Question Two

The process of formulating a strategy begins with identifying opportunity and threat from an analysis of a firms external environment. Once a strategic choice is made, the next step is to analyse whether the organization has the capacity to pursue the preferred choice. The capability of an organization is its demonstrated or potential ability to accomplish, in the face of opportunity or threat, whatever it sets out to do.

Required:

Explain the strategic capability of the following:

1. Cash flow

(10 marks)

1. Market share

(10 marks)