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:

• Consider the macro-environment within which the company operates. What are the key trends within the sector(s)? What are the demographic, psychographic and technology advances impacting the environment within which the company operates? Are there societal or environmental factors to consider?
• 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?
• 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 competition? Is there a “value network” with associated complementors? Are there gaps to be exploited?
• 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.

[100 marks]