7/29/2019 Strategic Models

1/19

StrategicModels

,

BusinessPolicy&

Strate

gicManagement

-GauravVatsa

7/29/2019 Strategic Models

2/19

Cent

erHeavy

Model

7/29/2019 Strategic Models

3/19

Cent

reHeavy:AnExam

ple

Economies

ofS

cale

Product

Design

COST

EFFICIENCY

Sup

plier

Costs

Process

Restructu-

ring

7/29/2019 Strategic Models

4/19

DivergingRad

ial

7/29/2019 Strategic Models

5/19

Divergin

gRadial

AnExam

ple-CSR

Stakeholder

Interests

Better

Brand

Value

CSR

Differe

ntiate

Better

Operating

Efficiency

7/29/2019 Strategic Models

6/19

Diver

gingRadia

l:

Reas

onsforCo

llaboration

/Alliance

7/29/2019 Strategic Models

7/19

TwoFactorMatrix

High

LOW

High

LOW

7/29/2019 Strategic Models

8/19

TwoFactorMatrix-AnE

xample

High

Niche:Lux

ury

HighPrices

Automobile

Industry L

OW

High

LOW

Exp

ectedVolumes

Customer

Expectations

7/29/2019 Strategic Models

9/19

High

Niche:Lux

ury

HighPrices

B/C-Se

gment

LOW

High

LOW

Exp

ectedVolumes

Customer

Expectations

7/29/2019 Strategic Models

10/19

TwoFactorMatrix:AnE

xample

High

Niche:Lux

ury

HighPrices

B/C-Se

gment

LOW

High

LOW

LowP

rices

Undercu

tComp.

Exp

ectedVolumes

Customer

Expectations

7/29/2019 Strategic Models

11/19

High

Niche:Lux

ury

HighPrices

B/C-Se

gment

LOW

High

LOW

??

LowP

rices

Undercu

tComp.

Customer

Expectations

Exp

ectedVolumes

7/29/2019 Strategic Models

12/19

Note

sforTwo

FactorM

atrix

Choo

singthe2factorsdependsonthe

individualsanalysis

andtheindustry.

Forexamplepurpose,weveconsideredtheAutomobile

indus

try.Thetwofactorsconsideredh

ereare,

Volumes

ExpectedandCustomersExpectationsin

termsoffeatures,

quaity,ueeiciency

etc.

Thequestionmarkisastrategiczone

wherecompanies

dont

liketoenter.Itsafailurezone

companiesmay

launch

intot

heHighVol.-HighExpectationzone.Overtime,

expectationsarenotm

eti.e.Custome

rExpectationsturn

loww

hichinturnReducesthevolumesofthecompan

y

leadingtofailure.

7/29/2019 Strategic Models

13/19

Bran

chModel

7/29/2019 Strategic Models

14/19

Bran

ch:Exam

ple-Activ

ityListing

Internally

P

erformedActivities

Su

ppliers

Manufacturing

RetailOutlets

Logistics

7/29/2019 Strategic Models

15/19

Logic

alFramew

ork:StrategicLinkage

OUTCOME

IMPACT

RESOURCES

ACTIVITY

OUTPUT

7/29/2019 Strategic Models

16/19

Funn

elAnE

xample

Customer&

Benefits

Com

etitive

Se

ment,Size

Industry

Structure

En

vironmentalTrend

s

Competitive

Dynamics

Space

Channels

Strategic

Positioning

Value

Proposition

Perceptual

Space

7/29/2019 Strategic Models

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StrategicSituation/Pos

ition

PESTEL

FACTORS

Industry

Attractive

-

ness,

dynamics

,&

competition

Customer

needs

&

desires

(Met/

Unmet)

External

Factors

Strategic

StrategicSituation/P

osition

Situation/P

osition

Competitiv

e

position

(through

customers

eyes&in

industry)

Competitiv

e

position

(through

customers

eyes&in

industry)

Capabilities

&

Resources

(know-how

,

people,

money,etc

)

Vision,

values

& culture

Internal

Factors

7/29/2019 Strategic Models

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Strateg

yFormulationMod

el

EnvironmentalScan

ANALYSIS

SituationPast

M

ission&Vision

Performance

BASIS

CO

MPONENTS

Det

ermining

Specifics

Ev

aluate

Whereweare

Wherewew

anttobe

Howw

ewilldoit

Background

Information

SituationalAnalysis

SWOTStrengths,

Weaknesses,

Opportunities,

Threats

,

PresentandFuture

SignificantIssues

Align/Fitwith

Capabilities

V

alues/Guiding

P

rinciples

M

ajorGoals

S

pecificObjectives

Me

asurement

Targets/Standardsof

Performance

Initiativesand

Projects

Man

agement

ReviewProgress

Bala

ncedScorecard

Take

Corrective

Actions

Gaps

ActionPlans

Feedbackupstream

revis

eplans

7/29/2019 Strategic Models

19/19

CyclicProcess

Capability

Analysis

Foresight

Purpose/Values/

Vision

BusinessE

nvironment

Climate-culture

Stakeholde

rs

Whyarewehere?

Whatunderpinsour

a

roach?

SuccessMo

del

(Stakeholdermapping

Evaluation

OperatingM

odel

C

oreprocesses

EnvironmentResources

Core

andcritical

competencies

Finance,Marketing,

Adm

in,Operations,

Com

municationsetc.

Balanced

Scorecard

Peopledim

ensions

Customers

Leadership

Innovation

Breakthroug

hs

Strategicinitiatives

Milestoneidentification

Principlesan

dPolicies

BehaviouralStandards