Summary Notes

Question 1

What do you use as part of an internal analysis?

Answer 1

An internal analysis considers the strengths and weaknesses of an organisation

• CSFs (Critical Success Factors)
• Value Chain
• BCG/PLC

Question 2

What do you use as part of an external analysis?

Answer 2

An external analysis considers the opportunities and threats facing an organisation

• PESTEL
• Porter’s Diamond
• Porter’s Five Forces

Question 3

What is a SWOT analysis?

Answer 3

• Issues identified from internal analysis and external analysis can be combined using the SWOT technique
• SWOT analysis is a technique that can be used to perform a corporate appraisal to evaluate the strategic position of the organisation

Question 4

When evaluating a SWOT analysis what questions can be addressed?

Answer 4

• Can the strengths of the organisation be matched to opportunities? e.g. Current distribution channels may be used to launch new products
• What weaknesses need to be addressed before pursuing opportunities?
  e.g. New staff may need to be employed to overcome capacity constraints
• Does the organisation have sufficient strengths to minimise threats?
  e.g. Existing customer loyalty may reduce the impact of new competitors
• Can the organisation’s weaknesses be converted into strengths? e.g. Businesses with a narrow product range may become a niche seller
• Can potential threats be converted into new opportunities? e.g. ‘Budget range’ products could be introduced in times of economic decline

Question 5

What is a gap analysis?

Answer 5

The comparison between an entity’s ultimate objective and the expected performance from projects, both planned and under way, identifying means by which any identified difference or gap might be filled

When performing a gap analysis the following questions should be addressed:
- Why does the gap exist?
- What strategies can be chosen to ‘close the gap’?

Question 6

How does Porter approach competitive positioning?

Answer 6

Porter suggests that sustainable competitive advantage arises from
the selection of a generic strategy which best fits the organisation’s environment (Porter’s 5 Forces) and then organising value-adding
activities (Value Chain Analysis) to support the chosen strategy.

Question 7

What are some methods for implementing strategic choice?

Answer 7

• Marketing Strategies
• Organisational Structure
• Risk management
• Performance Management
• Functional Strategies
• Change management