Core Activity B - Evaluate business ecosystem and business environment Flashcards
What are the 3 main stages of developing strategy ?
Strategic Analysis
SWOT / PESTEL
Strategic choice
Identify options
Implementation
Action
What acronym can be used for stakeholder analysis?
ICE
Internal
Connected
External
What is the main tool used to evaluate the business environment?
PESTEL
How could PESTEL help to analyse a company ?
Link change drivers to key risk factors
Generate ideas for how to strategically position the company
What are the steps for producing a strategic grouping / map & segmentation?
Produce industry analysis
Identify characteristics
Group by strategy
Circle each group
What are the 4 steps for competitive analysis ?
Identify competitors
Compile information
Analyse competition
Develop strategies to compete
How might you identify major competitors?
Cluster analysis
What tools can be used as part of a holistic strategic analysis ?
SWOT
PESTEL
Value chain analysis
Porters 5 forces
Lifecycle analysis
What are the stages of an industry lifecycle and how is it measured ?
Measured by total industry sales over time.
Early life, Growth, Shakeout, Mature, Decline.
What are the stages considered in the corporate lifecycle ?
Start up/ Question mark, High Growth, Mature, Fade/ decline, restructure.
Define the business ecosystem
Where many parts of the value chain are outsourced and the organisation is no longer seen as a single entity.
Deloitte LLP definitions
Value webs
Describe porters five forces?
- Threat of new entrants / barrier to entry
- Rivalry among existing competitors
- Bargaining power of buyers
- Bargaining power of customers
- Threat of substitute products or services
What are the three types of network organisations ?
Internal - large organisation with separate legal entities
Stable - Central organisation that outsources some work
Dynamic - outsources heavily, known as network integrator
What are the different levels of the external environment?
Global
National
Regional
Local
Describe drivers for change within the digital ecosystem ?
Globalisation
Emerging economies
Geopolitics
Demography
Customer empowerment
Digital tech
Automation
Sustainability
What challenges are then in identifying changes within the ecosystem?
Is the information valid?
Is it reliable ?
Is it credible ?
What data systems could be used to analyse changes in the ecosystem ?
Think tank consulting group
ONS
Bank of England
EDGAR SEC
News and media / Bloomberg money stuff
Name 5 tools useful for analysing customers and markets ?
BCG matrix
SWOT as a follow on from PESTEL Analysis
Competitor analysis
Industry lifecycle
Five forces analysis
What are the key strategic questions informed by market research ?
Which markets should we compete in?
What customer segments should we serve?
What types of product or services should we offer?
How do we price our products or services?
Where and how do we sell and promote our products or services?
What consumer segmentation approaches could be taken?
Geographic
Psychographic or lifestyle
Behavioural
Socio-demographic
Size of purchase
End use
Type or size of organisation
What criteria must be met in order to segment a customer group ?
Large enough
Measurable
Reachable with campaigns
Defined characteristics
Financially viable to do so
Describe the marketing matrix?
People
product
Needs finishing
What are the steps of the market research process ?
Define the scope of the research
Data gathering
Analyse results and present
Describe the BCG matrix in order of?
Growth vs market share
Question marks
Stars
Cash cows
Dogs
How could porters 5 forces be used to understand Rotomynes CAP?
Threat of new entrants - very high (long CAP)
Threat of substitutes - (sodium ion) this is low, low cap
Bargaining power of customers - dependant on supply which is largely controlled by Rotomyne so this could be high CAP
Bargaining power of suppliers - this could be the regs etc required to open new mine which is difficult so CAP is low
Industry rivalry is low with 4 large caps dominating the market, this is favourable so high CAP.
