2. International Business Strategy 301LON
The Strategic Environment
Environmental Analysis
International Business Strategy
301LON
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SAVE FILE USING THE FOLLOWING FORMAT: MODULE CODE UNIT NUMBER.PPT (E.G. LCM001U1.PPT)
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Unit: 3 Knowledgecast: 2

3. 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.

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

5. SWOT Analysis (cont.) S-STRENGTHS W-WEAKNESSES O-OPPORTUNITIES1. 2. 3.
...
W-WEAKNESSES
O-OPPORTUNITIES
T-THREATS

6. 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

7. SWOT Analysis (cont.) S-STRENGTHS W-WEAKNESSES O-OPPORTUNITIES1. 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

8. 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

10. 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

11. 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.