exam preparation nbs
TRANSCRIPT
Exam Preparation
Module Leader: Dr Jane Chang
2BS601 Business Strategy Examination
Exam is based on Google’s strategy in 2009
Case available for collection now from U/G office on Friday (19/08) from WBS registry before the exam
You can bring this to exam
can bring case study printed material
can NOT bring in PC, PDA, mobile phone
What will be in the exam?
FOUR questions in 2¼ hours (each question worth 25 marks)
Questions may relate to anything covered in the module but you will need to draw definite conclusions / recommendations
Key to success is
careful preparation => concise set of notescontaining your analysis, findings, conclusions and recommendation etc
NO SUPPLEMENTARY RESEARCH is required
The best answers show mature judgement
Focus on a few key RELEVANT points and develop them IN DEPTH
Use theory as basis of precise analysis But don’t regurgitate it without applying it
Consider trade-offs, risks, limitations etc JUSTIFY your views / decisions by
referring to the findings of your analysis including calculation derived from data provided in case
theory referring to examples in case
Clear CONCLUSIONS Questions may require you to combine the results of
several analytical tools to form conclusions
You should
Spend time fully analysing the case before the exam
See the Guide for Case Study Analysis which is in your workbooks
Bring a concise set of notes containing your analysis, findings, conclusions and recommendations into the exam with you
The case study describes the company’s strategy and examines the strategic challenges now facing the company.
You are a management consultant who has been commissioned by Google’s senior management to advise them on their future strategy for the next 3 years.
The key strategic question is
How can Google maintain its dominant position?
First step - Industry analysis
Identify key driving forces capable of causing significant change in industry conditions
Assess the attractiveness of the industry
Opportunities and threats
Potential to deliver value
Analyse what a firm needs to:
Survive in an industry
Succeed in an industry
Clearly state
The boundaries of your industry as it will have an impact on your analysis
Are you including on-line, supermarkets etc inside or outside your industry boundary?
Driving Forces
Derived from
Porter’s Five Forces
ILC
PEST
Combine / rationalise analysis findings to derive 3 or 4 Driving Forces which will have a SIGNIFICANT impact on Industry
Impact of Driving Forces on Future Profitability of Industry
Key outcome of Industry Analysis is to assess impact on future Profitability of Industry What is the effect of the driving forces on
demand? Are the driving forces increasing
competition? Will the driving forces lead to higher
profitability? Remember to consider assumptions,
limitations, etc of your analysis State ranges and / or confidence rating of
predictions
Survival and success factorsIf industry has/is.. Survival factors (e.g.) Success factors (e.g.)
Powerful buyers with low switching costs
Meeting minimum buyer requirements
Strong differentiationNegotiation skillsStrong relationships
Powerful suppliers Negotiation skills ScaleRelationships of trust
Low barriers to entryThreat of substitution
[Survival difficult without success]
Strong differentiationLow costs
Fast-growing TechnologyCash for growth
Advanced technology
Mature Minimum economic scale, cost position
Scale or other cost advantageBuyer relationships
Competitor
Analysis:
Who are the
competition?
How are they
positioned?
Step 2 - Competitor / Market Analysis
What FUTURE moves are they likely to make? What will be the impact on Google’s revenues?
Which company is in the best position to be successful in the future?
Competitor Analysis – Key Tools
Strategic Group Maps
Who are the competition?
How are they positioned?
Competitor Intelligence
What strategic moves are competitors likely to make next?
From your Industry and Competitor analyses you can
Identify opportunities and threats for your SWOT
Identify KPIs (SSFs + Competitor Analysis + Benchmarking) which give you the key skills, capabilities, competences (i.e. the strengths) required to be successful in the industry
Step 3 - Internal Analysis (Strengths and Weaknesses)
Internal Analysis determines if the company has these skills and resources i.e. Strengths and Weaknesses in SWOT
Analysis Tools – Value Chain Analysis and Competitive Strength Analysis
In the case study… Some of the strengths and weaknesses are
NOT explicitly mentioned
You will need to infer / deduce them from
Understanding what the company’s strategy & business model are (very important)
Analysing the data given (particularly the financial data)
NOTE: Financial data is also given for Google’s competitors so you can make comparisons
Step 4 - SWOT Analysis
Conclusions from SWOT What is Google’s overall situation?
Does it have an attractive set of resource strengths?
How serious are the weaknesses and competitive deficiencies?
Do the strengths outweigh the weaknesses by an attractive margin?
Are there attractive market opportunities that can be exploited using its strengths ?
Are the threats alarming? Can it use its strengths to limit their impact?
How strong is the overall situation?
Conclusions from SWOT What are the implications for strategic
action? Which competitive capabilities need to be
strengthened immediately?
What actions should be taken to reduce the company’s competitive liabilities?
Which market opportunities should be top priority in future strategic initiatives? Which opportunities should be ignored?
What should the company be doing to guard against the threats to its well-being?
Step 5 –Recommendations
Clear recommendations
Why have you select a particular option(s)?
What are the anticipated benefits?
What timeframe?
How are you going to exploit it / them?
What are the risks, limitations associated with the analysis and implementation of option(s)