strategic platform 2008
Post on 19-Oct-2014
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DESCRIPTION
Presentation on strategic planning for IMM studentsTRANSCRIPT
STRATEGIC PLATFORM &
PROFILING THE COMPANY
ESSENCE OF STRATEGIC
PLANNING
Fit between an organisation and her environment (now and in the future)
Deliberate strategy (in moderately dynamic situations)
Emerging strategy (in turbulent situations)
STEPS
Strategic platform & internal analysis
Country/market selection
Analysis of fit between organisation and chosen market environment
Big idea (basic strategic choice)
STP and marketing mix
Allocation of resources
Controlling the effort
STRATEGIC PLATFORM
Mission, goals and objectives
Current domain (Abell)
Core competencies (sustainable competitive advantage)
Business model
Principle choice growth- & competitive & value strategy
ABELL
Segments
Technology
Customer needs
COMPETITIVE
ADVANTAGE (ALSEM)
Identification of success factors
Sources of advantages
Superior competencies
Superior resources
Positional advantages
High customer value
Low relative costs
Results
Satisfaction
Loyalty
!
Market-share
Profit
Plough back profits to maintain competitive advantages
BUSINESS MODEL
PRINCIPLE STRATEGY
Growth: market penetration, product/market development, diversification (Ansoff)
Competitive: cost leadership, differentiation, focus (Porter)
Value: productleadership, operational excellence, customer intimacy (Treacy & Wiersema)
INTERNAL ANALYSIS
Objective: determine strategic competencies and limiting factors
Analysis of value chain
Audit of functional areas
Resource and capability analysis
Portfolio analysis
Ambition, focus, resources, competencies, courage
ANALYSIS OF VALUE
CHAIN
TECHNOLOGY DEVELOPMENT
HUMAN RESOURCE MGT
FIRM INFRASTRUCTURE
PROCUREMENT
INB
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ND
LO
GIS
TIC
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RK
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OP
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A-
TIO
NS
OU
TB
OU
ND
LO
GIS
TIC
S
AF
TE
R S
AL
ES
&SE
RV
ICE
MARGIN
AUDIT OF FUNCTIONAL
AREAS
PILOFACHO
Marketing audit (Kotler)
RESOURCE AND
CAPABILITY ANALYSIS
Inputs into a firm’s production process (tangible: capital equipment, finance, patents - intangible: skill of employees and managers, relationships with market en suppliers)
Capacity to effectively and efficiently integrate and deploy available resources
PORTFOLIO ANALYSIS
BCG matrix
MABA/general Electric
AMBITION, FOCUS, RESOURCES,
COMPETENCIES, COURAGE
Ambition: does the idea/project fit the organisation’s mission?
Focus: does the idea/project fit in with the main strategy and the business model?
Resources: is the idea/project feasible given the available resources?
Competencies: idem know-how/knowledge/skills?
Courage: is the idea/project risk acceptable?
COUNTRY SELECTION
Preliminary environmental scan & internal analysis
Attractiveness & compatibility matrix
After initial selection more detailed environmental analysis
STRATEGIC FITEconomy
Demografics
Politics,
laws
Ecologie
Technology
Social-
cultural
Owners,
banks
Govern-
ment
CompetitorsEmployees
Public
Media
Stakeholders
Suppliers,
partners
Customers
Porter value chain
EXTERNAL ANALYSIS
Country/market selection
DESTEP
Market & customer analysis
Industry & competitive analysis
Distribution & supplier analysis
MARKET & CUSTOMER
ANALYSIS
Quantitative: market & segment size, market growth percentage, business and economic cycles & trends, number of customers & prospects, customer pyramid, customer life value, buying power.
Qualitative: customer types, buying behaviour, DMU, buying criteria & motives, brand preferences, criteria in supplier choice, unmet needs.
6 W’s: who is the customer, what are the product benefits for them, why, where & when do they buy/don’t buy.
INDUSTRY ANALYSIS
COMPETITOR ANALYSIS
Determine competitorsDetermine goals of
competitors
Determine strategies of
competitors
Assess probable reaction
patternsAttack and avoidance
Determine strengths
and weaknesses of
competitors
DISTRIBUTION &
SUPPLIER ANALYSIS
Distribution analysis (up- en downstream)
Supplier analyse
BIG IDEA
Use market opportunities, while avoiding dangers, by using powers and maximise use of limiting factors (SWOT-I)
Creativity, know current innovations, risk acceptance, adaptation of the organisation.
Why, how, when, by Whom at Which costs.
APPRAISING SWOT
ELEMENTS
What is the impact of ... happening?
What is the probability of ... happening?
What is the time horizon of ... happening?
Can we manage issues and risks if .... occurs?
S-T-P & MARKETING MIX
Segmentation
Targeting
Positioning
Marketing mix
ALLOCATION OF
RESOURCES
Budget system’s purpose is distributing resources, co-ordinating activities & controlling implementation
Financial paragraph: master-budget, capital budgeting & budget request
Financial accounting: controlling expenses + cash out & verifying revenues + cash in
CONTROL
Balanced Score Card
Market research
Financial results
Situation reports on plan execution and reaching milestones
MISTAKES
Misunderstanding basic theories and models
Misunderstanding logic behind the plan model
Overemphasising analysis versus underemphasising concrete do’s and dont’s
Uni-disciplinary analysis & quality of base data (uncorrelated data, facts versus opinions)
Ist versus soll - (uncritical) description versus analysis, evaluation and drawing conclusions
No or unclear/overcomplex conclusions
No connection between research objective - analysis - conclusions - proposed actions
Questionable acceptability & feasibility