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Strategy Processes
                                         In Industrial Practice
                                  Strategic Management and Marketing Practices




Copyright © 2011. All rights reserved.                                www.strategie-und-planung.de
11.10.2012
Core Elements Of Strategy Processes

                                              Strategy
                   Analysis                   Definition                  Implementation

       Analysis and Forecast             Strategy Development            Planning of Measures
       of Market Positioning              Vision / Mission               Responsible Persons
        Market Segments                  Strategic Success              Deadlines
        Customers                         Position                       Priorities
        Competition                      Market Strategy                Feasibility
        Environment                      Business Strategy              Risk Analysis
        Portfolio Analysis


                        +                          +                               +
       Internal Analysis                 Target Setting                  Project Planning and
        Handling of the                  Strategic Goals               Project Organization
           Market                         Measures
        Processes                        Operational Targets
        Employees




Copyright © 2011. All rights reserved.    www.strategie-und-planung.de                           Seite 2
11.10.2012
The Strategy Development Process –
      Phases And Milestones
                                                                  Development                Evaluation             Strategy
                Strategic                     Strategic
                                                                   of Strategic              of Strategic          Implemen-
                Analysis                      Forecast
                                                                     Options                   Options               tation

                                         S1                  S2                      S2                       S4                  S5




                                                                            Strategic
                     Initial Situation             Future Trends                               Spezific Criteria        Action Plans
                                                                           Dimensions
                      Main Markets               Key Markets            Markets                Resources           Goals
                      Competition                Market Trends          Customers              Capabilities        Indicators
                      Environment                 and Drivers            Product Mix            Skills              Measures
                      Strengths /                Performance            Growth                 ROI                 Project
                       Weaknesses                  Drivers                                                              Management
                                                                          Competition            Time Frame
                      Performance                External Factors                                                    Implementation
                                                                          Partners               Risks
                                                   (Laws, Regula-                                                       Controlling
                      Market Position                                    Technologies
                                                   tions, etc.)
                                                                                                                           Strategy
                                                                                                                           realized


Copyright © 2011. All rights reserved.                        www.strategie-und-planung.de                                               Seite 3
11.10.2012
Market And Competitive Analyses As Main
      Parts Of The Strategic Analysis

                                           Customer Demand




                Market /                                                   Competitor
                                                   Business
              Technology                                                   Behaviour
                                                   Strategy
             Development




                                              Own Position
                                         Strengths / Weaknesses


Copyright © 2011. All rights reserved.      www.strategie-und-planung.de                Seite 4
11.10.2012
Sector Analysis –
      Porter´s „Five Forces“ Model
                                                            Potential
                                                           Competitors
                                                                 Threat
                                                                 of New
                                                                Entrants



                                                          Rivalry Among
                                         Bargaining                                  Bargaining
           Suppliers                       Power                                       Power      Buyers
                                                          Existing Firms


                                                                 Threat
                                                                 of Sub-
                                                                 stitutes

                                                             Substitute
                                                             Products

Copyright © 2011. All rights reserved.                www.strategie-und-planung.de                         Seite 5
11.10.2012
SWOT Analysis – Practice

                                                                           Internal Analysis
                     SWOT
                    Analysis                            Strengths                                      Weaknesses

                                         S/O Strategy:                                     W/O Strategy:
                                         Evaluate chances that are well in line            Eliminate weaknesses to better make
                                         with the strenghts of the company                 use of new opportunities
                             Oppor-       Which strengths go with which                    Where can chances evolve from
                             tunities      chances?                                          weaknesses?
         External Analysis




                                          How can strengths be utilized to better          How can weaknesses be changed into
                                           realize chances?                                  strengths?


                                         S/T Strategy:                                     W/T Strategy:
                                         Utilize strengths to avert threats                Create measures to avoid that existing
                                          Which threats can be fought by which            weaknesses become aims of external
                                           strengths?                                      threats
                             Threats
                                          How can existing strengths be used to            Which weaknesses do exist?
                                           avoid certain risks?                             How can disadvantages be averted?




Copyright © 2011. All rights reserved.                      www.strategie-und-planung.de                                      Seite 6
11.10.2012
Life Cycle Analyses – Practice

                                                      Life Cycle Phases
                 150
                                Introduction         Growth                        Maturity               Saturation

                 100
         Sales




                  50




                   0
                       0                 2     4         6               8            10          12           14           16
                                                   Time / Periods (Years, Quarters, …)


                  Reference objects of the analysis                                Objectives of the analysis
                Industry sectors                                           Determine the position of the considered
                Markets                                                     reference objects (e.g. produkts at the market)
                Technologies                                               Analize the expected life cycle
                Single products                                            Derive appropriate strategic & marketing
                Product groups                                              measures for each life cycle phase


Copyright © 2011. All rights reserved.             www.strategie-und-planung.de                                           Seite 7
11.10.2012
Portfolio Analysis According BCG –
      Determination Of Competitive Position




Copyright © 2011. All rights reserved.   www.strategie-und-planung.de   Seite 8
11.10.2012
Basic Strategy Options –
      Product Market Matrix by Ansoff




Copyright © 2011. All rights reserved.   www.strategie-und-planung.de   Seite 9
11.10.2012
Standard Strategies Of Various Strategy
      Concepts
               Strategy Concepts            Potential Strategic Directions (Standard Strategy)


                                              Cost Leadership
                 Sector Analysis              Differentiation             Forward Integration
                    (Porter)                  Cost Focus                  Reverse Integration
                                              Differentiation Focus


                                              Investment Strategy
                                                                           Offensive Strategy
             Portfolio Analyses               Growth Strategy
                                                                           Defense Strategy
               (BCG / McK)                    Exploitation Strategy
                                                                           Transition Strategy
                                              Divestment Strategy


         Product Market Matrix                Market Penetration          Product Development
               (Ansoff)                       Market Development          Diversification



Copyright © 2011. All rights reserved.   www.strategie-und-planung.de                             Seite 10
11.10.2012
Top-down Specification Of Strategic Goals

                                                            Questions

                                                 What is the main objective
                                                   of the organization?
                                                                                Strategic
                                                                                 Goals
                                               Which are the drivers
                                                to reach the goals?
                                                                                  Drivers
                                            How to measure
                                              success?                       Measures
                                                                    (Key Performance Indicators)
                                    Which target values
                                    should be achieved,
                                        and when?                             Target Values

                             Who is responsible to
                              reach the goals?                              Responsibilities




Copyright © 2011. All rights reserved.                    www.strategie-und-planung.de             Seite 11
11.10.2012
Balanced Scorecard As Tool For Strategy Development
      And Implementation Controlling
                                                   Financial Perspective
                                                                           Mea-
                                                  Goal     KPI    Target   sure




           Customer Perspective                                                   Processes Perspective
                                          Mea-
                                                          Vision                                        Mea-
         Goal         KPI        Target                                           Goal   KPI   Target
                                          sure             and                                          sure

                                                         Strategy


                                                   Employee Perspective
                                                                           Mea-
                                                  Goal     KPI    Target   sure


      KPI = Key Performance Indicator



Copyright © 2011. All rights reserved.           www.strategie-und-planung.de                            Seite 12
11.10.2012
Main Tasks Of Market And Competitive
      Analyses
                                         Market Analyses                                          Competitive Analyses



               Customer                          Market                Market
                                                                                                strategically        tactically
               Analyses                         Forecasts             Positions



           Buying Decision                    Market Trends        Market Shares            Competitor         Product / Feature
            Criteria                           M. Segments          Dynamic of the            Profiles            Comparisons
           Customer Satis-                    Market Volume         Market Position          C. Strategy        Unique Selling
            faction                                                  Market                   C. Position         Propositions
                                               Market Growth
           Buying Behaviour                                          Penetration              Key Business       Selling
                                               M. Attractivity
           Demand Analysis                                          Competitive               Data                Arguments
                                               M. Potential
           Buying Power                                              Advantages               Portfolio          Competitor News
                                               Customer
           Price Sensitivity                                                                  Soft Facts         Competitor
                                                Structure
                                                                                                                    Weaknesses
           Promotion Impact                   Sales Channels

        Sales Support                                Support of Strategy Development                           Sales Support


Copyright © 2011. All rights reserved.                       www.strategie-und-planung.de                                         page 13
11.10.2012
A comprehensive strategy analysis
                      presentation with detailed explanations of
                        the practices and numerous practical
                          examples is available on request.
                                               (currently available only in German)


                         Please use the contact form to order the
                                      presentation
                                  http://www.strategie-und-planung.de/kontakt.html

                          Note: This presentation is available only for a small charge because of the benefits of the huge amount of information and the
                          multitude of examples, etc. The current price list of the documentation can be seen at
                          http://www.strategie-und-planung.de/mediapool/92/922449/data/Preise/Preisliste_Doku-Tools-20110101.pdf


Copyright © 2011. All rights reserved.                            www.strategie-und-planung.de                                                             Seite 14
11.10.2012

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Strategy Processes - Winfried Kempfle Marketing Services

  • 1. Strategy Processes In Industrial Practice Strategic Management and Marketing Practices Copyright © 2011. All rights reserved. www.strategie-und-planung.de 11.10.2012
  • 2. Core Elements Of Strategy Processes Strategy Analysis Definition Implementation Analysis and Forecast Strategy Development Planning of Measures of Market Positioning  Vision / Mission  Responsible Persons  Market Segments  Strategic Success  Deadlines  Customers Position  Priorities  Competition  Market Strategy  Feasibility  Environment  Business Strategy  Risk Analysis  Portfolio Analysis + + + Internal Analysis Target Setting Project Planning and  Handling of the  Strategic Goals Project Organization Market  Measures  Processes  Operational Targets  Employees Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 2 11.10.2012
  • 3. The Strategy Development Process – Phases And Milestones Development Evaluation Strategy Strategic Strategic of Strategic of Strategic Implemen- Analysis Forecast Options Options tation S1 S2 S2 S4 S5 Strategic Initial Situation Future Trends Spezific Criteria Action Plans Dimensions  Main Markets  Key Markets  Markets  Resources  Goals  Competition  Market Trends  Customers  Capabilities  Indicators  Environment and Drivers  Product Mix  Skills  Measures  Strengths /  Performance  Growth  ROI  Project Weaknesses Drivers Management  Competition  Time Frame  Performance  External Factors  Implementation  Partners  Risks (Laws, Regula- Controlling  Market Position  Technologies tions, etc.) Strategy realized Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 3 11.10.2012
  • 4. Market And Competitive Analyses As Main Parts Of The Strategic Analysis Customer Demand Market / Competitor Business Technology Behaviour Strategy Development Own Position Strengths / Weaknesses Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 4 11.10.2012
  • 5. Sector Analysis – Porter´s „Five Forces“ Model Potential Competitors Threat of New Entrants Rivalry Among Bargaining Bargaining Suppliers Power Power Buyers Existing Firms Threat of Sub- stitutes Substitute Products Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 5 11.10.2012
  • 6. SWOT Analysis – Practice Internal Analysis SWOT Analysis Strengths Weaknesses S/O Strategy: W/O Strategy: Evaluate chances that are well in line Eliminate weaknesses to better make with the strenghts of the company use of new opportunities Oppor-  Which strengths go with which  Where can chances evolve from tunities chances? weaknesses? External Analysis  How can strengths be utilized to better  How can weaknesses be changed into realize chances? strengths? S/T Strategy: W/T Strategy: Utilize strengths to avert threats Create measures to avoid that existing  Which threats can be fought by which weaknesses become aims of external strengths? threats Threats  How can existing strengths be used to  Which weaknesses do exist? avoid certain risks?  How can disadvantages be averted? Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 6 11.10.2012
  • 7. Life Cycle Analyses – Practice Life Cycle Phases 150 Introduction Growth Maturity Saturation 100 Sales 50 0 0 2 4 6 8 10 12 14 16 Time / Periods (Years, Quarters, …) Reference objects of the analysis Objectives of the analysis  Industry sectors  Determine the position of the considered  Markets reference objects (e.g. produkts at the market)  Technologies  Analize the expected life cycle  Single products  Derive appropriate strategic & marketing  Product groups measures for each life cycle phase Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 7 11.10.2012
  • 8. Portfolio Analysis According BCG – Determination Of Competitive Position Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 8 11.10.2012
  • 9. Basic Strategy Options – Product Market Matrix by Ansoff Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 9 11.10.2012
  • 10. Standard Strategies Of Various Strategy Concepts Strategy Concepts Potential Strategic Directions (Standard Strategy)  Cost Leadership Sector Analysis  Differentiation  Forward Integration (Porter)  Cost Focus  Reverse Integration  Differentiation Focus  Investment Strategy  Offensive Strategy Portfolio Analyses  Growth Strategy  Defense Strategy (BCG / McK)  Exploitation Strategy  Transition Strategy  Divestment Strategy Product Market Matrix  Market Penetration  Product Development (Ansoff)  Market Development  Diversification Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 10 11.10.2012
  • 11. Top-down Specification Of Strategic Goals Questions What is the main objective of the organization? Strategic Goals Which are the drivers to reach the goals? Drivers How to measure success? Measures (Key Performance Indicators) Which target values should be achieved, and when? Target Values Who is responsible to reach the goals? Responsibilities Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 11 11.10.2012
  • 12. Balanced Scorecard As Tool For Strategy Development And Implementation Controlling Financial Perspective Mea- Goal KPI Target sure Customer Perspective Processes Perspective Mea- Vision Mea- Goal KPI Target Goal KPI Target sure and sure Strategy Employee Perspective Mea- Goal KPI Target sure KPI = Key Performance Indicator Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 12 11.10.2012
  • 13. Main Tasks Of Market And Competitive Analyses Market Analyses Competitive Analyses Customer Market Market strategically tactically Analyses Forecasts Positions  Buying Decision  Market Trends  Market Shares  Competitor  Product / Feature Criteria  M. Segments  Dynamic of the Profiles Comparisons  Customer Satis-  Market Volume Market Position  C. Strategy  Unique Selling faction  Market  C. Position Propositions  Market Growth  Buying Behaviour Penetration  Key Business  Selling  M. Attractivity  Demand Analysis  Competitive Data Arguments  M. Potential  Buying Power Advantages  Portfolio  Competitor News  Customer  Price Sensitivity  Soft Facts  Competitor Structure Weaknesses  Promotion Impact  Sales Channels  Sales Support  Support of Strategy Development  Sales Support Copyright © 2011. All rights reserved. www.strategie-und-planung.de page 13 11.10.2012
  • 14. A comprehensive strategy analysis presentation with detailed explanations of the practices and numerous practical examples is available on request. (currently available only in German) Please use the contact form to order the presentation http://www.strategie-und-planung.de/kontakt.html Note: This presentation is available only for a small charge because of the benefits of the huge amount of information and the multitude of examples, etc. The current price list of the documentation can be seen at http://www.strategie-und-planung.de/mediapool/92/922449/data/Preise/Preisliste_Doku-Tools-20110101.pdf Copyright © 2011. All rights reserved. www.strategie-und-planung.de Seite 14 11.10.2012