Contemporary Business Issues Layers of Business Strategy Module Tutor: Nigel Bryant Session 3 28th January 2016

Module Outline 1.Introduction to Contemporary Business Issues 2.Strategic Management Theory 3.Layers of Business Strategy 4.Case Study Analysis 5.Strategic Planning 6.Reading Week 7.Change Management Theory 8.Assignment Workshop and Individual Tutorials 9.Assignment Workshop and Individual Tutorials 10.Decision Making Techniques 11.Review of the Decision Making Process 12.Reading week 13.Reading week 14.Assignment Workshop and Individual Tutorials 15.Assignment Workshop and Individual Tutorials Module Evaluation

Learning Outcomes: Session 3 You will be able to: Recognise suitable tools to apply to a given situation; Identify issues as a result of investigation and application of strategic tools; Assess impact of these issues on a corporate, business and operational level of businesses; Evaluate the implications of these issues on the future development and performance of a business.

Recap last 2 weeks: Which strategic models have you revisited that help to analyse a range of internal and external business issues? 1.PESTEL framework 2.Porter’s 5 Forces – competitive rivalry 3.The Industry Life Cycle 4.Porter’s Value Chain 5.SWOT analysis 6.Bowman’s Strategy Clock 7.Ansoff’s New Product/Market Matrix 8.The Boston (growth/share) Matrix 9.McKinsey’s 7 x S Model of internal capabilities

Layers of the Business Environment The Organisation

Layers of the Business Environment 1.Identify any issues that apply to PESTLE 2.Summarise the key factors for each of PESTLE

Layers of the Business Environment 1.Identify any issues that apply to PESTLE 2.Summarise the key factors for each of PESTLE

PESTLE Analysis for Tesco Jim MakosJim Makos January 2015

Levels of Strategy 1.Corporate-level strategy 2.Business-level strategy 3.Operational strategies

VRIN Value of strategic capabilities Rarity Inimitability Non-substitutability Jay Barney (2007)Barney

The top 10 problems faced by businesses? BMGI (2013) What problems do you think are in the top 10? 1. Uncertainty 2. Globalization 3. Innovation 4. Regulation 5. Technology 6. Diversity 7. Complexity 8. Information Overload 9. Supply Chain 10. Problem solving

Deconstruct the Assignment Brief You will be required to identify two key business issues currently facing the Lloyds Banking Group. You must: - Identify the issues by using a range of analytical tools - Critically analyse the impact of those issues on each layer of business (strategic, operational and individual) Focussing on one of these key issues, you must: - Justify your choice of issue - Provide appropriate business solutions to the issue identified - Analyse the business solution implemented by Lloyds Banking Group - Investigate and evaluate the decision making process undertaken by Lloyds Banking Group. You will be required to present their findings in a 3,000 word formal report with relevant academic underpinning.

What are the Contemporary Business Issues affecting Lloyds Banking Group? Individual THINK for 5 mins. PAIR brainstorm for 5 mins. Whole group SHARE.

Here’s a few suggestions... Senior exec compensation vs. company performance Increasing difference in wages between top management and average employee. Burden of the UK national debt (£1 trillion+) Government shareholdings in banks. Nationalisation vs. Privatisation New regulatory framework and the competitive environment in which banks operate. Independent Commission on Banking’s report recommendations for ring-fencing banking activities and its suggestion for greater competition in the uk banking market. Competitive environment and the role of social banking. Single banking market in Europe and the development of cross-border banking. Latest trends in innovation and technology in banking. Impact of technology on the branch network. Developments in internet banking and mobile phone technology together with associated risks Use of expert systems in banks and how these might affect staff levels and delivery systems. Technological risks/ cyber crime in banking and how banks seek to control such threats. Overseas call centres & automated calls Use of social media Mergers and acquisitions How to convert customer interest on website to active sale

References Johnson, Whittington and Scholes (2011) Exploring Corporate Strategy 9 th ed. FT:Prentice Hall

Recommended Reading Core Text Johnson, G., Whittington, R., Scholes, K., Angwin, D., Regner, P. (2014) Exploring Strategy, Text and Cases, 10th edition, Harlow: Pearson. Journals The following publications are recommended: International Journal of Management Review Industrial and Corporate Change Strategic Management Journal British Journal of Management Harvard Business Review

Next Session