1. Exam Preparation
Module Leader: Dr Jane Chang

2. 2BS601 Business Strategy
Examination
 Exam is based on Google’s strategy in 2009
 Case available for collection now from U/G
office on Friday (19/08) from WBS registry
before the exam
 You can bring this to exam
 can bring case study printed material
 can NOT bring in PC, PDA, mobile phone

3. What will be in the exam?
 FOUR questions in 2¼ hours (each question
worth 25 marks)
 Questions may relate to anything covered in the
module but you will need to draw definite
conclusions / recommendations
 Key to success is
 careful preparation => concise set of notes
containing your analysis, findings,
conclusions and recommendation etc
 NO SUPPLEMENTARY RESEARCH is required

4. The best answers show
mature judgement
 Focus on a few key RELEVANT points and
develop them IN DEPTH
 Use theory as basis of precise analysis
 But don’t regurgitate it without applying it
 Consider trade-offs, risks, limitations etc
 JUSTIFY your views / decisions by
 referring to the findings of your analysis including
calculation derived from data provided in case
 theory
 referring to examples in case
 Clear CONCLUSIONS
 Questions may require you to combine the results of
several analytical tools to form conclusions

5. You should
 Spend time fully analysing the case
before the exam
 See the Guide for Case Study Analysis
which is in your workbooks
 Bring a concise set of notes containing
your analysis, findings, conclusions and
recommendations into the exam with
you

6. Google
 The case study describes the company’s
strategy and examines the strategic
challenges now facing the company.
 You are a management consultant who has
been commissioned by Google’s senior
management to advise them on their future
strategy for the next 3 years.

7. The key strategic question is
 How can Google maintain its dominant
position?

8. First step - Industry analysis
 Identify key driving forces capable of
causing significant change in industry
conditions
 Assess the attractiveness of the industry
 Opportunities and threats
 Potential to deliver value
 Analyse what a firm needs to:
 Survive in an industry
 Succeed in an industry

9. Clearly state
 The boundaries of your industry as it
will have an impact on your analysis
 Are you including on-line,
supermarkets etc inside or outside
your industry boundary?

10. Driving Forces
 Derived from
 Porter’s Five Forces
 ILC
 PEST
 Combine / rationalise analysis findings
to derive 3 or 4 Driving Forces which
will have a SIGNIFICANT impact on
Industry

11. Impact of Driving Forces on
Future Profitability of Industry
 Key outcome of Industry Analysis is to assess
impact on future Profitability of Industry
 What is the effect of the driving forces on
demand?
 Are the driving forces increasing
competition?
 Will the driving forces lead to higher
profitability?
 Remember to consider assumptions,
limitations, etc of your analysis
 State ranges and / or confidence rating of
predictions

12. Survival and success factors
If industry has/is.. Survival factors (e.g.) Success factors (e.g.)
Powerful buyers with Meeting minimum Strong differentiation
low switching costs buyer requirements Negotiation skills
Strong relationships
Powerful suppliers Negotiation skills Scale
Relationships of trust
Low barriers to entry [Survival difficult Strong differentiation
Threat of substitution without success] Low costs
Fast-growing Technology Advanced technology
Cash for growth
Mature Minimum economic Scale or other cost
scale, cost position advantage
Buyer relationships

13. Step 2 - Competitor / Market
Analysis
 What FUTURE moves are
Competitor
they likely to make? What Analysis:
will be the impact on Who are the
Google’s revenues? competition?
How are they
 Which company is in the positioned?
best position to be
successful in the future?

14. Competitor Analysis – Key
Tools
 Strategic Group Maps
 Who are the competition?
 How are they positioned?
 Competitor Intelligence
 What strategic moves are
competitors likely to make next?

15. From your Industry and
Competitor analyses you can
 Identify opportunities and threats for
your SWOT
 Identify KPIs (SSFs + Competitor
Analysis + Benchmarking) which give
you the key skills, capabilities,
competences (i.e. the strengths)
required to be successful in the industry

16. Step 3 - Internal Analysis
(Strengths and Weaknesses)
 Internal Analysis determines if the
company has these skills and resources
i.e. Strengths and Weaknesses in SWOT
 Analysis Tools – Value Chain Analysis
and Competitive Strength Analysis

17. In the case study…
 Some of the strengths and weaknesses are
NOT explicitly mentioned
 You will need to infer / deduce them from
 Understanding what the company’s
strategy & business model are (very
important)
 Analysing the data given (particularly the
financial data)
 NOTE: Financial data is also given for
Google’s competitors so you can make
comparisons

18. Step 4 - SWOT Analysis

19. Conclusions from SWOT
 What is Google’s overall situation?
 Does it have an attractive set of resource
strengths?
 How serious are the weaknesses and competitive
deficiencies?
 Do the strengths outweigh the weaknesses by an
attractive margin?
 Are there attractive market opportunities that can
be exploited using its strengths ?
 Are the threats alarming? Can it use its strengths
to limit their impact?
 How strong is the overall situation?

20. Conclusions from SWOT
 What are the implications for strategic
action?
 Which competitive capabilities need to be
strengthened immediately?
 What actions should be taken to reduce
the company’s competitive liabilities?
 Which market opportunities should be top
priority in future strategic initiatives? Which
opportunities should be ignored?
 What should the company be doing to
guard against the threats to its well-being?

21. Step 5 –Recommendations
 Clear recommendations
 Why have you select a particular option(s)?
 What are the anticipated benefits?
 What timeframe?
 How are you going to exploit it / them?
 What are the risks, limitations associated with
the analysis and implementation of option(s)