Name the 3 strategy developments
Adaptive
Linear
Hybrid
Describe adaptive strategy development
Often used by new start up organisations
Deploy viable products or services into the market often at low cost
Learn quickly through feedback what the market wants and adapt
Often used in non hierarchal organisations where employees ownership and empowerment are high
If an organisation is risk averse or there are major consequences of failure it is unlikely to be culturally acceptable
Not an appropriate method if market feedback isn’t deemed to be helpful, e.g. in a government department
Constant adaptation may make it difficult to communicate strategy
Describe linear strategy development
May be adopted in an environment where conditions are stable and immediate market feedback isn’t deemed too valuable
Provides the advantage that the unchanging strategy makes it easy to communicate to stakeholders
Often used with organisations which are hierarchical or risk averse
Lower employer ownership and empowerment than adaptive
Slower reactions by organisation if consumer preferences change which can lead to the loss of market share to competitors
Descibe hybrid strategy development
Use of both adaptive and linear
Can be used within different departments of the same organisation
The strategic context for business analysis
Current state—> analysis of internal and external environment —> strategy execution —> target state(and performance measurement)
What does PESTLE analysis stand for? (External environment analysis)
Political
Economic
Socio-cultural
Technological
Legal
Environment
Political
Policies and decisions made by governments and political organisations
Economical
Interest rates
Inflation
Levels of employment
Levels of disposable income
Availability and cost of reference
Socio-cultural
Trends within society and culture:
Changes to demographic
Changes in preference and habits
Changes within in viewpoints and opinions
Technological
New tech like AI
Legal
Employment
Data protection
Competition
Health and safety
Tax
Laws etc
Environmental
Carbon emissions and climate change
Change to natural habitats
Waste disposal and recycling
Porters Five Forces analysis(external environment analysis(
Industry competitors
Threat of new entrants
Bargaining power of buyersj
Threat of substitute products or services
Bargaining power of suppliers
VMOST analysis(internal)
Vision
Mission
Objectives
Strategy
Tactics
Performance measurements
Objectives
Critical success factors
Key performance indicators
Targets
Performance measurement and VMOST
Objectives guide and inform CSFs which do the same for KPIs
KPIs measure progress towards CSFs which do the same for objectives
SWOT analysis
Strengths
Weaknesses -both internal
Opportunity
Threats -both external
Strategy execution
Business model canvas
Business capability model
Value stream modelling
Target operating model
Describe the POPIT model
People
Organisation
Processes
Information and technology
Define CSF
Qualitative descriptions of the critical factors that must be in place for the organisation to achieve defined objectives
