Alexander Consulting Enterprise 10/15/2015 Strategic Planning

Alexander Consulting EnterpriseAlexander Consulting Enterprise 04/20/2304/20/23

Strategic Planning


Strategic Planning

Xenophon

“Strategy is the Art of Maintaining one’s Ability to Make Proactive Decisions”.


“Strategy is a System of Improvisations. It is the ongoing evolution of the central idea under constant changing conditions, it is the art of acting under difficulties and pressure”

Helmuth Karl Bernhard von Moltke

“Moltke’s beliefs brought us to a series of questions that were much more useful for me over the years than all the data crunching in strategic plans”.

Jack Welch


Strategic Thinking

Strategic Thinking Operative Thinking

-Deals with Important Issues -Deals with Pressing Issues -Contains Irrational and subjective -Contains Rational and Elements Objective Elements-Is Based on Holistic -Is Based on Incremental Thinking Thinking-Anticipates the Incalculable - Is Based on the Calculable-Reflects General Knowledge - Reflects specific Knowledge and Intuition and Skills


Basic Questions of Strategic Planning:

1. Where are We?

2. Where Do We Want to be?

3. How Do We Get There?


1. Where are We?Analysis of:

Present Environment- Industry Environment

Size, Growth, Maturity Fragmented versus Concentrated Profitability of Industry Target Market Positioning

- Competitive Environment- Legal Environment- Political Environment- Socioeconomic Environment- Technical Environment

Technical Innovations Technology driven versus Image and Service driven


Analysis of: Company Resources

- Financial - Human- R & D- Sources of Supply- Alliances and Strategic Networks- Synergies - Company specific Know How and Skills- Connections with Customers, Politicians, Governmental Agencies, Related Companies

1. Where are We? (cont..)



Analysis of: Core Competencies Outsourcing versus Transaction Cost Competitive Advantage

Cost Leadership Differentiation

Strength and Weaknesses Critical Factors of Success Benchmarking

Product Life Cycle Portfolio Theory

BCG Model GE Model

SWOT

Present Situation


BCG Model

Relative Competitive AdvantageHigh Low

Hig

hL

owM

arke

t Attr

activ

enes

s

Star

DogCash Cow

?

Cash Cow = Invest to Keep Operation RunningDog = DivestStar = Invest to stay Market Leader? = Either Divest or heavily Invest to become better Competitor


BCG Model

Market Attractiveness Growth Size Competition Environment

Legal Political Socioeconomic

Quality Profitability Fragmentation Price Elasticity Market Entry Barriers Risk of Substitution Negotiation Power Risk of Unions

Sourcing Possibilities

Relative Competitive Advantage Market Share Production Efficiency

Cost Capacities Accesses to Input Factors

Image R&D Efficiency Management Efficiency Core Competencies Alliances and Joint Ventures Synergies


Why should you Become a Leading Competitor?

Economies of Scale Economies of Scope Economies of Information Experience Curve

Relative Market Share

ROI

Relative Market Share = Market Share Market Share of Strongest Competitor



Analysis of: How to Create Value for the Customer?

- Value Chain Product/Segment Growth Model

- New Products- New Segments

Wants/Customer Model- Articulated Wants- New Customer

Competency/Market Model- New Markets- New Core Competencies

Potential forFuture


Product Design

Purchasing MarketingLogistics RetailingDistribution

Applied Competencies

Competitive Advantages

Value Chain

Support Activities


Product/Segment Growth Matrix

New

NewExisting

Existing

Segments

Products

ProductDevelopment

MarketPenetration

MarketDevelopment

Diversification


Wants/Customer Model

„The Customer is always right“

“The Customer does not know what she does not know”


Not Articulated

NewExisting

Articulated

Customer

Wants

Wants/Customer Model


New

NewExisting

Existing

Market

Core Competence

Competence/Market Matrix


2. Were do We Want to be?

Vision Company Mission Company Objectives

Setting of:

Cor

pora

te I

dent

ity


“Fantasy is more important than knowledge. Knowledge is always limited. Fantasy can capture the whole world.”

Albert Einstein

Company Vision

2. Were do We Want to be? Cont..


Vision

Company Mission

Strategy- Company- Strategic Units

Operative Direction

Organization

Implementation

Com

pany

Cul

ture

3. How do We Get There?


3. How do We Get There?Strategic Marketing/Business Plan (some minimum requirements):

Market Segmentation- Demographics- Psychographics- Geographics - Ethnographics

Select Target Market- Volume Potential- Margin Potential- Persuasion Potential

Product Positioning- How is the Product Perceived Relative to Competitors’ Offerings?- Company and Brand Image- Country of Origin Effect?


3. How do We Get There? (cont..)

Marketing Mix- Product

Physical Attributes Packaging Me Too versus Innovation

- Price Elasticity Skimming versus Penetration

- Placement- Promotion

Advertising Personal Selling Public Relation Promotion


Supply Chain

Human Resources

Financial Evaluation Sales Forecast Break Even Analysis Pro Forma Financial Statement

3. How do We Get There? (cont..)

Documents

Alexander Consulting Enterprise 10/15/2015 Strategic Planning