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Admas University Program: Program Course: Advanced Strategic Management

Advanced Strategic Management Assignment 1. Explain how to conduct an external and internal strategic-management audit (External and internal environment analysis). Support your answer with hypothetical example. Answer: In this case for example to see how to conduct an external and internal strategic-management audit Addis Ababa university, It involves some fundamental phases like picking up the key variables, collecting the key sources of information and data like web pages, internet, e libraries, printed book libraries, sales executives, stake holders, wholesalers, retailers, customers, consumers, competitors), making use of tools to forecast, predict, and building a matrix to represent EFE The external strategic management analysis is encompassed by the Strengths, Weaknesses, Opportunities, and Threat (SWOT) Analysis. The Opportunities and Threat are part of the external strategic management analysis. Gather all the required information and put them into a database or data repository. Collect data pertaining to the Opportunities and Threat part of the SWOT only. Watch the competitors closely and refer to the local sources of information. Once we have collected the information, start analyzing it from many angles or viewpoints. Group them in a logical fashion based on certain correlation and regression. Next step is to look out for external opportunities. Examples include inducing the latent demands of the customers, penetrating the unexplored segments of the market, inventing some new products that nobody had invented before (for example a polygonal window in an operating system (OS) for computers - even up to windows 10 OS, we do not have it yet - we have square windows, rectangular windows - but we do not have polygonal windows yet - scope for invention) External threats include situations harmful to the company unless tackled appropriately. Things like being left behind with outdate technologies - the world has gone to windows 10 - if we still have our legacy IBM 3292 mainframe computers, we may not get any programmers to work on it and we will be left behind. Make some activity agenda so that external threats can be converted into opportunities and then into strengths. As a continuous improvement, keep watching the external environment, and see how our action plans work, and get feedback and revise the action plan if needed. 2. How are the SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and Grand Strategy Matrix similar? How are they different? Answer: Assignment on Critical Review Questions Page 1

Advanced Strategic Management Assignment parts. Since this is a nearby bank of the medium size, I ought not to permit this structure. Customer-wise structure:- This structure is proper for those organizations offering items or administrations at various rates to various clients. The bank isn't such a sort of firm. Model:- The pace of enthusiasm for allowing advances is general to all. In this way, this structure isn't proper. Procedure astute structure: This is fitting in the assembling division of different procedures. The bank isn't an assembling division, in this way, not suggested. 4. Given the information in the following table, develop a BCG Matrix and an IE Matrix: (Read chapter six) Divisions 1 2 3 Profits $10 $25 $25 sales $100 $50 $100 Relative Market Share 0.2 0.5 0.8 Industry Growth Rate +.20 +.10 -.10 IFE Total Weighted Scores 1.6 3.1 2.1 EFE Total Weighted Scores 2.5 1.8 3.3 Answer: IE Matrix Division 1 placed in cell VI describes to maintain and hold strategy. In this division the strategies should concentrate on product development and penetration into the market. Division 2 placed in cell VII is featured with exit or harvest strategy. If revolving costs for division 2 are low, it should be attempted for division regeneration. In some cases, the way to play and end game is through aggressive cost management. Division 3 placed in cells II suggests a build or growth strategy. It means aggressive and intensive tactical strategies. These strategies concentrate on market development, product development, and market penetration. In an operational perspective, horizontal integration, forward integration, and backward integration should also be considered. BCG Matrix Division 1 is the question mark, consumes large amounts of cash and growing rapidly with low market shares that do not generate much cash. This division must be carefully analyzed to determine if it is worth the investment required for market share growth. This division has the potential of becoming a star and gaining market share and when the market growth slows, it eventually becomes a cash cow. If division 1 does not become a market leader it reduces to a dog during a decline in market growth. Assignment on Critical Review Questions Page 3

Advanced Strategic Management Assignment Division 2 is the question mark/star which generates a large amount of cash due to a strong relative market share but it consumes a large amount of cash due to a high growth rate. This division should be carefully analyzed to determine the decrease in Division 2 following the consumption of large amounts of cash. A star becomes a cash cow if it maintains its large market share when the rate of market growth declines. Division 3 represents a cash cow where it leads in a mature market. This displays assets return greater than the rate of market growth generating more cash than they consume. This division should be "taken possession of", generating the profits and investing little cash. 5. Allocating resources can be a political and an ad hoc activity in firms that do not use strategic management. Why is this true? Does adopting strategic management ensure easy resource allocation? Why? (Based on overall reading). Answer: Allocating resources can be a political and an ad hoc activity in firms that do not use strategic management. Why is this true? Resource allocation refers to the process of assigning and managing resources in a way that support organizations' strategic objectives. It's true that allocating resources can be ad hoc and political in the absence of strategic management. This is because there exist no good alternative approach to be followed when making major decisions. In such cases decisions may be made under the influence of emotions, intuitions and subjectivity which are not consistent with arriving at decisions which will have positive strategic impact on the whole entity. Does adopting strategic management ensure easy resource allocation? Why? Strategic management helps in efficient and effective allocation of resource but does not ensure easy allocation because resources are scarce. Strategic management ensures resources are allocated to the most critical areas by prioritizing in line with the overall strategic goals of the organization. Assignment on Critical Review Questions Page 4