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Frameworks (e.g. 'S'-curve indication industry maturity), models (e.g. Porter's Five Forces model), techniques (e.g. Key Success Factor analysis in combination with competitor analysis) of strategic analysis. Real business situations are highly complex, hence we will never get the "complete" picture (no such luck, unfortunately!). Even, if we did, the picture would be short-lived given the rapid pace of change in the external environmental. Hence the best we can strive to achieve is the emergence of patterns - enough pieces of thepuzzle, as it were, to get an idea of the bigger picture so that we can proceed with identifying possible options. It is important to note that there will be no single 'right' answer; there may possibly be a number of options. The second important task of strategic direction is then to generate, evaluate and ultimately select an appropriate strategic option from a set of options that present themselves. For this, you will also need to fall back on techniques that will have been introduced in the course - e.g. the Feasibility- Desirability- Suitability approach - ideally extended to include a first-level semi-quantitative ranking.
In essence, this covers the Strategic Direction part of the IMP. Assessment Notes: In order to do well on this part (which accounts for approximately 40% of the overall Project) you will have demonstrated your ability to:
1. Wage ratios must lie in between the inter-country productivity ratios. 2. Large countries are always less specialized. 3. Low wage countries have bigger gains from trade.
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