This document does not contain instructions. The suggestions below should be treated as recommendations and indications of expectations – what can be expected, what can be included into the paper, what would make it reasonable and may take it to an acceptable level.Scenario (fragment): …the company has hired you to produce a report that provides an outlook for the company’s strategic direction for the next 5 years.So you should produce a Report, with strategic plan for a company (JD) – for 5 years.As any Report it should start with some kind of introduction (you can find examples on Internet), where you explain what you are doing and why. Summary (executive summary) is possible, but should be quite brief.Section 1: Macro Environmental AnalysisAnalyse the strategic positioning of the organisation by assessing their missions statement and long-term goalsSearch for and provide in your paper mission statement of JD and its goals, as they described by the company itself.Strategic positioning will be reflected in them, identify it and explain.Note: Strategic positioning is concerned with the way in which a business as a whole distinguishes itself in a valuable way from its competitors and delivers value to specific customer segments (Wickham, 2001: 230).Tell us – What makes JD different, what extra value, comparing to competitors, they provide or want to provide to customers (which customers?). It should not be your fantasy, it should be based on missionstatement and goals, as they identify them.Critically analyse the current macro environment for JD Sports, and interpret information in order to produce likely scenarios.
Perform PESTEL. Follow the logic of PESTEL exercise you did in class.a. Tell us what factor you are looking at and what exactly can be discussed here, what kind of facts are specific for that factor.b. Give us facts. Tell us what exactly happening and how it affects the industry (we agreed that we are looking at retail industry and specifically sportswear industry)c. Tell us why you think it’s relevant for JD. That subsection should be relatively developed. It will be used later in future discussions.For this analysis use PESTEL model from Week 2. Better not to use a table, simply follow the logic of the model. You were already using it, doing your exercise, so it should be relatively straightforward.Complete this section identifying the overlapping factors from different PESTEL elements, e.g. some factor is at the same time – economic, political and social… There will definitely be such factors.Explain it briefly and explain that these are KEY FACTORS, they are likely to affect the company and likely be the reasons/drivers for company’s strategic plans and actions. These key factors will laterbe used in SWOT and maybe in other analyses and discussions.These key factors will allow you to suggest a few possible scenarios. In each scenario possible changes/developments of business environment will require strategic decisions, which you aregoing to consider and suggest in your paper. You can explain these scenarios briefly and make a choice, which one you are going to follow. It could be any of them, but you should explain yourchoice, e.g. you talk about most negative scenario… or you select most improbable scenario… or maybe just a most likely scenario (that one makes perfect sense!).Section 2: CapabilityAssess the internal capability of an organisation by using McKinsey’s 7 S framework.A brief talk about company’s resources and competencies. What are the CORE COMPETENCIES of the company? What’s the competitive advantages JD has because of these core competencies?A brief VRIN would give you some advantage.Then I expect a very brief explanation of the 7s model and its 7 elements, divided to hard and soft “Ss”.Next – Identify the current status of each “S” and see if it fits to the scenario you are going to look at. See ifsome “Ss” are linked. It’s possible, that some elements give advantage, some – do not. It may give someindication of future actions. What should be done to improve the situation? You can explain it using a few“Ss” or all of them.Critically evaluate the strategic capabilities of JD Sports, utilising a TOWS matrix.You analysed external environment using PESTEL and assessed the capabilities – what the company can doto gain competitive advantage in a particular scenario.You can now to put all the elements together in TOWS matrix. Look at the course materials, Internetsources. It’s very similar to SWOT. The Key Factors from PESTEL will likely become Threats andOpportunities. The results of VRIN+7s (but not limited to them!) will allow you to identify Strengths andWeaknesses.However, here you are going a step further, you look at the possible links between the Factors and try toidentify possible strategic actions, using particular Strengths to maximise Opportunities and maybe tominimise Threats, see which Weaknesses should be addressed and eliminated in order to minimise Threatsor to benefit from particular Opportunities etc… etc… All these things can be written to the Matrix, mostimportant of them (probably these, which may seriously affect the company in a given scenario) can bediscussed/explained.In any case the result for this section will be a set of possible strategic actions.Section 3: Competitive AnalysisApply the Porter’s Five Forces model and evaluate the competitive positioning for JD Sports.Actions may bring some disadvantage or could be dangerous without further analysis of industry/marketand identification of competitive positioning for the company.Very briefly explain, how Five Forces model can help you in strategic planning.This theory is based on the concept that there are five forces that determine the competitive intensity andattractiveness of a market. Porter’s five forces help to identify where power lies in a business situation. Thisis useful both in understanding the strength of an organisation’s current competitive position, and thestrength of a position that an organisation may look to move into.Strategic analysts often use Porter’s five forces to understand whether new products or services arepotentially profitable. By understanding where power lies, the theory can also be used to identify areas ofstrength, to improve weaknesses and to avoid mistakes.It means that it can be used in parallel with SWOT or even before it in some cases.It’s used to analyse the forces on a market. It means that the decision to grow/expand in a particular waycan be influenced by the result of this analysis.Perform this analysis, looking at the current situation and bearing in mind the possible scenario.Critically analyse the current and potential strategic positioning for JD Sports by using Ansoff’s matrix…How to grow?!! Here you will demonstrate possible options using Ansoff’s matrix. Matrix picture should beshown and its elements briefly explained; you should consider ways to grow via existing products and newproducts, and/or in existing markets and new markets. There are four possible product-marketcombinations. You can suggest some, but try to focus on one, which most fit to the scenario and where theJDs capabilities and competitive advantage can be used.…and, either Porter generic strategies, or Bowman’s strategic clock.Very brief explanation of advantage of Bowman’s model, please.You continue talking about possible strategies, considering them through Bowman’s model, where you lookat a few (1-3) options and select one, explaining, why this one is most appropriate.Strategic PlanProduce a strategic management plan, based on the above analysis that produces a valid strategicdirection, objectives and tactical actions for the next 5 years of the organisation.You identified the direction. Is it a change of strategy? New mission statements? Not necessarily, butpossible.Work out objectives, make sure they are SMART.Now – the method, as your objectives or a specific objective can only achieved through that method.Identify the appropriate choice between organic development, mergers and acquisitions and strategicalliances. Identify key strategic motives for that market entry strategy/method. What drives the company inthis direction? What drives you to select this method?Select one, explain your selection – should be based on scenario + market situation + capabilities + otherfactors you consider important.Effectively selection of a method and its implementation can become one of objectives.
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