3. Strategic Analysis

3. Strategic Analysis

1. Environmental / External

   • PESTEL
     • Macro Economics
       • Political
         • Tax Policy
         • Government Stability
         • Foreign Trade Regulation
       • Economic
         • Interest Rates
         • Inflation
         • Business Cycles
         • unemployment
         • Disposable Income
         • Energy Avail.
         • Cost
       • Social
         • Demograph
         • Social mobility
         • Income Distribution
         • Lifestyle Changes
         • Work attitudes
         • leisure attitudes
         • Education
         • consumerism
       • Technological
         • Government spending on research
         • New
           • Discoveries
           • developments
         • Focus
           • Industry
           • Government
         • rate
           • technological transfer
           • obsolescence
       • Environmental
         • minimum damage
         • pollution
       • Legal
         • taxation
         • employment
         • monoply legislation
         • environmental laws
     • Assess Growth Prospects
   • Porter's - Diamond
     • Determinants of national compeititve advantage
       • Firm Strategy, Structure & Rivalry
       • Demand Conditions
       • Factor Conditions
         • land; mineral; weather; capital; HR skills, motivation, cost, relations; knowledge; infrastruction
       • Related & Supporting Industries
     • Tried to Answer Why, a particular nation or country?
       • become home base for multinationaL in industry?
         • e.g. Germany - cars, Japan -Technology
       • business are able to create and sustain competitive advantage?
       • Home of so may industry leaders?
   • Industry Attractiveness
     • Porter's - 5 Forces
       • Buyer Power
         • Discounts
         • service
       • Supplier Power
         • Price
       • Competitive Rivalry
         • Price wars
         • costly
           • marketing
           • innovation
       • New Entrants
         • increase
           • resource cost
           • power of others
       • Substitutes
         • keeps prices low
           • Limits potential returns
     • powerful forces
       • less attractive
     • weak forces
       • more attractive

2. Internal

   • Capabilities
     • Unique
       • Resources
       • Competences
     • Valued by Customer
     • Hard to copy
   • Value Chain
     • Examines competitive Advantage Source
     • splits business
       • Primary Activities
       • Support Activities
   • SWOT
     • Combines Analysis
       • Internal
       • External
     • Overall Strategic Position

3. Scenario Planning

   • Most Likely
     • Pestel
     • 5 forces
     • Managers expectation
   • Best Case
     • Favourable Key environmental factors
   • Worst case
     • adverse key environmental factors
   • Plan for all
   • Pro
     • flexible
       • contingency plans
       • competitive advantage
     • awareness of key environmental factors
   • Con
     • time consuming
     • costly