Strategic Management Process and Tools in Business
Explore the strategic management process, tools, and strategies in business through the case study of Rainbow Guest House seeking to improve its operations amidst challenges. Learn about analyzing business environments, conducting SWOT analysis, applying Porter's Five Forces model, and solving business-related problems effectively.
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Grade 12 Lesson 7 Business Strategies
Strategic management process Outline/Explain/Discuss steps in developing a strategy. Outline/Describe/Explain/Discuss the strategic management process. Apply the strategic management process to solve business-related problems.
Strategic management process Outline the strategic management process. (6) Outline the strategic management process that must be followed by a business when responding to challenges in business environment. (8)
Strategic management process RAINBOW GUEST HOUSE (RGH) The management of Rainbow Guest House wants to improve their strategic management process. They conducted an environmental scan and identified the following challenges: Many workers are not qualified for the work. The new Horizon Guest House charges lower prices for similar services. RGH is located in an area where the crime rate is high. 1.
Strategic management process 1. Quote THREE challenges that were identified by RGH from the scenario above. (3) 2. Classify EACH challenge identified in QUESTION according to the relevant industrial tool.(6) 3. Advise RCH on how to conduct the strategic management process. (6)
Industrial analysis tools Compile a SWOT analysis of a particular business from a given scenario. Name and identify Porter's Five forces model from give statements/scenarios. Explain/Advise businesses on how they could apply Porter's Five Forces model to analyse their position in the market.
Porters 5 Force model Identify the element of Porter s Five Forces model that applies to each of the following statements. Reggi s Gardening Services buys all her gardening tools from JC CC, which is the only business that sells garden tools and equipment. Tshidi s Landscaping offers services at lower prices than John s Landscaping. Although Reggi charges high prices, she has many customers due to the outstanding services she offers. It was not easy for Tshidi to start a business, as he needed a trading licence. Some customers may prefer to do their own gardening instead of making use of service providers.
Porters 5 force model State FIVE elements of the Porter s Five Forces (5) Advise businesses on the following forces of Porter s Five Forces model: a. Bargaining power of suppliers. (4) b. Threat of substitutes. (4)
Industrial analysis tools Name and apply PESTLE analysis factors from given scenarios/statements. Explain how PESTLE factors pose challenges to businesses. Recommend ways in which businesses can deal with the challenges that are posed by PESTLE factors.
PESTLE Analysis Identify the PESTLE element that poses a challenge to Tsego Manufacturers in EACH statement below. Customers cannot afford to buy Tsego Manufacturers products due to low income levels. Tsego Manufacturers cannot afford to implement correct measures when disposing of waste materials. Tsego Manufacturers have lost many customers due to a lack of on-line buying facilities. Tsego Manufacturers have increased their prices due to the high inflation rate.
PESTLE Analysis Read the scenario below and answer the questions that follow. MARTHA & JANE FURNITURE (MJF) Martha & Jane Furniture specialise in selling office furniture. The profitability of the business has decreased due to high inflation rates and low income levels of customers. MJF had to pay a heavy fine because they did not renew their trading licence in time.
PESTLE Analysis Quote THREE challenges for MJF from the scenario above.(3) Identify the PESTLE element that links to EACH challenge, as quoted in QUESTION above (6) Recommend ONE way in which MJF can deal with EACH challenge, as identified in QUESTION above (6) Explain how the following PESTLE elements/factors may pose a challenge to businesses: Economic (4) Social (4)
Industrial analysis tools Describe/explain/discuss the different types of business strategies. Recommend/Suggest business strategies to deal with challenges identified from given case studies/scenarios. Discuss/Elaborate on the effectiveness (positives/advantages) of EACH type of business strategy.
Strategies Identify the business strategy that was used in each of the following scenarios. The owner of a wedding venue decided to build a guest house on the same premises for wedding guests to sleep over. Fresh Juices Unlimited bought Potgieter s grape farm. Simunye Stores struggles to get fashionable swimming attire and decides to purchase Perseverance Sports (Pty) Ltd Clothing Manufacturer. Summer Sports decreases the price of soccer balls drastically to influence customers to buy larger quantities. (8)
Strategies Distinguish between product development and market development as intensive strategies. (4) Evaluate the effectiveness of product development strategies. (6) Explain the advantages of intensive strategies for businesses. (6) List the THREE types of integration strategies. (3)
Strategies Read the scenario below and answer the questions that follow. GLEN SHUTTLE SERVICES (GSS) Glen Shuttle Services transports clients to and from the airport. Some clients have requested GSS to sell soft drinks while travelling. GSS has decided to merge with Clear Beverages to be able to satisfy the needs of their clients. Identify the type of integration strategy that GSS applied in the scenario above. Motivate your answer. (3) Give THREE reasons why businesses may use integration strategies. (6)
Strategy evaluation Outline/Explain/Recommend/Advise businesses on the steps in strategy evaluation.
Strategy evaluation Suggest steps that businesses may use to evaluate a strategy. (6) Advise businesses on steps that they could follow when evaluating a strategy. (8)
