Question Two
a) Managers must be trained to avoid the risks of unintended negative consequences involved in strategic formulation and implementation.
... [Show More] What are the consequences? [10 marks]
b) When talking of situational analysis, industry analysis and competition analysis are the two main factors that require an in depth analysis. Explain these two situations. [5 marks]
a) Managers must be trained to avoid the risks of unintended negative consequences involved in strategic formulation and implementation. The risks of unintended negative consequences can include but are not limited to: poor communication, lack of employee buy-in, lack of resources, poor planning, and lack of accountability¹³.
b) Industry analysis is the study of the industry in which a company operates. It involves analyzing the competition, suppliers, customers, and other factors that affect the industry. Competition analysis is the study of the competition within an industry. It involves analyzing the strengths and weaknesses of competitors, their strategies, and their market share¹.
Question Three
a) Tripple key syoskile limited, a newly established company could want to open a local detergent manufacturing plant in Kenya by mid 2018. You have been appointed to conduct an industry competition analysis. Discuss the main issues or activities that you could analyze in order to understand the detergent industry, competition level and structure in Kenya with the help of porters five forces model. [10 marks]
b) The Boston consulting group (BCG) matrix is one of the tools used in product portfolio. Clearly illustrate and explain the analogy of the BCG matrix. [5 marks]
a) To conduct an industry competition analysis for the detergent industry in Kenya, you could analyze the following main issues or activities with the help of Porter's five forces model¹³:
- Threat of new entrants: You can analyze how easy or difficult it is for new companies to enter the detergent industry in Kenya. This can include analyzing the barriers to entry such as capital requirements, economies of scale, government regulations, etc.
- Bargaining power of suppliers: You can analyze the bargaining power of suppliers in the detergent industry in Kenya. This can include analyzing the number of suppliers, their bargaining power, and their ability to switch suppliers.
- Bargaining power of buyers: You can analyze the bargaining power of buyers in the detergent industry in Kenya. This can include analyzing the number of buyers, their bargaining power, and their ability to switch products.
- Threat of substitute products or services: You can analyze the threat of substitute products or services in the detergent industry in Kenya. This can include analyzing the availability and quality of substitute products or services.
- Rivalry among existing competitors: You can analyze the level of competition among existing competitors in the detergent industry in Kenya. This can include analyzing factors such as market share, product differentiation, advertising and marketing strategies, etc.
b) The Boston Consulting Group (BCG) matrix is a tool used in product portfolio analysis that helps companies analyze their product lines based on market growth rate and relative market share². The BCG matrix is also known as the growth-share matrix because it helps companies decide which products to invest in based on their growth potential and market share. The BCG matrix has four quadrants:
- Stars: High market growth rate and high relative market share
- Cash cows: Low market growth rate and high relative market share
- Question marks: High market growth rate and low relative market share
- Dogs: Low market growth rate and low relative market share
Question Four
a) With appropriate examples, describe the components that make up generic strategic model as it applies in strategic management settings. [5 marks]
b) By giving examples, discuss the product life cycle. [5 marks]
a) The generic strategic model is a framework that helps organizations to develop and implement their strategies. It consists of four components: environmental scanning,strategy formulation,strategy implementation, and evaluation and control.
I. Environmental scanning involves analyzing the internal and external environment of the organization to identify opportunities and threats.
II. Strategy formulation involves developing a plan for how the organization will achieve its goals.
III. Strategy implementation involves putting the plan into action.
IV. Evaluation and control involves monitoring progress and making adjustments as needed. [Show Less]