Strategic Analysis and Business Strategy Overview

 
Priyanka Darshana
MBA, 
ACMA, CGMA, BB Marketing
 
Corpo
r
ate & Business
 
Strategy
Strategic
 
Analysis
 
External
 
Appraisal
 
What do we analysis
 
MICRO Environment
MACRO Environment
 
Where 
do 
we 
compete
 
?
 
MICRO
 
Strategic 
Group
 
Mapping
 
A 
strategic 
group 
is 
a 
concept used 
in strategic
management 
that 
groups 
companies within an industry that
have 
similar 
business models or 
similar 
combinations of
strategies
DI
High
 
D2
 
Hi
gh
 
L
o
w
 
Burger Market
analysis
 
Competitor perception map
 
Rivalry
 
Five 
Industry
 
Forces
 
Organization
 
PESTEL / MACRO Analysis
 
Political
 Factors
 
How government policy and actions 
intervene 
in the economy
and 
other 
factors that can affect 
a 
business. 
These 
include 
the
following:
 
Tax
 
Policy
Trade
 
Restrictions
Tariffs
Bureaucracy
 
Different political parties in 
a 
country have diverging views and
strategies 
for 
policy on the items
 
above.
 
Economic
 
Factors
 
Economic 
Factors 
take 
into account the various aspects 
of 
the 
economy,
and how the 
outlook on 
each 
area 
could impact your business. 
These
economic 
indicators 
are usually measured and reported by Central Banks
and 
other 
Government
 
Agencies.
 
Economic 
Growth Rates
Interest Rates
Exchange
 
Rates
Inflation
Unemployment
 
Rates
 
The Economic outlook 
is 
of 
extreme 
importance 
for a
 
business.
 
Social
 
Factors
 
Which are 
related 
to the 
cultural 
and 
demographic 
trends 
of
society. 
Social norms and pressures are key to determining 
a
society consumerist
 
behavior.
Factors to be considered are the
 
following:
 
Cultural 
Aspects 
&
 
Perceptions
Health Consciousness
Populations 
Growth
 
Rates
Age
 
Distribution
Career
 
Attitudes
 
Technological
 
Factors
 
Technological 
Factors 
are linked to 
innovation
 in the 
industry,
as well as innovation 
of the 
overall 
economy. 
Not being up to
date to the 
latest 
trends of 
a 
particular industry can be
extremely harmful 
to 
operations.
Technological 
Factors include the
 
following:
 
R&D 
 
Activity
Automation
Technological
 
Incentives
The 
Rate 
of 
change in
 
technology
 
Environmental
 
Factors
 
Ecological 
impacts 
on 
business. 
As 
weather extremes become 
more 
common,
businesses need 
to 
plan 
how to 
adapt 
to 
these
 
changes.
Key 
Environmental Factors 
include the
 
following:
 
Weather
 
Conditions
Temperature
Climate
 
Change
Pollution
Natural disasters 
(tsunami, 
tornadoes, 
corona
 
etc.)
 
Additionally, 
there 
is 
increasing importance 
for 
businesses 
to be 
environmentally
friendly 
with their 
operations, as 
evidenced 
by 
the 
rise 
Corporate Sustainability
Responsibility 
(CSR) 
initiatives. Examples 
of 
CSR initiatives include 
carbon footprint
reduction 
efforts and transitions into renewable material and energy
 
sources.
 
Legal
 
Factors
 
There 
is 
often uncertainty 
regarding 
the 
difference 
between 
Political 
and
Legal 
Factors 
in 
the 
context 
of a 
PESTEL 
analysis. 
Legal 
Factors 
pertain 
to  
any
legal 
forces 
that define 
what 
a 
business can 
or 
cannot 
do. 
Political  
Factors
involve 
the 
relationship between business 
and the
 
government.
Political
 
and 
Legal  
Factors 
can 
intercept 
when 
governmental  
bodies
introduce 
legislature 
and 
policies 
that 
affect 
how businesses 
operate.
Legal 
factors 
include 
the
 
following:
 
Industry Regulation
Licenses 
&
 
Permits
Labor
 
Laws
Intellectual
 
Property
Consumerism
 
Opportunities 
and threats
 
Combined, 
these six factors 
have 
a 
profound impact 
on
the 
opportunities 
and 
threats for a 
business 
going
 
forward
 
Scenarios
 
 
Scenarios
 are detailed and plausible views of how the
environment of an organisation might develop in the
future based on key drivers of change about which there is
a high level of uncertainty.
 
 
Build on PESTEL analysis .
 
Do not offer a single forecast of how the 
 
environment
will change.
 
An organisation should develop a few alternative
 
scenarios (2
4) to analyse future strategic options.
 
Carrying out scenario analysis
 
Identify the most 
relevant scope of the study 
– the
relevant product/market and time span.
Identify 
key drivers of change 
– PESTEL factors that have
the most impact in the future but have uncertain
outcomes.
 Develop scenario ‘stories’ - 
That is, coherent
and plausible descriptions of the environment that
result from opposing outcomes
Identify the impact of each scenario 
on the organisation
and evaluate future strategies in the light of the
anticipated scenarios.
 
 
Strategic
 
Analysis
 
Internal
 
Appraisal
 
External
 
Appraisal
 
Org
a
n
i
s
at
i
on
a
l
capability
profile
 
(OCP)
 
Environmental 
threat
and 
opportunities
profile (ETOP)
 
Resources
Capabilities
Competitive
 
advantages
 
Where 
to
 
Compete
Industry
 
position
PEST/PESTEEL
 
factors
 
Strengths/weaknesses
 
Opportunities/threats
 
SWOT
 
Analysis
 
SW
O
T
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This presentation delves into corporate and business strategy, including strategic analysis, external appraisal, micro, and macro environment analysis. It explores where companies compete, strategic group mapping, market analysis, competitor perception, industry forces, and PESTEL/MACRO analysis, providing insights into factors influencing business decisions.


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  1. Corporate & Business Strategy Strategic Analysis Priyanka Darshana MBA, ACMA, CGMA, BB Marketing

  2. External Appraisal

  3. What do we analysis MICRO Environment MACRO Environment

  4. Where do we compete ? MICRO

  5. Strategic Group Mapping A management that groups companies within an industry that have similar business models or similar combinations of strategies strategic group is a concept used in strategic DI High D2 Low High

  6. Burger Market analysis

  7. Competitor perception map

  8. Rivalry Element Level Favorable / Unfavorable U U U F F F Number of competitors Size Growth rate Differentiation Exit barriers Industry against Revelry High Big & medium Slow High Low

  9. Five Industry Forces Force Status Favorable / Unfavorable U U U F U U Revelry Intensive High High Low Many Threat of New Entry Buyer's Power Supplier s Power Substitutes Overall Industry Attractiveness

  10. PESTEL / MACRO Analysis Organization

  11. Political Factors How government policy and actions intervene in the economy and other factors that can affect a business. These include the following: Tax Policy Trade Restrictions Tariffs Bureaucracy Different political parties in a country have diverging views and strategies for policy on the items above.

  12. Economic Factors Economic Factors take into account the various aspects of the economy, and how the outlook on each area could impact your business. These economic indicators are usually measured and reported by Central Banks and other GovernmentAgencies. Economic Growth Rates Interest Rates Exchange Rates Inflation Unemployment Rates The Economic outlook is of extreme importance for a business.

  13. Social Factors Which are related to the cultural and demographic trends of society. Social norms and pressures are key to determining a society consumerist behavior. Factors to be considered are the following: Cultural Aspects & Perceptions Health Consciousness Populations Growth Rates Age Distribution CareerAttitudes

  14. Technological Factors Technological Factors are linked to innovation in the industry, as well as innovation of the overall economy. Not being up to date to the latest trends of a particular industry can be extremely harmful to operations. Technological Factors include the following: R&D Activity Automation Technological Incentives The Rate of change in technology

  15. Environmental Factors Ecological impacts on business. As weather extremes become more common, businesses need to plan how to adapt to these changes. Key Environmental Factors include the following: Weather Conditions Temperature Climate Change Pollution Natural disasters (tsunami, tornadoes, corona etc.) Additionally, there is increasing importance for businesses to be environmentally friendly with their operations, as evidenced by the rise Corporate Sustainability Responsibility (CSR) initiatives. Examples of CSR initiatives include carbon footprint reduction efforts and transitions into renewable material and energy sources.

  16. Legal Factors There is often uncertainty regarding the difference between Political and Legal Factors in the context of a PESTEL analysis. Legal Factors pertain to any legal forces that define what a business can or cannot do. Political Factors involve the relationship between business and the government. Political and Legal Factors can intercept when governmental introduce legislature and policies that affect how businesses operate. Legal factors include the following: bodies Industry Regulation Licenses & Permits Labor Laws Intellectual Property Consumerism

  17. Opportunities and threats Combined, these six factors have a profound impact on the opportunities and threats for a business going forward

  18. Scenarios Scenarios are detailed and plausible views of how the environment of an organisation might develop in the future based on key drivers of change about which there is a high level of uncertainty. Build on PESTEL analysis . Do not offer a single forecast of how the will change. An organisation should develop a few alternative scenarios (2 4) to analyse future strategic options. environment

  19. Carrying out scenario analysis Identify the most relevant scope of the study the relevant product/market and time span. Identify key drivers of change PESTEL factors that have the most impact in the future but have uncertain outcomes.Develop scenario stories - That is, coherent and plausible descriptions of the environment that result from opposing outcomes Identify the impact of each scenario on the organisation and evaluate future strategies in the light of the anticipated scenarios.

  20. Strategic Analysis Internal Appraisal External Appraisal Organisational capability profile (OCP) Environmental threat and opportunities profile (ETOP) Resources Where to Compete Capabilities Industry position Competitive advantages PEST/PESTEEL factors Strengths/weaknesses Opportunities/threats SWOT Analysis

  21. SWOT

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