Generic strategy development framework - English

Text

1. Evaluate 2. Conduct 3. Formulate 4. Plan

Situation Analysis Strategy Implementation

Business External Creativity Strategic

Action Plan
Definition Analysis Options

Future
Business Key Strategic
Industry Plans
Imperatives Insights Direction
Scenarios

Business Internal Risk and Financial

Constraints Analysis Reward Plan

Interviews and Desk Research Workshops and Business Plan

Workshops and Interviews Analyses Writing

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Restructuring framework

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Phase I Phase II Phase III Phase IV

Situation Target Implemen-

Restructuring Concept
Assessment Setting tation

Cost and Detailed

Financial Financial
Asset Planning
Review Needs
Reduction

Change Opport Restructuring

Targets Actions
Imperative unities Plan

Portfolio Performa
Strategic Bench-
Adjust- nce
Review marking
ment Mgmt

Project management
Stakeholder Communication

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Competitive strategy 3.0 framework

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1. Evaluate 2. Conduct 3. Formulate 4. Plan

Situation Analysis Strategy Transformation
Strategic Document Strategic Develop Preliminary
Direction and Objectives Action Plan
Objectives
Strategic Conduct Preliminary Analyze Market
Situation Assessment and Industry
Analysis
Conduct Customer
Analysis

Analyze Competition
and Positioning

Analyze Internal
Operations

Financial Conduct Value, Profiling Conduct Value, Profiling Conduct Financial Develop Financial Plan
Analysis and Benchmarking and Benchmarking Modelling

Solution Develop and Test Build Strategic Evaluate Strategic

Strategic Hypotheses Synthesis Options
Development
Develop Strategic
Recommendations

Project Manage Project and Communications

Management

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Strategy development - The fish

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Commercial Market

Market Competitive
Attractiveness Position

Strategic Position Projects &

Resources
Scope Scenarios
& Context & Options
Chosen CSFs
Insight
Strategy & KPIs
Strategic
Creativity
Issues
Monitoring
Financial Position

Economic
Growth
Profitability

Capital Market

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Strategy development - The loop

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COMMERCIAL MARKET STRUCTURE & RESOURCES

Market Attractiveness Competitive Position Organizational Architecture

Strategic Position Chosen Projects & Resources

Strategy

Scope & Context Scenarios & Options

Value
Insight Creation
Strategic Issues Creativity

Financial Position Critical Success Factors & Key Performance Indicators

Economic Profitability Growth Performance Monitoring & Incentive Compensation

CAPITAL MARKET MANAGED PERFORMANCE

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Backward strategic planning framework

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Mission: Why are we

in business?
Vision: Where do we
Values: What are our
want to be in 2010?
enduring principles
and beliefs?
Goal

Strategy: How do we
Actions driven get there?
by strategy

Where are
we now?

Time

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Incremental versus Dynamic strategic planning framework

Incremental Planning Process Dynamic Strategic Planning Process

Vision of where we
need to be five years
from now
Where can we be
next year?
Goal

Goal
Versus

Actions driven by strategy

Actions taken in
Where we response to Where are
are now? circumstances we now?

Time Time

Incrementalism Focus
[One reason why companies stagnate] [One reason why companies grow]

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7S

Text

Structure

Strategy Systems

Shared
values

Skills Style

Staff

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3Cs triangle

Text

Customer

Distributors

Clients Competitors

Suppliers

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Value creation

Text

Improve core
Redeploy
business
assets
performance

Maximize
shareholder
value

Adopt sound Grow through

financing acquisition
approach and/or merger
Grow
through
cultural
initiative

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Portfolio matrix

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High ROCE > CoC

(Industry Average Returns

above Cost of Capital)
Market Attractiveness

RO
CE
=
Co
C

ROCE < CoC

Low
Low High
Competitive Position
(Returns compared to Industry Average)

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Business portfolio 3x3

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High
Competitive position
Medium
Low

Low Medium High

Product/market attractiveness

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Business portfolio 3x3

Text

Competitive
advantage
Benefit

Competitive
disadvantage

Price

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Five forces

Text

Strong

New Entrants Moderate

Weak

Competitors
Suppliers Customers

Substitutes

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Activity map - Very detailed

Food Processing Food packaging Other

New Pumps Valves Plate heat Tubular heat Ohmic Separators Dryers Evaporator Tanks Homogenisers
Cartoning Canning Bottling Labelling Air Thermal &
Customised Standard Global
treatment energy
business exchangers exchangers heaters s
technology Standard

strengths Freezers & Aseptic Filtration Blow Conveyer Automation Control Filling Sealing Wrapping
Refrigerators processing equipment moulding systems systems lines
systems equipment

Installed Cartoning Canning Bottling Labelling

Pumps Valves Plate heat Tubular heat Ohmic Separators Dryers Evaporator Tanks Homogenisers
base exchangers exchangers heaters s

strengths Sealing Wrapping

Filling
Freezers & Aseptic Filtration Blow Conveyer Automation Control lines
Refrigerators processing equipment moulding systems systems
systems equipment

System design
/Application
engineering Systems Sub-systems

Installation Project Subcontractor

management management

Service
Own 3rd party Customer Upgrades/ Contract Time/materi Spare
maintenance maintenance DIY modifications al parts

Liquid Hybrid Dry Processed

End use
Industry
Dairy Brewing Soft drinks Juices Cheese Ice Cream Soups/sauces Baked Snacks/ Cereals Baby Food Oil/fats/mar Convenience food
Confectionery garines Strong position
Distribution
channel System Sales force OEM Direct Independen Agent
Average

t
Weak position
Customer
MNC Regional National No position

Geographic
markets N.America L.America W.Europe E.Europe Middle East
& Africa
Asia Japan Australasia

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