ETHICAL ASSESSMENT OF STRATEGY Is the strategy of the organization ethical? You
ETHICAL ASSESSMENT OF STRATEGY
Is the strategy of the organization ethical?
You may wish to (briefly) look at internal aspects (e.g. employee
welfare, working conditions, job design, intellectual property,
etc.) or external aspects (e.g. environmental issues, products,
markets and marketing, suppliers, employment, community
activity, human rights, etc.)
No framework is needed or required here but you are free to
use one if it is relevant to your argument. Do not copy and paste from their website, you need to research
and be critical.
– Define the industry: what products and services are in it? What is the geographic scope of competition?
– Identify the participants: the buyers and buyer groups? the suppliers and supplier groups? the competitors? the substitutes?
the potential entrants?
– Assess the underlying drivers of each competitive force to determine which forces are strong and which are weak and why.
– Determine overall industry structure, and test the analysis for consistency
Why is the level of profitability what it is?
Which are the controlling forces for profitability?
Is the industry analysis consistent with actual long-run profitability?
Are more-profitable players better positioned in relation to the five forces?
– Analyse recent and likely future changes in each force, both positive and negative.
– Identify aspects of indistry structure that might be influenced by competitors, by new entrants, or by your company.
Value chain initial steps:
You should justify which model better explains the relative competitive advantage.
If you choose the value chain analysis, you must clearly spell out how different activities may add value and how these activities may support the overall positioning of the firm (generic strategies or
Bowman’s Clock). The role of secondary activities on how they support primary activities should be highlighted.
According to Porter (1985) the concept of value creation lies at the heart of competitive advantage.
Dividing the organisation up into separate value- adding activities by means of the ‘value chain’ tool allows the analyst to identify what the company does more cheaply or better than its competitors. Value chain also needs to be linked to the positioning of the company through generic strategies or the Bowman’s Clock.
When justifying your choice of using value chain analysis- engage with the key literature and explain its use and how it is relevant to the analysis of your SBU.
Rather than just simply saying which you have chosen Must consider both primary and support activities- but not all of them!
Make links between these primary and support activities
Make connections between your analysis of value chain/value adding activities and generic strategies/Bowman’s clock