Description
This is a presentation about strategy development.
Clarify the vision
Develop the strategy
Translate the strategy
Develop the plan
Strategic Plan
? Corporate-level strategy has received much criticism, yet remains a favorite management tool. ? Findings of Bain & Company Survey of Management Tools – ? 88% of the respondents used formal strategic planning ? High user satisfaction rating ? High satisfaction rating for planning process
?
Clarify mission, values and vision:
? Why does an organization exist?
? Jet Airways’ Mission Statement: “To be the most preferred domestic airline in India by offering high-quality service and reliable, comfortable and efficient operations.”
? What is truly important for the organization?
? Axis Bank core values: “Customer centricity, ethics, transparency, teamwork and ownership”
? What is the mid- to long-term goal of the organization?
? Asian Paints’ Vision Statement: “ To become one of the top five decorative coating companies worldwide by leveraging its expertise in the higher growth emerging markets.”
STRATEGIC CHANGE AGENDA: • Provides motivation for change • Compares the current state with the desired state • Example: • Strategy transformation of FBI after 9/11 • Recognition of the need to prepare and educate employees about massive changes ahead • Case driven to threat-driven organization • ‘Restricting more’ to ‘sharing more’ • From dependence of strategy on budget to dependence of budget on strategy • Necessity of communication of strategic changes and transitions required
ENHANCED VISION: • Linkage of functional units with business unit and corporate strategy • Provides a comprehensive picture of the enabling factors to achieve the vision
Strategic Analysis Internal Analysis
? Value Chain Analysis ? SWOT Analysis ? Balanced Scorecard Method
External Analysis
? PESTEL Analysis ? Value Chain ? Michael Porter’s Analysis Five Forces Model ? SWOT Analysis
?
Approaches to strategy:
? Blue Ocean approach – development of a creative and sustainable new competitive positioning. For eg., Southwest Airlines ? Experience co-creation – Developing value proposition along with customers. For eg., John Deere’s real-time system called Deere Trax ? Scenario Planning – Organization develops responses to competitive and environmental moves.
?
Outcome of strategy formulation approach:
? Developing a direction that differentiates company from its competitors
Strength/Weakness Poor capital utilization
Strategy Selection Value-based Management to define financial strategy
No distinctive brand or market presence
Positioning framework/Blue Ocean Strategy/ Customer Co-creation Approach
Resource-based view and Identification of core competencies Learning organization
Distinctive capabilities in important business processes Great human capital base
?
Three fundamental elements:
? Objective (O) – Ends that strategy is designed to achieve ? Advantage (A) – Means to achieve the objectives ? Scope (S) – Domain in which organization intends to operate
?
Components of strategic direction statement:
? Strategic Objectives – Specific goals ? Do-wells – Critical few activities that must be mastered if objectives are to be achieved ? Preliminary Measures – Potential measures to be used on Balanced Scorecard
? ? ?
Strategies are imitable. Incremental changes required even if strategy is working efficiently. Triggers of a transformational strategy:
? ? ? ? ? Failed strategy Technological change Major increase in input prices Foreign exchange revaluation Change in regulations leading to reduced barriers to entry
doc_582205494.pptx
This is a presentation about strategy development.
Clarify the vision
Develop the strategy
Translate the strategy
Develop the plan
Strategic Plan
? Corporate-level strategy has received much criticism, yet remains a favorite management tool. ? Findings of Bain & Company Survey of Management Tools – ? 88% of the respondents used formal strategic planning ? High user satisfaction rating ? High satisfaction rating for planning process
?
Clarify mission, values and vision:
? Why does an organization exist?
? Jet Airways’ Mission Statement: “To be the most preferred domestic airline in India by offering high-quality service and reliable, comfortable and efficient operations.”
? What is truly important for the organization?
? Axis Bank core values: “Customer centricity, ethics, transparency, teamwork and ownership”
? What is the mid- to long-term goal of the organization?
? Asian Paints’ Vision Statement: “ To become one of the top five decorative coating companies worldwide by leveraging its expertise in the higher growth emerging markets.”
STRATEGIC CHANGE AGENDA: • Provides motivation for change • Compares the current state with the desired state • Example: • Strategy transformation of FBI after 9/11 • Recognition of the need to prepare and educate employees about massive changes ahead • Case driven to threat-driven organization • ‘Restricting more’ to ‘sharing more’ • From dependence of strategy on budget to dependence of budget on strategy • Necessity of communication of strategic changes and transitions required
ENHANCED VISION: • Linkage of functional units with business unit and corporate strategy • Provides a comprehensive picture of the enabling factors to achieve the vision
Strategic Analysis Internal Analysis
? Value Chain Analysis ? SWOT Analysis ? Balanced Scorecard Method
External Analysis
? PESTEL Analysis ? Value Chain ? Michael Porter’s Analysis Five Forces Model ? SWOT Analysis
?
Approaches to strategy:
? Blue Ocean approach – development of a creative and sustainable new competitive positioning. For eg., Southwest Airlines ? Experience co-creation – Developing value proposition along with customers. For eg., John Deere’s real-time system called Deere Trax ? Scenario Planning – Organization develops responses to competitive and environmental moves.
?
Outcome of strategy formulation approach:
? Developing a direction that differentiates company from its competitors
Strength/Weakness Poor capital utilization
Strategy Selection Value-based Management to define financial strategy
No distinctive brand or market presence
Positioning framework/Blue Ocean Strategy/ Customer Co-creation Approach
Resource-based view and Identification of core competencies Learning organization
Distinctive capabilities in important business processes Great human capital base
?
Three fundamental elements:
? Objective (O) – Ends that strategy is designed to achieve ? Advantage (A) – Means to achieve the objectives ? Scope (S) – Domain in which organization intends to operate
?
Components of strategic direction statement:
? Strategic Objectives – Specific goals ? Do-wells – Critical few activities that must be mastered if objectives are to be achieved ? Preliminary Measures – Potential measures to be used on Balanced Scorecard
? ? ?
Strategies are imitable. Incremental changes required even if strategy is working efficiently. Triggers of a transformational strategy:
? ? ? ? ? Failed strategy Technological change Major increase in input prices Foreign exchange revaluation Change in regulations leading to reduced barriers to entry
doc_582205494.pptx