How would you define the industry to be analysed? Is the industry global? Is the organization mentioned Australian or overseas based? Can you make any inferences about the industry value chain from the article? What are the key product and services segments in the industry that are mentioned in the article? Are you able to identify the stage of the industry life-cycle from the facts in the article?
What have been the remote environment trends that have driven the industry to its current state? Are these factors changing? What will be their impact on future growth in the industry? Remember an article may only make reference to some of the factors in the remote environment.
What are the forces within the industry that determine the current profitability of the industry? Are these forces changing? What will be their impact on the future profitability of the industry? Again, remember an article may only make reference to some of the forces in the external industry environment.
Does the article make any reference to the different customer market segments in the industry, and can you make an assessment of what drives customer demand in them?
Given your remote and industry environment analyses, and your customer and market analysis, are you able to assess the basis of competition in the industry? What are the key factors that are critical for the organisation to do well in order to be successful? Are there any strategic groups that organisations in the industry compete in? Analyse the competitors if mentioned in the article, to gain a clear and specific profile of each major competitor in the industry.
Who are the key stakeholders of the organisation, and what are their expectations from the organisation?
What is the current business strategy of the organisation? Are you able to assess how the organisation has performed to date in meeting its objectives based on the given facts?
Identify the capabilities of the organisation in the context of the competitive environment, and analyse them to determine whether these capabilities are strategic capabilities.
Determine whether there are any inconsistencies (gaps) between the current business strategy and the remote environment, the industry environment and the performance of the organisation compared to its key competitors. Review the current business strategy against the expectations of the key stakeholders, the organisation s performance and the capabilities of the organisation.
A review of these gaps, and an extended SWOT analysis, may reveal some possible alternatives and strategies that the organisation could pursue. These will often relate to improving the operational side of the organisation, while strategic growth options usually fall into the category of new products and/or new markets, which is discussed in Module 4.
Consider whether the organisation has leveraged its existing capabilities to its maximum market position and market penetration. Does the article indicate any strategy regarding development of new products or expanding its markets to remain competitive and/or to grow? Or is it possible that the company is taking another approach to growth (e.g. vertical integration)?
If the organisation is considering new product development, review the important aspects to consider, including the key success factors for new product development.
If the organisation is considering new market development, is the organisation trying to enter a new customer or geographic market, or both? Review the important considerations for new market development, including the strategic objectives for new market entry, evaluating the attractiveness of new markets, the key success factors for new market development and the advantages and disadvantages of different modes of market entry. Consider the accounting challenges that moving into new products or markets are likely to bring.
Evaluate each of the strategic options, such as different product and market options, on the basis of appropriate criteria, having regard for effective management of the organisation’s portfolio of projects.
What are the risks assessed for each of the strategic options? Scenario planning should be undertaken in order to quantify and compare the variation in their potential outcomes.
Evaluate each of the strategic options in terms of their consistency with the organisation’s external and internal environments, the feasibility of successfully undertaking the option and the competitive advantage it will give the organisation.
Make the recommendations to key decision makers of which strategic options to adopt, demonstrating the alignment of the options to the business strategy and providing information on the benefits, risks and key steps in implementing the options.
What challenges is the organisation likely to face, or is currently experiencing, in implementing its strategies?
How has the organisation performed in its implementation of the strategy?
Determine the fit between the desired strategy and the business systems of the organisation, the organisational structure and the internal politics of the organisation.
Is there a good fit between the desired strategy and the organisational culture? Consider any cross-cultural issues for the organisation.
How is and/or should the process of change be implemented in the organisation?
Has the organisation considered any misalignments with all the interconnected 7- aspects of the implementation plan?
Review the nature and the scale of change required to gain an understanding of the type of leadership required to lead it.
How has, or should have, the leader performed in their strategic analysis, selection and implementation role?