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BUSINESS STRATEGY (TUTORIAL EXERCISE)

  1. Can you develop a vision for CompUSA that would have given them a ‘picture of their future’?

  * Every business needs to carry out a plan so that they will be able to know where the business is and where it is going. Hence, every company management, including CompUSA, has to make a strategic decision in order to give them a “picture of their future”.

Clearly, CompUSA did not manage to have its own strategic management as they were not able to see to which direction the company was going. As stated in the article, the company was initially a seller of software but expanded to sell more products. However, they did not have any real intention as to why they did so. As a result, they even questioned themselves what type of business they were actually running.

Nevertheless, creating a vision would have helped them to define its own nature of business and it would also show them where they will stand in the future. The vision of CompUSA may be developed according to its primary business nature, i.e the seller of software. Thus, they would be able to see if they were suitable enough to sell other types of products if they were to expand its operations. An example of the vision statement for CompUSA would be:
“the leader of.. business market” or “the leading retail of software in the US”

  2. What external and internal environmental conditions should CompUSA have considered?

  * There are several factors that should be considered in identifying the external and internal environmental conditions. The external environmental conditions for every business are the opportunities and threats. While the internal environmental conditions are the strengths and weaknesses that the company may encounter.

In order to analyse the external factors, CompUSA should have used the industrial-organisation model where they need to:
  * Study the conditions of the company’s external environment whether or not it affects...

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