MKT3002 Business Strategy Q

1
MKT3002 Business Strategy QA session

• Make-up tute Monday 19/05/2003

2

• Question
• Is it possible for us to include EFE (External
  Factor Evaluation) and CPM (Competitive Profile
  Matrix) tables under External Environmental
  Analysis?
• Answer
• Short answer is to stop thinking about where to
  place the tools. Place them in appendices and
  the refer to them to support arguments as needed.
  Of course you will need to refer to the EFE
  during the discussion of the external analysis
  But the CPM can be used in the external,
  internal, conclusions for strategic analysis and
  other sections of the report so it doesnt make
  sense to place it anywhere except the appendices

3

• Question
• How many headings we suppose to execute?
• Answer
• As many as is needed to achieve your objective.
  There is no right and wrong answer but believe me
  when I say that all the headings better serve a
  value adding purpose for the decision maker.
• By the way, I would ensure that I fulfilled the
  guidelines as provided in the introductory bok
  BUT I would not necessarily use it to dictate to
  me what my headings will be. Eg plan of conduct
  is not a heading but a paragraph within a
  section.

4

• Question
• Is it a good idea to place a glossary of terms in
  the appendix in order to explain some of the
  jargon used in the report?
• Answer
• This is possible and could work well. However, I
  have never had to do this because I write in a
  way that helps the reader to understand the
  implications and the purposes of the theory
  without explaining the theory to the person. I
  also am careful not to dumbify the writing by
  writing it in very simplistic ways.
• If you use too much jargon you might alienate the
  audience but if you write too simply then you
  might insult the audience and if you explain all
  the jargon you will bore the reader.
• Use your introduction to sell your approach to
  overcoming the issue of jargon. Using it
  effectively is about ensuring the main argument
  is developed in a convincing way and this takes
  practice. Which ever way you try to overcome the
  issue of jargon, just remember to ensure that you
  add value to the reading experience and that you
  achieve the main objective for your report

5

• Question
• Can tables be used in the body of the report to
  assist the analysis, reduce word count and offer
  a logical flow to the report, or do you frown
  upon their use inside the report.
• Answer
• Yes they can BUT
• Never use a table for the purpose of reducing
  word count
• Any tables in the report should have a deliberate
  function aimed at achieving the major objective
• Tables should more frequently be in the appendices

6

• Question
• Module 6 isn't listed in the work programme in
  the Intro book, should we be discussing corporate
  governance, the cultural context, business ethics
  and organisational purposes?
• Answer
• Whilst there is limited purpose for actually
  discussing these issues, there is a significant
  benefit to ensure your analysis and
  recommendations take these issues into account.
  So whilst you might not have a section based on
  these terms you should ensure that I cannot see
  any gaps in your arguments based on these issues.
  Your arguments should reflect an understanding
  of these.

7

• Question
• Should we cover game theory if it isn't likely to
  happen?
• Answer
• Same as last question BUT I find it difficult to
  think of a time that it is not likely to be
  relevant!!!!! When does the results of game
  theory not happen? Anyway, if you can think of a
  time when it doesnt and if discussing it does
  not then add value to the reading of the report
  then ignore itbut otherwise see answer to last
  question

8

• Question
• My case organisation is owned and operated by one
  person, therefore corporate parent has no bearing
  here, is it better to ignore this section?
• Answer
• See previous answers. Remember that it needs to
  add value, if not then ignore it but you better
  make sure that I dont question why you didnt
  consider it.

9

• Question
• Are we expected to produce a funds flow analysis,
  resource deployment analysis or sensitivity
  analysis?
• Answer
• Do you expect to have the decision maker agree
  with you? Will you get a positive response form
  a decision maker if you dont consider it? Will
  considering it help to add value to your report?
  Will it help to ensure that your main objective
  is accomplished and that you have a useful report
  that will NOT be thrown away? Will ignoring it
  increase your chances of being employed by the
  firm for more consulting? Will considering it
  increase your chances??
• I only expect that you will do enough to ensure
  that you have done enough. The rest is up to you
  and then you take the risks if you dont do it.

10

• Question
• Can an alternative recommendation be to 'do
  nothing'?
• Answer
• Imagine the firm paying you big dollars for this
  report and then you give an alternative as do
  nothing. What will be the impact upon the
  decision maker to read that? I think it would be
  poor. The reason why you are doing this report
  is that if the firm does nothing then the
  strategic gap in 5, 10 or 20 years now will be
  significantly wide (if you last that long) so to
  do nothing does NOT overcome the strategic issue.
  However, you could state an alternative is to
  protect and build via a strategic direction of
  consolidation, using the internal method of
  development. This is similar to do nothing but
  sounds more credible.

11

• Question
• Can we conduct a full PESTEL analysis in an
  Appendix and draw conclusions from that in the
  actual report?
• Answer
• Please, Please do.
• Make sure you know how to do this though!

12

• Question
• You mentioned in a document 'do not teach -
  ever'...are we to assume that the reader of the
  report already knows for example, 'what is
  devolution
• Answer
• You cant expect the reader to know the meaning
  of all the terms BUT even if the reader does not
  know the meaning to any of the terms then still
  dont teach. Use the knowledge you have gained
  to develop arguments. The reader can find out
  more if the reader chooses but you have to make
  the decision easy to make so make the reader HAVE
  to find out more about the term. (BTW, I know all
  the terms so dont bore me with your teaching)

13

• Question
• Is New product development a diversification
  strategy, or is it a separate strategy in its own
  category
• Answer
• It is a strategy in its own right BUT by using
  Kotler 10ed version of marketing management (any
  edt really), you will more fully be able to
  determine if your thoughts on the new development
  strategy more fully fits in with one of the 4
  types of diversification strategies.

14

• Question
• how do we write the introduction so that we don't
  have to use pers. comm. references all the time?
• Answer
• All company information comes from the firm
  unless otherwise stated
• Question
• If the assignment doesn't have a strong sales
  emphasis, will you fail the assignment?
• Answer
• Will I accept and agree with the recommendation?
  Will I find it of value to read or will I be
  bored? If its boring and useless will it pass?
• Btw, I dont fail assignments, you just fail to
  convince me to pass you!!!!!
• Question
• What is a IE spatial diagram
• Answer
• You must do an IFE and an EFE. IF you do these
  correctly (and maybe this should form an extra
  question) then you will be able to plot these
  scores on a matrix and then by using the theory
  in the text by Fred R David you can use this tool
  to support your alternative strategies

15

• Questions
• what if one of the recommendations we were to
  come up with is not really by the books as a
  gentlemanly thing to do (not illegal or a case
  for bad trading, (maybe)) but not in the book of
  nice things to do?
• Answer
• All alternatives must be inherently Ethical,
  Moral and of course legal. If it is not ethical
  and moral will it pass the acceptability test??

16

• 1.    Can we solely use QSPM for the evaluation
  part of our strategy or do we need to discuss
  more???
• Answer You may (I wouldnt) and it may still be
  enough BUT you MUST then ensure that the criteria
  used to judge the alternatives are based on
  suitability, acceptability and feasibility (and
  others if you wish)
•  
• 2.    If no to Q1.  are we supposed to go into
  feasibility, acceptability and suitability.
• Answer This is answered in previous question.
•  
• Concern
• OUR WORD COUNT IS GETTING WAY BEYOND CONTROL!
• Answer
• It is due to either boringly describing and
  teaching too much OR you are trying to achieve
  too many objectives with the one report.
  Possibly you can narrow the scope or write more
  powerfully and effectively, using less words to
  say more!!
•  
• 3.    What part do we put the specifics of our
  Recommendations in?
• Ill do a tute on this ok.
• 4.    What's included in our Resource Allocation?
  (Section 9)
• Ill cover this at a tute

17

• value chain
• Make sure that the value chain supports most or
  all of your strengths and weaknesses. It must be
  used to identify what S and W you have that
  creates value and thus satisfaction to consumers.
  It can be adapted in any way you wish and
  therefore it is difficult to argue that it is not
  relevant
• the cause and effect tree.
• You may wish to do 2 of them, one when you first
  discuss the diagnosis of symptoms and one when
  you confirm the strategic issue after finalising
  your strategic analysis. Remember that this
  diagram is a pictorial representation of the
  diagnosis of the symptoms so that the reader gets
  a big picture of what the major issue is and why
  it exists.
• Corporate-Level Strategy
• Not all reports will need to consider this as it
  may not fit within the scope of your report

18

• is it alright to make assumptions based on the
  environment? Yes but be careful. Lots of things
  can be supported and all things must be logical
• Can you please explain again what you want us to
  do for section 3 under situation analysis? As
  much as is needed to ensure that the reader is
  clear on what situation the firm is in, why it is
  there and what the implications are for not doing
  anything about it compared to where it should or
  could be in the future (ie the strategic gap).
  This normally means an internal and external
  analysis.
• When we examine the various options on the
  strategy clock, are we supposed to analyse it
  accordingly to ownership structures, scope and
  diversity structures etc? the analysis should
  reflect these issues otherwise there will be gaps
  in your credibility but you might not need to
  discuss them in detail.
• what does it mean by diversity potential of the
  firm? Not exactly sure where you got this from
  but basically it has relevance to the way the
  organisation is set up for potential diversity.
  Some organisations can readily diversify by
  virtue of their structure and management approach
  whilst others cannot readily do so. Eg a
  franchise has limited diversity potential. It is
  also reflective of the situation the firm is in
  and can be delineated through TOWS etc.