STRATEGIC CASEElements and Cascade

1 of 5

EXTERNAL ANALYSIS

Industry Profitability

Driving ForcesOutlined two key objectives

Explain how they are changing the industry

Key Success FactorsOutline the two most important factors

Explain why they are necessaryShow industry specificity

Industry Profile •Industry Definition •Size •Growth Rate •Stage in Life Cycle •Number of Companies •Customers (Number of Buyers) •Products •Pace of Technology •Ease of Entry/Exit •Capital Requirements •Economies of Scale •Experience Curve •Capacity Utilisation

Competitor Profile & Strategic Groups

•Two Independent dimensions •Where and how competitors fit the dimensions •Outline Key Competitors or Groups in terms of: • Name • Products • Current Strategy • Strategic Intent • Other Strategic Information

Porter’s Five Forces •Threat of new Entrants •Buyer Power

•Who are they?•Supplier Power

•Who are they?•Substitute Power

•What are they?•Rivalry

TOISSUES

2 of 5

INTERNAL ANALYSIS

Strategic Profile •Company NameWhich Industry it operates in•Vision•Mission•Goals•Size•Structure•Business Segments•Products / Markets & Industries (Current NOT historical) •Corporate Level Strategy•Business Level Strategy

Financial Analysis•Profitability•Liquidity•Gearing Ratios

•Strategic Implications (THE SO WHAT!)•Any other relevant information•Overall financial situation

VRIO / Value Chain•Key SCA’s, (1 or 2)•TCA’s (3 to 4)•CD’s (3 to 4+)•CP (3 or 4 but don’t overdo)

•ISSUES caused by these

•Justify why they are this type of CI

•Identify and justify any Core Competencies (Or lack of them)

ISSUESKey Internal and External Issues

Articulated why they are important to the organisationRanked in order of the overarching issue being your issue followed on with your other

issuesLINKED TO YOUR ANALYSIS

REMEMBER CD’s from VRIO MUST link to issuesand vice versa

FROM EXTERNAL ANALYSIS

3 of 5

STRATEGY DEVELOPMENTPotential Strategies

•Develop and Outline 2 strategies•Explain how they solve the issues•Linked to the analysis

Decision Criteria•Explain key reasons for one strategy over another•Included a detailed appendix table on decision criteria which:

• Includes key decision criteria (Financial Outcomes; Solves Issues)

• Shows a points scale• Explains the points scale• Justifies why each strategy received its

respective score

Recommended Strategy•Outlined the Chosen Strategy•Explained What’s good about it•Discussed Financial Implications•LINKED TO ANALYSIS

Industry Analysis

Segments

Driving Forces

Key Success Factors

ISSUESInternal & External

Mission & Goals

Corporate and

Business Strategy

Culture

INPUTS FROM LINKING TO

VISION

Mission & Goals

Corporate and Business

Strategy

Culture

4 of 5

STRATEGY IMPLEMENTATION

Action Plan•Explained key steps regarding implementation•Given the financial cost/benefit of each stage•LINKED TO THE ANALYSIS•Included a detailed table in the appendix which gives sufficient information

• Who, What, When, Deliverables, Key time points, SMART goals. Project management.

Conclusion•Sum up the benefits that your strategy brings to the company

•SELL IT AND CONCLUDE

EXECUTIVE SUMMARY

Risk Assessment

Overall Implications

Any other models/headings/sectio

ns as appropriate PRESENTATION:Defence against any objectionsWhat questions may be raised

Final Report PublicationSignoff – Project start

5 of 5

6

REMEMBER

SO.....

SO WHAT.....

WHAT NOW......

You have:

10 pages for •Internal•External•Strategy recommendations•Strategy explanation•Action plan•Conclusion

Then an additional 5 pages of appendices

Do not forget your:• Executive summary • Contents pages

It’s so much more

than the numbers:

If a ratio = 1 then

what does this

mean to me and

how do I utilise it.

7

LAYOUT Cover Executive Summary Contents Internal

Strategic Profile VC/VRIO Core Competency Financial

External Industry Profile 5 Forces Industry profitability Driving Forces Key Success Factors Competitor Profile / Strategic Groups

Issues and Options Main Issue Other Issue Priorities Links to Analysis

Strategic Alternatives Two viable Alternatives Solves Issues Decision Criteria (Decision Grid /

Score) Justification Action Plan

Who – What – When - Cost Timeline (Project Management) Grid Layout

Appendices