STRATEGIC PLATFORM &

PROFILING THE COMPANY

ESSENCE OF STRATEGIC

PLANNING

Fit between an organisation and her environment (now and in the future)

Deliberate strategy (in moderately dynamic situations)

Emerging strategy (in turbulent situations)

STEPS

Strategic platform & internal analysis

Country/market selection

Analysis of fit between organisation and chosen market environment

Big idea (basic strategic choice)

STP and marketing mix

Allocation of resources

Controlling the effort

STRATEGIC PLATFORM

Mission, goals and objectives

Current domain (Abell)

Core competencies (sustainable competitive advantage)

Business model

Principle choice growth- & competitive & value strategy

ABELL

Segments

Technology

Customer needs

COMPETITIVE

ADVANTAGE (ALSEM)

Identification of success factors

Sources of advantages

Superior competencies

Superior resources

Positional advantages

High customer value

Low relative costs

Results

Satisfaction

Loyalty

!

Market-share

Profit

Plough back profits to maintain competitive advantages

BUSINESS MODEL

PRINCIPLE STRATEGY

Growth: market penetration, product/market development, diversification (Ansoff)

Competitive: cost leadership, differentiation, focus (Porter)

Value: productleadership, operational excellence, customer intimacy (Treacy & Wiersema)

INTERNAL ANALYSIS

Objective: determine strategic competencies and limiting factors

Analysis of value chain

Audit of functional areas

Resource and capability analysis

Portfolio analysis

Ambition, focus, resources, competencies, courage

ANALYSIS OF VALUE

CHAIN

TECHNOLOGY DEVELOPMENT

HUMAN RESOURCE MGT

FIRM INFRASTRUCTURE

PROCUREMENT

INB

OU

ND

LO

GIS

TIC

S

MA

RK

ET

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&SA

LE

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OP

ER

A-

TIO

NS

OU

TB

OU

ND

LO

GIS

TIC

S

AF

TE

R S

AL

ES

&SE

RV

ICE

MARGIN

AUDIT OF FUNCTIONAL

AREAS

PILOFACHO

Marketing audit (Kotler)

RESOURCE AND

CAPABILITY ANALYSIS

Inputs into a firm’s production process (tangible: capital equipment, finance, patents - intangible: skill of employees and managers, relationships with market en suppliers)

Capacity to effectively and efficiently integrate and deploy available resources

PORTFOLIO ANALYSIS

BCG matrix

MABA/general Electric

AMBITION, FOCUS, RESOURCES,

COMPETENCIES, COURAGE

Ambition: does the idea/project fit the organisation’s mission?

Focus: does the idea/project fit in with the main strategy and the business model?

Resources: is the idea/project feasible given the available resources?

Competencies: idem know-how/knowledge/skills?

Courage: is the idea/project risk acceptable?

COUNTRY SELECTION

Preliminary environmental scan & internal analysis

Attractiveness & compatibility matrix

After initial selection more detailed environmental analysis

STRATEGIC FITEconomy

Demografics

Politics,

laws

Ecologie

Technology

Social-

cultural

Owners,

banks

Govern-

ment

CompetitorsEmployees

Public

Media

Stakeholders

Suppliers,

partners

Customers

Porter value chain

EXTERNAL ANALYSIS

Country/market selection

DESTEP

Market & customer analysis

Industry & competitive analysis

Distribution & supplier analysis

MARKET & CUSTOMER

ANALYSIS

Quantitative: market & segment size, market growth percentage, business and economic cycles & trends, number of customers & prospects, customer pyramid, customer life value, buying power.

Qualitative: customer types, buying behaviour, DMU, buying criteria & motives, brand preferences, criteria in supplier choice, unmet needs.

6 W’s: who is the customer, what are the product benefits for them, why, where & when do they buy/don’t buy.

INDUSTRY ANALYSIS

COMPETITOR ANALYSIS

Determine competitorsDetermine goals of

competitors

Determine strategies of

competitors

Assess probable reaction

patternsAttack and avoidance

Determine strengths

and weaknesses of

competitors

DISTRIBUTION &

SUPPLIER ANALYSIS

Distribution analysis (up- en downstream)

Supplier analyse

BIG IDEA

Use market opportunities, while avoiding dangers, by using powers and maximise use of limiting factors (SWOT-I)

Creativity, know current innovations, risk acceptance, adaptation of the organisation.

Why, how, when, by Whom at Which costs.

APPRAISING SWOT

ELEMENTS

What is the impact of ... happening?

What is the probability of ... happening?

What is the time horizon of ... happening?

Can we manage issues and risks if .... occurs?

S-T-P & MARKETING MIX

Segmentation

Targeting

Positioning

Marketing mix

ALLOCATION OF

RESOURCES

Budget system’s purpose is distributing resources, co-ordinating activities & controlling implementation

Financial paragraph: master-budget, capital budgeting & budget request

Financial accounting: controlling expenses + cash out & verifying revenues + cash in

CONTROL

Balanced Score Card

Market research

Financial results

Situation reports on plan execution and reaching milestones

MISTAKES

Misunderstanding basic theories and models

Misunderstanding logic behind the plan model

Overemphasising analysis versus underemphasising concrete do’s and dont’s

Uni-disciplinary analysis & quality of base data (uncorrelated data, facts versus opinions)

Ist versus soll - (uncritical) description versus analysis, evaluation and drawing conclusions

No or unclear/overcomplex conclusions

No connection between research objective - analysis - conclusions - proposed actions

Questionable acceptability & feasibility