Topic:Strategic Situational Analysis: An exploration and critical analysis of North Herts NHS Trust
Subject:Business
Volume:4 pages
Format: Harvard
Type: Report
Description
Highlighting the strategic issues facing the business of the North Herts NHS Trust. The strategic issue must draw on the integration of evidence and analysis related to each of: the broad environment, industry environment and resources and capabilities in order to illuminate key strategic issues that will affect the company’s situation and decision making. the report is requires research and reference research that is up to date (i.e. March 2018). It should include both quantitative and qualitative data. You are also required to give strategic options
Business Strategy
Guidance on Writing the Report
The aim of the report is to draw out and discuss at least three key strategic issues from the situational analysis (broad environment, industry environment, internal environment) that you have conducted in your teams.
For the purposes of the assignment a ‘Key Strategic Issue’ is defined as ‘a circumstance requiring the attention of strategic management that emerges from a change in the alignment between the broad environment, industry and organisation.’
Suitable strategic issues could arise from a positive or negative situation, but require you to discuss how specific developments outside the organisation relate to specific aspects of the organisation. For example, a strategic issue in the manufacturing sector might explore how regulatory changes (PESTEL) relate to particular manufacturing processes (Value Chain), and whether this creates a problem for an organisation or a potential source of advantage.
Students should draw from specific areas of analysis linked to models, theories and frameworks learnt on the module and beyond. Students should cite and reference all models, theories and frameworks, even though they are not presenting the whole model (i.e. you are unlikely to present a whole ‘Five Forces’ analysis, but should reference Porter if you were discussing the ‘power of suppliers’). Students should also consistently cite and reference evidence from their research into the company and its environment (e.g. news articles, industry reports).
In addition to identifying the strategic issues students are also required to:
• Use models, theories or frameworks to help explain the strategic options that specifically respond to the issue identified (a minimum of three options across the report are required e.g. one option for each issue would be sufficient, but students are welcome to include more). As well as referring to the theory students should clearly explain what their option might look like in practice for their company. Avoid using phrases like ‘they should’ or ‘they must’ or ‘we think’. Use phrases like ‘they could……because this will help address the issue highlighted by….’.
• Critique the models and theories they have used to analyse the environment and company or support strategic options. Critique should be relevant to how students have used the model e.g. in using an aspect of PESTEL – ‘… but identification of these specific social factors demonstrates how quickly these could change, and therefore do not offer a stable basis to develop a new strategy’.
Students should avoid:
• Describing things that are reported in the research they have fousnd about the company, industry or environment (ask yourself ‘so what’ – why is this vital – what are the implications for the company? It is your discussion and explanation of why this evidence matters that we are assessing)
• Describing models, theories or frameworks (ask yourself why you think this model or theory is relevant to explaining some aspect of the strategic issue. What does it help you to identify, or what conclusions does it help you to draw)
• Copying in the entire analysis from a particular model or theory (you do not have enough space to copy in a whole PESTEL, or a whole 5 forces, a whole value chain, or even a whole SWOT. Only refer to the parts of these models and theories that help you to explain the strategic issue you have identified)
Skeleton for planning the write up of a strategic issue facing Volkswagen – an example
-note that this is a ‘plan’ and is not written up in the academic style required for your report
Strategic issue identified from analysis – ‘Volkswagen’s competitive exposure to the changing role of diesel in the automobile industry’
From doing the PESTEL
Political – move towards clamping down on greenhouse gases; changes in taxation and legislation impacting diesel the most
Source – https://www.ft.com/content/c173f7ae-6c30-11e5-aca9-d87542bf8673
Social – consumers feeling betrayed by government encouragement to buy diesel cars, now moving towards green consumption
Source – http://www.telegraph.co.uk/motoring/news/11007326/Diesel-car-drivers-betrayed-as-EU-cracks-down-on-Britain-over-air-pollution.html
Technological – move towards self-driving cars, more electric cars on the market; the integration of new forms of technology into the automobile industry
Source – https://www.theguardian.com/environment/2017/feb/07/power-to-the-ev-norway-spearheads-europes-electric-vehicle-surge
From doing 5 forces analysis
Threat of new entrants – Tesla, Apple, Google, and start-ups threatening to disrupt the existing business models and conventional mechanical cars. Increased focus on technology, green energy and particularly electric vehicles…
Source – http://www.mercurynews.com/2017/02/10/staking-a-claim-in-the-auto-industrys-evolving-technology/
Threat of substitutes – more people cycling/walking to work
Source – http://www.theplanner.co.uk/news/cash-injection-of-%C2%A364m-for-cycling-and-walking-to-work
From the Value Chain and Core Competence analyses
Operations and Service – embroiled in scandal for misrepresenting diesel efficiency and emissions. Most recent success of cheap and fuel-efficient hatchback models.
Technology – traditional focus on German engineering; largest seller of small diesel cars in the world
HRM – cut back executive pay and bonuses in the wake of the scandal.
Sources- clients1.ibisworld.co.uk.ezproxy.herts.ac.uk/reports/uk/industry/majorcompanies.aspx?entid=2575; https://uk.finance.yahoo.com/news/volkswagen-caps-executive-pay-tightens-173834363.html; http://wwlp.com/2017/02/22/volkswagen-diesel-owner-awaiting-money-from-car-buyback/
Discussion of the above (n.b. this is not written in formal academic writing style – it is a plan)
– Linking the changing competitive conditions in the automobile industry likely to impact over the next ten years as consumers and environmental pressures shift towards greater expectations on cheap and environmentally friendly technologies. Lacking the internal capabilities to deliver the same technology as new entrants, and simultaneously there is a need to consolidate and rebuild on a reputation of reliable, small and efficient cars that meet the changing consumer and governmental expectations. A risk emerging of strategic drift, particularly in the eyes of the consumer!
Strategic Option
– Use joint venture/strategic partnership to bring in new capabilities enabling the development of electric self-driving small vehicles. This will enable the speed to respond to changing industry conditions where VW currently lack the skills required. Capitalise on their existing reputation for ‘small cars’ whilst shifting technologies away from diesel.
Example of one possible relevant structure to satisfy the marking criteria – based on three strategic issues
Introduction – approx. 375 words
– Brief background to the company, up to date information that gives the report some context
– Define the key industry/market(s) that are involved or will be focussed on (making sure your analysis later is consistent with this)
– Signpost the strategic issues that your report will cover
Strategic Issue 1 – (give it a heading that summarises what the issue is about) – approx. 750 words
– Draw on aspects of the broad environment that are relevant (e.g. the bits of the PESTEL that are vital to this issue) – 1 or 2 things only
o Critical evaluation of using the model to understand the aspects discussed
– Draw on aspects of the industry environment (e.g. aspects of the strategic groups, market segments, five/seven forces, strategic positioning, Key Success Factors etc. that are vital to this issue) – 1 or 2 things only
o Critical evaluation of using the model(s)/theories to understand the aspects discussed
– Draw on aspects of the internal analysis (e.g. specific resources (or lack of), capabilities (or lack of), aspects of the value chain, things that meet or don’t meet VRIO criteria, core competences, core rigidities etc. that are vital to this issue). – 1 or 2 things only
o Critical evaluation of using the model(s)/theories to understand the aspects discussed
– Discussion and integration – drawing on relevant areas of theory where appropriate (e.g. SWOT, industry architecture, MBV, RBV, strategic drift etc. – Think about the following kinds of questions, and how your answers help you to explain the strategic issue. How does the broad environment influence the industry? How is the industry changing? How does this change influence the company? What is the company’s position in the industry? How is the industry impacting on the broad environment? What opportunities or threats do these interrelations and changes produce? How does this present a strategic issue?
o Critical evaluation of using the model(s)/theories to understand the aspects discussed
– Strategic options – draw on relevant areas of theory (e.g. generic strategies, bowman’s clock, positioning, stretching and leveraging, international strategy, corporate strategy, shared value strategy etc.) – provide one or two options based upon the discussion and integration and the theory that demonstrate how the company might respond to develop or maintain Sustainable Competitive Advantage.
o Critical evaluation of using the model(s)/theories to understand the aspects discussed
Strategic Issue 2 – (give it a heading that summarises what the issue is about) – repeat process as above – approx. 750 words
– Aspect(s) of the broad environment (& critique of theory)
– Aspect(s) of the industry environment (& critique of theory)
– Aspect(s) of the internal environment (& critique of theory)
– Discussion and integration of these aspects (& critique of theory)
– Strategic options (& critique of theory)
Strategic Issue 3 – (give it a heading that summarises what the issue is about) – repeat process as above – approx. 750 words
– Aspect(s) of the broad environment (& critique of theory)
– Aspect(s) of the industry environment (& critique of theory)
– Aspect(s) of the internal environment (& critique of theory)
– Discussion and integration of these aspects (& critique of theory)
– Strategic options (& critique of theory)
Conclusion – approx. 375 words
– Draw together the key themes across your strategic issues. Is the situation facing the company positive or negative? Are there broad trends that are defining the future of the product/industry/market? Are there synergies between the options you have identified e.g. could doing one thing solve multiple problems? If you could summarise in one or two sentences the messages you would deliver to the CEO of the company what would they be. Make sure that the things you discuss in your conclusion draw specifically back to the things identified in your report. Do not introduce new issues, ideas or concepts to your conclusion.
References
• Harvard referencing format – See CASE guidance
Appendices
• Your team’s reflection – 500 words
• Your team’s log (recording meetings, allocation of responsibility, dates/times, when content has been produced and by whom, any other notes)
• Any additional analyses or evidence you want to draw from but are not appropriate for the main body (see guidance in the assignment brief – these additional appendices are not marked, and could harm your project if they lower the quality of your presentation)
(Outstanding score).
1. Outstanding… Presentation & report structure, approach to situational analysis, list of contents/figures & appendices. Articulate & fluent prose with ideas cross referenced. No grammatical / spelling errors.
2. Outstanding… Standard of referencing within text & consistent use of Harvard referencing system. Accuracy of in-text references & full details shown in Reference list. Both theory and data clearly and consistently cited.
3. Outstanding… Exploration of topic showing excellent knowledge & understanding through thorough & appropriate research. Impressive choice and range of appropriate content. Comprehensive cover of key issues in the internal and external environment.
4. Outstanding… Business insight & application. Breadth, depth & integration of literature/data into work. A comprehensive situational analysis including original insights. Incorporates other perspectives to generate depth and breadth.
5. Outstanding… Level of discussion, analysis, critical evaluation of theory & reflection. Highly developed. Original and meaningful conclusions regarding competitive advantage/ strategic issues. Draws from across the analysis. Meticulous options.
