Unit 5: Evaluating the Strategic Implications of Internal Environment Analysis and Implementing Strategy In this unit, you will continue to apply strategic management decision-making tools in an effort...

Unit 5: Evaluating the Strategic Implications of Internal Environment Analysis and Implementing Strategy
In this unit, you will continue to apply strategic management decision-making tools in an effort to better understand the various intersecting contexts from which strategic choices must be made.
In this unit, you will review critical concepts and apply tools and methods to evaluate a company’s skills, competencies, and capabilities. You will then use those evaluations to systematically identify potential future strategic opportunities and threats, given the organization’s resource-based, value-chain standing. Thus, you will begin a more formal thinking process regarding strategy evaluation and feasibility. Finally, you will focus on synthesizing and summarising your final Strategy Recommendations and Evaluation Summary.
Learning ObjectivesStudents will:Analyse the value chain of an organization within an industryEvaluate the potential competitive advantages created with strategic resource and capability investmentsEvaluate the relative skills and capabilities of a specific organization, using the value creativity potential, rarity, imitability, organizational appropriability and substitutability VRIOS frameworkEvaluate strategic opportunities and threats based on internal environment and competenciesEvaluate the implications of a recommended strategy and its associated action plans, concerning implementation and effectiveness issues
Develop formal strategic statements and action plans for an organizationDevelop a strategic recommendations summary for an organization


LearnThe specific focus this unit will be on the organization’s internal culture, skills, competencies, and capabilities.
If you think about it, skills (the ability of individuals to do things), competencies (the ability of groups of people to do things) and capabilities (the ability of machines, facilities and other non-human assets to get things done) are the only sources of competitive advantage over time. Remember, having money is not a competitive advantage until that money is deployed into skills, competencies and capabilities. As Schulz and Hofer (1999) and Reeves and Deimler (2011) note, and as Pitt and Koufopoulos (2012) emphasize in Chapter 5, having a deep, strong strategic understanding an organization’s resource base is fundamental to being able to craft effective business strategy—and it’s not easy.
In most traditional ‘SWOT’ analyses, for example, the S and W mean strengths and weaknesses. This interpretation is unfortunate because many people confuse ‘having lots of cash and working capital’ as a competitive strength when, in fact, it is only a resource to potentially build future strength to compete based on current and future investments in skills, competencies, and capabilities.
Good strategic thinking must be both backward-looking (how, exactly, did we get here?) and forward-looking (where and how should we proceed into the future?). Most importantly, good strategic thinking must answer these questions:
Are we ready to compete and win business in the future, based on our current skills, competencies, and capabilities?What new skills, competencies, and capabilities do we need to build or acquire in order to survive and thrive into the future?
As such, it is vital to understand the past sources of skills and capabilities that led to competitive strengths and weaknesses relative to past and current competition and substitutes. It is also vital to understand what new skills and capabilities might lead to potential future strengths. The confounding issue, of course, is that the future needs and terrain of the external environment have a large part in determining what an organization’s future skills, competencies, and capabilities value chain should look like. Like everything about strategy, the components of decision making are iterative and interrelated.
The skills, capabilities, opportunities, and threats (SCOT) framework (see handout), in conjunction with a detailed activity and value-chain analysis, will help you better identify and analyse the skills and capabilities that any company needs in order to compete. To summarise, a fundamental aspect of all effective business strategy focuses on the questions related to the investment in future skills, competencies, and capabilities in the pursuit of a targeted endpoint of competitiveness within an industry or as a new blue ocean industry. As such, it is vital to identify and understand, as specifically as possible, the sources of potential advantage – which must come from the skills and capabilities a firm has or can build or acquire (those are tactical choices). That is now your task in the Unit 5 Project.
References Pitt, M.R. & Koufopoulos, D. (2012) Essentials of Strategic Management, London: SAGE Publications.Reeves, M. & Deimler, M. (2011) Adaptability: The new competitive advantage. Harvard Business Review. Available at: https://cb.hbsp.harvard.edu/cb/pl/22461329/23097331/2858e515b0065b2c6233a7a69e18b8f9 (Accessed: 10/07/17).Schulz, W.C., III & Hofer, C.W. (1999) Creating Value through Skill-Based Strategy and Entrepreneurial Leadership, London: Pergamon.
Dig DeeperRead The following readings are provided for you to dig deeper into the subject area.
RequiredBook ChaptersPitt, M., & D. N. Koufopoulos, (2012) Essentials of Strategic Management, London: Sage
Chapter 5, ‘Enterprise Resources and Distinctive Capabilities’ (pp.124-160)
Chapter 13, ‘Strategy Implementation and Change Management’ (pp.359-402)
Journal ArticleCrittenden, V.L. & Crittenden, W.F. (2008) Building a capable organization: The eight levers of strategy implementation. Business Horizons. 51(4) pp.301-309. DOI: 10.1016/j.bushor.2008.02.003.
Journal ArticleMantere, S., Schildt, H.A. & Sillince, J.A.A. (2012) Reversal of strategic change. Academy of Management Journal. 55(1) pp.172-196. DOI: 10.5465/amj.2008.0045.
Journal ArticleReeves, M. & Deimler, M. (2011) Adaptability: The new competitive advantage. Harvard Business Review. Available at: https://cb.hbsp.harvard.edu/cbmp/pl/65269518/65269542/43b3f0e7b1deca4f8bffeca9495d5041 (Accessed: 10/07/17).
The authors of this article make a compelling case that, if organizations are going to benefit from sound strategic thinking, they must also be able to adapt quickly and have the capabilities to be really good at learning how to do new things in new ways. There are smart organizations, there are healthy organizations and there are learning organisations—which need to be both smart and healthy—as they are prerequisites for adaptability.
GuidelinesSchulz, W.C., III (2012c) Towards a more precise SWOT analysis: SCOT analysis and competitive potential. In: Schulz, W. C., III (Author) Tools for Tracking Your Strategic Thoughts. Unpublished manuscript.
Textbook ChapterSchulz, W.C., III & Hofer, C.W. (1999) Creating Value through Skill-Based Strategy and Entrepreneurial Leadership, London: Pergamon.
Preface
DocumentSchulz, W.C., III (2013b) Tools for Tracking Your Strategic Thoughts [Spreadsheet companion]. Baltimore, MD: Walden University.
Watch50 Lessons, (2008) Strategy Doesn’t Compensate for Poor Execution, [Video, Online]
Seidenberg, I. (2008) Strategy Doesn't Compensate for Poor Execution [Books24x7 version]. Available at: http://common.books24x7.com/toc.aspx?bookid=38698
The CEO of Verizon, Ivan Seidenberg, gives his perspective on the need for executing strategy correctly.
50 Lessons, (2005) Communicate Your Strategy Clearly, [Video, Online]Ahuja, S. (2005) Communicate Your Strategy Clearly [Books24x7 version]. Available at: http://common.books24x7.com/toc.aspx?bookid=38387 (Accessed: 10/07/17).
Sanjiv Ahuja, the former CEO of Orange UK, discusses the necessity of communicating strategy clearly.
HSM Global, (2010) William Duggan: Strategy: Part Two, [Video, Online]William Duggaorganizationn is consultant and advisor on strategy. He is currently a senior lecturer at Columbia Business School in New York, where he teaches strategy and leadership and at the US Army War College.
Deloitte Consulting, (2011) Simple Frameworks for Strategic Direction, [Video, Online]
Yeomans, R. (2011) Simple Frameworks for Strategic Direction [Books24x7 version]. Available at: http://common.books24x7.com/toc.aspx?bookid=43588
A company needs to know its big goals for three to four years out and build a strategic framework around those goals. Yeomans is a recruitment specialist currently based in Dubai.
Demonstrate Your Unit 5 Project includes your Business Strategy Sections 4 and 5, as well as your Strategy Recommendations and Evaluation Summary.
Unit 5 Project: Business Strategy Report Part 2, and Strategy Recommendations and Evaluation Summary
This fifth unit offers one assessment – a ‘Project,’ which is to be submitted by the end of the unit. This is worth 45% of the overall module grade.
The second part of your Business Strategy Report will provide an in-depth set of analyses, based on work you have done in Units 4 and 5.
Part 2 of the Business Strategy Report consists of two (2) the following sections:
Section 4: Analysing and Evaluating the Implications of the General Ecosystem and Competitive Environment Section 5: Analysing and Evaluating Implications of the Internal Environment
Please identify major implications, provide a comprehensive set of recommendations and action plans with supporting reasoning and evidence for all issues discussed in this part of your Report.
In addition to Part 2 of the Report, you will be submitting the Strategy Recommendations and Evaluation Summary.
Be sure to support both components of your Unit 5 Project with evidence from the Readings and other current literature from the University of Roehampton online library and other credible sources. Consult the Harvard Referencing Style Guide for proper citation and referencing information.
Section 4: Analysing and Evaluating the Implications of the General Ecosystem and Competitive Environment (800 words)
In this section of your Unit 5 Project, you will conduct the general ecosystem and stakeholder analysis and a thorough and critical competitive environment (five forces) analysis of the organization you have chosen for your Unit 3 and Unit 5 Projects.
To prepare for Section 4 of the Unit 5 Project:
Review the Unit 4 Readings and, in particular, examine the works by Porter (2008) and Pitt and Koufopoulos (2012:Chapter 3).
Review the Tools for Your Strategic Thoughts document and consider how to best deploy them. You are not required to use the pre-designed templates but you will be responsible for a robust and complete analysis with implications clearly stated.
Consider the implications of the articles by Nandakumar, et al. (2010) and Andrews and Morgen (2013) as you develop the final draft of this section of your Unit 5 Project.
Examine and critically review the peer and Faculty feedback that was offered during the Unit 4 Shared Activity
To complete Section 4 of the Unit 5 Project:
Conduct a thorough and well-argued general external ecosystem analysis for the industry of the organization you have chosen for your Unit 3 and Unit 5 Project.
Be sure to explain what the strategic implications of your analysis are and how the set of implications limits or shapes your strategic recommendations.
Be sure to identify specific future strategy actions and recommendations based on your evaluation of options and to provide a basic defense of why your recommended actions are the most appropriate.
Conduct a thorough and well-argued stakeholder analysis for the industry of the organisation you have chosen.
Be sure to explain what the strategic implications of your analysis are and how the set of implications limits or shapes your strategic recommendations.
Be sure to identify specific future strategy actions and recommendations based on your evaluation of options and to provide a basic defense of why your recommended actionsare the most appropriate.
You may want to attach either a worksheet or other table or visual as part of your analysis.
Examine and critically incorporate peer and Faculty Member feedback offered during the Unit 4 Shared Activity to modify and improve your general ecosystem and stakeholder analysis work.
Conduct a thorough and well-argued competitive forces analysis, focusing on the Porter (2008) framework and work by Pitt and Koufopoulos (2012: Chapter 3).
Section 4 of the Business Strategy Report should be approximately 800 words in length.
Section 5: Analysing and Evaluating Implications of the Internal Environment (800 words)
In this section of your Unit 5 Project, you will perform a resource-based analysis of the organization that you selected for your Unit 3 and Unit 5 Projects.
To prepare for Section 5 of the Unit 5 Project:Review the Unit 5 Readings and examine, in particular, the VRIOS framework and internal value chain information in Pitt and Koufopoulos (2012:Chapter 5).
Review the SCOT Analysis document, and consider how to best deploy it. You are not required to use the predesigned templates but you will be responsible for a robust and complete analysis with implications clearly stated.
To complete Section 5 of the Unit 5 Project:Prepare a table in Word that replicates Figure 5.3 on page 138 in Pitt and Koufopoulos (recognize2012:Chapter 5).
Rather than just using the phrase ‘distinctive capability’ as the left-hand column, use the following category boxes, in this order from top to bottom: Skills: 1, 2, 3 and so on (i.e. core individuals in the organization who bring distinct value to it)
Competencies and capabilities: 1, 2, 3 and so on (i.e. work-groups, functional units, discrete activities), as ordered by a detailed rendering of the organization’s value-chain activities
Other strategic assets
Using the table to organize your thoughts, make a detailed VRIOS evaluation of the skills, competencies and capabilities and other strategic assets of the organization that you selected for your Unit 3 and Unit 5 Projects. Use the A through D scale shown in the figure.
Be sure to explain what the strategic implications of your analysis are and how the set of implications limits or shapes your strategic recommendations.
Be sure to identify specific future strategy actions and recommendations based on your evaluation of options and to provide a basic defense of why your recommended actions are the most appropriate.
Section 5 of the Business Strategy Report should be approximately 800 words in length.
Strategy Recommendations and Evaluation Summary (1,000 words)
For your Strategy Recommendations and Evaluation Summary you will distil and synthesise your work from your Business Strategy Report, Part 1 (Unit 3 Project) and Part 2 (Unit 5 Project), into a 1000-word summarised version that will focus on calling out your recommendations and that will provide an evaluation of the strategy and its action plan details.
Please remember that your Strategy Recommendations and Evaluation Summary is not simply an executive summary of your Business Strategy Report. It will not be sufficient to offer just a set of general ideas for action plans. You must assess, in detail, whether those plans are feasible and can be implemented. Moreover, you must also show that they can lead to competitive advantages while meeting various stakeholder, CSR and ESG imperatives.
Executives are always concerned with the implementation of successful strategies because without effective implementation, no business strategy can succeed. An estimated 66% of corporate strategy is never implemented, and many employees in various organizations rate their organizations weak at the execution of the strategy. Successful strategy implementation leads to mission achievement while the organization recognizes that mission achievement is in itself an on-going process. A major challenge as strategy unfolds is to coordinate and control the timing of diverse initiatives.
The Strategy Recommendations and Evaluation Summary should be approximately 1000 words in length.
PresentationOrganise all the above into a coherent short report you could submit to a senior leadership of your selected company.
AppendicesInclude any supporting documentation that you believe is required in this report. This documentation may include organizational data, historical information, additional information on tools, or any other information that would be pertinent in support of your analysis and proposed recommendations.
References All citations in your report should be supported with appropriate literature sources. All references should appear with appropriate formatting in the Harvard referencing style, both in the main body of your report (where applicable) and in the References section at the end of your report.
Your total submission should be approximately 2,600 words in length.
Advice on word count: Submissions that range from 10% below to 10% above the recommended word count are acceptable. Students should recognise that assignment submissions that fall outside these parameters may be marked down. This restriction encourages the development of a concise writing style, as assignment quality is likely to suffer given the potential for overly verbose submissions. The policy is available to review on page 16 of the University of Roehampton Online Policies document, which can be found here.
Assessment and Grading This Project submission accounts for 45% of your grade for this module.
Review the Project Rubric for information on how your assignment will be graded.
RubricIf you haven’t already downloaded the rubrics from the Module Overview page, you can download them here. This single document contains the rubrics for all module assignments.
This Project is due by the end of Unit 5.Please contact your Faculty Member if you have any additional questions about this Project. Submit your Project