Part 2. The selection of the main strategic options for growth Part 3. Your strategic solutions for the companys ongoing health. Part one. The analysis of the external and internal environment of the company -Locating the company in its environment. This is where you set the scene, and so you should: -Offer a brief overview of the company (from your own research or the case material provided). – Put the company in its context, which will be international or global. At this point you will start using the various analytical tools available to describe the main opportunities and threats of the environment analysed. PESTEL is the usual tool employed. You should also analyse the characteristics of the industry in which the company competes and here you should employ the 5 Forces of Competition analysis carried out in some analytical depth. – You could emerge from this first analysis with a PARTIAL SWOT analysis, that is drawing out the opportunities and threats facing the firm. After having analysed the companys environment, the focus moves to the company itself by conducting an internal analysis where the objective is to identify the capabilities and resources developed by the company. This will be carried out through the application of some well-known analytical instruments, such as the value chain, the threshold and distinctive resources and competencies framework and the VRIO framework. You should be able by now to complete the above SWOT analysis by identifying the strengths and weaknesses of your company. Finally, you should now be able to define the competitive position of the company in relation to the Generic Strategy chosen. Part two. The selection of the main strategic options for growth You should emerge from this Phase with an inquiry based view of your companys level of business success and what it must do to sustain that success and continuously improve. Which are the main options for growth? To answer this question you can refer to the Ansoff Matrix and if the company is part of a larger diversified corporation – to the Boston Consulting Group (BCG) Matrix. Somewhere in this phase you will need to appraise the companys financial state of health using well established measures of efficiency and profitability. But please take note that we do not cover finance in our twelve weeks together but my expectation is that your studies in corporate finance should equip you to include a general commentary on the company financial predicament. Part three. Your strategic solutions for the companys ongoing health. Now that you have derived a picture of your Companys state of health, can it be improvedwhat medicine can you offer? So Phase three is about Strategic options for the future. There could be many but which would you recommend and why ? Are you happy that your choices are derived from your systematic analysis of the company at Phases one and two? Are they feasible? Can they be resourced? Can they be implemented and sustained?
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