STRATEGIC ALTERNATIVES

MUHAMMAD AFSAL KP

STRATEGIC ALTERNATIVES

Business environments are highly uncertain and

executives need to be innovative and flexible to

survive.

They achieve this through strategic alternatives that

enable their companies to maintain a competitive

edge over rivals.

Some alternative strategies include price focus,

differentiation, diversification and adjacent

businesses.

VARIOUS STRATEGIC ALTERNATIVES

Price Focus (mobilephone)

Differentiation( Soap)

Diversification (ITC)

Adjacent Businesses (XIAOMI)

ENVIRONMENTAL ANALYSIS

Environmental analysis is a strategic tool. It is a process

to identify all the external and internal elements, which

can affect the organization’s performance.. These

evaluations are later translated into the decision-making

process. The analysis helps align strategies with the

firm’s environment.

Our market is facing changes every day. Many new

things develop over time and the whole scenario can

alter in only a few seconds. There are some factors that

are beyond your control. But, you can control a lot of

these things.

There are many strategic analysis tools that a firm

can use, but some are more common. The most

used detailed analysis of the environment is

the PESTLE analysis.

This is a bird’s eye view of the business conduct.

Managers and strategy builders use this analysis to

find where their market currently.

PESTLE analysis consists of various factors that

affect the business environment. Each letter in the

acronym signifies a set of factors. These factors

can affect every industry directly or indirectly.

CRITICAL SUCCESS FACTOR

Critical success factor (CSF) is a an

element that is necessary for an

organization or project to achieve

its mission. It is a critical factor or activity

required for ensuring the success of a

company or an organization.

The term was initially used in the world

of data analysis and business analysis

7-S Framework

The McKinsey 7-S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:

Hard Elements SOFT ELEMENTS

Strategy

Structure

Systems

Strategy: The plan devised to maintain and build competitive advantage over the competition.

Structure: The way the organization is structured and who reports to whom.

Systems: The daily activities and procedures that staff members engage in to get the job done.

Shared Values: These are the core values of the company that are evidenced in the corporate culture and the general work ethic.

Style: The style of leadership adopted.

Staff: The employees and their general capabilities.

Skills: The actual skills and competencies of the employees working for the company.

BCG MATRIX

It has 2 quadrants:-

1.Rate of growth

2.Relative growth share

Swift A STAR

ALTOOMNI

VALUE CHAIN

◦ A set of activities that a firm operating in a

specific industry performs in order to deliver a

valuable product or services for the market.

VARIOUS TYPES OF

ANALYSIS

ENVIRONMENTAL ANALYSISINDUSTRY ANALYSISCORPORATE ANALYSISSWOT ANALYSISPORTFOLIO ANALYSISCOMPETETOR ANALYSISSCENARIO ANALYSISSTAKEHOLDER ANALYSIS

PORTFOLIO ANALYSIS

◦ Systematic way to analyze the products and

services to make up an association business

portfolio.

◦ Some of these includes publishing meeting

and conventions education and training,

government representation, research,

standards setting.

SCENARIO ANALYSIS

◦ Process of analyzing possible future

events by considering alternative possible

outcome.

◦ Tries to consider possible developments

◦ Future benefits are calculated from the

past data

INDUSTRY ANALYSIS

Industry analysis is a tool that facilitates a company's understanding of its position relative to other companies that produce similar products or services.

Understanding the forces at work in the overall industry is an important component of effective strategic planning. Industry analysis enables small business owners to identify the threats and opportunities facing their businesses

Tangibility

Demand and Supply

Competition

Variety of goods and services.

CORPORATE ANALYSIS

Corporate analysis is a broad term that

describes the creation of an in-depth

evaluation of a corporate entity. In most

situations, the analysis will cover all aspects

of the company, including finances, profit

margins, organizational structure, and

growth opportunities.

Competitor analysis Competitor analysis in marketing and

strategic management is an assessment of the strengths and weaknesses of current and potential competitors.

This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Competitor analysis is an essential component of corporate strategy. As a result, traditional environmental scanning places many firms at risk of dangerous competitive blind spots due to a lack of robust competitor analysis.

STAKEHOLDER ANALYSIS

Stakeholder analysis in conflict resolution,

project management, and business

administration, is the process of identifying the

individuals or groups that are likely to affect by

a proposed action, and sorting them according

to their impact. This information is used to

assess how the interests of those stakeholders

should be addressed in a project plan.

P

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