Strategy

Question 1

General principles

Always ask: So what?

Answer 1

1. Identify if the company is a cost leader or a differentiator
   Cost leader ( sell commodity)
   Differentiator (expensive, unique, different)

• Always explain how a company could possibly differentiate themselves
  2. Identify-Explain-Apply-Link (I/S or B/S)

Question 2

Models to use

Answer 2

1. SWOT analysis
   - Your opportunities are what your competitor is doing wrong
   - Your threats are what your competitor is doing right
2. PESTEL
3. Porters 5 forces
   🔺Threats of new entrants
   (barriers to entry, economies of scale, brand loyalty)
   🔺Bargaining power of buyers
   (Number, size, price sensitivity, switching costs)
   🔺Bargaining power of suppliers
   (number, size, uniqueness)
   🔺Threats of substitute products
   (Buyer propensity, relative prices, product differentiation, switching costs)
   🔺Rivalry among existing competitors
   (Number, diversity, growth, quality, brand loyalty, barriers to exit)
4. General Electric model
   - Business or Company strength (Internal)
   - Attractive industry (External)
   * Invest for growth (long term)
   * Selectively investing for earnings
   * Harvest / Divest (preserve CF/ exit)
5. Ansoff Growth (Product market matrix)
   - Market penetration (same-same)
   - Market development (same product-new)
   - Product development (new prod-same)
   - Diversification (new-new)

• Recommendations for company (think innovatively)

Question 3

Discuss strategic position and outline possible strategic actions

Answer 3

1. Mention Generic strategy the company fits in (application)
2. SWOT analysis
3. PESTEL
4. Porters 5 forces
5. GEC model (medium/low/ invest for growth or selectively invest)
   - Look at company/ industry how good is it
6. Product market matrix
7. Conclusion (link and come up with actual strategy)

Question 4

Generic Strategies

Answer 4

1. Cost Leadership Strategy
2. Differentiation Strategy
   - The vision
   - Competitive markets, lower price points
   - The price difference
3. Cost focus Strategy
4. Differentiation Strategy

Question 5

Strategy Exam Technique

Answer 5

-Mark through with T/O/W/S do same thing with PESTEL marks etc.