global business strategy Lecture2.ppt

International Strategic Analysis: Environments, Resources and Capabilities
Lecture Outline:
International Environmental Analysis
Resource Analysis / Strategic Capability
Sources of petitive Advantage
International Environmental Analysis
Aims to provide an understanding of both the business environment as well as the enterprise itself.
Has two dimensions.........
External Analysis
Internal Analysis
A plex exercise!
Layers of Environment
External Environmental Analysis.............
Identifies changes in the macro-environment, industry and market
identify threats
identify opportunities
identify new regulations
identify changes in customer needs
petitors' strategies
These are largely uncontrollable elements!
Tools of environmental analysis..............
PEST Analysis
YIP'S 4 Cs ALAYSIS: (Customer, Cost, Country & Competition)
PORTER'S FIVE FORCES ANALYSIS
Market and Customer Analysis
Strategic Group / Competitor Analysis
CRITICAL ESS FACTOR ANALYSIS
LIFE CYCLE ANAYSIS
The Five Forces Framework
Internal Environmental Analysis......
Concerned with providing a detailed understanding of the business itself....
what are its resource capabilities?
how effective is its current strategy?
how can it enhance its capabilities?
how can it outperform its rivals?
What is the basis of petitive advantage?
Understanding resource capability....
Undertake pany "Audit"
Resources include:
Unique Resources (strategic resources)
Threshold Resources (survival resources)
Competencies include:
petencies
petencies
A word about petencies..........
Competencies are distinctive capabilities and exist when resources are deployed to create activities and processes.....they have been built up over time.
Competencies may exist for......
Reducing costs
Adding value in activities
Creating new products and services
They are difficult to imitate
Value Chain Analysis
Identifies the range of core activities and how such activities add-value to products / services...
Value-chain analysis