
The CEO is insistent that the company’s future now lies with the automatic
calf feeder, for which research and development costs are escalating, whilst
HA’s technical engineers have stated that their time would be better spent
on product innovation.
Sustainability of the current strategy
3.3 Evaluation of the sustainability of the current strategy
Draws on the earlier analysis of the current position
Feasibility
Suitability
Acceptability
Recommendations for future strategic development
Ø Conclusion to the report
Ø Continue or change? Why?
Ø Draws on the previous sections
• Executive report for the Board
Ø Remember to think at strategic level
Ø 2,500-3000 words (excluding list of references and
appendices)
Ø Maximum 6 appendices
Ø Referencing