1 outline the strategic management process
2 Explain how businesses could apply any two force of poortes five forces model to analyse their position in the market
3 Discuss any two type of intergration strategeies
4 Advise businesses on the advantages of intensive strategies
1. Strategic Management Process:
- Environmental Analysis: This involves scanning the external environment to identify opportunities and threats, as well as analyzing the internal environment to identify strengths and weaknesses.
- Strategy Formulation: Based on the environmental analysis, the organization develops a strategic plan that outlines its goals, objectives, and action plans.
- Strategy Implementation: The strategic plan is put into action through various activities and initiatives, involving resource allocation, organizational structure, and communication.
- Strategy Evaluation: The organization continuously monitors and evaluates the effectiveness of the strategy, making adjustments as needed to ensure alignment with its goals and objectives.
2. Application of Porter's Five Forces Model:
- Bargaining Power of Suppliers: By assessing the strength and influence of suppliers in the market, businesses can negotiate favorable terms and prices for their inputs, thereby improving their cost competitiveness.
- Threat of New Entrants: Analyzing the barriers to entry in the market can help businesses understand the level of competition they face and devise strategies to differentiate themselves and protect their market share.
3. Types of Integration Strategies:
- Horizontal Integration: This involves acquiring or merging with competitors in the same industry to increase market share, drive economies of scale, and reduce competition.
- Vertical Integration: This involves expanding operations either upstream or downstream in the value chain, such as acquiring suppliers or distributors, to improve control over inputs and outputs and generate cost savings.
4. Advantages of Intensive Strategies:
- Increased market share: Intensive strategies such as market penetration and product development can help businesses capture a larger share of the market and increase revenue.
- Improved competitiveness: By focusing on expanding within existing markets or launching new products, businesses can strengthen their competitive position and better meet customer needs.