Strategic Model Haseeb Asm56

Submitted to: MS.
Zulaikha Mahmood
Submitted by: Haseeb Tahir (MBA 5)
Roll #: L - 21208
Department of Managment science

Strategic planning Model ABCDE
The ABCDE model very useful model for understanding the flow of stratergy
From begning to the End Cycle of strategic planning/execution activities Any
organization, business or individual, who wishes to maximize his potential, and to
plan effectively both for the present and the future, should undergo and prioritize
strategic planning. This means considering not only how to react, but planning how
to act, not simply going from crisis to crisis, but evaluating in advance, and
learning how to prioritize one’s actions based on needs and degree of importance
and relevance
A _ Assessment of current situation. This element involves scanning the external

environment, competitive scanning, assessing the current situation; and clarifying
perceptions of problems, needs, and opportunities. I provided two useful ideas for
this sensing environmental context in this earlier article.
 Its include SWAT analysis
 Its include PEST analysis
B – Baseline the gap. This element involves identifying performance gaps, and
evaluating trends.
2
C – Components of strategy. Example components of strategy include common
concepts like core competencies, values, mission, vision, metrics, goals and
objectives, portfolios, and processes. Vision is the most important of the
components (in formulating and executing a strategic initiative). This describes the
point where managers would select and fund strategic initiatives as a ‘C’
component.
D – Delivery of component. This is the delivery of the strategic initiative, as well

as other programs, projects, and operational work. As part of this, executives will
formulate action plans; benefits capture plans, targets, standards, and metrics.
E – Evaluation of progress. This includes review of progress, reporting, tweaking

of goals, corrective actions, and learning.
You could think of ABC as the process of strategy formulation and the DE as the
strategy execution piece. (For the record, I think it is unhelpful to separate strategy
formulation and execution; both require strategic thinking.
I/O Model of Above Average Return
External Environment
 Strategy dictated by the external environment of the firm (what opportunities

exist in these environments?)
 Firm develops internal skills required by external environment (what can the
firm do about the opportunities?
Four Assumptions of the I/O Model
1. The external environment is assumed to possess pressures and constraints

that determine the strategies that would result in above-average returns
2. Most firms competing within a particular industry or within a certain

segment of it are assumed to control similar strategically relevant resources
and to pursue similar strategies in light of those resource.
3. Resources used to implement strategies are highly mobile across firms
3
4. Organizational decision makers are assumed to be rational and committed to
acting in the firm’s best interests, as shown by their profit-maximizing
behaviors
Industrial Organization Model
1 . External Enviorment
Study the external environment, especially the Model The External Environment
industry environment.
• economies of scale
• barriers to market entry
• diversification
• product differentiation
• degree of concentration of firms in the industry
External forces affect the types of products developed, the nature of positioning
and market segmentationstrategies, the type of services offered, and the choice of
businesses to acquire or sell. External forces directlyaffect both suppliers and
distributors. Identifying and evaluating external opportunities and threats
enablesorganizations to develop a clear mission, to design strategies to achieve
long-term objectives, and to developpolicies to achieve annual objectives.
2 . An Attractive Industry
4
Locate an attractive industry with a high potential for Model The External
Environment.
An Attractive Industry above-average returns Attractive industry: one whose
structural characteristics suggest above-average returns
3 .Strategy Formulation
Identify the strategy called for by the attractive industry Model The External
Environment to earn above-average returns.
An Attractive Industry Strategy Formulation Strategy formulation: selection of a
strategy linked with above-average returns in a particular industry
4 .Assets and Skills

Develop or acquire assets and skills needed to implement Model The External
Environment the strategy
An Attractive Industry Strategy Formulation Assets and Skills Assets and skills:
those assets and skills required to implement a chosen strategy
5 . Stratergy implementation
Use the firm’s strengths (its developed or acquired assets Model The External
Environment and skills) to implement the strategy
An Attractive Industry Strategy Formulation Assets and Skills Strategy
Implementation Strategy implementation: select strategic actions linked with
effective implementation of the chosen strategy

Strategic Model Haseeb Asm56

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Submitted to: MS.

Submitted by: Haseeb Tahir (MBA 5)

Department of Managment science

A _ Assessment of current situation. This element involves scanning the external

D – Delivery of component. This is the delivery of the strategic initiative, as well

E – Evaluation of progress. This includes review of progress, reporting, tweaking

I/O Model of Above Average Return

 Strategy dictated by the external environment of the firm (what opportunities

Four Assumptions of the I/O Model

1. The external environment is assumed to possess pressures and constraints

2. Most firms competing within a particular industry or within a certain

3. Resources used to implement strategies are highly mobile across firms

Industrial Organization Model

4 .Assets and Skills

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