The Strategy Process

STRATEGIC ANALYSIS Identify current strategy Assess current performance / Analyze sources of strategic tension Options DIRECTION SETTING & STRATEGY CREATION Strategic Choice IMPLEMENTATION

Action Plan
Support strategy: Finance Accounting Operations Marketing

(Recommendation)

Levels of Strategy

Issue
Start by recognizing the the decisionmakers role in the case. CEO? Division manager? VP? Clearly identify the issue/ problem this company is facing as part of our assessment Avoid options or plans or potential solutions here Keep the identified issue front and centre as you move through the analysis, recommendation, and action plan.
During the analysis, ask yourself: am I looking at all aspects of the issue? At the end, ask yourself: does my recommendation and my suggested action plan truly address the issue?

Analysis: External
What is going on in the industry?
What trends are happening in the industry?

Key Success Factors (KSFs)

What do firms need to do to win in this industry?

Analysis: Internal
Current company/ strategy size up: Diamond-E framework Is there good alignment between the elements or are there gaps? What does the performance matrix show? (quantitative and qualitative metrics) What is the companys competitive advantage? Is it sustainable?

Components of Strategy
GOALS

VALUE PROPOSITION

PRODUCT MARKET FOCUS

CORE ACTIVITIES

What are the components of the strategy? Are they aligned?

Options
Develop and analyze alternatives that are..
Viable Distinct Listed in case and/ or developed by you

Assess pros and cons thinking through all the aspects (strategic, financial, organizational) Be careful that you are not already supporting a foregone conclusion!

Recommendation
Pick one of the options that you have previous ly developed
Your process is off if you recommend something that did not appear as an option before

Do not just reiterate the pros listed under your option to support your choice, but explain why you think that the pros for your choice outweigh those of the other options Be upfront about the cons and discuss if and how you think that you can deal with them effectively

Action Plan
Who will do what What is the timeline for implementation? Think through the different functional areas of the firm

Remember
Use the frameworks, tools, and concepts from the course to structure and deepen your thinking, and never allow them to constrain you