Assignment 1: Environmental Scan and Strategy Formulation
WALMART Is the company you will do this environmental scan and strategy formulation for.
Strategic Plan – Environmental Scan and Strategy Formulation
This is the first part of your strategic plan. This will be the ONLY part where you include data that you have researched (be sure to reference your facts when doing this paper). Next, will use this information to identify a strategy that you think the firm should follow (as opposed to one that they are following). Then, in Module 2 you will describe how they should implement your strategy (not what they are currently doing). The implementation will be the second assignment in the course. Thus strategy implementation will demonstrate YOUR ability to make decision about how best to manage firm’s resources as opposed to your ability to conduct research.
Use secondary sources to identify the following:
• Start with the company highlights: locations, annual profit, growth rates, no of employees, performance (as should be much more numbers-driven). Assess briefly performance challenges using specific for the industry key performance indicators (relevant metrics). Address the changes over time (trends) and relative to the industry averages (competitors). These findings should point out to possible strategic problem(s), disruption in the industry or an inflection point . All data should be references and the sources (such as Annual Reports, Industry Reports, etc.) should be included in the Appendices.
• Identify their mission and the vision of their current CEO, then identify their current objectives and goals (from the letter to investors is you are using a publicly-traded company), and if your know their current structure and culture identify this as well (by using CVF) – note these are not what you are recommending but show a baseline from which they will change to implement your identified strategies as part of your proposal.
• Assess the macro environment (specific to the industry not to the firm) or PESTEL analysis- please consider the global nature of the PESTEL.
• Assess the microenvironment through a stakeholder analysis(be sure to include the relationships it has with its stakeholders – channels, suppliers, other allied firms, customers, employees, etc), please discuss the impact of globalization on these relationships and the strategy you have with EACH stakeholder. Include this as part of your environmental scan and strategy formulation with a stakeholder map included.
• Identify the variables most relevant for the analysis of the industry of the company in question. It is vital to identify the variables that matter most for the industry as the industry drivers (KSF).
• VRIO analysis of the firm’s resources include ethical decision making as a resource for your organization and how strong it is. Think about how the leadership’s strategy has affected the performance of the organization. Include your analysis of their resources in the appendix, as background information to create the VRIO table (such as the firm’s current financial strengths, the strengths of their human capital, etc).
• Assess the competitive environment and the strengths and weaknesses of each competitor, use competitive mapping/positioning.
• Present competitive mapping with very distinctive for the sector unique dimensions often related to KSF and VRIO as the basis for competencies and .strategic competitive advantage.
• Strategic problem(s) should be identified and addressed.
Include common strategic management tools and the previous data to:
• Apply Porter’s five forces to the industry with supporting data to assess the forces
• Apply Porter’s Diamond Model to their geographic market with supporting data to assess the factors and to provide evidence for the strategic comparative advantage of the country of origin.
• Construct a SWOT analysis, please include also ethical decision making as a resource for your organization and whether it is a strength or weakness of the firm.
Looking at the environmental constraints and the mission and vision of the firm and the SWOT- what appears to be their current overarching strategy sometimes called their generic strategy (corporate strategies are described in Hunger and Wheelen text but can be things such as TQM, growth through acquisitions, cost leadership, etc) – create a TOWS matrix to illustrate the above information. Consider the effect of globalization when identifying corporate strategies.
Construct an SBU analysis. Based on the SBUs identified in the organization’s annual report, analyze its current business portfolio and identify the investment opportunities for the firm and the business level strategy for each SBU consistent with the strategies from the TOWS matrix. Business level strategies are typically either the Porter strategies or the Miles and Snow strategies. You need one strategy from each SBU, they may be all different or some may be the same strategy based on the competitive environment.
You need to recommend corporate strategy (directional – please name) & especially business-level strategy (competitive, one from Porter’s generic ones and one from Miles and Snow’s ones as well) for each SBU separately (in a summary table), as separate columns because these are separate classifications.
Present portfolio analysis (BCG matrix or GE screen)
Summary conclusions should be after each tool used with recommendations for the strategic direction.
Narrative is needed to provide supporting information, explanation and interpretation of findings from analytical tools and how it affects the strategy.
Strategy and the environment are said to be dynamic (changing, evolving). The strategy influences the stakeholders and the stockholders influence the strategy. For example, when analyzing customer segments, the firm’s identify their target market that has buying behaviors are synergistic with the firm’s resource and capabilities and their strategic direction. They hire employees that have the knowledge to support the strategy. Similarly, they form relationships with their channels and suppliers to help leverage their current resources and implement their strategy. Even stakeholders look at the firm and its strategy to assess the value of the organization (this value can be for the value that they add for each stakeholder) and its long term viability In your discussion of the strategy of the firm discuss these factors and the impact of the strategy on each of the firm’s stakeholders. Be sure to include the ethical impact of the strategy and how you are able to leverage the firm’s resources (Include a VIRO analysis in order to identify the resources that you will be able to leverage in order to implement your strategy) including its human capital for a successful strategy.
Recommend corporate strategy (directional) & business-level strategy (competitive) (please see the options in the textbook).
Note: in strategic planning the process most firms create plans using a business writing style.
Visuals, graphics, charts, tables, and bullets are used to condense the report into an easy to read the document and to follow commonly accepted conventions of the presentations (and to transfer them into your final ppt in Module 4).
Subheadings are very important as well and you may find that each subheading begins a new page in order to fit the topic on one page. When I evaluate this analysis it will be for content and presentation of the information. APA style is preferred for your referencing.
When creating your analysis save it as a Word file and include your name on the title page.
Make sure you include at the beginning: title page, executive summary, the outline, and finish with the list of references and appendices supporting your findings.
Sample Solution
