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Lafley and Martin’s Five-Step Strategy Model

 Strategy can be created using a simple

framework and can be understood as the
answer to the following 5 questions
regardless of the size, context and type of
organization.

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 What should be the winning aspiration?
 Where you are going to play?
 How you are going to win?
 What capabilities you should build?
 What management systems are needed?

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 What should be the winning aspiration?
 Companies have ambitions that are framed
as vision and mission.
 Organizations should look for ways to win at
a particular place in a particular way.
 If you are not trying to win, you are just
participating and wasting the time of your
customers and money of your investors.

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 Winning aspirations vary from one industry to
the other.
 Organizations should conceptualize what
winning means to them.

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 Where you are going to play?
 This question determines with which
customers, in which markets, which product
categories and channels, the organization
should compete.

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 How you are going to win?
 The answer to this question is connected with
the former question. It entirely depends on
the choice you make.

 Once you have decided regarding how you

can create unique value and how your
organization can deliver it in long term for
better results.
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 What capabilities you should build?
 Capabilities can be said as the map of
activities that underpin choices like where to
play and how to win.

 No strategy will succeed without capabilities.

 To build capabilities, one should discuss and
refine their activity system.

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 What management systems are needed?
 Strategies should be properly measured and
efficiently executed by the people.

 It is important for organizations to know who

they need, how to integrate them and how
they can realize if the strategy is really
succeeding.

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