STRATEGY
Posted by Gurdeep Singh Raina
What is strategy? Definition: strategy is what we want to do, what we want our organization to be & where we want it to go. Why do we need a strategy? - for understanding our position in the market place
- to give some sense of direction
- focusing on key issues What does a strategy involve: - Where are we now & how did we get there? What did we do well or badly to arrive at our current position
- What business are we in? Will this remain the same or will we need to change over business? If so, what?
- What factors, internal or external to the organization will or can have a telling impact on what we do in the future? The steps written in What does a strategy involve above are a continuous process. Where does strategy fit: Strategy Models: # Growth model Growing market share by reduction in production cost & increasing sales
# Porters 5 forces model:
# Growth by Mergers, Acquisitions & Takeovers
[Inorganic growth model]
- GE / Mckinsey Model [latest]
- BCG [old strategic tool]
- Value Chain Porter
- Core Competitiveness C K Prahlad/ Gary Hamel - GE / Mckinsey Model Its also called as Product Portfolio Matrix. - BCG - Value Chain - Core Competitiveness - How does activity X significantly improve the end product for the customer? - Does X offer access to a range of application & needs? - What would happen to our competitiveness if we lost our strength in X? - How difficult is it for others to imitate activity X & compete with us? - 7S Mckinsey Strategists:
Ansoff, Porter, Prahlad, Hamel, Mintzberg, Goldratt, Tom Peters Guidelines for strategic formulation:
- be different
- learn from the past
- change continuously
- be innovative
- involve people [CFT cross functional team] Strategic analysis:
- external environment SLEPTW analysis
- internal environment SWOT
- competition 5 forces model While making a strategy, look for the following perspectives also:
- strategic horizon
- alternate strategy
- leadership
- customers
- people
- control
- integration
- processes
- results During the process of strategic formulation:
- seriously question
- involve everyone
- avoid paralysis by analysis
- encourage & foster innovation & creativity
- go for a balance
- embrace conflict
- remember that strategy never stops 4 types of organizations:
- short lived
- watchers
- learning organizations &
- movers Strategic formulation & implementation: Learning strategy framework
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