Exam Preparation

Module Leader: Dr Jane Chang

2BS601 Business Strategy Examination

Exam is based on Google’s strategy in 2009

Case available for collection now from U/G office on Friday (19/08) from WBS registry before the exam

You can bring this to exam

can bring case study printed material

can NOT bring in PC, PDA, mobile phone

What will be in the exam?

FOUR questions in 2¼ hours (each question worth 25 marks)

Questions may relate to anything covered in the module but you will need to draw definite conclusions / recommendations

Key to success is

careful preparation => concise set of notescontaining your analysis, findings, conclusions and recommendation etc

NO SUPPLEMENTARY RESEARCH is required

The best answers show mature judgement

Focus on a few key RELEVANT points and develop them IN DEPTH

Use theory as basis of precise analysis But don’t regurgitate it without applying it

Consider trade-offs, risks, limitations etc JUSTIFY your views / decisions by

referring to the findings of your analysis including calculation derived from data provided in case

theory referring to examples in case

Clear CONCLUSIONS Questions may require you to combine the results of

several analytical tools to form conclusions

You should

Spend time fully analysing the case before the exam

See the Guide for Case Study Analysis which is in your workbooks

Bring a concise set of notes containing your analysis, findings, conclusions and recommendations into the exam with you

Google

The case study describes the company’s strategy and examines the strategic challenges now facing the company.

You are a management consultant who has been commissioned by Google’s senior management to advise them on their future strategy for the next 3 years.

The key strategic question is

How can Google maintain its dominant position?

First step - Industry analysis

Identify key driving forces capable of causing significant change in industry conditions

Assess the attractiveness of the industry

Opportunities and threats

Potential to deliver value

Analyse what a firm needs to:

Survive in an industry

Succeed in an industry

Clearly state

The boundaries of your industry as it will have an impact on your analysis

Are you including on-line, supermarkets etc inside or outside your industry boundary?

Driving Forces

Derived from

Porter’s Five Forces

ILC

PEST

Combine / rationalise analysis findings to derive 3 or 4 Driving Forces which will have a SIGNIFICANT impact on Industry

Impact of Driving Forces on Future Profitability of Industry

Key outcome of Industry Analysis is to assess impact on future Profitability of Industry What is the effect of the driving forces on

demand? Are the driving forces increasing

competition? Will the driving forces lead to higher

profitability? Remember to consider assumptions,

limitations, etc of your analysis State ranges and / or confidence rating of

predictions

Survival and success factorsIf industry has/is.. Survival factors (e.g.) Success factors (e.g.)

Powerful buyers with low switching costs

Meeting minimum buyer requirements

Strong differentiationNegotiation skillsStrong relationships

Powerful suppliers Negotiation skills ScaleRelationships of trust

Low barriers to entryThreat of substitution

[Survival difficult without success]

Strong differentiationLow costs

Fast-growing TechnologyCash for growth

Advanced technology

Mature Minimum economic scale, cost position

Scale or other cost advantageBuyer relationships

Competitor

Analysis:

Who are the

competition?

How are they

positioned?

Step 2 - Competitor / Market Analysis

What FUTURE moves are they likely to make? What will be the impact on Google’s revenues?

Which company is in the best position to be successful in the future?

Competitor Analysis – Key Tools

Strategic Group Maps

Who are the competition?

How are they positioned?

Competitor Intelligence

What strategic moves are competitors likely to make next?

From your Industry and Competitor analyses you can

Identify opportunities and threats for your SWOT

Identify KPIs (SSFs + Competitor Analysis + Benchmarking) which give you the key skills, capabilities, competences (i.e. the strengths) required to be successful in the industry

Step 3 - Internal Analysis (Strengths and Weaknesses)

Internal Analysis determines if the company has these skills and resources i.e. Strengths and Weaknesses in SWOT

Analysis Tools – Value Chain Analysis and Competitive Strength Analysis

In the case study… Some of the strengths and weaknesses are

NOT explicitly mentioned

You will need to infer / deduce them from

Understanding what the company’s strategy & business model are (very important)

Analysing the data given (particularly the financial data)

NOTE: Financial data is also given for Google’s competitors so you can make comparisons

Step 4 - SWOT Analysis

Conclusions from SWOT What is Google’s overall situation?

Does it have an attractive set of resource strengths?

How serious are the weaknesses and competitive deficiencies?

Do the strengths outweigh the weaknesses by an attractive margin?

Are there attractive market opportunities that can be exploited using its strengths ?

Are the threats alarming? Can it use its strengths to limit their impact?

How strong is the overall situation?

Conclusions from SWOT What are the implications for strategic

action? Which competitive capabilities need to be

strengthened immediately?

What actions should be taken to reduce the company’s competitive liabilities?

Which market opportunities should be top priority in future strategic initiatives? Which opportunities should be ignored?

What should the company be doing to guard against the threats to its well-being?

Step 5 –Recommendations

Clear recommendations

Why have you select a particular option(s)?

What are the anticipated benefits?

What timeframe?

How are you going to exploit it / them?

What are the risks, limitations associated with the analysis and implementation of option(s)