Capstone Project - E Botha

Strategic Management by Copenhagen Business School - Etienne Botha [email protected]

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STRATEGY FORMULATIONCAPSTONE PROJECT

CASE STUDY DESIGNATED – e-TYPES STRATEGY FORMULATED

Submitted by: Etienne BothaDate: 05 Aug 2016


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INTRODUCTION – STRATEGY FORMULATION• Strategic Planning and Formulation is a step by

step process with definite objectives and end products that can be implemented and evaluated. Very simply, it is a process by which we look into the future, paint a picture of that future based on current trends, and influence the forces that will affect us. Then formulate a road map to reach the end-goal envisioned.

• Examining the possibilities and formulating strategies to meet the challenges can help the organization take full advantage of opportunities and minimize threats. In short, e-Types can take control of the future. e-Types can use its energies and resources more effectively and conduct its business more successfully, despite changes in the environment.


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ROADMAP – STRATEGY FORMULATION• Seven Steps Strategy Roadmap for e-Types:1. Set e-Types goals and vision2. Evaluate the business environment3. Set quantitative targets4. Identify each divisions goals and contributions; AND GET

THEM INVOLVED5. Do a Performance Analysis – Determine the gap between

actual reality and long term aspirations6. Explore and Investigate all possible strategies. Verify through

business intelligence before any final decision.7. Consider business goals, strengths, potential and limitations

as well as external factors before FINAL DECISION


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ROADMAP – KNOWLEDGE BUILDING• Questions needed to be covered during the process:1. Understand e-Types clientele – who present and future, what

are their priorities, what makes them ‘tick’.2. Clientele values and relationships – how can e-Types add

value to our clientele, become a partner vs a supplier of clientele.

3. Technology trends – comprehend environment and industry tendencies on a global scale.

4. Who are e-Types’ competitors – their business models, strong points, weak points. Be aware of being your own worst enemy!

5. Core competencies – What are our capabilities, what are we good at.


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ROADMAP – PROCESS OF FORMULATION• Three approaches to e-Types Strategy Formulation:1. Top-down analytical planning.2. Bottom-up tactical planning.3. Continuous feedback with planning.

Strategy must be based on facts, not opinions.Some companies constructing a strategic planning process erroneously treat planning exclusively as a top management responsibility. This ‘ivory tower’ approach can result in strategic plans formulated in a vacuum by top managers who may be disconnected from current operating realities.Correcting the ivory tower approach to planning requires recognizing that successful strategic planning encompasses managers at all levels of the corporation


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ROADMAP – DEDUCED MEASURE• Customer Group and Market Segmentation Strategy for the Future :

There are three approaches to market segmentation that e-Types can pursue:1. No market segmentation – Its products are targeted at the ‘average customer’ need2. High market segmentation – A different product is offered at each market segment3. Focused market segmentation – A product is offered to one or a few market segments. The third approach to market segmentation is to target a product just at one or two market segments. In the case of e-Types, it will be for the more ‘edgy’ market as one, and two, the more ‘conservative’ market. To pursue this approach, e-Types must continually develop and innovate products in both its market segments.


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INCONCLUSION

Customer groups are sets of people who share a similar need for a particular product. Because a particular product usually satisfies several different kinds of desires and needs, many different customer groups normally exist in a market. A company searching for a successful business model must group customers according to the similarities or differences in their needs to discover what kinds of products to develop for different kinds of customers.Once a group of customers who share a similar or specific need for a product has been identified, this group is treated as a market segment. Companies then decide whether to make and sell a product designed to satisfy the specific needs of this customer segment.By creating products designed to meet its clientele specific needs in each market segment, as a company e-Types will have a blockbuster strategy and product.

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Capstone Project - E Botha