International Business Strategy 301REN Unit: 3 Knowledgecast: 2 The Strategic Environment Environmental Analysis

Demonstrate a sound appreciation of current strategic management concepts# Assess current developments in the organisational environment and alternative responses related to strategy Module Learning Outcomes

SWOT SWOT Analysis External Analysis Internal Analysis O pportunities T hreats S trengthens W eaknesses

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

Some possible factors in a SWOT analysis S 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 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 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 T-THREATS New market entrants Increased competition Increased pressures from customers and suppliers Substitutes Low market growth Economic cycle downturn Technological threat Change in political or economic environment Demographic change. New international trade barriers

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

Demonstrate a sound appreciation of current strategic management concepts Assess current developments in the organisational environment and alternative responses related to strategy Knowledgecast Summary

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 Seminar

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 9 th 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.