This module deals with the concept of industry and how it can be analysed through practical examples of industries. It goes into analysing business environments at national & international level through the PESTEL (Politics, Economics, Social, Technology, Environment and Legal) framework before going into the concept of competition and “profitability of an industry” mainly through the 5 forces framework.
This module attempts to explore areas such as barriers to entry, customer switching costs, supplier and buyer power, substitute products & services, the role of international organisations and governments on industries and competition, regulations and opportunities for national competitive advantage.
Topics:
- Industry, Industry types
- Industry evolution & mobility
- Analysis of environments at national & international level (PESTEL)
- Competitive environment analysis (5 forces theory)
- National competitive advantage (Diamond theory)
- Forecasting
This module also deals with the development of strategy. After the main idea (purpose: vision and mission), and the analysis of the competitive environment, it is logically essential for any idea (even a start-us) that the organisation decide on what strategy to adopt. If the company has already been operating for some time, it is essential at this point for the organisation to match its competencies, skills and knowledge to the environment findings from module 2 to evaluate its strategy and make any necessary alterations.
This module asks the main question: how do companies compete? First of all, the concept of cost & differentiation is addressed and analysed. Then the idea of competing in a specific segment (niche); Then the concept of strategic groups is addressed based mainly on two parameters: Price & quality. Furthermore, the idea of the strategic clock is examined which offers the “hybrid” strategy option. After the analysis of the above topics, an analysis of products and services is undertaken through classic models such as the BCG matrix, the GE matrix, the Product Life Cycle (with a special focus on the short life cycles of many products in the 21st century).
One of the most important areas in this module is the analysis of the critical success factors of an organisation prior to setting the Key performance indicators (KPIs) since these areas need to be part of the strategy (if characterised as critical). Finally, the concept of the value chain is addressed and a short analysis of resources is undertaken in this module but not extensively as there are other modules that cover these areas (HR & Finance).
Topics:
- How do companies compete?
- Cost vs differentiation
- Niche strategies
- Strategy clock
- Strategic group positioning
- BCG matrix
- Product life cycle
- CSFs & KPIs
- Value chain analysis
- Resources & competencies