UNIT 5: MACRO-ENVIRONMENT businesses to implement strategies that will
improve performance. The main goal of the
BUSINESS STRATEGIES strategic management process is for the
business to maintain a competitive
advantage over competitors.
STRATEGIC MANAGEMENT PROCESSES
AND INDUSTRY ANALYSIS TOOLS
STEPS :
Successful businesses carry out the
1. Revise the vision statement
strategic management process to identify a
suitable business strategy that will enable 2. Analyze/revise the mission statement
them to remain profitable and sustainable.
3. Conduct (*a) environmental analysis /
It is carried out by management to environmental scan using models such as
implement specific strategies aimed at SSGB analysis / Porter's Five Forces model /
improving/maintaining the competitive PEST analysis
advantage of the business and addressing
various challenges of the business 4. Formulate a strategy such as an
environments. integration/intensive/diversification/defensi
ve strategy
This allows the business to stay ahead of
competitors and to increase its market 5. Implement a strategy using an action
share. Strategic management forms an plan
integral part of the overall accountability of 6. Control/evaluate/monitor the
management. implemented strategy to identify
gaps/deviations/differences in
STRATEGY (Definition/Description) implementation
•A strategy is a purposeful course of action
7. Take corrective action to ensure that
that a business follows to achieve its
goals/objectives are achieved
goal/objectives/objectives
•It is defined as a long-term plan of action
to achieve a specific goal.
INDUSTRY ANALYSIS - INSTRUMENTS
•A strategy is a specific plan of action to
solve a problem/address an opportunity.
SSGB - ANALYSIS
•It increases the business's ability to A SSGB analysis is an industry analysis
achieve its mission/vision. tool/environmental scanning technique that
enables a business to study the internal
(micro) and external (market and macro)
STRATEGIC E. MANAGEMENT environments of a business.
PROCESS
The methodological simplicity of SSGB
The strategic management process is
analysis allows a business to purposefully
defined as the way in which an organization
identify/analyze the strengths and
defines its strategy. It enables managers to
weaknesses of the business, and the
make choices/determine actions regarding
opportunities and threats to which the
a set of strategies that will enable the
business is exposed.
business to achieve/achieve improved
performance.
The purpose of a SSGB analysis is therefore
a strategic plan used to identify the factors
It is an ongoing process that enables the
that influence the functioning of the
business to identify/improve its ability to
business/ability of the organization to
deal with challenges and enables
, achieve goals/objectives. encourages/supp products• Few
However, it is worth noting that many orts SMMEs competitors in the area
• Identifying gaps • Aggressive competition
businesses use a SWOT analysis to identify within the market from competitors•
internal strengths and weaknesses. Upon • Potential trends Inefficient suppliers
deeper investigation, the business applies within the deliver poor quality
the other industry analysis tools to identify market• goods• Inefficient
Foreclosure of suppliers deliver
opportunities and threats. The other competitors• inputs/resources late•
industry analysis tools are discussed further Upcoming Load shedding/national
in this unit. external events power outages• Increases
for networks in interest rates•
• Suppliers International crises such
Analysis of the components of a reduce prices of as Covid-19• Economic
SSGB analysis scarce inputs decline in the country•
Social issues such as
crime/poverty/unemploy
ment• Changes in
Examples of the different technological devices•
components of a SSGB analysis Environmental
degradation• The decline
STRENGTHS WEAKNESSES in demand for
• Internal aspects • Internal aspects in products/services
that the business which the business is
does well• The not doing well• S- Strengths
success of the Inefficient use of
business/ organizational → Strengths are internal, positive
Successful business resources• Resources characteristics/aspects of the business that
processes• The that are lacking within are within the control of the business.
competitive the business• Funding Strengths are internal
advantage of the constraints• The
business• Product internal business factors that contribute positively to the
differentiation• process that needs to growth/success of the business.
Unique resources be improved
used by the • Inefficient/poor work
business ethic• Employees who S-Weaknesses
• Effective show up late for work• → Weaknesses are internal, negative
skills/expertise/kno Employees who are characteristics/aspects of the business that
wledge of human unable to work
are within the control of the business.
resources• New cohesively within a
quality team• Inefficient Weaknesses are internal factors that
products/services products/services contribute negatively to the growth/failure
provided to clients• provided to customers• of the business.
The strategic High staff turnover•
location of the Unreliable/inefficient/in
business• effective organizational
Successful culture G - Opportunities
marketing → Opportunities are external, potentially
campaigns• Sound positive characteristics/aspects that are not
financial
within the control of the business.
management/budg
etary practices• Opportunities are external factors that
New brand may/probably contribute positively to the
visibility/identity/pr growth/success of the business.
esence within the
market
B-Threats
OCCASIONS THREATS → Threats are external, potentially negative
• Empty buildings • Competitors that characteristics/aspects that are not within
offer cannot adapt to customer the control of the business. Threats are
opportunities for needs• Competitors that external factors that may/probably
expansion cannot adapt to changing
• Local technology• Underserved negatively contribute to the growth/failure
government markets for certain of the business.
improve performance. The main goal of the
BUSINESS STRATEGIES strategic management process is for the
business to maintain a competitive
advantage over competitors.
STRATEGIC MANAGEMENT PROCESSES
AND INDUSTRY ANALYSIS TOOLS
STEPS :
Successful businesses carry out the
1. Revise the vision statement
strategic management process to identify a
suitable business strategy that will enable 2. Analyze/revise the mission statement
them to remain profitable and sustainable.
3. Conduct (*a) environmental analysis /
It is carried out by management to environmental scan using models such as
implement specific strategies aimed at SSGB analysis / Porter's Five Forces model /
improving/maintaining the competitive PEST analysis
advantage of the business and addressing
various challenges of the business 4. Formulate a strategy such as an
environments. integration/intensive/diversification/defensi
ve strategy
This allows the business to stay ahead of
competitors and to increase its market 5. Implement a strategy using an action
share. Strategic management forms an plan
integral part of the overall accountability of 6. Control/evaluate/monitor the
management. implemented strategy to identify
gaps/deviations/differences in
STRATEGY (Definition/Description) implementation
•A strategy is a purposeful course of action
7. Take corrective action to ensure that
that a business follows to achieve its
goals/objectives are achieved
goal/objectives/objectives
•It is defined as a long-term plan of action
to achieve a specific goal.
INDUSTRY ANALYSIS - INSTRUMENTS
•A strategy is a specific plan of action to
solve a problem/address an opportunity.
SSGB - ANALYSIS
•It increases the business's ability to A SSGB analysis is an industry analysis
achieve its mission/vision. tool/environmental scanning technique that
enables a business to study the internal
(micro) and external (market and macro)
STRATEGIC E. MANAGEMENT environments of a business.
PROCESS
The methodological simplicity of SSGB
The strategic management process is
analysis allows a business to purposefully
defined as the way in which an organization
identify/analyze the strengths and
defines its strategy. It enables managers to
weaknesses of the business, and the
make choices/determine actions regarding
opportunities and threats to which the
a set of strategies that will enable the
business is exposed.
business to achieve/achieve improved
performance.
The purpose of a SSGB analysis is therefore
a strategic plan used to identify the factors
It is an ongoing process that enables the
that influence the functioning of the
business to identify/improve its ability to
business/ability of the organization to
deal with challenges and enables
, achieve goals/objectives. encourages/supp products• Few
However, it is worth noting that many orts SMMEs competitors in the area
• Identifying gaps • Aggressive competition
businesses use a SWOT analysis to identify within the market from competitors•
internal strengths and weaknesses. Upon • Potential trends Inefficient suppliers
deeper investigation, the business applies within the deliver poor quality
the other industry analysis tools to identify market• goods• Inefficient
Foreclosure of suppliers deliver
opportunities and threats. The other competitors• inputs/resources late•
industry analysis tools are discussed further Upcoming Load shedding/national
in this unit. external events power outages• Increases
for networks in interest rates•
• Suppliers International crises such
Analysis of the components of a reduce prices of as Covid-19• Economic
SSGB analysis scarce inputs decline in the country•
Social issues such as
crime/poverty/unemploy
ment• Changes in
Examples of the different technological devices•
components of a SSGB analysis Environmental
degradation• The decline
STRENGTHS WEAKNESSES in demand for
• Internal aspects • Internal aspects in products/services
that the business which the business is
does well• The not doing well• S- Strengths
success of the Inefficient use of
business/ organizational → Strengths are internal, positive
Successful business resources• Resources characteristics/aspects of the business that
processes• The that are lacking within are within the control of the business.
competitive the business• Funding Strengths are internal
advantage of the constraints• The
business• Product internal business factors that contribute positively to the
differentiation• process that needs to growth/success of the business.
Unique resources be improved
used by the • Inefficient/poor work
business ethic• Employees who S-Weaknesses
• Effective show up late for work• → Weaknesses are internal, negative
skills/expertise/kno Employees who are characteristics/aspects of the business that
wledge of human unable to work
are within the control of the business.
resources• New cohesively within a
quality team• Inefficient Weaknesses are internal factors that
products/services products/services contribute negatively to the growth/failure
provided to clients• provided to customers• of the business.
The strategic High staff turnover•
location of the Unreliable/inefficient/in
business• effective organizational
Successful culture G - Opportunities
marketing → Opportunities are external, potentially
campaigns• Sound positive characteristics/aspects that are not
financial
within the control of the business.
management/budg
etary practices• Opportunities are external factors that
New brand may/probably contribute positively to the
visibility/identity/pr growth/success of the business.
esence within the
market
B-Threats
OCCASIONS THREATS → Threats are external, potentially negative
• Empty buildings • Competitors that characteristics/aspects that are not within
offer cannot adapt to customer the control of the business. Threats are
opportunities for needs• Competitors that external factors that may/probably
expansion cannot adapt to changing
• Local technology• Underserved negatively contribute to the growth/failure
government markets for certain of the business.
