Company analysis
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4018assignment_review.pptxMD4018
Assignment
The brief
SportsDirect have been in the public spotlight for a number of reasons over previous years. Recently they have suffered a loss in profits http://www.bbc.co.uk/news/business-38247155
Critically evaluate the strategic environment they are operating in, and their current strategy as an organisation. On the basis of this evaluation, identify a future strategy for the company.
You will need to research SportsDirect, using as wide a range as sources as possible. SportsDirect has been a high profile form in recent years, so there is information out there. You should consider not only issues specific to SportsDirect, but also the forces acting in the sector in which they operate, as well as wider economic and political forces.
SportsDirect
So what have you found about SportsDirect ?
What kind of company are they?
What kind of industry are they in?
Who are their customers?
What is their strategy?
These and other questions should be research so you have a full picture of the company before you start. BUT … remember: how reliable is your evidence: how are you going to present it when it is needed.
SportsDirect have been in the public spotlight for a number of reasons over previous years.
A number of reasons : so explore widely what they are doing, and why they are in the news. Remember : the NEWS is a very wide remit, so ensure you gather what you can, and start to narrow it down to the key issues that seem to be the big issues for them as a business
Recently they have suffered a loss in profits
What exactly is going on, and how are they doing as a company. What is the basis of their profits, and what effects them?
And how do they compare with
Other companies
With themselves in the past
So now you have some background!
There is unlikely to be much (any?) academic research on SportsDirect, but you need to get a range of information together to ensure that you have a clear grasp of who SportsDirect are. Much of this ‘evidence’ will come with bias, so you need to think about how you will use or present such evidence
Critically evaluate the strategic environment they are operating in
We have used a range of approaches to think about how to analyse a strategic environment: so think about which you can use, and what evidence you have?
Your approach should be to undertake detailed, EVIDENCED analyses, and then draw from these some (3-4-5) KEY strategic drivers.
The analyses should go into appendices, with the evidence referenced in the analysis. Hence you will show the depth of your analysis, but only bring into the text the key points. BUT you will have to
Link them to the relevant analysis
Explain why these are the KEY drivers
NB: always remember to be aware of both the key purpose of any analysis, and it strengths and weaknesses: remember you need to show you academic grasp of these things
Critically evaluate …. their current strategy as an organisation.
What is their strategy? Well this depends on who you ask ….
How does it compare to other competitors … and does it fit with the industry as a whole ?
How well is it working … remember, this depends on who you ask …
And most importantly …. How does it relate to the key drivers from the environment. And do not fall into the trap of explaining the environmental drivers in terms of the current strategy … rather, you identify the environmental drivers that YOU see as important, and then consider how the strategy relates (or not) to the current strategy.
NB remember to use theory to analyse this, and that you can analyse strategy in different ways, and at different levels
On the basis of this evaluation, identify a future strategy for the company.
This has to make sense ..it has to link to what you have produced in your analysis.
You should focus on what KEY changes you would make to the current strategy, and what you would retain. But there has to be a rationale for this which includes
Why it is the right way forward
The advantages it will bring
The risks that are involved
Remember: whilst you might consider options, in the end you need to come down to a specific set of ideas : no hedging your bets. And it HAS to link to your analysis
Things to avoid
Being simplistic in your analysis: anyone can make guesses
Only thinking about what SportsDirect tell you
Working out what the environmental drivers are from the current strategy: you need to look at the environment independently of the current strategy
Only focusing on one element of the business
Deciding what their strategy should be without basing it on your analysis
Forgetting to use theory and concepts
Forgetting that websites are not used for academic ideas and theory
