CORPORATE AND BUSINESS UNIT STRATEGY
SUGESTED: Apple (Mac), Dell, Hewlett-Packard (HP), Microsoft, Lenovo, Acer, Sony, Samsung and Toshiba.
Creating a business model is of critical importance to success.
- What is a business model?
- What is a business model canvas?
- How does innovation and competitive strategy converge at a business unit-level through the business model?
Objectives
Successfully complete this learning unit, you will be expected to:
1. Research business models and corporate growth strategies.
2. Analyze the business strategy of a strategic business unit.
REMINDER: Discussions activities are considered scholarly writing; do not use first-person pronouns.
Required Readings
Use your textbook, Crafting and Executing Strategy, to read the following:
- Chapter 4, "Evaluating a Company's Resources, Capabilities, and Competitiveness."
- Chapter 5, "The Five Generic Competitive Strategies."
- Chapter 8, "Corporate Strategy: Diversification and the Multi-business Company."
1. Alstyne, Parker, and Choudary's 2016 article, "Pipelines, Platforms, and the New Rules of Strategy," in Harvard Business Review, volume 94, issue 4, pages 54-62.
2. Girotra and Netessine's 2014 article, "Four Paths to Business Model Innovations," in Harvard Business Review, volume 92, issue 7/8, pages 96-103.
Suggested Video
The following optional video offers more information on the business model canvas.
- Business Model TV (Producer). (2011). Business model canvas explained [Video].
Retrieved from https://www.youtube.com/watch?v=QoAOzMTLP5s.
Preparation
Research and select an MNC and one of its SBUs to use as a case study for this discussion. You may use the same MNC and SBU for both this discussion and the assignment.
INITIAL DISCUSSION POST
Within an organization, SBUs are interested in growth. SBUs that lead in growing markets will likely be given additional resources, while those that fall behind in stagnant markets will be shut down so the company as a whole can operate more efficiently.
As you analyze your selected SBU, what business strategy has been its most successful over the last 3-5 years? Analyze this strategy in terms of resources, capabilities, and competitiveness as described in Chapter 4 of your assigned unit reading. Provide evidence to support your analysis and conclusions.
Your discussion post should be a minimum of 550 words and incorporate at least one scholarly reference along with citations from one of the required readings.
- Sources: Must have three Scholastics Source (last 3 years) out of:
Business Journals Review, Wall Street Journal, Market Line, Hoovers 10 K, Annual Reports, 7 A 1, 10 A 1
PEST ANALYSIS TEMPLATE
The PESTEL analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PESTEL analysis is a business measurement tool. PESTEL is an acronym for Political, Economic, Social and Technological, Environmental, and Legal Regulatory factors, which are used to assess the market for a business or organizational unit.
Completing a PESTEL analysis is very simple. Use Pest analysis for business planning, strategic planning, competitor evaluation, marketing, business and product development and research reports.
PESTEL analysis is similar to SWOT analysis - it's simple, quick, and uses four key perspectives. As PESTEL factors are essentially external, completing a PESTEL analysis is helpful prior to completing a SWOT analysis (a SWOT analysis - Strengths, Weaknesses, Opportunities, Threats - is based broadly on half internal and half external factors).
Generally speaking a SWOT analysis measures a business unit or proposition, whereas a PESTEL analysis measures the market potential and situation, particularly indicating growth or decline, and thereby market attractiveness, business potential, and suitability of access - market potential and 'fit' in other words.
The free PESTEL template below includes sample questions or prompts, whose answers can be inserted into the relevant section of the PESTEL grid. The questions are examples and obviously can be altered depending on the subject of the PESTEL analysis, and how you want to use it. It is important to clearly identify the subject of a PESTEL analysis, because a PESTEL analysis is four-way perspective in relation to a particular business unit or proposition - if you blur the focus you will produce a blurred picture - so be clear about the market that you use PESTEL to analyse.
The four quadrants in PESTEL vary in significance depending on the type of business, eg., social factors are more obviously relevant to consumer businesses or a B2B business close to the consumer-end of the supply chain, whereas political factors are more obviously relevant to a global munitions supplier or aerosol propellant manufacturer.
Attachment:- pestle analysis template.rar