International Business Strategy 301LON The Strategic Environment Environmental Analysis International Business Strategy 301LON DO NOT ADD FURTHER SLIDES TO THIS PACK SAVE FILE USING THE FOLLOWING FORMAT: MODULE CODE UNIT NUMBER.PPT (E.G. LCM001U1.PPT) PLEASE DO NOT CHANGE TEMPLATE OR FORMATTING Unit: 3 Knowledgecast: 2

Module Learning Outcomes Demonstrate a sound appreciation of current strategic management concepts# Assess current developments in the organisational environment and alternative responses related to strategy This Knowledgecast focuses on strategic capability, sources of competitive advantage and how businesses can SUSTAIN that competitive advantage.

SWOT Analysis External Analysis Internal Analysis Weaknesses Opportunities Strengthens Threats External Analysis Internal Analysis

SWOT Analysis (cont.) S-STRENGTHS W-WEAKNESSES O-OPPORTUNITIES 1. 2. 3. ... W-WEAKNESSES O-OPPORTUNITIES T-THREATS

Some possible factors in a SWOT analysis S-STRENGTHS •       Market dominance •       Core strengths •       Economies of scale •       Low-cost position •       Leadership and management skills •       Financial and cash resource •       Manufacturing ability and age of equipment •       Innovation processes and results •       Architecture network •       Reputation •       Differentiated products •       Product or service quality W-WEAKNESSES •   Share weaknesses •       Few core strengths and low on key skills •       Old plant with higher costs than competition •       Weak finances and poor cash flow •       Management skills and leadership lacking •       Poor record on innovation and new ideas •       Weak organisation with poor architecture •       Low quality and reputation •       Products not differentiated and dependent on few products O-OPPORTUNITIES •       New markets and segments •       New products •       Diversification opportunities •       Market growth •       Competitor weakness •       Strategic space •       Demographic and social change •       Change in political or economic environment •       New takeover or partnership opportunities •       Economic upturn •       International growth T-THREATS •   New market entrants •       Increased competition •       Increased pressures from customers and suppliers •       Substitutes •       Low market growth •       Economic cycle downturn •       Technological threat •       Demographic change . New international trade barriers

SWOT Analysis (cont.) S-STRENGTHS W-WEAKNESSES O-OPPORTUNITIES 1. 2. 3. ... W-WEAKNESSES O-OPPORTUNITIES SO - Strategic Actions WO- Strategic Actions T-THREATS ST- Strategic Actions WT- Strategic Actions Overcame weaknesses by taking advantage of opportunities Use strenghts to take advantage of opportunities Minimize weaknesses and avoid threats Use strenghts to avoid threats

Knowledgecast Summary Demonstrate a sound appreciation of current strategic management concepts Assess current developments in the organisational environment and alternative responses related to strategy MAXIMUM THREE LEARNING OUTCOMES TO REVIEW: ONE REVIEW SUB BULLET PER LEARNING OUTCOME

Seminar Environmental Audit – Part One Using the Mini case study (Britain’s Retail Industry) on your moodle page under unit three, we are going to engage in environmental analysis as detailed below. Britain’s high street companies are facing some difficult challenges. Do you think that the problem is: 1. The impact of changes in external business environment or 2. The problem is within the organisations’ specific resources and competences (strategic capabilities)?   Identify the key environmental factors that are affecting the retail industry using Strategic tools (PESTEL, 5Forces etc) to support your answers

Group Activity Environmental Audit – Part Two In this seminar, we will continue to explore environmental analysis using the Mini case study (Global forces and the European Brewing Industry) found on page 79 of one of your recommended reading text –Exploring corporate strategy by Johnson and Scholes 9th edition Be prepared to present your answers to the questions that follow in a power point presentation as a group and be ready to answer questions from your colleagues and Tutor . Each group will have 7 minutes presentation time and 3 minutes Q&A.