Building the Report …. Using the Five Questions

MGMT 6100

Building the Report

The graphic below portrays the building of the final document. Following are the key messages:• The Final Report really starts should be developed from Phase 2 — the first draft (Phase 2) is the front end. The

Phase 3 report is a second draft of the front end, plus an alternatives analysis and preliminary recommendation about strategy. The final (Phase 4) is a reworked version with the detailed implementation added. The key is to improve the thinking and the argument from Phase 2.

• The Research Papers (sometimes called Appendices) should be essentially completed at Phase 2. The only additions (aside from editing) should be the appendices setting out the financial modeling/projections for alternatives, detailed implementation information or new research which was completed after Phase 2.

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Strategic Assessment

Final Draft

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Story

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The Purpose of a Strategy Study!The fundamental purpose of this study is to make recommendations that

fundamentally improve the probable success of the enterprise

This leads to a number of questions to be answered during your study. • What is success for this company? What time periods need to be considered —

success in making it through the next couple of years or positioning the business for longer term success?

• What does strategy have to do with success of this type of business? – The soundness of the portfolio of the parts of the business.– The positioning of services along the value chain. – The positioning of different segments of the market place. – Is it about the competitive approach or model the business takes — niche,

pricing, cost, relationships? – Is the success about effective execution and diligent management control?

• While the research will tend to make groups dissect and de-construct your thinking into pieces, this study is about bringing it back together at a strategic level – that is synthesis.

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The Purpose of a Strategy Study!

• That means: Independent perspectiveComprehensive assessment of what affects

success (past present and future) for the siteEvaluating its strategy but …..

recommendations may be about goals, corporate strategy, business or competitive strategy and operations and tactics

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Use Strategy Tools Properly

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Industry Competitors

Rivalry among existing firms

Suppliers

Substitutes

Buyers

Potential Entrants

Threat of New Entrants

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of SubstituteProducts or Services

Use Strategy Tools Properly

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Industry Competitors

Rivalry among existing firms

Suppliers

Substitutes

Buyers

Potential Entrants

Threat of New Entrants

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of SubstituteProducts or Services

Know how the strategy model or tool explains the success of the business – Here is Porter’s Five forces

Know how to use it as it relates (and if..) to your site and industry

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ROE

A Inc.

B

So What — Why it matters?#s

• Porter’s five forces explains average industry financial returns are higher in B than A.• This and the value chain and sources of advantage (cost, differentiation and niche

explain why A Inc in industry A has a relatively high ROE

Need to Ask & Answer 5 Questions

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Use of the Five Questions

At each phase, the group should discuss the five fundamental questions.

These questions can help in a number of ways.• Use them as a discussion guide for initial meetings with CEO and company

executives.• Use them as a way of presenting Phase One.• Use them at group meetings to ensure you are spending some time on the story line.• Use as a check-list for reports to make sure you have covered all the elements.

In Phase 1, your answers will be more speculative and thin on evidence and they will be more about the first 3 questions and less on the last couple. This will change as you progress with your research and analysis. However, always cover each question. By answering these questions, you will begin to form hypotheses about the answers. These hypotheses will guide you to the research, thinking and analysis you need to do. They will suggest those questions which are critical and those which need more evidence.

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#1 What is the Business

• Describe the business and the industry

• What is company’s strategic positioning in industry – a chart/map?

• What’s the biz model – getting customers and making money or outcomes?

• Different interpretations?

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#2 Is it Successful & Why?

• Describe Goals (financial & non-financial)

Stated

Logical reframing• Success -- how

measured?• Track record• Reasons for success

record?

Source of success

In prosperous industry?

Positioning or differentiation within?

Execution or core competency? 10

Reframe Goals & Strategic Logic

Stated Vs.

Intended Vs.

Actual

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Reframe Goals & Strategic Logic

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#3 Prospects for Future?

• What will relevant future look like? Shifts in competitive

factors, industry forces, customers needs, technology, government, etc.

SWOT for company & scenarios

• How successful will company be? More of same Act on current plans

• Projection of base case13

#4 Strategic Assessment? Issues & Alternatives

• Given trends, prospects and changing context, what overall situation and strategic issues does company face?

• Can meet goals or need to change?

• What choices and alternatives are worth exploring?

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#5 What Recommendations

• What strategic direction is best, from available alternatives and why?

• What concrete time bound actions should the company take to implement the strategic directions?

• Why will they make the company more successful?

• What risks exist and how addressed?

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The Final Report

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ResearchPapers (A)

Phase 4

Report Report 40 to 50 PagesAssessmentAlternatives

Strategy Implementation

PowerPointPresentation

1200 sec.

(N) • Purpose & Scope• Methods & Sources• Findings & Implication• Detailed Analysis

Building Your Report — Two Streams

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Develop Story Line or Argument

• Successive Approximation -- Not finished until the end• Right brain• Five Questions – over and over again

The Evidence • Left Brain• Finish ASAP – Phase 2b• Once done Just Update

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Phase 1 Phase 2 Phase 3 Phase 4

Building Your Report — Two Streams

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Phase 1 Phase 2 Phase 3 Phase 4

• Think about preparing the final report in two streams – one, the story line or plot and, secondly, the actual physical documentation of the research and analysis.

• There are two parallel processes to developing a 601 report as shown on the previous graphic:

Building the Story Line (above the line) is a process of synthesis linking across functions and pieces of research around the core question about how to make the company more successful! The deliverable is the final presentation and report body which contains the final strategic argument.

The Research Process is developing the research and analysis upon which your strategic argument is founded —- it is logical and sequential. It leads to the research papers or appendices. The Research Conclusions need to be sound on their own, and also need to support the story line (which provides good advice to the site). That is what we will be evaluating in the final phase.

Building Your Report — Story LinePhase 1 Phase 2 Phase 3 Phase 4

Report

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• Ask these questions at every stage to formulate the preliminary story line. This may help identify additional research and analysis needed.

• Do a presentation format as a plan for the body — the story line should be clear and crisp.

• Synthesis is a process of visualization and talking aloud. Groups need to build in time for talking about their ideas and story line at most meetings.

• You will rewrite the body at the end based on your final assessment and strategy. Earlier drafts of the story line will not be helpful.

Building Your Report — Research

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Phase 1 Phase 2 Phase 3 Phase 4

• The Phase 1 leads to identifying a logical set of research/analysis papers about the company and its environment. Each paper should have a work plan — sources of information and assign to student members.

• Research Papers should be created as the fact base and, hence, should be done early in the process — completed by the half way point where possible. You should only need to add some simulations/financial models and edit the research papers in the final stages of the course.

• The format should be such that a reader can get to the meat in the first 2 or so pages. Format as follows:

Purpose and Scope — a short description in couple of paragraphs.

Methodology — identify basis of research (list of general sources can be attached).

Main Findings or Conclusions — a list of key messages one takes out of the research with critical implications to the study. This may be 1 or 2 pages.

• The analysis and findings follow in a logical format — as many pages as are needed with sources of evidence where relevant.

Each New Story Line Identifies Need for Analysis

Phase 1 Phase 2 Phase 3 Phase 4

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New Evidence Supports Story or Causes a Rethink

Phase 1 Phase 2 Phase 3 Phase 4

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Building Your Report

Phase 1

ResearchPlan

•Topics•Methods•Who & When

Phase 2 Phase 3 Phase 4

Point Form Report

Strategic Assessment

Final Draft

New Research &

Analysis Papers

As necessary

Draft Report

Final Report

(N )

(A)Research

Papers

Point Form

Report

Company Size-up

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