strategy made simple
TRANSCRIPT
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The First Step - definitions
Strategy levels
How do we develop a strategy?
Articulating successful strategies
Summary
The end
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Building Business
Is about understanding and choosing the right…...
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The Definition of Strategy
Thefreedictionary.com
1) the science or art of planning and directing large-scale military movements and operations.
2) the use of or an instance of using this science or art.
3) the use of a stratagem (tactic, trick, maneuver).
4) a plan or method for achieving a specific goal: a strategy for getting ahead in the world.
Oxforddictioneries.com
1) A plan of action designed to achieve a long-term or overall aim
2) The art of planning and directing overall military operations and movements in a war or battle
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The Concept of Strategy
• The concept of strategy has been borrowed from the military and adapted for use in business
• In business, as in the military, strategy bridges the gap between policy and tactics
• Strategy and tactics bridge the gap between goals and resources
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The Use of the Term Strategy
Henry Mintzberg, in his 1994 book, The Rise and Fall of Strategic Planning [3], points out that people use "strategy" in several different ways, the most common being these four:
• Strategy is a plan, a "how," a means of getting from here to there.
• Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a "high end" strategy.
• Strategy is position; that is, it reflects decisions to offer particular products or services in particular markets.
• Strategy is perspective, that is, vision and direction.
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Withdraw
Defend
Attack
If it is a war strategy
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STRATEGY LEVELS
Part I
Three Strategy Level
The Operational Strategy
The Business Strategy
The Finance Strategy
Essentials of Strategy Levels
Business Operational Finance
What products? What markets? What tactics? What
resources? What quality? What
promotion?
What resources to deploy?
When to deploy?
What technology?
What facilities?
Initial funding Growth finance Expansion
Capital Asset
Management Exit/Cash Out
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Alignment of Strategy Levels
Must be realistically developed taking into account
the operational capabilities
Business
It must support all the business strategies to achieve revenue
and profit targets
Operational
If the investment strategy is not in synchronization the
company will fail
Finance
HOW DO WE DEVELOP A
STRATEGY?
Part II
Four steps in to developing your strategy
Step 1Step 2
Step 3Step 4
Assess External ContextAssess the Internal Context
Evaluate your strategic alternativesDevelop your strategic plan
Opportunity
• Demand is growing at 15%
• Market entry is costly
Threats
• Our main competitor is aggressively promoting
• Customers not paying on time
Strength
• Patented product• We have cash• Superior quality
Weakness
• We do not have an IT system
• Our salesforce is not well trained
Use SWOT Analysis
Strategy Development
MonitoringActivitiesDefineAssessment - IAssessment - E
How are we doing?
How we will get there?
Where do we want to go?
Where are we today?
Where have we come from?
Progress Review
Measure Performance
Vision/ MissionChallengesEnvironment
Performance Measurement
Targets and Standards
GoalsSituationMarketAnalysis
CorrectiveActions
InitiativesOptionsCapabilitiesSituational Analysis
Balanced Score Card
PlanStrategyGap AnalysisMarket Forces
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Strategy Types
Some Examples
1. Marketing Strategy
2. Supply Chain Strategy
3. HR Strategy
4. Sales Strategy
5. IT Strategy
6. Operational Efficiency
7. R&D Strategy
8. Procurement Strategy
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ARTICULATING SUCCESSFUL
STRATEGIES
Part III
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How does your landscape looks like?
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Failure to assess risks
Bad planning
Untimely actions
3 barriers to goal achievement…
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You Are Not Alone
There are others who can play the game just as good or better
CONS
Do not just see yourself and what you can do
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5
You have
many options
You need to
evaluate each
one
…and select
the best
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Examples of goals that need strategy
• Going to the supermarket
• Travelling abroad for a summer vacation
• Buying a car
• Introducing a new potato chips product
• Introducing a new software
• Becoming a market leader
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Summary
Each time you have a goal you
need a strategyAssess Environment
Evaluate Options & Select your strategies
Plan & Execute
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The most critical factor to consider – the end
Your ability to translate customer requirements into your product/service deliverable
Withdraw
Defend
Attack
If it is a war strategy
Questions
around the
discussion?