Case study on LOUIS VUITTON.
An analysis of the case study and demonstrate a holistic understanding of the organisation and its environments as well as demonstrate your skills in strategic analysis and planning. You can structure your assignment in two parts: 1. Analyze the internal and external environment of the company and identify the current strategy of the firm. 2. Identify, discuss and evaluate the future strategic options available to the company, recommend a future strategic direction and suggest and discuss an implementation plan. N.B- however the lecturer has provided the steps and guidelines on exactly how the work should be carried out, once you respond to this, i will email you a copy of the case study, the steps and guidelines and an example of a past work which was done on NESPRESSO. the word count should be nothing less than 3,000. please i will like the tutor assigned to this work to put in extra effort as this is my second attempt at this work.
Attached in the draft is a copy of the case study and an example of a work done before but on a different company, please exactly the same method should be followed, below is five step strategic analysis which will explain better what should be done
STRATEGIC ANALYSIS
STEP 1- INTERNAL ANAYSIS
I. Define which organisations and industries/sectors does the case study relate to.
II. Is the organisation doing well or badly and how has it performed in the past? Success record?
III. Get insights about the organisation itself: VRIN
- What kind of strategic resources does the organisation have - and which does it lack?
- Think about which of these have provided advantage over competitors; or could provide competitive advantage.
- Draw these analyses together by considering in what ways the organisation has strengths or weaknesses greater than competition.
IV. Look at the development of the organisation over time. What strategies has it pursued? Which have succeeded and which have failed? How successful has the organisation been - and on what bases do you know?
V. What are your initial impressions of the main issues and choices confronting the organisation? Is it in an expanding industry/sector, or a maturing one? Are customer needs changing? Does the organisation confront a variety of opportunities? Or is there a particular strategic issue which the case is oriented towards?
VI. Look at issues about the organisation's stakeholders. What are their expectations? Are they similar or in conflict? Who has more power and influence over the organisation's strategy?
VII. And consider the organisation's culture. How has this influenced past strategies and is it likely to influence future strategy or constrain attempts to change strategy?
STEP 2- EXTERNAL ANALYSIS
Step 2: Analyze the external environment of the firm (Macro and industry analysis)
- Analyse the external environment where the firm operates in (PESTEL, Porter's 5 forces etc.)
- What are the Opportunities and threats originating from the external environment and how do these affect the competitive advantage of the firm?
- Which are the types of environment where the organisation has been able to succeed, and in which types has it had problems?
- Beware of regarding different frameworks of analysis as distinct and separate; they relate to each other. For instance, the results of a value chain analysis could be put in the context of data from a PESTEL and 5-Forces analysis and are likely to provide more insight if they are.
STEP 3
Step 3: Identify the key success factors in the industry
- What have been and are likely to be the key drivers in the external environment that may give rise to changes that could provide opportunities or give rise to threats?
- What is the nature of the competitive environment?
STEP 4
Step 4: Identify the company's strategic position, summarise your analysis and name/classify any potential problems/threats that the company was, is or is expected to face in the future - Identify the company's strategic position using e.g. Competitive strategies and Strategy clock
- So you will have built up a picture of the relative strengths, weaknesses, opportunities and threats (SWOT) for the organisation.
- Pull together your analyses and ask: 'What are the major issues that future strategy needs to address?'.
STEP 5
Step 5: Suggest a viable future strategy/solution, including alternatives
• Develop and evaluate strategic options
• Evaluate the options by asking the following questions:
- Which are most suitable in terms of the strategic position of the organisation; i.e. the strengths and weaknesses it has and the opportunities and threats it faces?
- Would a strategy, if followed, achieve competitive advantage for the organisation and provide bases for the sustainability of such advantage?
- Which are most likely to be acceptable in terms of the expectations of major stakeholders?
- Which are feasible in terms of the likelihood of implementation: for example in terms of resourcing the strategy and managing change.
• Justify your conclusions with reference to the case
• Relate your analysis to the task or questions you have been set. What elements of the strategic analysis do you require to answer
the question? (don't try to justify your arguments by using all the
information you have - select what is most powerful to support
your argument)?
• Support your conclusions and recommendations with hard evidence (events and results)? Have you been influenced by the opinions of the organisation's own managers? Do the facts support their claims of success, or their excuses for failure?
• State your recommendations clearly. There is no point gathering a list of fifteen possible reasons why the organisation should do this
or that without making it clear which one(s) is your preferred option. Make sure that you present a balanced view.
• Consider the alternatives to your recommendations. There is hardly ever just one single option available to an organisation.
• Clearly explain why the recommendation you have chosen is the best of the available alternatives and examine the downsides of your options.