The Strategic
Environment
Environmental Analysis
International Business
Strategy
301LON
Unit: 3 Knowledgecast: 2
Module Learning Outcomes
• Demonstrate a sound appreciation of current
strategic management concepts#
•
• Assess current developments in the organisational
environment and alternative responses related to
strategy
SWOT Analysis
Opportunities
Weaknesses
SWOT Analysis (cont.)
S-STRENGTHS
1.
2.
3.
...
W-WEAKNESSES
1.
2.
3.
...
O-OPPORTUNITIES
1.
2.
3.
...
T-THREATS
1.
2.
3.
...
Some possible factors in a SWOT analysis
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S-STRENGTHS
Market dominance
Core strengths
Economies of scale
Low-cost position
Leadership and management skills
Financial and cash resource
Manufacturing ability and age of equipment
Innovation processes and results
Architecture network
Reputation
Differentiated products
Product or service quality
W-WEAKNESSES
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O-OPPORTUNITIES
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New markets and segments
New products
Diversification opportunities
Market growth
Competitor weakness
Strategic space
Demographic and social change
Change in political or economic environment
New takeover or partnership opportunities
Economic upturn
International growth
Share weaknesses
Few core strengths and low on key skills
Old plant with higher costs than competition
Weak finances and poor cash flow
Management skills and leadership lacking
Poor record on innovation and new ideas
Weak organisation with poor architecture
Low quality and reputation
Products not differentiated and
dependent on few products
T-THREATS
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New market entrants
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Increased competition
Increased pressures from customers and suppliers
Substitutes
Low market growth
Economic cycle downturn
Technological threat
Change in political or economic environment
Demographic change
New international trade barriers
SWOT Analysis (cont.)
S-STRENGTHS
1.
2.
3.
...
O-OPPORTUNITIES
1.
2.
3.
...
T-THREATS
1.
2.
3.
...
1.
2.
3.
...
SO - Strategic Actions
1.
2.
3.
...
Use strenghts
to take
advantage of
opportunities
ST- Strategic Actions
1.
2.
3.
...
W-WEAKNESSES
Use
strenghts to
avoid threats
WO- Strategic Actions
1.
2.
3.
...
Overcame
weaknesses
by taking
advantage of
opportunities
WT- Strategic Actions
1.
2.
3.
...
Minimize
weaknesses
and avoid
threats
Knowledgecast Summary
• Demonstrate a sound appreciation of current
strategic management concepts
• Assess current developments in the organisational
environment and alternative responses related to
strategy
Seminar
Environmental Audit – Part One
Using the Mini case study (Britain’s Retail Industry) on your
moodle page under unit three, we are going to engage in
environmental analysis as detailed below.
Britain’s high street companies are facing some difficult
challenges.
Do you think that the problem is:
1. The impact of changes in external business environment
or
2. The problem is within the organisations’ specific resources
and competences (strategic capabilities)?
Identify the key environmental factors that are affecting the
retail industry using Strategic tools (PESTEL, 5Forces etc)
to support your answers
Group Activity
Environmental Audit – Part Two
In this seminar, we will continue to explore environmental
analysis using the Mini case study (Global forces and the European
Brewing Industry) found on page 79 of one of your recommended
reading text –Exploring corporate strategy by Johnson and
Scholes 9th edition
Be prepared to present your answers to the questions that
follow in a power point presentation as a group and be ready to
answer questions from your colleagues and Tutor . Each group
will have 7 minutes presentation time and 3 minutes Q&A.