A Generic Approach to Strategic Management
Creating and Presenting Strategic Plans
Part 2
•Surely every business is different
Yes....and.....No
The Winning Rules for Every Business
•Navigation
•Health
•Strategy
Most easily understood through generic rules
Generic Approaches to Complex Issues
•Impossible - every country/ocean is different
The Generic Rules for Navigation
•Possible - there are a few rules that apply everywhere
N
W E
S
The Compass
Generic Rules Ought to be:
•Simple - understood by all
•Timeless - never changing
•Effective - always work
Physical environment: good
Home environment: goodWorking environment: good Parental health: good
Physique: good
Age: relative
Stress: low Education: high
Affluence: high
Environmental factors Inherited factors
Lifestyle factors
Fitness factorsExercise: goodDiet: healthy
The Health Compass: LIFE
•If we can have generic rules for healthy individuals
Health = Profits
An Assumption
•We can have generic rules for profitable (healthy) firms
Competitive position
Markets addressed
Leadership
Asset utilization
The Strategy Compass
Competitive positionSales # 1
Rel. Mkt. Share # 1
Degree of innovation: highPatents/Mkt. Control: yes
Market share # 1
Relative Quality # 1
Asset utilisationInvestment intensity: lowest
Productivity, people + assets: #
1
Fixed Vs Liquid assets: lowest Capacity utilisation: # 1
Markets addressed
Size of ticket item: large
Customer power: weakestLogistics: simplest
Market growth rate: highest
Concentration: High
The Strategy Compass: CALM
LeadershipLeadership: respected, visionary
Labour turnover: lowest People: connected Absenteeism: lowest
Communication and values
Competitive positionSales # 1
Rel. Mkt. Share # 1
Degree of innovation: highPatents/Mkt. Control: yes
Market share # 1
Relative Quality # 1
Asset utilisationInvestment intensity: lowest
Productivity, people + assets: #
1
Fixed Vs Liquid assets: lowest Capacity utilisation: # 1
Markets addressed
Size of ticket item: large
Customer power: weakestLogistics: simplest
Market growth rate: highest
Concentration: High
The Strategy Compass: CALM
LeadershipLeadership: respected, visionary
Labour turnover: lowest People: connected Absenteeism: lowest
Communication and values
The Strategy Compass: CALMMarkets
addressed
Competitive position
Asset utilisation
Leadership
B.2.3. Markets addressedB.2.3.1. Markets addressedB.2.3.2. Product niche analysisB.2.3.3 Customer group
analysis
B.2.4. Competitive analysisB.2.4.1. Industry competitive
analysisB.2.4.2. Firm competitive analysisB.2.4.3. Actual competitor analysisB.2.5. Leadership
B.2.5.1. Behavioural analysis
B.2.5.2. Leadership and change
B.2.5.3. Leadership measurementB.2.6. Asset Utilisation
B.2.6.1. Overall asset utilisation
B.2.6.2. Productivity B.2.6.3. Financial
performance
The Skeleton Strategic Plan
Section A: Background to the strategic planA.1. Introduction A.2. Executive summary Section B.1. The overall strategic plan B.1. Mission, goals and strategy
B.1.1. MissionB.1.2. GoalsB.1.3. Strategies
Section B.2. The detailed strategic plan B.2.1. Defining the businessB.2.2. The product market portfolioB.2.3. Markets addressed
B.2.3.1. Markets addressedB.2.3.2. Product niche analysisB.2.3.3 Customer group analysis
B.2.4. Competitive analysisB.2.4.1. Industry competitive analysisB.2.4.2. Firm competitive analysisB.2.4.3. Actual competitor analysis
B.2.5. LeadershipB..2.5.1. Behavioural analysisB.2.5.2. Leadership and changeB.2.5.3. Leadership measurement
B.2.6. Asset utilisation B.2.6.1. Overall asset utilisationB.2.6.2. ProductivityB.2.6.3. Financial performance
Section B.3. ForecastsB.3.1. Overall forecastsB.3.2. Risks
Section B.4. ImplementationB.4.1. Implementation; incrementalB.4.2. Implementation: strategic
The Skeleton Strategic Plan
The Strategy D
rives th
e Financia
ls
not
The Financia
ls Drive
the Strategy
The End
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