Strategy Analysis Flashcards
Describe the PESTLE technique
A technique to understand how external factors/risks could impact a company’s performance.
Political - what governmental policies could be detrimental or beneficial to our success?
Economical - disposable income, unemployment, could these impact on our pricing?
Socio-cultural - lifestyle choices impacting buying habits,
Technological - emerging trends available to us,
Legal - specific laws that help or hinder,
Environmental - climate change, carbon footprint.
Describe the Porter 5 Forces Technique
A technique to understand how our competitor’s products and services could impact our business.
Competitors - how many, their strengths, could they switch?
New Entrants - how easy is it to enter our market, big-budget or expertise needed?
Substitute - which other product can customers replace your product? Therefore what other product could you offer?
Buyers - how many, how big are the orders, easily switch?
Suppliers - how many? how expensive is it to switch to another supplier?
Describe the MOST model
A technique to uncover what the company wants to achieve and how to achieve it.
Mission - what we do, what we want to achieve
Objectives - long term goals written in SMART.
Strategies - approach to M and O
Tactics - projects to implement the strategies
Describe the Resource Audit technique
A technique to list a company’s tangible and intangible assets.
Tangible assets are physical, financial, human.
Intangible assets are know-how, reputation.
Physical - building, land, equipment, stock
Financial - cash flow, credit, financial health
Human - staff and resources, skills and expertise
Know-how - business knowledge, trademarks
Reputation - brand, goodwill
Strategy definition
is the direction and the scope of an organisation over the long term.
Strategy is defined to keep a competitive advantage and fulfill stakeholders’ expectations.
What is strategy analysis?
we use a set of techniques to understand how external influences can impact an organisation performance and
the internal capabilities needed to handle these influences
