• What remote environment trends have driven the industry to its current state? Are these
factors changing? What will be their affect on future growth in the industry? Remember that
a short text may only make reference to some of the factors in the remote environment.
• What forces within the industry determine its current profitability? Are these forces changing?
What will be their impact on the future profitability of the industry? Again, remember that
a short text may only make reference to some of the forces in the external industry environment.
• Does the text make any reference to different customer market segments in the industry,
and can you make an assessment of what drives ...view middle of the document...
• Determine whether there are any inconsistencies (gaps) between the current business
strategy and the remote environment, the industry environment and the performance of
the organisation compared to its key competitors. Review the current business strategy
against the expectations of the key stakeholders, the organisation’s performance and the
capabilities of the organisation.
• A review of these gaps, and an extended SWOT analysis, may reveal some possible
alternatives and strategies that the organisation could pursue. These will often relate to
improving the operational side of the organisation, while strategic growth options usually
fall into the category of new products and/or new markets (refer to Module 4).
Achieving revenue growth for an organisation that is above the average revenue growth for the
industry requires the organisation to do something different. The text might relate to the organisation’s
requirement to develop new products and/or markets (refer to Module 4).
• Consider whether the organisation has leveraged its existing capabilities to its maximum
market position and market penetration. Does the text indicate any strategy regarding
development of new products or expanding its markets to remain competitive and/or
to grow? Or is it possible that the company is taking another approach to growth
(e.g. vertical integration)?
• If the organisation is considering new product development, review the important aspects
to consider, including the key success factors for new product development.
• If the organisation is considering new market development, is it trying to enter a new
customer or geographic market, or both? Review the important considerations for new
market development. They include: strategic objectives for new market entry; evaluating the
attractiveness of new markets; key success factors for new market development; and the
advantages and disadvantages of different modes of market entry. Consider the accounting
challenges that might arise from moving into new products or markets.
The text may provide information about various strategic options the organisation could consider.
Generally an organisation has more options available than it can realistically implement, and it
may need to prioritise and choose between them (refer to Module 5).
• Evaluate each of the strategic options, such as different product and market options,
using appropriate criteria and with consideration for effective management of the
organisation’s portfolio of projects.
• What are the risks assessed for each of the strategic options? Scenario planning should be
undertaken in order to quantify and compare the variation in potential outcomes.
• Evaluate each of the strategic options in terms of: its consistency with the organisation’s
external and internal environments; the feasibility of successfully undertaking the option;
and the competitive advantage it will give.
• Recommend to key decision makers which...