Strategy Development
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The document outlines a comprehensive framework for strategic analysis, covering aspects such as external and internal analysis, strategy development, and implementation. It details methodologies like Porter’s Five Forces, VRIO analysis, and outlines critical success factors for industry competitiveness. The structure includes recommendations for strategic alternatives, an action plan, and classifications for key issues, all aimed at enhancing a company's strategic position.
Strategy Development
- 1. Elements and Cascade STRATEGIC CASE 1 of 5
- 2. EXTERNAL ANALYSIS Industry Profile Competitor Profile & Porter’s Five Forces •Industry Definition •Threat of new Entrants •Size Strategic Groups •Buyer Power •Growth Rate •Two Independent dimensions •Who are they? •Stage in Life Cycle •Where and how competitors fit •Supplier Power •Number of Companies the dimensions •Who are they? •Customers (Number of •Outline Key Competitors or •Substitute Power Buyers) Groups in terms of: •What are they? •Products •Name •Rivalry •Pace of Technology •Products •Ease of Entry/Exit •Current Strategy •Capital Requirements •Strategic Intent •Economies of Scale •Other Strategic Information •Experience Curve •Capacity Utilisation Industry Profitability Driving Forces Outlined two key objectives Explain how they are changing the industry TO ISSUE S Key Success Factors Outline the two most important factors Explain why they are necessary Show industry specificity 2 of 5
- 3. INTERNAL ANALYSIS Strategic Profile Financial Analysis VRIO / Value Chain •Company Name •Profitability •Key SCA’s, (1 or 2) Which Industry it operates in •Liquidity •TCA’s (3 to 4) •Vision •Gearing Ratios •CD’s (3 to 4+) •Mission •CP (3 or 4 but don’t overdo) •Goals •Strategic Implications •Size (THE SO WHAT!) •ISSUES caused by these •Structure •Any other relevant •Business Segments information •Justify why they are this type •Products / Markets & •Overall financial situation of CI Industries (Current NOT historical) •Identify and justify any Core •Corporate Level Strategy Competencies (Or lack of •Business Level Strategy them) ISSUES FROM Key Internal and External Issues Articulated why they are important to the organisation EXTERNAL Ranked in order of the overarching issue being your issue followed on with your other issues ANALYSIS LINKED TO YOUR ANALYSIS REMEMBER CD’s from VRIO MUST link to issues and vice versa 3 of 5
- 4. STRATEGY DEVELOPMENT INPUTS FROM Potential Strategies LINKING TO •Develop and Outline 2 strategies •Explain how they solve the issues Driving •Linked to the analysis Forces VISION Key Success Decision Criteria •Explain key reasons for one strategy over another Factors •Included a detailed appendix table on decision criteria Mission which: •Includes key decision criteria (Financial & Goals Mission Outcomes; Solves Issues) •Shows a points scale & Goals ISSUES •Explains the points scale Internal & External •Justifies why each strategy received its respective score Culture Culture Industry Analysis Corporate Recommended Strategy and •Outlined the Chosen Strategy Business Corporate and •Explained What’s good about it Strategy Business •Discussed Financial Implications Segments •LINKED TO ANALYSIS Strategy 4 of 5
- 5. STRATEGY IMPLEMENTATION Action Plan •Explained key steps regarding implementation •Given the financial cost/benefit of each stage •LINKED TO THE ANALYSIS •Included a detailed table in the appendix which gives sufficient information •Who, What, When, Deliverables, Key time Risk Assessment points, SMART goals. Project management. Overall Implications Any other models/headings/sections as appropriate Conclusion •Sum up the benefits that your strategy brings to the company PRESENTATION: •SELL IT AND CONCLUDE Defence against any objections What questions may be raised EXECUTIVE SUMMARY Final Report Publication Signoff – Project start 5 of 5
- 6. REMEMBER You have: 10 pages for •Internal •External •Strategy recommendations •Strategy explanation •Action plan •Conclusion Then an additional 5 pages of appendices Do not forget your: • Executive summary • Contents pages 6
- 7. LAYOUT Cover Executive Summary Contents Internal Strategic Profile Issues and Options VC/VRIO Main Issue Core Competency Other Issue Financial Priorities External Links to Analysis Industry Profile Strategic Alternatives 5 Forces Two viable Alternatives Industry profitability Solves Issues Driving Forces Decision Criteria (Decision Grid / Score) Key Success Factors Competitor Profile / Strategic Groups Justification Action Plan Who – What – When - Cost Timeline (Project Management) Grid Layout Appendices 7