Management & Change

STRATEGY - A3 (Template Version)

In 2-3 sentences: Overview of report and focus company Briefly introduce focus company and purpose of report In 6-8 sentences: Present strategic dilemma of focus company Concisely state what the key strategic issue/dilemma is that the company is facing

DETAILED INSTRUCTION

A/ ASSIGNMENT RECAP

  • Provide a description of the relevant background and history of the selected company, including ownership, products/services, markets. Identify the company's "strategic dilemma".

  • Conduct a PESTEL (macro-environment) analysis of the operating environment and key opportunities/threats.

  • Perform an industry/market analysis using appropriate frameworks and tools. Analyze competitive forces.

  • Identify resources/capabilities that provide competitive advantage and their relevance to analyses.

  • Make recommendations for corporate and business level strategies supported by analysis, addressing opportunities/challenges and stakeholder considerations. Justify strategies and position on Porter's framework.

B/ KEYWORD EXPLANATIONS

1. Strategic dilemma - The primary strategic issue or challenge facing a company that needs to be addressed

2. Macro-environment - Broad economic, technological, political and social conditions that impact business

3. PESTEL analysis - Assessing the political, economic, social, technological, environmental and legal factors affecting a company

4. Industry analysis - Understanding the competitive forces, norms and dynamics that shape an industry

5. Porter's Five Forces - Framework for analyzing competitive forces: bargaining power of buyers/suppliers, threat of new entrants/substitutes, rivalry among competitors

6. Strategic capabilities - Distinctive competencies of a firm that are difficult to match and provide competitive differentiation  

7. VRIN resources - Valuable, rare, inimitable, and non-substitutable capabilities that can lead to competitive advantage

8. Stakeholders - Groups/individuals who have interests in or are affected by a company's activities 

9. Generic strategies - Ways companies can gain competitive advantage by overall cost leadership, differentiation, focus on niche markets  

10. SBU - Strategic business unit representing a business or product line within a larger organization

11. Value chain - Series of activities that represent the organizational functions adding value to products or services

12. Vertical integration - Ownership or control of multiple entities within a supply chain or distribution network 

13. Diversification - Expanion of business activities into new products, services or markets  

14. Business-level strategy - Competitive strategy focused on how a firm will compete in a particular business

15. Corporate-level strategy - Company-wide strategy focused on managing a portfolio of businesses to maximize value

16. Horizontal integration - Joining forces with or taking over competitors operating at the same level of the value chain

17. Core competencies - Internal capabilities, skills and expertise that allow a firm to create unique value 

18. Competitive advantage - Attribute that allows a company to deliver better value than rivals and have an edge over them

19. Strategic positioning - Establishing an advantageous brand identity and market niche for maximum profitability  

20. Cost leadership - Attempting to gain competitive edge through minimizing costs relative to competitors

21. Differentiation - Distinguishing products/services from competition by incorporating attributes perceived as unique in the industry

22. SWOT analysis - Assessing strengths, weaknesses, opportunities and threats facing an organization  

23. Feasibility - Capacity of a company to adopt or implement a strategy or decision based on resources

24. Benchmarking - Process of measuring company operations and performance metrics against best-in-class performers

25. Strategic fit - Degree to which strategy matches company's resources and capabilities with external market factors  

26. Shareholder primacy - View that a companies' ultimate purpose and obligation is to maximize value for its shareholders

27. Stakeholder approach - View that companies have responsibilities to various stakeholders beyond just shareholders

28. Paradigm shift - Fundamental change in assumptions, concepts and practices associated with a field or industry

29. First-mover advantage - Competitive edge gained by innovating processes or products before competitors

30. Disruptive innovation - Transformational technology/business model that significantly alters the playing field in an industry     

 

 

   C/ DETAILED OUTLINE 

  • In 2-3 sentences: Overview of report and focus company 

    • Briefly introduce focus company and purpose of report

Example: Starbucks is the world's largest coffeehouse chain with over 32,000 stores in 80 markets. However, the company faces growing competition from lower-priced rivals, changing consumer preferences, and market saturation in the US. This report analyzes Starbucks' strategic dilemma of how to drive growth despite these challenges.

 

  • In 6-8 sentences: Present strategic dilemma of focus company 

  • Concisely state what the key strategic issue/dilemma is that the company is facing

Example; This report analyzes Starbucks' strategic dilemma of how to drive growth despite these challenges. These recommendations aim to leverage Starbucks’ core competencies in building an aspirational brand image and developing loyal customer relationships to address the saturation in its core US market.

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