Developing a Strategy – An Overview

Developing strategy, put simply, is about determining where an organisation aims to be in the future and putting in place the framework for achieving this. 

However, developing a strategy is by no means a simple process.

This article provides an overview of three key stages of developing a strategy - Analysis, Options and Selection and Implementation.

ANALYSIS: The aim of the analysis process is to define an organisation’s identity and purpose. An analysis may be based on either:

  • the resources that the organisation currently has and the best ways of capitalising on these (sometimes described as the Resourced-Based View, or an ‘inside-out’ approach); or
  • how the organisation positions itself within its industry, relative to its competitors (sometimes described as the Positioning View, or an ‘outside-in’ approach)

The process of analysis can itself be broken down into three sub-sections:

  1. Purpose - an organisation’s strategic aim or eventual goal
  2. Environment - the internal and external factors that will affect an organisation in pursuit of its strategic purpose
  3. Capabilities - the way in which an organisation goes about achieving its strategic purposeContinue reading

Developing Your Value Proposition

A value proposition is a promise of value to be delivered. It’s the primary reason a customer should buy from you.

In a nutshell, a value proposition is a clear statement that explains how your product or service solves customers’ problems or improves their situation, delivers specific benefits, tells the ideal customer why they should buy from you and not from the competition.

This activity will enable you and your team colleagues to understand what is meant by the term ‘Value Proposition’ within your organisation.

Facilitator guidance and handouts are included in this activity.

 DEVELOPING YOUR VALUE PROPOSITION 

The Strategic Planning Process Model

In the 1970's, many large firms adopted a formalised top-down strategic planning model.

Under this model, strategic planning became a deliberate process in which top executives periodically would formulate the firm's strategy, then communicate it down the organisation for implementation.

This process is most applicable to strategic management at the business unit level of the organisation.

For large corporations, strategy at the corporate level is more concerned with managing a portfolio of businesses. 

For example, corporate level strategy involves decisions about which business units to grow, resource allocation among the business units, taking advantage of synergies among the business units, and mergers and acquisitions. In the process outlined here, "company" or "firm" will be used to denote a single business firm or a single business unit of a diversified firm.

This resource takes you step by step through the model

THE STRATEGIC PLANNING PROCESS MODEL

 

What Is Our Organisations Purpose?

Team members have many options and choices open to them on how they work together.

One very fundamental choice involves their interpretation of your organisation's purpose.

By jointly reviewing and clarifying their reason for existence, team members establish a common base from which to further examine where they are and what the future might hold.

This team-based activity can be used to help you and your team review and clarify your organisation's purpose and to identify possible future changes.

Facilitator guidance notes and handouts are included in this activity.

REVIEWING OUR ORGANISATIONAL PURPOSE

Setting Out Team Purpose

It is important to frame the team purpose in a meaningful way so that the results the team commits to are challenging and clear, and are goals that the members value and recognise as important.

The more team members are involved helps set individuals apart from their peers and is a useful skill for career progression. High –performing teams invest time and effort exploring, shaping and agreeing on a purpose that belongs to them both collectively and individually.

Members of a team should  agree:

  • what the team is expected to accomplish
  • how progress is measured
  • what problems they need to address

This activity will enable you and your team to explore all of the above.

Setting Our Team Purpose

The Ansoff Growth Matrix

The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.

Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.

 

The Ansoff Matrix has four alternatives of marketing strategies: Market Penetration, Product Development, Market Development, & Diversification.

 THE ANSOFF MATRIX