-> AIM: creating a sustainable competitive advantage.
-> HOW: Creating objectives and strategic plan.
-> It follows a number of steps:
| 1.ORIENTATION | Vision, Mission, Goals: business boundaries definition |
| 2.ANALYSIS or DIAGNOSIS | External Analysis SWOT Analysis Internal Analysis |
| 3.DECISION-MAKING | Strategic Alternatives Generation Strategic Alternatives Assessment and Selection |
| 4.IMPLEMENTATION | Strategy Implementation |
| 5.CONTROL | Control |
Orientation:
-> DEF: orientate the company to the markets;
-> HOW: Vision, Mission, Purpose, Objectives and Boundaries;
VISION: long-term view of the business of the company.
- Strategic direction;
- Aka: Industry Foresight.
- Industry specific: embraces the BA to evolution.
MISSION: the road map of how to achieve the goals set in the vision statement.
- Expected strategic role.
- Aka: Strategic Intent;
- Firm Specific: how a company should develop a strategy accordint to the trends.
PURPOSE: is the reason why the company exist.
OBJECTIVES: Goals steering the whole Strategy Formulation Process:
| Analysis or Diagnosis | Decision-Making | Implementation | Control |
-> Key Features: have to be SMART…
- SPECIFIC: shell be reliable on what they are focus on and what wants to achieve;
- MEASURABLE;
- APPROPRIATE: Consistent with the company mission and vision;
- REALISTICS: neather impossible nor too easy;
- TIMELY: must be related to a timeline
BOUNDARIES of BUSINESS AREA:
-> The different boundaries define the Business Area…
Analysis:
-> DEF: Core of the formulation process at business level.
-> Influence:
- Possibility to achieve its strategic objectives;
- Business strategies to reach objectives;
- Chances to create and sustain a competitive advantage.
-> We devide in:
- EXTERNAL: consider the external environment the company operates
-> Overall trends -> Opportunity/ Threat
- INTERNAL: focuses on a specific company;
-> Compare it to competitors -> Strengths/ Weaknesses
BENCHMARKING: competition or trial to understand how good is the company.
Decision Making:
-> From the SWOT we have to define some strategic alternatives…
-> We define strategic alternatives assessment and selection with…
| Scenario Analysis | Economic and Financial Forecasts | Sensitivity Analysis |
-> These will guide the strategic and enterpreneurial acumen.
Implementation
-> We will implement the strategy with Tactical Choices.
-> These are supported by different model, we use
BUSINESS MODEL: consider the implication of a company business straetgy on a unified set of builden blocks and parameters;
Monitoring
-> Control Steps = Budgeting Variance Analysis: studying delta between expected and achieved performances, understanding the causes
