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PESTEL ANALYSIS

strategy Apr 30, 2020

PESTEL analysis is a strategic planning tool used to evaluate the impact of external factors on a business or organisation. For Kenneth Frazier CEO of Merck Co, to apply a PESTEL analysis to his firm, he would need to consider the following six categories of external factors:

  1.  Political: This includes factors such as government policies, political stability, and regulatory environment. For Merck Co, this might include considerations such as the impact of healthcare reform in the United States, or the potential for changes in patent laws that could affect the company's ability to bring new products to market.
  2.  Economic: This includes factors such as economic growth, exchange rates, and inflation. For Merck Co, this might include considerations such as the impact of economic downturns on demand for the company's products, or the potential for currency fluctuations to affect the company's bottom line.
  3.  Sociocultural: This includes factors such as demographics,...
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PORTER'S FIVE FORCES

strategy Mar 31, 2020

Porter's Five Forces is a framework for analysing the competitive forces in an industry. It can be used to evaluate the attractiveness of an industry and to identify opportunities and threats within it. In this analysis, we will apply Porter's Five Forces to the technology giant Microsoft Corporation.

  1.  Threat of new entrants: Microsoft has a high barrier to entry due to its strong brand recognition and widespread customer loyalty. In addition, the technology industry has high research and development costs, which can be a deterrent for new entrants. Finally, Microsoft has established partnerships and network effects that make it difficult for new firms to compete. Overall, the threat of new entrants is low for Microsoft.
  2.  Threat of substitute products or services: There is a moderate threat of substitutes for Microsoft's products and services. While Microsoft has a strong presence in the personal computer and productivity software markets, there are many other firms that...
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BCG MATRIX

strategy Feb 29, 2020

Coca-Cola is a multinational beverage company that offers a wide range of products, including carbonated and non-carbonated soft drinks, fruit juices, sports drinks, and ready-to-drink teas and coffees. As of 2021, the company had more than 200 products in its portfolio.

To determine which products should be supported, we can apply the BCG matrix to Coca-Cola's product portfolio. The BCG matrix is a tool used in strategic management to evaluate the relative market position and potential of a business unit or product line. It is based on the idea that a business should allocate resources to products or business units based on their potential for growth and relative market share.

The BCG matrix consists of four quadrants: high market growth and high market share (stars), high market growth and low market share (question marks), low market growth and high market share (cash cows), and low market growth and low market share (dogs).

Stars are products or business units with high market...

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ANSOFF MATRIX

strategy Jan 31, 2020

Facebook is a multinational technology company that offers a wide range of products and services, including a social media platform, messaging app, virtual reality technology, and digital marketing services. To determine which specific products and services should be offered to emerging markets and which should be further enhanced for existing markets, we can apply the Ansoff Matrix to Facebook's portfolio.

The Ansoff Matrix is a tool used in strategic management to evaluate growth opportunities for a business. It is based on the idea that a company can pursue growth through existing products and existing markets (market penetration), new products and existing markets (product development), existing products and new markets (market development), or new products and new markets (diversification).

Based on this analysis, Facebook could consider the following options for its various businesses:

Market penetration: Facebook's social media platform and messaging app, such as Facebook,...

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MCKINSEY 7S MODEL

strategy Dec 31, 2019

BHP is a multinational mining and resource company that operates globally in a variety of industries, including coal, copper, iron ore, and petroleum. The company faces a number of challenges related to climate change, including regulatory pressure to reduce greenhouse gas emissions, investor and public pressure to adopt more sustainable practices, and the physical impacts of a changing climate on its operations and supply chains.

To address these challenges and transform its global business, BHP could consider using the McKinsey 7S model to assess the alignment of seven key elements within its organisation: strategy, structure, systems, shared values, skills, style, and staff.

 

To briefly summarise how the McKinsey 7S model could be applied to BHP's climate change challenges in different countries, we can consider the following business unit examples:

  1.  Strategy: BHP's coal mining operations in Australia could review its current business strategy in light of climate...
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VALUE CHAIN ANALYSIS

strategy Nov 30, 2019

Value chain analysis is a tool that helps businesses understand the activities that go into creating a product or service, and how these activities can be managed to create the greatest value. This analysis is typically divided into two main categories: primary activities, which are directly related to the creation, production, and distribution of a product or service, and support activities, which provide the infrastructure and support needed to enable primary activities.

In the case of Alibaba, a Chinese e-commerce company, value chain analysis can be used to understand the various activities and processes involved in its business model. Some examples of primary activities for Alibaba might include:

  1.  Inbound logistics: Alibaba sources products from a variety of suppliers around the world, and manages the logistics of importing and storing these products in its warehouses.
  2.  Operations: Alibaba operates an online marketplace that connects buyers and sellers, and provides...
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RESOURCE BASED VIEW

strategy Oct 31, 2019

The resource-based view (RBV) is a perspective that suggests that the resources and capabilities of a firm are the primary drivers of its success. This view emphasises the importance of managing and leveraging a firm's internal resources, such as its human capital, intellectual property, and physical assets, to create a competitive advantage.

 

In the lithium mining industry, the RBV suggests that firms that are able to effectively manage and leverage their resources and capabilities will be better positioned to succeed in a competitive market. Some examples of resources and capabilities that might be important for a lithium mining firm could include:

  1.  Access to high-quality lithium deposits: Lithium is a key ingredient in the production of batteries for electric vehicles, portable electronics, and other high-tech applications. Firms that have access to high-quality lithium deposits, or that are able to extract lithium at a lower cost, may have a competitive advantage in...
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COMPETITIVE ADVANTAGE

strategy Sep 30, 2019

Apple is a well-known technology company that has been able to consistently maintain a competitive advantage over other tech companies in a number of ways. Some examples of strategic and tactical actions that Apple has taken to retain this advantage include:

  1.  Innovation: Apple has a strong track record of introducing new, innovative products and services that are well-received by consumers. This includes the introduction of the iPod, iPhone, iPad, and various other devices that have helped to define new product categories and set new standards in the tech industry.
  2.  Marketing: Apple has a strong brand and is known for its effective marketing campaigns, which help to create a strong emotional connection with consumers and differentiate its products from competitors.
  3.  Ecosystem: Apple has created an ecosystem of products and services that work together seamlessly, which can create a sense of lock-in for consumers. This includes its hardware products, such as iPhones...
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BALANCED SCORECARD

strategy Aug 31, 2019

Nucor is a steel and steel products manufacturer that has consistently been recognised as one of the most successful and innovative companies in its industry. To operate more strategically and effectively, Nucor could apply a balanced scorecard approach, which involves tracking and assessing progress against a set of strategic objectives using a range of financial and non-financial measures. The balanced scorecard typically focuses on four main areas: financial performance, customer perspective, internal processes, and learning and growth.

To illustrate how Nucor could apply a balanced scorecard approach to its business, we can consider the following business unit examples:

  1.  Financial performance: Nucor's steel mills business unit could track metrics such as revenue, profit margin, and return on investment to understand the financial performance of the unit and identify opportunities for improvement. For example, the business unit might set a target to increase profit margin...
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FIVE HORIZONS MODEL

strategy Jul 31, 2019

The five horizons model is a framework for analysing the different goals and priorities of a country's foreign policy.

It was developed by the Centre for Strategic and International Studies (CSIS) and consists of five horizons, or levels of engagement:

horizon one is the "near abroad," which includes countries that are close neighbours or have a direct impact on the country's security and prosperity;

horizon two is the "extended neighbourhood," which includes countries that are further away but still play a significant role in the country's foreign policy;

horizon three is the "regional architecture," which includes regional organisations and alliances;

horizon four is the "global commons," which refers to global issues that affect all countries, such as climate change and international trade; and

horizon five is the "global governance," which refers to the rules and institutions that shape international relations.

Examples of each horizon in Chinese foreign policy could include:

...

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