Week 4 - gap analysis & business level strategy Flashcards
What is gap analysis?
ESCape SP
Assess goals.
Id gaps
Correct strategy.
Do on basis of: environment, strategy, capability, stakeholder & performance goals
Describe business strategy against Environmental gap Analysis.
Extent to which org strategy is consistent with:
Macro-environment tends
Industry environment-trends
Key competitors KPI’s
Describe business Strategy again capability gap analysis
• Assessment capabilities to achieve current and future business strategy.
Describe business strategy against org performance gaps analysis
Assessment of strategy again org performance indicators.
Describe business strategy again Stakeholder gap analysis.
• Assessing the organisation’s level of performance against key stakeholder expections.
How can we apply the 5Qs to the gaps identified in the gap analysis?
Where large gaps indicate a new strategy.
Answers to the 5qs should be used as a basis for selection of a new strategy.
How are appropriate levels of growth determined?
Explicitly considering if growth:
• Is appropriate?
• Is feasible?
• , it’s scale?
When is low or no growth appropriate?
- Family-owned, businesses
- mature industries, consolidation
- Industry in declining.
- Poor performing org
- Public sector.
In low or no growth situations, what alternate strategic options are available?
- Consolidation of activities at the existing level
- Downsize the organization to it’s core business.
- Status quo – do nothing.
Can you describe the different strategies for developing products and markets?
More in existing markets
Related products for the existing market
• Offer related products to existing customers
Existing products related markets
Related products related markets
Existing and related products into unrelated markets,
unrelated products into existing and related markets
Unrelated diversification.
• new products & markets
What do we mean by generic strategies?
• applicable across industries, regardless of tech, competition, life cycle & geography .
Can you describe the three generic strategies identified by Porter?
Low cost - Strategy that aims to achieve the lowest cost delivery to the customer.
Differentiation - The product is different from that of competitors.
Focus - Strategy that focuses on a narrow geographic or customer market or product range.
What are the risks of each of these generic strategies?
Coster leader risk.
• cust may search for value
• low cost unsustainable
• Focusers may out do
Differentiation risks:
• may not be sustainable
• value doesn’t justify cost
• Focuser may out-differentiate
Focus risks:
• broad market org may enter in search of growth.
• value doesn’t justify cost
What is a “stuck in the middle” organisation?
Strategy that fails to differentiate sufficiently from competitors on any dimension.
