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Comprehensive Exam-May 2023 H-K -Strategic management
Content
1. Introduction.
2. Current Vision / Criticism / New Vision
3. Current Mission / Criticism/ New Mission
4. Core values
5. External Environment Assessment
Pestel analysis
Porter 5 forces
Issue priority matrix
Competitive Profile Matrix (CPM)
(EFAS)
6. Internal Environment Assessment
Value Chain Analysis
Financial analysis (Statements / Ratios)
VRIO Analysis
(IFAS)
7. Strategy Formulation
TOWS
IE
SFAS
8. Strategy Selection
QSPM
9. Strategic Objectives
10. Strategy Implementation
11. Strategy Evaluation
Balanced scorecard
12. Business Plan
13. References
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Comprehensive Exam-May 2023 H-K -Strategic management
1. Introduction.
Organization Overview.
Organization classification:
Size: SMES / LSES
Ownership: Private / Public / Public-Private / QUANAGOS
Legal Status: Sole trader / Partnership /LLC / SAE / HOLDING, GROUP
Activity: Supplier / manufacturer / Distributor
PROFIT.
Accountability: Shareholders & Government
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Comprehensive Exam-May 2023 H-K -Strategic management
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Comprehensive Exam-May 2023 H-K -Strategic management
4. Core values
بختار الvalues
علي اساس
Vesion
طبيعة الindustry
المشاكل الداخلية
Needs الcustomers
Respect
Integrity and honesty FCPA
Loyalty
Creativity and innovation
Team spirit
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Comprehensive Exam-May 2023 H-K -Strategic management
Assertiveness
Perfection / ISO…. Six sigma / Deming PDCA
Commitment / time orientation
Transparency
Environmental protection
Customer focus
Efficiency
PESTEL ANALYSIS
POLITICAL FORCES.
Economic Forces
Includes:
GDP اجمالي الناتج المحلي
GNP اجمالي الناتج القومي
Interest Rates
National income
Exchange rate
Inflation
Employment
2021 2022 2023
GDP
GNP
Interest Rates
National income
Exchange rate
Inflation
Employment
Comment:
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Comprehensive Exam-May 2023 H-K -Strategic management
Socio-Cultural Forces
Socio:
A – B – C1- C2 – D- E
Income
Education
Occupation
Cultural:
Habits for people and it benefits my industry or not
Life-style trends and how does it benefits my industry
Technological Forces
استخدام التكنولوجيا في الصناعة
According to Digital 2023 report for Egypt
if my industry depends on technology, I have to scan the external factors in the country
very well
Ecological/Environmental Factors
Sustainability
Legal
Labor law
PORTER 5 FORCES.
High medium low
New entrant
Threat of substitutes
Bargaining power of suppliers
Bargaining power of buyers
Rivalry among competition
Other stakeholder
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Comprehensive Exam-May 2023 H-K -Strategic management
1- Inflation rate.
2- “Sociocultural”
Egypt new life style
High
1- GDP.
2- Interest Rate. 1- Income. 1- Taxation.
Probability of Occurrences
1- Competition Law.
1- Political
Low
2- Consumer
protection Law. Instability.
Probable
Impact
High, High
نحطهم في الefas
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Comprehensive Exam-May 2023 H-K -Strategic management
R
W sc sc
Critical a Rat
eig score Rate o or
Factor t e
ht re e
e
Marketing
Product
Quality
Consumer
Loyalty
Global
Expansion
Brand
Image
(Reputatio
n)
Product
Variety
Customer
Service
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Comprehensive Exam-May 2023 H-K -Strategic management
Financial
position
Total 1
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Comprehensive Exam-May 2023 H-K -Strategic management
Threats
Total 1.00
Comment:
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Comprehensive Exam-May 2023 H-K -Strategic management
اي حاجة
positive
حولهم
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Comprehensive Exam-May 2023 H-K -Strategic management
هتبقيstrength
و العكس صحيح
(مثال الskus قليل
او كتير
بنطلع الgaps
في كل جزء
PRIMARY ACTIVITIES:
INBOUND LOGISTIC
# Activity S/W
1 Strong Logistic network over worldwide S
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Comprehensive Exam-May 2023 H-K -Strategic management
OPERATIONS
# Activity S/W
1 Low Manufacturing Cost S
و التجميع و التصنيع
OUTBOUND LOGISTICS
# Activity S/W
1 S
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Comprehensive Exam-May 2023 H-K -Strategic management
# Activity S/W
1 S
Support Activities
PROCUREMENT
# Activity S/W
1 Use recycled material that will reduce the dependence on suppliers S
Technology Development
# Activity S/W
1 S
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Comprehensive Exam-May 2023 H-K -Strategic management
# Activity S/W
1 Highly qualified In-house Professionals S
Poor Labor Conditions in Foreign Countries W
Sexual Harassment: Former female employees also pointed out that sexual harassment W
Lawsuits W
Firm Infrastructure
# Activity S/W
1 Aimed For Sustainability S
2 Lack of Diversification: Nike’s over-dependence on sporting apparel W
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Comprehensive Exam-May 2023 H-K -Strategic management
Ratios:
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Comprehensive Exam-May 2023 H-K -Strategic management
Year Industry
Ratios Average
May-19 May-20 May-21 May-22 COMMEN
Current Ratio Although the results show a downward trend in
(Current Assets/ Current 2.001 2.481 2.717 2.629 1.72 2022, after three yearsof continuous ascent, it
Liabilities ) still remains higher than industry average
values, this indicated that the firm has a lot of
Quick Ratio
1.39 1.59 2.01 1.85 0.79 money tied up in non- productive assets
(Current Assets –
(Shareholders point of view). Creditors point of
Inventory)
view,highlights firm ability to cover short term
/ Current Liabilities
obligations
Cash ratio
(Cash + short term
investment) / CL
Inventory Turnover
Cost of goods sold ÷
Inventory
Fixed Assets turnover
Revenues / Average
Fixed Assets
Days in inventory
(DOH)
365 days / inventory
turnover
Total asset turnover
Sales ÷ Total assets
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Comprehensive Exam-May 2023 H-K -Strategic management
Time series
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Comprehensive Exam-May 2023 H-K -Strategic management
VRIO Analysis
(if four yes, then we have DCA (Distinctive competitive Advantage)
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Comprehensive Exam-May 2023 H-K -Strategic management
Weaknesses
Total 1.00
Comment:
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Comprehensive Exam-May 2023 H-K -Strategic management
7. Strategy Formulation
TOWS
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Comprehensive Exam-May 2023 H-K -Strategic management
Strengths Weaknesses
1. Strong brand name. 1. Expensive products.
2. Nike is the world's largest 2. Major focus on
Internal supplier and manufacturer of footwear only.
athletic shoes and apparel, as 3. Nike has no online
well as a major supplier of sports
Factors equipment.
shopping in Egypt.
3. Innovative products as they have
strong R&D.
4. Mass production associated
with low manufacturing costs.
External 5. High distinctive quality
products.
Factors 6. Move to zero & forward
initiatives.
Opportunities Maxi-max Mini-max
1. Increasing no. of S2 O1: As Nike is the world’s largest W1 O3: The celebrated marketing
supplier for sportswear, we can increase campaigns can be assigned to
population in Egypt by our market share in Egyptian growing
2% over las year which overcome the expensive products
market. price.
leads to increase in S3 O2: Nike’s strong R&D can gain
market size. new customers especially women new
2. Number of Female W2 O1: Increasing number of
sector entering market like swimming population & market size can be
athletes are growing in wear.
utilized to overcome Nike’s big
Egypt, so it’s a good S1 O3: Nike’s strong brand name can focus onfootwear only.
market for sportswear. attract celebrities to make successful
3. Assign celebrated marketing campaigns.
W3 O4: Nike’s customer loyalty
athletes for campaigns. S5 O4: Through Nike’s well known can minimize the impact of absence
4. Customer Loyalty. quality brand we can keep our customer
of Nike’s shopping website in
5. Egypt Sustainability. loyalty & to be satisfied with premium
quality.
Egypt.
S6 O5: As sustainability is growing
Nike has its initiatives to be leader in
this field.
Threats Maxi-min Mini-min
1. Very strong S3 S5 T1: With Nike’s strong R&D & W1 T3: Nike’s expensive products
distinctive high-quality products we face the copied & mirror products
competition especially can face the threats of competitors.
from adidas & Puma. market.
2. High inflation rate. S4 T2: With high mass production to
3. Markets with copied Nike reduce cost we can face the high W3 T1: Nike should take into
products inflation rate. consideration to develop online
website inEgypt in order to compete
S1 S5 T3: With Nike’s strong brand
name & its distinctive quality can face with others.
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Comprehensive Exam-May 2023 H-K -Strategic management
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Comprehensive Exam-May 2023 H-K -Strategic management
IE
3
1 2
External Factor Evaluation
3
4 5 6
EFAS
7 8 9
1
1 2 3 4
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Comprehensive Exam-May 2023 H-K -Strategic management
Where IF and EF score are ? & ? respectively which means that the point will fall in ?
square that mean we should Hold and maintain
that limiting the strategies to Market penetration and Product development
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Comprehensive Exam-May 2023 H-K -Strategic management
SFAS
The SFAS showing Score higher than 2.5, Which mean that the business is doing well
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Comprehensive Exam-May 2023 H-K -Strategic management
8. Strategy Selection
QSPM
Product Market
Stability
development Penetration
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Comprehensive Exam-May 2023 H-K -Strategic management
Accordingly, Nike shall go for intensive strategy “Product development” according to the
Quantitative Strategic Planning Matrix “QSPM” Total attractiveness score.
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Comprehensive Exam-May 2023 H-K -Strategic management
9. Strategic Objectives
Ex:
Larger market share
Lower costs than rivals
Higher product quality than rivals
Achieving technological leadership
Quicker on-time delivery than rivals
Wider geographical coverage than rivals
Ex.:
- Decreasing cost by 2% to increase profitability by 3% by modifying Products design
and features and improve distribution networks.
- 10% Lower cost than rivals using our excellent operation.
- Faster response to requests inside & outside Cairo than rivals converted to orders
increasing by 20% by 2025.
- Gain market share with percentage of 10% of the facility management industry in
Egypt by 2025.
- Wider geographic coverage than rivals helping to increase the market share by
2025.
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Comprehensive Exam-May 2023 H-K -Strategic management
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Comprehensive Exam-May 2023 H-K -Strategic management
ولو فيهobjective
تاني نعمل واحد تاني ليه
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Comprehensive Exam-May 2023 H-K -Strategic management
Balanced scorecard
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Comprehensive Exam-May 2023 H-K -Strategic management
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Comprehensive Exam-May 2023 H-K -Strategic management
Profit 3 years
Revenues Growth fornew 25% Cost reduction
Finance
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progra ms Upgrading for employees
Learning &
development
Growth
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Comprehensive Exam-May 2023 H-K -Strategic management
A. Executive Summary
زي ملخص عن اللي اتعمل
بكتبها في اآلخر بعد ما اخلص
Briefly tell your reader what your company is and why it will be successful.
Include your mission statement, your product or service, and basic information
about your company’s leadership team, employees, and location.
والمعلومات االساسية، ومنتجك أو خدمتك، قم بتضمين بيان مهمتك.أخبر القارئ بإيجاز عن شركتك ولماذا ستنجح
حول فريق قيادة شركتك والموظفين والموقع
B. Company Description
ادخل في التفاصيل حول المشاكل التي يحلها عملك.استخدم وصف شركتك لتقديم معلومات مفصلة عن شركتك
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Comprehensive Exam-May 2023 H-K -Strategic management
وقم بإدراج المستهلكين أو المنظمة أو الشركات التي تخطط شركتك لخدمتهم، كن محددًا.
هل يوجد خبراء في فريقك؟ هل وجدت الموقع المثالي لمتجرك؟.اشرح المزايا التنافسية التي ستجعل عملك ناجحا
• وصف شركتك هو المكان المناسب
للتباهي بنقاط قوتك.
C. Market Analysis
You'll need a good understanding of your industry outlook and target market.
Competitive research will show you what other businesses are doing and what
their strengths are.
• In your market research, look for trends and themes. What do successful
competitors do? Why does it work? Can you do it better?
Tell your reader how your company will be structured and who will run it.
• Describe the legal status of your business
• Use an organizational chart to lay out who's in charge of what in your company.
Show how each person's unique experience will contribute to the success of
your venture.
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Comprehensive Exam-May 2023 H-K -Strategic management
MARKETING OBJECTIVES
Then develop,
)(Marketing plan
MARKETING STRATEGY.
Then, marketing mix required
Key metrics that will be used to measure the effectiveness of our
Marketing activities.
Current analysis
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Comprehensive Exam-May 2023 H-K -Strategic management
13. References
Google scholar
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