Business Strategy Template
[Pages:42]BUSINESS STRATEGY
1
THE FUNDAMENTAL ELEMENTS OF THE DEFINITION OF A BUSINESS STRATEGY
The Mission of the Business
? Definition of business scope: products, markets, and geographies
? Identification of unique competencies
Internal Scrutiny at the Business Level
(Past performance and future projections)
? Identification of internal critical factors to achieve competitive advantage ? Overall assessment of competitive position
Definition of Strengths and Weaknesses
Environmental Scan at the Business Level
(Past performance and future projections)
? Identification of external factors contributing to industry attractiveness
? Overall assessment of industry attractiveness
Identification of Opportunities and Threats
Formulation of the Business Strategy
A set of multiyear broad action programs
Strategic Programming
Definition and evaluation of specific action programs
(covering 6- to 18- months)
Budgeting
Strategic funds programming and operational budgets
2
THE DELTA MODEL ? AN INTEGRATIVE STRATEGIC FRAMEWORK
The Triangle SLI
TCS
BP
Customer Segmentation and Customer Value Proposition
Mission of the Business ? Business Scope
? Core Competencies
Competitive Positioning ? Activities that drive profitability
Industry Structure ? External factors determining
industry attractiveness
Business The Strategic Agenda
I
OE
CT
Adaptive Processes Strategic Agenda
Aggregate and Granular Metrics
Experimentation and Feedback
The changes introduced by the Delta Model ? Add the Triangle to decide on the strategic positioning ? Add the Adaptive Processes to expand the implementation tasks
3
The primary outputs of the Business Strategy process are: ? Managerial Consensus ? Customer Segmentation and Customer Value
Proposition ? The Mission of the Business (supported by
Industry Structure and Competitive Positioning Analyses) ? The Strategic Agenda of the Business ? The Strategic Agenda of the Adaptive Processes (Operational Effectiveness, Customer Targeting, and Innovation) ? The Budget and Metrics
4
MANAGERIAL CONSENSUS
Saturn definition:
70% Agreement/ 100% Buy-In
5
CUSTOMER SEGMENTATION AND
CUSTOMER VALUE PROPOSITION
6
CUSTOMER SEGMENTATION
Customer Tier
Description
BUSINESS DIMENSION OF THE CUSTOMER TIER
Customer Dimension
Products
Customer Tier: ________________________
Services
Customers
Channels
End Users
Complementors
Unique Competencies
8
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