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Table of Contents

1. Strategic Options Available to Megacorp 3
1.1 Introduction 3
1.2 Strategic Positioning 3
1.3 Value Chain Analysis 4
1.3.1 Primary Activities 4
1.3.2 Support Activities 5
1.4 Outsourcing 5
1.5 Shared Service Centre (SSC) 5
2. Captive Shared Service Centre Locations 7
2.1 Location Selection 7
2.2 Cebu, Philippines 7
2.2.1 Political/Legal Factors 7
2.2.2 Economic Factors 8
2.2.3 Social Factors 8
2.2.4 Technological Factors 9
2.2.5 Environmental Factors 9
2.3 Montevideo, Uruguay 9
2.3.1 Political/Legal factors 9
2.3.2 Economic 10
2.3.3 Social 10
2.3.4 Technology 11
2.3.5 Environmental 11
3. Conclusion 11
4. References 12
5. Appendix 16
5.1 Appendix A – PESTEL (Cebu, Philippines) 16
5.2 Appendix B – PESTEL (Montevideo, Uruguay) 16
5.3 Appendix C - Assumptions 16
5.4 Appendix D – Information Gaps 17
5.4 Appendix E – World Map of Shared Service Centre Locations 17
5.5 Appendix F – Presentation Slides 18

1. Strategic Options Available to Megacorp

1.1 Introduction

Megacorp is facing an impending patents cliff, resulting in a loss of competitive advantage, due to new market entrants. In response to this potential loss in revenue they will need to evaluate their strategic options in order to remain competitive.

Chandler (1962, p.13) defines strategy as ‘the determination of the long run goals of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals.’ From this, Megacorp will need to redefine basic goals that will efficiently allocate their resources, in order to reduce overheads.

1.2 Strategic Positioning

To outperform new entrants in the market, Megacorp need to develop an internal strategy that will create a defendable position in the long run (Porter, 1985). Porter’s generic strategy model, as seen in Fig. 1, can help Megacorp develop an internal strategy that will support the achievement of their goals.

Currently,

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