Description

The Executive Leadership Team of XYZ firm has requested you to undertake a Strategic Analysis on ONE of the

following industries:

• Fast-food

• Automobile

• Airline

• Technology

Write a report (no more than 2500 words) plus appendices (not included in the word count) including any relevant

exhibits data, and citations for review by the Executive Leadership Team group. The emphasis is on succinct,

compelling, and clearly argued information which has a logical flow. The Executive Leadership Team wish to use the

report to determine how to compete with the firms in the industries under consideration should XYZ wish to enter.

Please refer to the instructions overleaf

NOTE: The executives are experts in strategic management, they know what PESTEL, 5 Forces, strategic

groups and competitive analysis involve. Thus, their requirement is on information specific to the

organization under consideration. Time spent introducing a “strategic tool” such as “Michael Porter’s 5

Forces is used to analyse industries with the following areas ….” followed by an introduction to each of the

areas is only likely to irritate them. In short, get to the point!

Key considerations when preparing your report:

(A) Consider the macro-environment within which the company operates. What are the key trends

within the sector(s)? What are the demographics, psychographic and technology advances

impacting the environment within which the company operates? Are there societal or

environmental factors to consider?

(B) Consider the effect of each of the five competitive forces in the firm’s industry. Decide which

factors are most relevant to your industry, explain why they’re most relevant, and focus on those.

How have these factors influenced any or all of the five competitive forces you analyze?

(C) Identify and briefly describe the industry and strategic groups within the industry. Who are the

major competitors within each strategic group and how do they compete? How competitive is the

sector? What are the reasons such as competition? Is there a “value network” with associated

complements? Are there gaps to be exploited?

(D) Analyse the firm’s capabilities. Are they distinctive, and difficult to imitate? Do they create a

competitive advantage? Are the firm’s capabilities a good ‘fit’ with the insights revealed from your

analysis of the industry’s five forces, the changing business environment, and the position of the

firm’s competitors? Why or why not? Is it capital intensive? What about the knowledge barriers?

Conclude your report with conclusions or recommendations outlining the considerations the firm should

take in the event the ELT decides to enter that industry/market.