,Question 1 “The aim of strategic management is to ensure that an
organisation achives a competitive advantage and sustains its
competitive advantage over competitors.” Apply the process
perspective of strategic management process to the Michelin
company, focusing on the ‘History of the Michelin Guide’. In
your answer, you need to explain each stage in the process
perspective of strategic management and apply it to Michelin and
the development of the Michelin Guide as an effort of the
company to sustain its competitive advantage. (21 marks, of
which 7 marks will be awarded to each of the stages correctly
explained and applied to the case)
To address this question, let's break down the process perspective
of strategic management into its key stages and apply each stage
to Michelin's development of the Michelin Guide.
1. Environmental Scanning
Explanation: Environmental scanning involves analyzing
external and internal environments to identify opportunities and
threats, as well as strengths and weaknesses. This stage helps
organizations understand the competitive landscape and prepare
for strategic decisions.
Application to Michelin:
• External Environment: Michelin recognized a growing
interest in high-quality dining experiences and the need for
reliable restaurant recommendations. The external
environment included the competitive restaurant industry and
evolving consumer preferences.
, • Internal Environment: Michelin, originally a tire company,
had the resources and reputation to venture into the restaurant
industry. The company leveraged its brand credibility and
existing distribution channels to introduce the Michelin
Guide.
2. Strategy Formulation
Explanation: Strategy formulation involves developing specific
strategies based on the information gathered during environmental
scanning. This stage includes setting objectives, defining the
direction, and creating plans to achieve competitive advantage.
Application to Michelin:
• Strategic Objective: Michelin aimed to diversify its
business and enhance its brand by creating a guide that
would elevate dining standards and provide valuable
recommendations to travelers and locals.
• Strategic Direction: Michelin formulated a strategy to
publish a high-quality guide that would reflect rigorous
standards for restaurant evaluations. This guide would help
Michelin differentiate itself from competitors by associating
its brand with excellence in dining.
3. Strategy Implementation
Explanation: Strategy implementation involves putting
formulated strategies into action. This includes resource
allocation, organizing teams, and managing operations to execute
the strategic plans effectively.
Application to Michelin:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Academy360. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R47,18. You're not tied to anything after your purchase.
