Strategic Management Essay

4293 Words18 Pages
The purpose of the essay is to investigate strategic management practices and how the strategy applies to the different sections of business operations. The essay will focus on one of New Zealand’s leading banks, Kiwibank. The first section of the essay will focus on the analysis of the industry in which Kiwibank competes in, followed by an analysis of the bank’s strategic capabilities. Then it will engage in a critical discussion of the bank’s strategic choices. Finally, the essay will focus on the alternative strategies, if any, that the bank should pursue. The environment can become a source of organizational survival as well as become a threat to that survival (Johnson et. al. 2008). Strategy development is highly influenced by environmental changes, therefore it is vital for the organization to take into the account relevant environmental factors and changes. This section of the essay will analyse the industry and the environment Kiwibank competes in, using analytical tools such as the PESTEL framework and Porter’s five forces framework. During times of global financial crisis and low economic activities it is vital for any organization to monitor and understand relevant environmental changes. Especially this is relevant to the banking industry as the financial sector was the one which has been majorly affected by the current crisis. The PESTEL framework analysis helps to classify the various environmental factors into relevant categories (Oxford University Press 2007). PESTEL is the abbreviation for Political, Economic, Social, Technological, Environmental and Legal. The PESTEL framework analysis is the one most frequently applied. It provides a list of influences and trends which are likely to determine the success or failure of a given strategic choice or developed strategies (Barth & Wolff 2009; Johnson et. al. 2008). Therefore PESTEL is

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