The strategy lenses are ways of looking at strategy

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The strategy lenses are ways of looking at strategy issues differently in order to generate additional insights. Looking at problems in different ways will raise new issues and new solutions. Strategy can be seen as: - Design - Experience - Variety - Discourse
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Chapter 2 The strategic position Layers of the business environment The PESTEL framework - Political factors - Economic - Social - Technological - Ecological - Legal Megatrends - large-scale changes that are slow to form but influence many other activities over decades to come. Examples include aging populations and increased economic growth in Asia. Inflexion points - when trends shift sharply upwards or downwards. E.g. Sub-Saharan Africa may have reached an inflexion point after decades of stagnation (and may embark on a period of rapid growth). Weak signals - advanced signs of future trends that may help to identify inflexion points - often unstructured and fragmented bits of information. E.g. mortgage failures in California in 2007 were a weak signal for the financial crisis that hit the global economy in 2008. Scenarios are plausible views of how the environment of an organisation might develop in the future based on a key drivers of change about which there is a high level of uncertainty. - Build on PESTEL analysis and drivers of change. - Offer more than a single view. An organisation will typically develop a few alternative scenarios (2-4) to explore and evaluate future strategic options. - Scenario analysis is used in industries with long planning horizons, for example the oil industry or airlines. Carrying out scenario analysis - Identify the most relevant scope of the study - the relevant product/ market and time span.
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- Identify key drivers of change - PESTEL factors which will have the most impact in the future but which have uncertain outcomes are mutually independent. - For each key driver select opposing outcomes where each leads to very different consequences. - Develop scenario „stories“ . That is, coherent and plausible descriptions of the environment that result from opposing outcomes. - Identify the impact of each scenario on the organisation and evaluate future strategies in the light of the anticipated scenarios. - Establish early warning systems . Identify indicators that might given an early warning of the way the environment is changing and monitor such indicators. Industries, markets and sectors An industry is a group of firms producing products and services that are essentially the same. For example, the automobile industry and the airline industry. A market is a group of customers for specific products or services that are essentially the same (e.g. the market for luxury cars in Germany). A sector is a broad industry group (or a group of markets) especially in the public sector (e.g. the health sector).
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  • Spring '17
  • H. Mathee

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