Please provide only a short introduction to state the company, strategy and define the industry in context. 2.0          Q1. External analysis (not about company). PESTEL & 5 Forces  – approx. 1300 words 2.1          PESTEL: 6 most important issues to be identified, discussed and each concluded as an O or a T.  – week 2 6 issues

QUESTION

1.0          Introduction (100 -200 words)

Please provide only a short introduction to state the company, strategy and define the industry in context.

2.0          Q1. External analysis (not about company). PESTEL & 5 Forces  – approx. 1300 words

2.1          PESTEL: 6 most important issues to be identified, discussed and each concluded as an O or a T.  – week 2 6 issues

Focus on 6 issues

Show table of overall PESTEL, in appendix or as a table in text

Conclude if OPP or threat

2.2          5 Forces: each force to be discussed and assessed as High, Moderate or Low. Having these forces in mind assess industry attractiveness.

Os and Ts from PESTEL (and 5 Forces – e.g. high rivalry) should be placed in TOWS. – week 3

3.0          Q2. Internal analysis (resources and competences) – approx 1000 words

Resources (what a company has) – descriptive approach. Approximately 5 resources (4 to 6) to be identified and discussed (each should be discussed in a separate paragraph and concluded as a Strength or a Weakness). Try to address human, physical and intangible resources (financial resources are important but you are not required to address these). Try to identify at least one Weakness.

Competences (what a company does). Two tables needed (Value Chain and VRIO). Approximately 5 activities (distinctive competences) to be placed in Value Chain and pushed through VRIO to identify one Core Competence.

One distinctive competence (ideally core competence) should be discussed in detail (explain the activity, state why it is good/special, provide evidence, provide your reasoning behind VRIO – why is this activity Valuable to customers, Rare and difficult to imitate; do not worry about O, just assume that all activities have organisational support) in the main body. You can discuss another distinctive competence in the appendix. Each distinctive competence is a Strength, so (assuming that you identified and discussed 5 resources – 4 Ss and 1 W) in total you should have 5Ss (competences) + 4Ss (resources) + 1W (resources).

The above Ss and Ws should be placed in TOWS.

Note that in Q2 you should discuss resources and competences of the main company (acquirer) without the target. The target company should not be discussed at all.

4.0          Q3. Evaluation – approx. 700 – 1000 words. (S: 150; A: 500; F: 150).

It is the specific strategy that should be evaluated! Strategy was given with the company (it depends on the company you chose for your assignment). This is where you may mention the target company (this is not a requirement). You are not required to carry out internal analysis for the target company (you will go over your word limit and might sacrifice quality for quantity).

Suitability (does the strategy make sense). Start with TOWS. Place the strategy you are evaluating in one of the inner 4 quadrants and try to link internal and external issues with it (e.g. if you placed a strategy in SO quadrant state what Ss you combine with what Os while considering the strategy.

Acceptability (is the strategy acceptable – to selected stakeholders). Identify a number of stakeholder groups (e.g. 5) and place them in a Power/Interest matrix. Then select 3 groups and for each discuss how will they be affected by the strategy you are evaluating and therefore is the strategy acceptable to them or not.

Feasibility (can the strategy be implemented). Discuss skills and financial resources that may be required (and how did/will the company obtain these).

ANSWER

 Strategic Analysis of a Company: External and Internal Factors

Introduction

This strategic analysis focuses on evaluating a company’s position in its industry by examining both external and internal factors. The company under review is [Company Name], a leading player in the [Industry] sector. The company’s strategy is centered around [briefly describe the company’s strategy]. By conducting a thorough analysis, we aim to assess the company’s competitive position, identify potential opportunities and threats in the external environment, and evaluate its internal resources and competences.

Q1. External Analysis: PESTEL and Five Forces

2.1 PESTEL Analysis

The PESTEL analysis examines the macro-environmental factors that may impact the company. The six key issues identified are as follows:

1. Political: [Discuss political factors and conclude as an opportunity (O) or threat (T)].
2. Economic: [Discuss economic factors and conclude as an O or T].
3. Sociocultural: [Discuss sociocultural factors and conclude as an O or T].
4. Technological: [Discuss technological factors and conclude as an O or T].
5. Environmental: [Discuss environmental factors and conclude as an O or T].
6. Legal: [Discuss legal factors and conclude as an O or T].

Table: Overall PESTEL Analysis

Factor      | Conclusion

————————-

Political   | O/T

Economic    | O/T

Sociocultural| O/T

Technological| O/T

Environmental| O/T

Legal       | O/T

Concluding whether each factor represents an opportunity or threat helps in understanding the potential impact on the company’s operations and strategic decisions.

Five Forces Analysis

The Five Forces framework analyzes the industry’s attractiveness by assessing the following forces:

1. Threat of new entrants: [Discuss level of threat: High, Moderate, or Low].
2. Bargaining power of buyers: [Discuss level of power: High, Moderate, or Low].
3. Bargaining power of suppliers: [Discuss level of power: High, Moderate, or Low].
4. Threat of substitute products or services: [Discuss level of threat: High, Moderate, or Low].
5. Intensity of competitive rivalry: [Discuss level of intensity: High, Moderate, or Low].

Evaluating these forces helps gauge the overall attractiveness of the industry.

3.0 Q2. Internal Analysis: Resources and Competences

In this section, we analyze the company’s internal resources and competences.

3.1 Resources

The company possesses various resources, including human, physical, and intangible assets. Key resources identified are as follows:

1. Resource 1: [Describe the resource and discuss its strengths or weaknesses].
2. Resource 2: [Describe the resource and discuss its strengths or weaknesses].
3. Resource 3: [Describe the resource and discuss its strengths or weaknesses].
4. Resource 4: [Describe the resource and discuss its strengths or weaknesses].
5. Resource 5: [Describe the resource and discuss its strengths or weaknesses].

By assessing these resources, we can understand the company’s capabilities and potential areas of improvement.

3.2 Competences

The company’s competences are reflected in its value chain activities and core competencies.

Value Chain Analysis:

– Primary Activities: [Identify distinctive competences and place them in the value chain].

– Support Activities: [Identify distinctive competences and place them in the value chain].

VRIO Analysis:

– Distinctive Competence 1: [Discuss the activity, its uniqueness, evidence, and VRIO analysis].

– Distinctive Competence 2: [Discuss the activity, its uniqueness, evidence, and VRIO analysis].

By examining these competences, we can identify the company’s strengths and weaknesses, with a focus on the core competences that provide a sustainable competitive advantage.

4.0 Q3. Evaluation of the Strategy

4.1 Suitability

Assessing the suitability of the strategy involves aligning the identified internal strengths (S) and weaknesses (W) with the external opportunities (O) and threats (T). By placing the strategy in the appropriate quadrant of the TOWS matrix, we can evaluate its effectiveness in addressing the company’s internal and external factors (Gürel & Tat, 2017b).

4.2 Acceptability

To evaluate the acceptability of the strategy, we consider different stakeholder groups. Using a Power/Interest matrix, we identify key stakeholders and assess their level of influence and interest (Oguz, 2022). For three selected stakeholder groups, we analyze how the strategy will affect them and determine whether it is acceptable or not.

4.3 Feasibility

The feasibility of the strategy is examined by assessing the required skills and financial resources. We discuss the company’s ability to acquire or develop these resources and evaluate whether the strategy can be effectively implemented considering the available resources (11.3 Conducting a Feasibility Analysis – Entrepreneurship | Openstax, n.d.).

In conclusion, this strategic analysis provides an in-depth understanding of the external factors influencing the company’s industry, an evaluation of its internal resources and competences, and an assessment of the suitability, acceptability, and feasibility of the chosen strategy. This analysis lays the foundation for informed decision-making and strategic planning within the company.

References

11.3 Conducting a feasibility analysis – Entrepreneurship | Openstax. (n.d.). https://openstax.org/books/entrepreneurship/pages/11-3-conducting-a-feasibility-analysis 

Gürel, Ş., & Tat, M. (2017b). SWOT Analysis: A theoretical review. The Journal of International Social Research, 10(51), 994–1006. https://doi.org/10.17719/jisr.2017.1832 

Oguz, A. (2022, October 10). 5.2 Stakeholder analysis. Pressbooks. https://pressbooks.ulib.csuohio.edu/project-management-navigating-the-complexity/chapter/5-2-stakeholder-analysis/