PESTELThe Macro Environment

Porters DiamondThe competition position (Nations)

Porters Five ForcesThe competition position(Industry)

BCG Matrix Product Life CyclePLCPortfolio of Product

Ashridge/BCGPortfolio of Companies

Process-Strategy MatrixOutsourcing

Mendelow s MatrixStakeholders

Type of Changes, Balogun; Hope Hailey 8 contextLewin Forces FieldChanging Management

Value ChainPorters 3 Generic SrategiesStrategyClockBenchmarkingMaking Profit

Value Chain(Based on IT)6Is(E-marketing)Use of IT

Culture WebCulture

Strategy ClockSrategies of Price and Value Added

Ansoffs MatrixMarketing and Product Strategies

4P/7PMarketing

Mintzbergs Stuctural ConfigurationsType of Organization

Strategy LensesStategies

SWOTSWOTACCA

Core Competence1.Core Competence Value2.Value to buyers / Rarity / Robustness (Hard to imitate) / Non-substitutable3.CSFCritical Success FactorsKPIKey Performance Indicator

Strategic CapacityThreshold +Unique1.Threshold2.UniqueCompetence / Resources / Knowledge / Cost Efficiency

Parent **U1.Portfolio2.Synergy **U3.Parentaladd value to **U

Methods of Development1.Internal Growth/Organic Growth 2.Mergers;Acquisition 3.Franchising 4.Strategic Alliance

*****Strategy****Different models for strategic planning process:- Rational Planning model strategic choice, strategic option, strategy in action- Johnson & Scholes- 3 levels of strategy > corporate strategy, business strategy, operational strategy- Johnson & Scholes- 3 lenses > experience, ideas, design.- Mintzbergs emergent strategies

*****Stakeholders, ethics and culture****- Mendelow matrix mapping (to identify stakeholders)- Johnson & Scholes- ethical position of company- Charles Handy types of culture (power, role, task, people).- Miles & Snow- strategic cultures (defenders, prospectors, analysers, reactors).- Cultural web whether a particular strategy is acceptable to employees. (CORPPS)

***** Environment*****- Johnson & Scholes- key drivers of change (why do things change?) > (market globalization, cost globalization, global competition, economic, environmental, legal).- PESTEL- analysis of external environment- Porters national diamond- reasons why some companies in a particular country have competitive advantage than companies from other countries.

*****Competition and markets****- Industry life cycle- Porters 5 forces

***** Strategic capability****- Mckinseys 7S- Porters value chain -appraise internal aspects of org.- porters value network extends the idea of value chain to include customers and suppliers- Product life cycle- TARA framework dealing with risks

*****strategic options****- Ansoff matrix used to generate strategic options- BCG matrix (under product development).- Porters generic strategy (under market penetration). > cost leadership, product differentiation, focus group.- Strategic clock look at price and added value

*****Strategic choice****- Johnson & Scholes- strategic rationale ways head office can create value in each business they own > portfolio managers, synergy, parental developers.- Ahsdrige portfolio model > use BCG matrix instead. (Which divisions to keep or get rid of)- Tows analysis- Johnson & Scholes- SFA test

*****Finance*****- Limiting factors- Make or buy- Closure or continuing decisions- Special contracts- ratio analysis- Regression, time series analysis

***** Marketing******- Marketing mix (7 Ps)- CSF and KPIs

*****Business process****- Rummler and Brache- Gaps and disconnecting- Harmons process- strategy mix

*****E business*****- 6 stages of using IT (initiation, contagion, control, integration, data administration, maturity).- Supply chain: upstream, downstream- 6Is for e-marketing- customer life cycle

*****People in organization*****- Organizational structure (functional, divisional, matrix)- Mintzberg structural configuration (ideology, strategic apex, middle line etc)

*****Project management*****- Project gateways- method to run a project- Wards & Daniels types of benefits (how benefits can be measured)- tuckmans stages of formation stages before starting the project- Belbins personality mix- personalities in the group

******Change and development*****- Balogun & Hope Hailey contextual features for stakeholders to consider before accepting change- Lewins force field analysis forces at work whenever a change is considered- Lewins 3 step process- stages necessary for something to change (unfreeze, freeze, refreeze)

Model # 1 PESTEL Macro environment, strategic position analysis (evaluation)

Political - tax policy, labour law, environmental law, trade restrictions, tariffs, and political stabilityEconomic - economic growth, interest rates, exchange rates and the inflation rateSocial - health, population growth rate, age distribution, career attitudes and emphasis on safetyTechnological - R&D activity, automation, technology incentives and the rate of technological changeEnvironmental - weather, climate, and climate changeLegal - discrimination law, consumer law, antitrust law, employment law, and health and safety law.Two important questions: 1. What? 2. Why it is important (significant)?

When PESTEL model was examined in P3 past exam papers?1. Pilot paper, Q1, a) 15 marksEvaluate the macro-environment of NMS using a PESTEL analysis2. Dec 2008, Q1, a) 20 marksAnalyse the macro-environment of the National Museum using a PESTEL analysis3. Jun 2010, Q1, a) 21+4 prof. marksUndertake the assessment, required by Sheila Jenkins, of the strategic position of WET4. Dec 2010, Q1, a) 15 marksIn the context of Shoal plcs corporate-level strategy, assess the contribution and performance of ShoalFish, ShoalPro and ShoalFarm. Your assessment should include an analysis of the position of each company in the Shoal plc portfolio5. Jun 2011, Q1, a) 16+4 prof.marksAnalyse the external macro-environment and marketplace (industry) environment of EcoCar.6. Dec 2011, Q1, a) 20 marksUsing appropriate models and frameworks, analyse GETs current strategic position from both an internal and external perspective7. Dec 2012, Q2, a) 15 marksEvaluate the strategic position of the estate with specific reference to the expectations of stakeholders, to the external environmental factors beyond the control of the estate and to the strategic capabilities of the estate itself.

Model #2 Porter's Five Forces CCCSS

C - Competitors existing (threat from competitive rivalry) - # and size of competitors, quality and other differencies, customer loyalityC - Competitors new (threat from potential entrants) - cost and time of entry, building a brand, knowledge required, economies on scales, barriers like patents, design rightsC - Customers (customers' bargaining power) - # of customers, size of each order, product and price differences, price sensitivityS - Suppliers (supliers' bargaining power) - # and size of suppliers, uniqueness of service, cost of switiching to other suppliersS - Substitutes (direct, indirect and monetary) (threats from substitutes) - the existence of substitutes, the performance of substitute products, relative price, fashion trend

When Porter's Five Forces was examined in P3 past exam papers?

1. Pilot paper, Q1, b) 16 + 4 prof. marksAnalyse the industry or marketplace environment that NMS is competing in2. June 2008, Q1, a) 18 + 2 prof. marksUsing an appropriate model or models, analyse the competitive environment of AutoFones retail shops division.3. Dec 2009, Q1, a) 20 marksUsing Porters framework, analyse the business analysis certification industry (BACTI) in Erewhon and assess whether it is an attractive market for ABCL to enter4. Jun 2010, Q1, a) 21+4 prof. marksUndertake the assessment, required by Sheila Jenkins, of the strategic position of WET5. Dec 2010, Q1, a) 15 marksIn the context of Shoal plcs corporate-level strategy, assess the contribution and performance of ShoalFish, ShoalPro and ShoalFarm. Your assessment should include an analysis of the position of each company in the Shoal plc portfolio6. Jun 2011, Q1, a) 16+4 prof.marksAnalyse the external macro-environment and marketplace (industry) environment of EcoCar.7. Dec 2011, Q1, a) 20 marksUsing appropriate models and frameworks, analyse GETs current strategic position from both an internal and external perspective8. June 2013, Q2, a) 15 marksUse Porters five forces framework to assess the attractiveness, to NESTA, of entering the discount fixed-price retail market in Eurobia

Model #3 Project initiation document (PID)TitleObjectivesScopeConstraints (time &costs)Authority (Sponsor - make decisions, provide resources, agree changes)Resources (available for project material, labour, finance resources)

When PID was examined in P3 past exam papers?

1. Dec 2007, Q2 a) 15 marks Explain how a business case and a project initiation document would have helped prevent some of the problems that emerged during the conduct of the website re-design project. 2. June 2012, Q3 a) 15 marksAnalyse how a formal terms of reference (project initiation document) would have helped address problems encountered in the project to construct the community centre and lead to improved project management in future projects3. June 2013, Q1 a) 18+2 prof. marks Identify and analyse mistakes made by the CEO in the project management process (initiation, conduct and termination) in his attempt to introduce strategic planning, and an associated information system, at MidShire Health

Model #4 ANSOFF's growth vector matrix

Existing Markets * Existing Products = Market PenetrationExisting Markets * New Products = Product DevelopmentNew Markets * Existing Products = Market DevelopmentNew Markets * New Products = Diversification: Direct + Indirect

When ANSOFF was examined in P3 past exam papers?

1. Dec 2007, Q1 c) 10 marksIdentify and evaluate other strategic options ONA could consider to address the airlines current financial and operational weaknesses.2. June 2008, Q4, a) 10 marksThe proposal to develop and sell a software package for the retail industry represents a major change in strategy for PSI. Analyse the nature, scope and type of this proposed strategic change for PSI3. June 2009, Q1, b) 18+2 prof. marksThe panel selected the proposal of Professor Ag Wan as the winning proposal.Write a briefing paper evaluating the three proposals and justifying the selection of the proposal of Professor Ag Wan as the best strategic option for greenTech to pursue.

Model #5 Porter's Value ChainIL O OL M&S S

IL - Inbound logisitics - e.g. JIT systemO - Operations - manufacturing the productsOL - Outbound logistics - getting the products to the customersM&S - Marketing and salesS - Service- after sales service

When Value Chain was examined in P3 past exam papers?

1. Dec 2007, Q3 a) 5 marksDescribe the primary activities of the value chain of Perfect Shopper2. Dec 2009, Q 2 a) and b) 25 marksAnalyse the primary activities of the value chain for the product range at ILEvaluate what changes IL might consider to the primary activities in the value chain to improve their competitiveness, whilst continuing to meet their charitable objectives.3. June 2012, Q4 a)Analyse the existing value chain, using it to highlight areas of weakness at Jayne Cox Direct

Model #6 Harmon's Process Strategy Matrix

Is the process strategically important? (does it tie up with SWOT?)Is the process complex?

High importance * Complex process = focusing on STAFF (make sure they are able to do it)High importance * Simple process = use a bespoke ERP soution Low importance * Complex process = Outsource (Marketing, IT, Legal service)Low importance * Simple process = Automate (off-the-shelf system)

When Harmon's process was examined in P3 past exam papers?

1. June 2008, Q 2 a) 15 marksThe Business Architecture Committee (BAC) has been asked to make recommendations on the sourcing of activities (in-house or outsourced). The BAC has also been asked to identify technological implications or opportunities for the activities that they recommend should remain in-house.Suggest and justify recommendations to the BAC for each of the following major process areas: (i) Attendance of repair staff at breakdowns;(ii) Membership renewal;(iii) Vehicle insurance services;(iv) Membership queries; and(v) Vehicle history checks.2. Dec 2009, Q 3 b) 15 marksExplain, using Harmons process-strategy matrix, how the complexity and strategic importance of process initiatives can be classified. (4 marks)Recommend and justify a solution option for each of the three process initiatives (9 marks)3. Dec 2011, Q 2 b) 15 marksiCompute is currently re-considering three high level processes:(i) Advice on legal issues (currently outsourced)(ii) Software support (currently outsourced)(iii) Time recording (in-house, bespoke software development)Evaluate, using an appropriate framework or model, the suitability of iComputes current approach to EACH of these high level processes.4. June 2013, Q3 a) 15 marksThree significant business process areas have been identified in the scenario: (1) payroll, (2) legal advice and (3) an enhanced web service allowing wholesalers to request and track deliveries.Required:Use Harmons process-strategy matrix to analyse the characteristics of each of the three process areas defined above and suggest how each should be sourced and implemented at CT.

Model #7 Cultural Web - seven elements

Rituals and routines - what procedures are emphasized?Symbols - Are status symbols are used for rewards? What are rewards given for?Control systems - What is most closely monitored?Organisation structure - How tall/flat?Power structure - How much centralization is there?Stories - Does news in the company focuses on success or failures?The Paradigm - What assumption are taken for granted?

When Cultural Web was examined in P3 past exam papers?

1. Dec 2008, Q1 b) 18+2 prof. marksThe failure of the Director Generals strategy has been explained by one of the trustees as a failure to understand our organisational culture; the way we do things around here.Assess the underlying organisational cultural issues that would explain the failure of the Director Generals strategy at the National Museum.2. Dec 2010, Q3 a) 15 marksAnalyse Frigate Ltd using the cultural web or any other appropriate framework for understanding organisational culture3. Dec 2011, Q 2 a) 13 marksAnalyse the culture of iCompute, and assess the implications of your analysis for the companys future performance4. June 2013, Q1 a) ii) 18+2 prof. marksExplain how an understanding of organisational culture and organisational configuration would have helped the CEO anticipate the problems encountered in introducing a strategic planning system, and an associated information system, at MidShire Health.

Model #8 Contextual features - Balogun and Hope Hailey Acceptance of Strategic ChangeFundamental change is likely to be resisted unless there are good reasons for stakeholders to accept it.Balogun and Hope Haley list the contextual features which stakeholders will consider:

Time is the organization in a crisis or is there time for gradual change? Scope will many people/divisions/depts. be affected or just a few? Preservation are there processes, competences and staff that will need to be retained? Diversity different parts of the business may have their own culture and interests. Will the proposed change impact on these?Capability do senior mgt. have the knowledge and experience to deal with change?Capacity does the organization have the resources required to undertake the change?Readiness are the key stakeholders aware of why change is needed and are they likely to accept it?Power can senior managers force change even if it is against the wishes of other stakeholders?

When Contextual Features was examined in P3 past exam papers?

1. June 2008, Q4 b) 15 marksThe success of any attempt at managing change will be dependent on the context in which that change takes place. Identify and analyse, using an appropriate model, the internal contextual features that could influence the success or failure of the chief executives proposed strategic change for PSI.2. Dec 2010, Q1 b) 13+2 prof.marksIdentify and analyse, using an appropriate model, the contextual factors that will in uence how strategic change should be managed at Captain Haddock. 3. Dec 2012, Q1 b) 12 marksTime, scope, capability and readiness for change are four contextual factors that affect strategic change. Evaluate the potential influence of these four factors at Steeltown Information Technology on any strategic change proposed by the EA Group.

Model # 9 SFA test - evaluation of strategic options

S Suitable? - for circumstances in which the company operates - its strategic position (SWOT, Porter's generic strategy)F Feasible? - available resources, competencies, timesA Acceptable? - by key stakeholders

When SFA test was examined in P3 past exam papers?

1. June 2010, Q2 a) 15 marksAssess, using both nancial and non-nancial measures, the attractiveness, from Swifts perspective, of EVM as an acquisition target.2. Dec 2011, Q1 b) 16+4prof.marksGETs proposed strategy is firstly to acquire SOFR and then the franchise to run the rail network of Raziackstan. You have been asked to provide an independent assessment of this proposed strategy. Write a report evaluating GETs proposed strategy.

Model #10 Software selection - 5 stages by Skidmore and Eva

When a company decides to purchase a bespoke software it goes through these 5 stages:1. Obtain tenders2. First pass selection3. Second pass selection4. Implementation5. Managing long-term relationships

When Software selection was examined in P3 past exam papers?

1. June 2009, Q3 b) 12 marksExamine FOUR ways in which OneEnergy failed to follow a proper evaluation procedure in the selection of the RitePay software package. Include in your examination a discussion of the implication of each failing.2. June 2011, Q3 b) 10 marksExplain the advantages of fulfilling users requirements using a software package solution and discuss the implications of this solution for process re-design at IAA. 3. Dec 2011, Q3 b) 12 marksEvaluate the problems and the lessons that should be learned from a post-project review and a post-implementation review of the electronic ordering system at HomeDeliver