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Montblanc_Strategy_casestudy.pptx
- 1. STRATEGIC PLANNING Sanghoon Lee Sam Lee Date 1/24/2021
- 2. THE IMPORTANCE OF REVIEW IN DEVELOPING ORGANISATIONAL STRATEGY AND BUSINESS PLANS
- 3. The benefits of business strategy Gives direction Creates a measure for success Increases adaptability Drives decisions
- 4. An evaluation of tools to use in the review process Some of the tools that can be used; VRIO Framework Value Chain Analysis Benchmarking SWOT Analysis Strategic Advantage Profile (SAP)
- 5. VRIO Framework (Value, Rare, Inimitable and Organised) VRIO is a business analysis framework that forms part of a firm's larger strategic scheme. The basic strategic process that any firm begins with a vision statement, and continues on through objectives, internal & external analysis, strategic choices, and strategic implementation.
- 6. Value Chain Analysis A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product for the market
- 7. Benchmarking Benchmarking is a process of measuring the performance of a company's products, services, or processes against those of another business considered to be the best in the industry, aka “best in class.” The point of benchmarking is to identify internal opportunities for improvement.
- 8. SWOT analysis is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.
- 9. Strategic Advantage Profile (SAP) Strategic Advantage Factors: Marketing and Distribution 1. Competitive structure and market share: To what extent has the firm established a strong mark share in the total market or its key sub markets? 2. Efficient and effective market research system
- 10. BCG Matrix The Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. It's also known as the Growth/Share Matrix.
- 11. Analysation of the competitive strengths and weakness of Montblanc's Business Strategy and Business Plan.
- 12. • Bargaining power of Montblanc’s Suppliers The bargaining powers of Montblanc Suppliers is Moderate. • Bargaining power of Montblanc’s buyers The bargaining powers of Montblanc buyers is Moderate. • Threat of Substitute products or services The threat of Substitute products or services for Montblanc is High. • Threat of New entrant to market The threat of new entrants to Montblanc’s Market is Low. • Competitive rivalry with Montblanc The competitive rivalry with Montblanc is High.
Editor's Notes
- Value – Does it add value by enabling a firm to exploit opportunities or defend against threats. Rare – Organisational capabilities that are acquired by one or only a few firms in that industry. Inimitable – An organisational capability that are either impossible, very difficult or not worthwhile to duplicate or substituted by competitors. Organised – The resources do not give any advantage for the organisation if its not organised to capture the value from them. References - Adopted from Rothaermel’s (2013) ‘Strategic Management’, p.91
- Strengths: factors that give an advantage over its competitors. Weaknesses: factors that can be harmful if used against the organisation by its competitors. Opportunities: Situations that can bring a competitive advantage. Threats: Situations that can negatively affect the business. Organisations use a SWOT analysis to understand their internal and external environments. Strength and weaknesses are internal factors to a company and are either helpful or harmful to the organisation. Whereas opportunities and treats are external and again are either helpful or harmful to the organisation. SWOT is often presented in the following matrix below:
- The profile of strategic advantage is an extension to SWOT analysis. It is a summative statement that gives an overview of the strengths and weaknesses or advantages and disadvantages in key areas, which likely affect future operations of an organisation. This is a tool for making a systematic evaluation of the strategic advantage factors which are significant for the organisation in its environment. Detailed analysis and diagnostics of factors in each functional areas such as production, marketing, finance and accounting are required for SAP profiling.
- Using a BCG Matrix Montblanc’s is a star. The reason for this outcome is due to their high market growth and high market share. Whereas competitors like KFC and Pizza Hut have low growth but a high market share putting them in the cash cow section of the BCG Matrix. Subway is classed as a Dog on the BCG Matrix due to its low growth and low market share compared with Montblanc’s. Picture – Slideshare.com
- Porters five forces Framework Model References - Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: A set of industry analysis templates. Competitiveness Review, 24(1), 32-45.
- Bargaining power of Montblanc’s Suppliers The bargaining powers of Montblanc Suppliers is Low. Montblanc’s relies on numerous independent suppliers and service providers for the supply of food, paper or other related items. There is such a large amount of potential suppliers to Montblanc’s, the low level of uniqueness of products provided by suppliers and the vast volume of orders for each supplier greatly reduce any bargaining power of Montblanc Suppliers. These external factors show a low supplier power wish is of little issue to Montblanc Strategic management. Bargaining power of Montblanc’s buyers The bargaining powers of Montblanc buyers is High. Montblanc has several external factors that contribute to the high bargaining power of its buyers. There are a high availability of substitutes, a large number of providers and the ease of simply going to another restaurant are of the biggest factors. Because of the high market saturation of fast food restaurants this gives the buyers a High bargaining power over Montblanc. The availability of many other substitutes also adds to the bargaining power of the buyer. This makes it crucial for Montblanc to develop strategies to increase the loyalty of their customers. Threat of Substitute products or services The threat of Substitute products or services for Montblanc is High. The external factors of High availability of substitutes or the ease of switching to a substitute add to the high threat. There are so many substitutes from other fast food chains to local cafes or even cooking at home this adds to the high threat of substitution. In addition to this it is not only easy to switch to a substitute but I rarely has any if minimal disadvantages. Possible high food cost and food preparation time. This is why its highly important for Montblanc to reflect the importance of its customer and their experience in their mission and vision statement. Threat of New entrant to market The threat of new entrants to Montblanc’s Market is Moderate. Any new entrant could affect Montblanc Market share and financial performance. The ease and low cost of a customer going to a different fast food restaurant heightens the threat of new entrants. The strength of Montblanc brand is a significant factor for any new entrant it is expensive to be a brand as strong as Montblanc making this external factor of little concern to Montblanc. This shows that the threat of New Entrants are a moderate threat. Competitive rivalry with Montblanc The competitive rivalry with Montblanc is High. Montblanc market is saturated meaning competitor rivalry is high. The high number of other organisations in the industry add to the high rivalry competitiveness. Competitors marketing strategies can be aggressive adding to the rivalry factor. Again the ease of switching with low cost implications make it easy for customers to switch to a competitor. This shows that competition is one of the biggest and significant external factors affecting the strategic management of the organisation. References – -Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: A set of industry analysis templates. Competitiveness Review, 24(1), 32-45. -Montblanc’s Corporation Website -Panmore Institute – Montblanc’s-five-forces-analysis-porters-model