BMA202 Strategic Management The Case Analysis Process

Case Analysis An essential part of strategic management courses globally. Focus of case analysis is on “real world” application of strategic management theory. Analysis is a search for competitive advantage. Outcomes of the process – set of meaningful future strategies for the organisation. Mind-frame – complete this as if you were the senior manager of organisation.

Case Analysis There is no “one best answer’’. There are often many strategic options open to business. BUT businesses have limited resources and cannot do everything. You need to pick what you think is the best strategic option, and JUSTIFY this selection.

Section A External Analysis

Step One What industry do we compete in? You need to clearly identify the industry in which we compete. Nature and type of industry hard to define. Key point – focus on the customer needs you are satisfying and the value you provide.

Step Two General environment analysis.

Step Three The Industry Environment - classify forces as either high/moderate/low.

Step Four Competitive Environment

Step 5 What are the opportunities and threats created by the external environment? Derived from the analysis on the general, industry and competitor environment.

Part B Internal Analysis

Step 6 What are the businesses resources – tangible and intangible? List all the resources that are possessed by the business. Tangible – for example people, location, access to natural resources. Intangible – knowledge, patents, brands.

Step 7 What are our capabilities? Capabilities are the firm’s capacity to deploy resources that have been purposely integrated to achieve a desired end state Often linked to functional areas in the business – HR, Marketing, R&D, Finance. Dynamic capabilities – capabilities that allow a firm to develop new knowledge and competitive advantage.

Step 8 What are our core competencies? CC are capabilities that serve as a source of competitive advantage for a firm over its rivals

Step 9 Value chain analysis.

Step 10 Weaknesses – what major weaknesses does the business have compared to the competition AND market conditions.

Step 11 SWOT analysis: What are the strengths, weaknesses, opportunities and threats for this business during the coming planning cycle? What issues are we going to have to address with our strategy?

Step 12 What are our current strategies? Business face path-dependence due to the past strategies they have developed and implemented. Hard for a business to change strategic intent and focus.

Step 13 Future strategies: Business-level strategies – includes low cost, differentiation, focus, integrated low cost/differentiation. Corporate level – acquisitions, diversification, divestment, cooperative, international. Strategies must be consistent with the strategic vision/intent of the business.