STRATEGIC ALTERNATIVES

MUHAMMAD AFSAL KP
STRATEGIC ALTERNATIVES
Business environments are highly uncertain and
executives need to be innovative and flexible to
survive.
They achieve this through strategic alternatives that
enable their companies to maintain a competitive
edge over rivals.
Some alternative strategies include price focus,
differentiation, diversification and adjacent
businesses.
 VARIOUS STRATEGIC
ALTERNATIVES
 Price Focus (mobilephone)
 Differentiation( Soap)
 Diversification (ITC)
 Adjacent Businesses (XIAOMI)
ENVIRONMENTAL ANALYSIS
 Environmental analysis is a strategic tool. It is a process
to identify all the external and internal elements, which
can affect the organization’s performance.. These
evaluations are later translated into the decision-making
process. The analysis helps align strategies with the
firm’s environment.
 Our market is facing changes every day. Many new
things develop over time and the whole scenario can
alter in only a few seconds. There are some factors that
are beyond your control. But, you can control a lot of
these things.
 There are many strategic analysis tools that a firm
can use, but some are more common. The most
used detailed analysis of the environment is
the PESTLE analysis.
 This is a bird’s eye view of the business conduct.
Managers and strategy builders use this analysis to
find where their market currently.
 PESTLE analysis consists of various factors that
affect the business environment. Each letter in the
acronym signifies a set of factors. These factors
can affect every industry directly or indirectly.
CRITICAL SUCCESS FACTOR
 Critical success factor (CSF) is a an
element that is necessary for an
organization or project to achieve
its mission. It is a critical factor or activity
required for ensuring the success of a
company or an organization.
 The term was initially used in the world
of data analysis and business analysis
7-S Framework
 The McKinsey 7-S model involves seven
interdependent factors which are categorized as
either "hard" or "soft" elements:

 Hard Elements SOFT ELEMENTS

 Strategy

 Structure

 Systems
 Strategy: The plan devised to maintain and build
competitive advantage over the competition.
 Structure: The way the organization is
structured and who reports to whom.
 Systems: The daily activities and procedures
that staff members engage in to get the job done.
 Shared Values: These are the core values of the
company that are evidenced in the corporate
culture and the general work ethic.
 Style: The style of leadership adopted.
 Staff: The employees and their general
capabilities.
 Skills: The actual skills and competencies of the
employees working for the company.
BCG MATRIX
It has 2 quadrants:-
1.Rate of growth
2.Relative growth share
Swift A STAR

ALTO
OMNI
VALUE CHAIN
◦ A set of activities that a firm operating in a
specific industry performs in order to deliver a
valuable product or services for the market.
 VARIOUS TYPES OF
ANALYSIS

 ENVIRONMENTAL ANALYSIS
 INDUSTRY ANALYSIS
 CORPORATE ANALYSIS
 SWOT ANALYSIS
 PORTFOLIO ANALYSIS
 COMPETETOR ANALYSIS
 SCENARIO ANALYSIS
 STAKEHOLDER ANALYSIS
PORTFOLIO ANALYSIS
◦ Systematic way to analyze the products and
services to make up an association business
portfolio.

◦ Some of these includes publishing meeting

and conventions education and training,
government representation, research,
standards setting.
SCENARIO ANALYSIS
◦ Process of analyzing possible future
events by considering alternative possible
outcome.

◦ Tries to consider possible developments

◦ Future benefits are calculated from the

past data
INDUSTRY ANALYSIS
 Industry analysis is a tool that facilitates a company's
understanding of its position relative to other companies that
produce similar products or services.
 Understanding the forces at work in the overall industry is an
important component of effective strategic planning. Industry
analysis enables small business owners to identify the threats
and opportunities facing their businesses
 Tangibility
 Demand and Supply
 Competition
 Variety of goods and services.
CORPORATE ANALYSIS
 Corporate analysis is a broad term that
describes the creation of an in-depth
evaluation of a corporate entity. In most
situations, the analysis will cover all aspects
of the company, including finances, profit
margins, organizational structure, and
growth opportunities.
 Competitor analysis
 Competitor analysis in marketing and
strategic management is an assessment of the
strengths and weaknesses of current and
potential competitors.
This analysis provides both an
offensive and defensive strategic context to
identify opportunities and threats. Competitor
analysis is an essential component of corporate
strategy. As a result, traditional environmental
scanning places many firms at risk of
dangerous competitive blind spots due to a lack
of robust competitor analysis.
 STAKEHOLDER ANALYSIS
 Stakeholder analysis in conflict resolution,
project management, and business
administration, is the process of identifying the
individuals or groups that are likely to affect by
a proposed action, and sorting them according
to their impact. This information is used to
assess how the interests of those stakeholders
should be addressed in a project plan.

P
THANK YOU