Transcript Slide 1

Strategic Management
Leveraging Individual Strategic Thinking
©
to Produce
Superior Organizational Performance
by
Alan W. Kennedy
February 2015
© 2015 Alan W. Kennedy on behalf of Schulich Executive Education Centre (SEEC). All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
recording, photocopying or otherwise, without written permission of the copyright holder.
©
©
Module 1
Course Introduction
©
About the Presenter
Alan Kennedy B.A. LLB. CMC
Alan is a founding partner of Gibson Kennedy & Company, a Toronto
consulting firm offering Canadian clients strategy counsel and competitive
research services since 1990. Gibson Kennedy is the authorized
correspondent in Canada for Kaiser Associates Inc., a Washington-based
consultancy offering global competitive research services to North American
based clients. Alan’s practice focuses exclusively on matters of strategy and
capital projects planning and communication. Alan has extensive governance
experience developed from attendance at more than
© 500 board meetings.
Alan has been teaching Strategic Management for the Schulich Executive Education Centre since
1992. Alan is a member of the faculty for Management I, a one week course for new managers, and
the Insurance Industry Leadership Program. Alan is a frequent speaker on matters of strategy, risk,
and project management of major capital projects. Alan ’ s book, The Alpha Strategies –
Understanding Strategy, Risk, and Values in Any Organization, listed as a Kirkus Best Books of 2013,
is available at online retailers everywhere and at www.thealphastrategies.com
Alan is a Honor Roll CMC member of the Canadian Association of Management Consultants. Alan
received his degrees from Dalhousie University and served as Senior Vice President & General
Counsel for both Oxford Development Group and Campeau Corporation and as a member of the
Board of Directors for both companies.
©
Table of Contents
Day One: Situation Analysis
Module 1: Course Introduction
1 – 1 – 27
Module 2: Getting Ready to Plan
1 – 28 – 39
Module 3: Internal Assessment
1 – 40 – 50
Module 4: External Assessment
1 – 51 – 60
Day Two: Strategic Planning
Module 1: Course Introduction
2 – 1 – 27
Module 2: Getting Ready to Plan
2 – 28 – 39
Module 3: Internal Assessment
2 – 40 – 53
Module 4: External Assessment
©
2 – 54 – 71
Day Three: Business Planning
Module 1: Strategic Plan Review
3 – 3 – 19
Module 2: Expectations of the Strategic Plan
3 – 20 – 35
Module 3: Impact of the Strategic Plan
3 – 36 – 46
Module 4: Business Plan Strategy Development
3 – 47 – 55
Schedules
English Bay Situation Analysis
Schedule “A”
Tarion Strategic Plan
Schedule “B”
Goldstone Branch Business Plan
Schedule “C”
Bibliography
Schedule “D”
©
Your Expectations
©
-
©
Course Objectives
1. How to prepare and to evaluate a situation analysis
2. How to prepare and to evaluate a strategic plan
©
3. How to prepare and to evaluate a business plan
©
Module 1
Course Introduction Topics
1. An overview of the course and content for each day
Deliverables
The 12 modules
2. The strategy model
The 8 strategies
3 types of strategy
©
Origins of the strategy system model
3. Overview of strategy development process
The 4 types of expectations driving strategy development
The 3 steps in strategy development
4. Definition of major terms to be used in the course
©
Course Deliverables
Day 1
1. Course Overview
Produce a Situation Analysis
©
Day 2
Produce a Strategic Plan
Day 3
Produce a Business Plan
©
Definitions
1. Course Overview
Situation
Analysis
The knowledge base to support strategy decisions
Strategic
Plan
A review of the 8©strategies common to all
organizations
Business
Plan
An alignment of functional activities with expectations
created by the strategic plan
©
Strategy Planning in 12 Steps
1. Course Overview
1. Choice of Planning Process: Should we be doing strategic planning or business planning?
Situation
Analysis
2. Scoping Expectations: Have we assessed the expectations for strategic planning?
3. Internal Assessment: Do we truly understand the what’s, how’s and why’s of our current strategy?
4. External Assessment: What factors in the external environment must we truly understand?
5. The Situation Analysis Review: Do we have enough understanding to support informed decisions?
Strategic
Planning
6. Issue Development: Are we able to connect external factors to the strategy framework?
©
7. Strategic Issue Identification: Are we able to develop scenarios to identify possible strategic issues?
8. Strategic Plan Communication: Have we described the likely “what” and “when” impact of change?
9. Strategic Plan Review: Do we understand the strategic plan and how it is likely to impact us?
Business
Planning
10. Expectations Impact: Can we identify the impact of strategic plan expectations on functional activities?
11. Expectations Testing: Are the strategic plan expectations consistent with competitive reality ?
12. Strategy Implementation: How are new expectations (if any) to be integrated with ongoing responsibilities?
©
The 4 Steps of Situation Analysis
Step 1
Step 2
Step 3
Step 4
Identify Type of
Planning Required
Identify CEO / Board
Expectations
Conduct Internal
Assessment
Conduct External
Assessment
Confirm Responsibility
for all 8 Strategies
Identify
Authority Group
Convert 8 Strategies
to Org Design
Identify What
Management Knows
Assess
Appetite for Change
Evaluate Activity
Strengths/Weaknesses
Separate Need to Know
from Nice to Know
Prepare Scope
for Planning Project
Use Evaluation to
Identify External Factors
Study Factors for
Actionable Information
©
If less than 8,
Go to Business Planning
©
Step Objective
1. Course Overview
1. Choice of Planning Process:
Should we be doing strategic planning or business planning?
Identify Type of
Planning Required
Confirm Authority
for all 8 Strategies
Identify CEO / Board
©
Expectations
Conduct Internal
Assessment
Conduct External
Assessment
Identify
Authority Group
Assess
Appetite for Change
Prepare Scope
for Planning Project
©
8 Strategies
are Common to all Organizations
2. The Strategy
Model
©
©
The starting point for all strategy
2: The Strategy
Model
The 8 Strategy Model
Strategy
General Description
Business Definition /
Mandate
Focus on positioning the business / interpreting mandate parameters
Risk
Focus on the unacceptable and ways to manage it
Growth
© rate of growth
Focus on type and
Financial Management
Focus on sourcing, allocation, and management of capital & revenues
R&D / Technology
Focus on the creation and/or use of intellectual capital / technology
Organization Mgmt
Focus on sourcing, allocation, and management of human resources
Marketing & Sales /
Communications
Focus on identifying and capturing customers / clients
Service Delivery / Production /
Manufacturing
Focus on fulfilling the marketing / communication promise of value /
relevance
©
The Generic Sub-Strategies
2. The Strategy
Model
Business
Definition /
Mandate
Business Positioning: Niche, Specialty, Commodity
Mandate: Narrow Interpretation; Middle-of-the-Road; Broad Interpretation
Risk
Focus: Internal; External; Both
Management: Accept, Avoid, Transfer, Reduce
Growth
Type: Internal, External (acquisitions, partnerships, alliances, joint ventures)
Rate: Bigger, Smaller, No Change
Financial
Management
Sourcing: Debt, equity, self-funding
Allocation: Stars, Cash Cows, Question Marks, Dogs
© Both
Management: Performance; Control,
R&D / Technology
Purpose: To enable productivity; to create competitive advantage
Type: Follower, Leader, Adapter
Organization
Mgmt
Sourcing: Internal; External
Allocation: (Org Design) Centralized, Decentralized, Functional, Lines of Business,
Geographical
Management: Rigid Expectations, Flexible, Laissez-faire
Marketing / Sales
Communications
Identifying: (Marketing 4Ps): Product / Service; Price; Place; Promotion
Capturing: (Sales): Targeting; Approaching; Pitching; Converting; Closing; Follow-Up
Service Delivery /
Production /
Manufacturing
Needs / Requirements;
Inputs
Production
Delivery
Follow-up
©
Source of The 8 Strategies
2. The Strategy
Model
©
©
3 Types of Strategy
are Common to all Organizations
2. The Strategy
Model
©
©
Source of the 3 Types of Strategy
2. The Strategy
Model
©
©
2. The Strategy
Model
Services
Avoid
Acquisitions
Transfer
©
Specialty
Place
Use
Internal Growth
Equity
Production
Debt
Control
Centralized
Lines of Business
©
The Dynamic Strategy System
2. The Strategy
Model
©
©
4 Types of Expectations
Driving Strategy Development
2. The Strategy
Model
©
©
Strategy Development in 3 Steps
3. Strategy
Development
1. Getting the Facts / Becoming Informed
Scoring
1 = Not Very Important
Name
1
2
Focus
on
Process
4 = Neutral
Focus
on
Results
7 = Very Important
Comments
©
3
4
5
6
©
3. Strategy
Development
2. Conducting Analysis
Process (Strategy) Very Important
7
6
5
1
2
3
5
6
7
©
Results (Metrics)
Not Important
3
Results (Metrics)
Very Important
2
1
Process (Strategy) Not Important
©
Step 3: Strategy Selection
3. Strategy
Development
Process (Strategy) Very Important
Results (Metrics)
Not Important
©
Results (Metrics)
Very Important
Process (Strategy) Not Important
©
Strategy Development
Characteristics
3. Strategy
Development
1. Strategy development is driven by imposed expectations
2. Strategy development is fueled by timely & relevant facts
3. The time required to become informed is usually underestimated
4. The strategy development process should provide insight
- possible choices of action ©
- on current chosen strategy
- on what is required to move from current strategy
5. “Selling” a recommended strategy for approval is a different process
©
Definitions of Major Terms
4. Definitions
Strategy
A description of chosen action
Strategic Planning
A review of the 8 strategies common to all for-profit and nonprofit organizations
Business Planning
Any subsequent strategy planning to implement the expectations of the organization’s Strategic
Plan
Strategic Issue
A Strategic Issue is a question whether to replace
© or to improve existing strategy
Strategic Management
Strategic management is the leveraging of strategic thinking of individuals
Strategic Thinking
Strategic thinking is thinking about how imposed expectations and the realities of the external
environment should impact the management of assigned responsibilities
Expectations: Guidance on the hoped-for outcome
Metrics: Anything expressed as a number
Vision: A description of the successful outcome from long term pursuit of dominant strategy
©
Module 1
Course Introduction Topics
1. An overview of the course and content for each day
Deliverables
The 12 modules
2. The strategy model
The 8 strategies
3 types of strategy
©
Origins of the strategy system model
3. Overview of strategy development process
The 4 types of expectations driving strategy development
The 3 steps in strategy development
4. Definition of major terms to be used in the course
©
Module 2
©
Getting Ready for Planning
It isn’t the unkown that gives us trouble. It what we know that ain’t so.
Will Rogers
©
Module 2:
Getting Ready for Planning
1. Overview of output and process for situation analysis
2. SWOT Analysis and how to make it more powerful
3. Stakeholder Analysis
- Identification of Stakeholders
©
- Appetite / Expectations / Strategy Understanding Analysis
4. Planning as a project
©
Day One Output:
Situation Analysis Report
The Scope of
Acceptable
Change
Internal
Assessment
2. Overview
-The Planning Scope
- Stakeholder Analysis & Appetite for Change
- Current Strategy Analysis and Configuration
©
External
Assessment
- Customers & Markets
- Industry Analysis
- Competitors
- Trends
- Best Practices
Conclusions
- A listing of factors most likely to impact the Firm
- Preliminary insights on questions of strategy
©
Step 2 Objectives
2. Overview
2. Scoping Expectations:
Have we assessed the expectations for strategic planning?
Identify Type of
Planning Required
Identify CEO / Board
Expectations
Conduct Internal
Assessment
Conduct External
Assessment
©
Confirm Responsibility
for all 8 Strategies
Identify
Authority Group
Assess
Appetite for Change
Prepare Scope
for Planning Project
©
Traditional SWOT
2. SWOT
©
The TOWS Matrix, A Tool for Situational Analysis Heinz Weihrich, 1982 .
http://www.usfca.edu/fac_staff/weihrichh/docs/tows.pdf
©
8 Strategy SWOT Analysis
on English Bay
2. SWOT
Under Norcross Control – Strategy Strengths & Weaknesses
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

©
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
Not Under Norcross Control – External Factors (Opportunities / Threats)

©
A Framework for SWOT
The Alpha
Strategies
Strengths
Weaknesses
Opportunitie
s
2. SWOT
Threats
Business Def / Mandate
Risk
Growth
Financial Management
©
R&D /Technology
Organization Mgmt
Marketing/Sales /Comm
Service Delivery /
Production /
Manufacturing
©
Stakeholder Identification
Who are the major stakeholders?
Stakeholder Categories
The Authority Group
Those Stakeholders who approve the plan and
authorize implementation
The Involve Group
Stakeholders who should be involved because of the
©
role they will play in implementation
The Inform Group
Stakeholders who need to be told what to do so that
their actions are consistent with implementation
The Consider Group
Any Stakeholders not falling in any of the above
categories and who could have a response to
implementation
2. Stakeholders
Actual Stakeholders












©
Stakeholder Expectations
Now we know “Who” they are,
what do they want?
Stakeholder
Categories
Actual
Stakeholders
The Authority Group



The Involve Group



The Inform Group



The Consider Group
2. Stakeholders
Expectations
©



©
2. Stakeholders
Scoping Appetite /
Expectations /
Understanding
Circle the symbol that is Norcross’ likely answer
X means change is acceptable ● means change is not acceptable
Question: What does it mean if not all 8 strategies can be candidates for change?
Business Definition
Risk
Growth
X
X
X
©
● ● ●
●
X
Financial
Management
●
● ●
X
Marketing / Sales
Store Operations
X
Organization
Management
●
X
R&D
/ Technology
X
Manufacturing
(Outsourced)
©
Strategic Planning as a Project
Project Element
2. Stakeholders
Description
Objective
Scope
Methodology
©
Schedule
Major Mile Stones
Deliverables
©
Module 2:
Getting Ready to Plan
1. Overview of output and process for situation analysis
2. SWOT Analysis and how to make it more powerful
3. Stakeholder Analysis
- Identification of Stakeholders
©
- Appetite / Expectations / Strategy Understanding Analysis
4. Planning as a project
©
Module 3
©
Internal Assessment
©
Module 3:
Internal Assessment
1. Overview of process
2. Configuring the strategy system
2. Moving from strategy to organization design
©
4. Current Strategy Performance Assessment
- Strengths & Weakness Identification
- External Factors Impacting Strategy
5. Initial English Bay Strategy Conclusions
©
Step 3 Objectives
3. Overview
3. Internal Assessment:
Do we truly understand the how’s and why’s of our current strategy?
Identify Type of
Planning Required
Confirm Responsibility
for all 8 Strategies
Identify CEO / Board
Expectations
©
Conduct Internal
Assessment
Identify
Authority Group
Convert 8 Strategies
to Org Design
Assess
Appetite for Change
Evaluate Activity
Strengths/Weaknesses
Prepare Scope
for Planning Project
Use Evaluation to
Identify External Factors
Conduct External
Assessment
©
Configuring the Strategy System
3. Strategy System
©
Source: Seeingstrategy.com
©
From 8 Strategy Model
to Organization Design
3. Org Design
©
©
From 8 Strategies to Organization Design 3. Org Design
8 Strategy Framework
EB Organization
EB Organization Design
Business Definition
Risk
- Oversight
Norcross
Growth
- Financial Mgmt
Financial Management
Technology
Organization Management
Lyons
©
Taglietalla
Marketing
Service Delivery /
Productivity
- I.T.
- H.R.
- Buying
Mayweather
- Operations
- Marketing
- Store Operations
©
From 8 Strategies
to Org Design
EB Organization
Norcross
- business definition
- risk
- growth
Lyons
- financial management
- technology
Taglietalla
- organizational management
Mayweather
- marketing
- service delivery / production
3. Org Design
English Bay Organization Design
Specific Activities
- Oversight
- Borrowing
- Sale of EB / Joint Ventures
- New Store Openings
- Expenditures approval
- Financial Mgmt
- Payroll
- Receivables
- Internal Accting
- I.T.
- Systems Admin
©
- H.R.
- Compensation
- Policy Admin
- Buying
- Competitor surveys
- Hindsight analysis
- Operations
- Receiving
- Sorting
- Reshipping
- Marketing
-Product: Private Label
-Pricing: Value
-Promotion: In-store promos and direct
mail
- Store Operations
- Hiring
-Training
- Sales
©
What are the
EB functional strategies?
3. Strategy
Performance
1. Within each function, which specific activity has become the functional strategy over time?
2. What makes functional strategy so hard to identify?
EB Org Design
Specific Activities
-Oversight
- Borrowing
- Sale / J.V.
- New store openings
- Expenditure approval
- Financial Mgmt
- Payroll
- Receivables
- Internal Accounting
- I.T.
- Systems Admin
- H.R.
- Compensation
- Policy Admin
- Buying
- Competitor surveys
- Prior Year Sales analysis
- Operations
- Receiving
- Sorting
- Reshipping
- Marketing
- Product: Private Label
- Pricing: Value
- Promotion: In-store promos
/ direct mail campaigns
- Store Operations
- Hiring
-Training
- Customer Sales
Functional Strategy
©
©
Step 3
Strengths
Oversight
Financial
3. Strategy
Performance
Internal Assessment
Weaknesses
Likely External Factors
Impacting Performance
- new store openings capability
- micro-management style
- markets, customers, competitors
- real estate equity
- budgeting process - discounts
- dividends - financing terms
- financial ratios
- performance measures
- landlords -bankers – real estate markets
tax law - corporate law
- market for selling business
- no use of technology
-Technology
I.T.
H.R.
- Good people
- no policies - communications
- customer/product training
- turnover – org mgmt
- industry turnover rates
-competitive compensation
-competitor employment practices
Buying
- private label
- 3 month cycle
- quality issues
-Industry Change / Evolution
-fashion trends - customers
- supplier performance
Operations
- warehouse real estate value
- shrinkage
- inventory control
- winter delivery
- real estate market
- Industry practices (e.g. EDI)
Marketing
- brand / image
- private label success
- customer lists
- community focus
- research - advertising
- customer data - competitor data
- product selections
- customers
- competitors
- market trends
- local markets
- below market rent
- 22 stores upgraded
- varying performance
- low leases turning over
- store hours set by HO
- HO communications
- lack of store mgr autonomy
- parking
- customers
- competitors
- local store markets
Store
Operations
©
-
©
Initial English Bay
Strategy Summary
Eight Strategies
Business
Definition
Risk
Growth
Financial Mgmt
Strategy
High-end casual and related accessories in B.C. and Alberta
Owner-centric. Norcross involvement in all significant decisions
Internal growth through store openings
debt
©
Technology / R&D
To support and enable productivity
Organization Mgmt
Head Office / Owner control
Marketing / Store
Operations
Manufacturing
3. Strategy Conclusions
If you build a store, they will come…
Outsourced
©
Module 3:
Internal Assessment
1. Overview of process
2. Configuring the strategy system
2. Moving from strategy to organization design
©
4. Current Strategy Performance Assessment
- Strengths & Weakness Identification
- External Factors Impacting Strategy
5. Initial English Bay Strategy Conclusions
©
Module 4
©
External Assessment
©
Module 4:
External Factors Assessment
1. Overview of process
2. The Major Categories of External Factors
2. Issues in Customer Identification
©
4. Overview of Market, Industry, & Competitor and Trends and Best Practices
5. Initial English Bay Strategy Conclusions & Situation Analysis Report
©
4. Overview
Step 4 Objectives
4. External Assessment:
What factors in the external environment must we truly understand?
Identify Type of
Planning Required
Identify CEO / Board
Expectations
Conduct Internal
Assessment
Conduct External
Assessment
Confirm Responsibility
for all 8 Strategies
Identify
Authority Group
Convert 8 Strategies
to Org Design
Identify What
Management Knows
If less than 8,
Go to Business Planning
Assess
Appetite for Change
Evaluate Activity
Strengths/Weaknesses
Separate Need to Know
from Nice to Know
Prepare Scope
for Planning Project
Use Evaluation to
Identify External Factors
Study Factors for
Actionable Information
©
©
The Major Categories of External Factors
4. Major
Factors
Stakeholder
Expectations
©
Customers & Markets
Industry Dynamics
Competitors
Trends
Best Practices
©
Customer Analysis
4. Customer
Identification
1. Who are our most important customers?
2. What criteria drive the customer’s purchase decision?
3. How do we compare, in the customer’s view, to the competition?
©
4. Which of our products and services are truly valuable to them?
5. What are the steps and who influences the purchase decision?
6. How are customer criteria and behavior likely to change?
7. What products and services are our customers going to need?
©
Need / Risk Segmentation Analysis
4. Customer
Identification
Customer Analysis Restated for Public Sector Organizations
1. Who represents the greatest need / greatest risk that our services are intended to address?
2. What drives them to use / come into contact with us?
3. How do we compare to alternatives to address the need / risk?
©
4. Which of our programs / services are truly valuable to them / address the problem effectively?
5. What are the steps and who influences their decision to use us / encourages their behaviour?
6. How is user need / risk behavior likely to change?
7. What services are users going to need / will be required to manage evolving risk?
See also: Banishing Bureaucracy 1998, David Osborne
©
Markets – Clusters of Customers
Market Scoring
Vancouver Downtown
Growth
Profitability
Competition
T otal
Vancouver Suburbs
Growth
Profitability
Competition
T otal
Victoria
Growth
Profitability
Competition
T otal
Kamloops
Growth
Profitability
Competition
T otal
Other Greater BC
Growth
Profitability
Competition
T otal
Calgary
Growth
Profitability
Competition
T otal
Edmonton
Growth
Profitability
Competition
T otal
Other Alberta
Growth
Profitability
Competition
T otal
Dan
Erica
Martin
Oprah
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4. External
Factors
Growth
1 – shrinking market and/or market share
4 – only able to maintain existing business
7 – significant growth in market and/or
market share
Profitable
1 – not profitable
4 – break-even
7 – very profitable
Competition
1 – significant competition
4 – competition is manageable
7 – no competition
©
Demand Analysis Methodology
Market Analysis Restated for Public Sector
4. External
Factors
Purpose
To identify specific opportunities for priorities over the planning period
Grid Design
Horizontal Axis – specific products or services
Vertical Axis – specific clusters for those services
Scores
For each cell, assign a score from 1 to 7 for each of the following variables.
Growth of Need /
Risk
Assess the potential for growth of the need / risk programs / services
1 – shrinking overall need / risk
4 – no change from today
7 – significant growth in need©
/ risk
Sustainability
Assess the likely financial sustainability of delivering services to meet the need / risk
1 – sustainability is a great risk
4 – no change from today
7 – sustainability not a risk
Alternatives
Assess the attractiveness of emerging alternatives to address the need / risk
1 – significant attractive alternatives are becoming apparent
4 – no change in alternatives apparent
7 – no attractive alternatives emerging or apparent
Cell Scoring
Each cell score is the total of the variables scoring for that cell
Highest score: 21, representing a need / risk on which we should focus
Lowest score: 3, representing limited perceived value to addressing need / risk
©
4. External
Factors
Demand Analysis in the Public Sector
G=Growth
S=Sustainability
A = Alternatives
Need / Risk
Segments
Services
G=
G=
G=
G=
G=
S=
S=
S=
S=
S=
A=
A=
A=
A=
G=
G=
G=
G=
G=
S=
S=
S=
S=
S=
A=
A=
A=
A=
A=
G=
G=
G=
G=
G=
S=
S=
S=
S=
S=
A=
A=
A=
A=
A=
A=
©
Total
Total
Total
©
Industry Dynamics
4. External
Factors
Segment
What is my chosen market called?
Segment Size / Growth
How big is it and is it growing?
Segment Dynamics
What dynamics are most shaping the
©
segment? (e.g. competitive rivalry, customers,
suppliers, entry barriers, alternatives)
Critical Success Factors
What must a competitor do to succeed given
the dominant industry dynamics?
Segment Evolution
How is this segment likely to change over
time?
©
Competitor Analysis
Industry
Positioning
Critical
Success
Factors
Industry
Evolution
4. External
Factors
- Who do I compete with in my market segments?
- What segments are my competitors focusing on?
- What segments should I focus on?
- What must©I truly understand about my competitors?
(e.g. strategies, strengths, weaknesses and areas of
relative performance)
- Who are my future competitors?
- What functional areas are likely to become the most
important in the future?
©
Competitor / Alternatives Analysis
4. External
Factors
Restated for Public Sector
Service
Sustainability
- Who is offering / can offer alternatives to our services?
- What segments are they focusing on?
- What segments should we focus on?
Critical
Success
Factors
- What must©we understand about alternatives / competitors?
Service
Evolution
- Who / What are the future competitors / alternatives?
- What functional strengths are likely to become the most
important in the future?
(e.g. strategies, strengths, weaknesses and areas of
relative performance)
©
Trend Analysis in 3 Steps
4. External
Factors
1. Source of Trends
- The Family
2. What is the Emerging Trend?
©
- “Kids” not moving out
3. What’s the impact on us?
- “Kids” influencing parents’ buying
decisions?
©
4. External
Factors
Benchmarking Analysis
Benchmarking
Is a process for comparing organizational
performance and processes to “Best-in-Class”
performance and using insight from the
comparison to improve ways and improve
performance
Determine what to
Benchmark
©
Identify Key Performance
Variables / Measures
Identify the “Best-in-Class”
Organizations
Research Performance of
“Best-in-Class” Organizations
Make Performance
Comparisons
Recommend
Improvements
Obtain Commitment
to Implement
©
External Factors Conclusions
Research
4. Conclusions
Overall Conclusions
Customer Analysis
EB customer needs research
Market Analysis
Markets don’t support seem to support most EB stores.
Industry Analysis
Entry of more and more well-financed competitors
using technology and multi, cross, and omni-channels
Competitor Analysis
EB is a very small specialty retailer
Trend Analysis
Technology is changing the nature of retailing
Benchmarking
Analysis
EB is not competitive when benchmarked against the
lowest of benchmarks: the industry average.
©
©
Which one strategy
is being most impacted?
4. Conclusions
Customers & Markets
Competitors
Industry Dynamics
©
Trends
Best Practices
©
Module 4:
External Factors
1. Overview of process
2. The Major Categories of External Factors
2. Issues in Customer Identification
©
4. Overview of Market, Industry, & Competitor and Trends and Best Practices
5. Initial English Bay Strategy Conclusions & Situation Analysis Report
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Day One Deliverable: The Situation Analysis
Day 1
Produce a Situation Analysis
Day 2
Produce a©Strategic Plan
Day 3
Produce a Business Plan
©
Day Two – Preparation
- Read the Tarion Case
- Review the Day 2 Binder Materials
©
- Identify the top 3 external factors
you believe Tarion must
address because those factors will significantly impact Tarion
over the next 3 to 5 years
©