Business Strategy

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BUSM3200

LF01 - Assignment 1

JNg’s Comments:

I have extracted key Assignment 1 requirements (which RMIT has uploaded on

Canvas) and set them out in this document.

At various parts of the Assignment 1 requirements set out below, I have:

o included my comments (in red + also in textboxes) to clarify and elaborate

more on the requirements.

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Sections of the Report

1. Introduction

2. Company Profile

3. Macro-Environment Analysis (PESTEL, VUCA + Confrontation Matrix)

4. Porter’s Forces

5. Key Success Factors (and Resources and Capabilities)

6. Conclusion

7. List of References (based on in-text citations in the report)

Note that Quality of Writing is graded.

Click on the links above to access the relevant sections.

Relevant Lectures slides:

• Weeks 1 - 3 See Canvas • Week 4 PESTEL, VUCA, P5 + Complementors, KSFs, Capabilities

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Assignment 1 (Individual assessment): Strategic Position

Weightage: 30%

Word limit: 1,500

Word count includes Introduction and Conclusion. No Executive Summary is required.

Word count does not include Cover Pages and List of References.

Due Date and Time: 5pm (Singapore time), Sunday, 27 February 2022.

Submission Method: via Canvas.

TurnItIn requirement: Yes.

In this assignment, you are required to undertake an analysis of the strategic operating

environment for our case study organisation: Bonza Airlines (click here for its website).

Click here for the Canvas data pack regarding the organisation (log-in to Canvas is

required). It contains a lot of useful information about the macro-environment (PESTEL),

industry (Porter’s Forces) and the company! Higher quality analysis will contain additional

research information.

You are expected to use theory and concepts covered in the course and to apply these

when conducting an analysis of the strategic positioning of our case study organisation.

What you are expected to do:

Conduct an industry-level analysis incorporating the use of Porter's Five Forces model,

and identifying the Key Success Factors of the industry to determine the attractiveness

of the industry.

Identify and classify resources and capabilities in terms of threshold and distinctive

capabilities required at the operating level for Bonza to compete successfully in the

industry.

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1. Introduction

MUST include an Introduction (included in word count).

JNg’s Comments:

Write a short Introduction

that states the purpose of the report.

Purpose of this section: Demonstrates your understanding of why Ass #1 is important for the industry.

For example: Understanding the external environment of the industry will enable the Company to

manage key Opportunities and Threats and build up the relevant Resources and Capabilities to meet

the Key Success Factors. By understanding the strategic position of the Company, it can develop a

strategy to gain a longer-term competitive advantage.

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2. Company Profile

Background of Firm.

JNg’s Comments:

State clearly the industry in which the Company is operating

+ the country on which your analysis is focusing.

Then, write a profile of the Company which contain details

that are relevant to the external environment.

Purpose of this section: Such details above can give a sense of whether the Company is successfully

dealing with the external environment (PESTEL and Porter’s Forces - Opportunities and Threats).

⚡ Use this to understand the companies to which you

are sending job applications!

Will you join a company that

is in a poor strategic position?

☑ For example, relevant details can include one or more of the following:

o Target customer segments (demographic profile, purchasing behavior, purchasing power,

consumer’s types of preferred products and services)

o Target geographic spread (number of routes, urban versus rural, country)

o Projected market share

o Strategy – Low cost / Differentiated? Niche / Mass?

o Business Model – Products and services? B2B sales? Or B2C sales? Online?

o Key competitors (Commercial airlines? Budget airlines? Local or international?)

o Owners / Investors (explain why they are relevant or important)?

Tip: It is helpful to focus on data trends over a few years, so you can judge the changes over the

years - rather than focusing only on 1 year’s data. FUTURE data is important too!

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3. Macro-Environment Analysis

Conduct a macro-level analysis (utilising PESTEL, VUCA and Confrontation Matrix

frameworks) to identify and analyse the main macro-level elements and their potential

impact on the organisation.

JNg’s Comments:

Conduct a PESTEL analysis that covers

ALL P.E.S.T.E.L. factors in Australia for the industry.

Select a few important PESTEL factors that are magnified by VUCA.

Purpose of this section: Determines your ability to

research and judge which P.E.S.T.E.L. factors are most important

in terms of present + future Opportunities and Threats for the industry.

⚡Use PESTEL to assess your own job

Opportunities and

Threats!

See RMIT’s Lecture 2 slides + my Lecture 4 slides – PESTEL and VUCA.

For example:

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☑ Some Factors to Consider:

o Paraphrase KEY data from your research and use diagrams to help with word count? Do not

copy large chunks of data!

o Analyse the data and state your views. Do NOT just describe the data.

o Have you identified Opportunities and Threats (present and future) for each P.E.S.T.L.E.

factor, supported by research data?

o Which P.E.S.T.E.L. factors are most important and magnified by VUCA (Confrontation Matrix)?

Allocate more word count to such factors. Include such factors in your Conclusion.

o In your Conclusion, have you clearly stated whether it will be a favourable or unfavourable

macro-environment PLUS reasons?

o In your conclusion, have you clearly stated your views on how these Opportunities and Threats

(as magnified by VUCA) will affect the industry players in the future?

Tip: Research into both historical AND future data. Future data will show how the external environment is likely to be changing and how it affects the industry players.

Tip: Do NOT just regurgitate tons and tons the research data – wasting word count! Be concise - paraphrase key points from the data and USE DIAGRAMS.

Tip: Use the CONCLUSION to show that you understand how the industry players would need to do for the key Opportunities / Threats that you have identified. This is about STRATEGY for the players!

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4. Industry Analysis (Porter’s Forces)

Conduct an industry-level analysis incorporating the use of Porter's Five Forces model.

JNg’s Comments:

Conduct a Porter’s Forces analysis that covers

ALL forces for the industry in Australia.

Purpose of this section:

1. Determines your ability to research and judge which Porter’s forces

are most important in terms of present + future Opportunities

and Threats for the industry’s profitability.

2. Determines whether you understand the inter-linked complexities of the external environment -

HOW some PESTEL factors are linked to Porter’s forces.

⚡ Use Porter’s Forces to

determine if you are facing

HIGH Competitive Rivalry,

Threat of New Entrants etc

in your job applications!

See RMIT’s Lecture 2 slides + my Lecture 4 slides - Porter’s Forces.

For example:

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☑ Some Factors to Consider:

o Paraphrase KEY data from your research and use diagrams to help with word count. Do not

copy large chunks of data!

o Analyse the data and state your views. Do NOT just describe the data.

o Have you identified Opportunities and Threats (present and future) for each Porter’s force,

supported by research data? Did you state a mini-conclusion (profitability) for each force?

o Have you consistently discussed Have you stated the linkage between some P.E.S.T.L.E.

factors and some Porter’s forces?

o Have you identified the KEY (most important) Opportunities and Threats, amongst the mass of

data and analysis? Present and future?

o In your conclusion, have you clearly stated whether it will be an attractive (profitable) or

unattractive (unprofitable) industry PLUS reasons?

o In your conclusion, have you clearly stated your views on how these Opportunities and Threats

will affect the industry players in the future?

Tip: Research into both historical AND future data. Future data will show how the industry forces are likely to be changing and how it affects the PROFITABILITY of the industry players.

Tip: Do NOT just regurgitate tons and tons the research data – wasting word count! Be concise - paraphrase key points from the data and USE DIAGRAMS.

Tip: Use the CONCLUSION to show that you understand how the industry players would need to do, in the face of the key Opportunities / Threats that you have identified. This is about STRATEGY for

the players!

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5a. Key Success Factors (KSFs)

Identify the Key Success Factors of the industry.

JNg’s Comments:

Identify Key Success Factors (CSFs) for the industry,

based on the Opportunities and Threats in PESTEL and Porter’s Forces.

Purpose of this section: Demonstrates your ability to identify what is critical for success in the industry.

See my Lecture 4 slides – Key Success Factors.

☑ Some Factors to Consider:

o Are the Critical Success Factors based on current and future data?

o Clues are in the data from your PESTEL and Porter’s Forces analysis.

⚡ What are the

KSFs of your

job’s industry?

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Tip: Use future data from PESTEL (Section 3) and Porter’s Forces (Section 4). For eg:

• PESTEL > Socio-Cultural + P5 > Power of Buyers, to justify the factors which are especially

valued by the customers.

• PESTEL > Technology + P5 > Power of Suppliers, to justify the factors which can help

lower costs.

Tip: Research into both historical AND future data. Future data will show the future KSFs of the

industry that are important for future success.

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5b. Resources and Capabilities

(About 250 words) Identify and classify resources and capabilities in terms of threshold

and distinctive capabilities required at the operating level for Bonza to compete

successfully in the industry.

JNg’s Comments:

Identify Threshold and Distinctive Resources and Capabilities

that are needed by the Company within the industry.

.

Purpose of this section: Demonstrates your ability to identify the distinctive resources and capabilities

which the Company must have, to meet the KSFs and gain a competitive advantage.

See my Lecture 4 slides – Internal Analysis.

⚡ Learn how to

write distinctive

capabilities in

your CV!

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Tip: Work backwards:

• Use the KSFs to decide what resources and capabilities are needed by the Company to be

successful.

• Then, shortlist those resources and capabilities which can pass the VRIO test. These

shortlisted R&Cs will give the Company a competitive advantage.

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6. Conclusion

Write a Conclusion (included in the word count).

JNg’s Comments:

Write an OVERALL CONCLUSION for your report.

Purpose of this section:

1. Reflects your ability to understand the BIG PICTURE and BIG IIMPACT affecting the industry and

the Company, from the tons of research data.

2. Enhances your overall Quality of Writing, by having a conclusion for the report.

💡 Tip: Use the Overall Conclusion to show that you have managed to find some important insights

that will affect the Company, in the future. The conclusion of a report is the last chance to impress the

reader.

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7. References

The report should be written in prose; however limited use of dot points is acceptable.

Written assignments must be presented in a professional format. Quality of writing,

especially literacy, will be considered in the marking criteria. Written communication

skills are an essential component of RMIT University’s courses.

The assignment should be in report format and use Times New Roman, font size 12,

1.5 line spacing.

In line with RMIT policy, all sources of information must be fully referenced using standard

RMIT Harvard referencing system (click here for the referencing guides). You are

encouraged to use referencing software such as Endnote for referencing and formatting.

You must acknowledge all the courses of information you have used in your assessments.

Refer to the RMIT Easy Cite referencing tool to see examples and tips on how to

reference in the appropriated style.

**** THE END ****

JNg’s Comments:

REFERENCES

(in-text citations + List of References).

Purpose of Referencing:

1. Shows that you have credible sources backing up your views!

2. Shows your academic integrity (by not plagiarising; and by acknowledging sources).

3. Enhances your overall Quality of Writing (marks are awarded!).

Read my Quality of Writing slides in Dropbox.

⚡ Learn to persuade

the reader of your

valid views!

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*** THE END ***

JNg’s Comments:

QUALITY OF WRITING

Purpose of QoW:

1. Shows your ability to convey your ideas clearly, concisely and coherently (logically).

2. Shows your care and effort in formatting and other ways of presenting data and ideas.

3. Evidences basic grammar, spelling etc capability.

Read my Quality of Writing slides in Dropbox.

💡 Tip: Use Times New Roman, 12 pts, 1.5 line spacing.

💡 Tip: Use headers and other formatting tools to present a professional report.

💡 Tip: Remember to include the official RMIT Cover Page + the usual cover page for a report.

⚡ Important for

CVs, cover letters and

emails to companies!

Tip: Use RMIT Easy Cite. Choose RMIT Harvard option.

Tip: In-text citations must be included for external data and diagrams.

Tip: List of References should be in alphabetical order.