Process-based Strategic Planning (eBook)

Univ.-Prof. Dr. rer. pol. Rudolf Grünig is full time Professor of Business Administration and Lecturer in Strategic Management in various postgraduate programs at the University of Fribourg, Switzerland. Professor Dr. Richard Kühn was Ordinarius of Business Administration and Director of the Institute of Marketing and Management at the University of Berne until 2004. Since fall 2004 he is Emeritus, adviser/consultant, member in boards of various Swiss companies. He is author of numerous textbooks and articles in the fields of Marketing and Management.         

Preface 6
Brief contents 8
Contents 10
List of figures 18
List of insets 24
Introduction 26
Part I Idea of strategic planning 30
1 Strategies, strategic planning and success potentials 31
1.1 Strategies 31
1.2 Strategic planning 32
1.3 Building success potentials as main purpose of strategic planning 32
2 Development of strategic planning 38
2.1 Four phases in the development of strategic planning 38
2.2 Role of strategic planning within strategic management 41
3 Assessment of strategies 45
3.1 Basic reflections on the assessment of strategies 45
3.2 Model for the assessment of strategies 46
Part II Process of strategic planning and resulting documents 51
4 Strategic documents as the result of strategic planning 52
4.1 Basic types of strategic documents 52
4.2 Combinations of strategic documents for specific companies 56
5 Process of strategic planning 65
5.1 Need for a systematic process of strategic planning 65
5.2 Overview of the process of strategic planning 66
5.3 Brief note on the steps of the process 70
5.4 Strategic planning process of an electricity provider 74
5.5 Adapting the process of strategic planning 80
6 Strategic analysis and planning toolbox 85
6.1 Important tools of strategic analysis and planning 85
6.2 Allocating the tools to three fields of analysis and to the steps in the planning process 87
Part III Project planning, analysis and mission statement revision 92
7 Strategy project planning 94
7.1 Why strategic planning should be seen as a project 94
7.2 Sub-tasks of strategy project planning 95
7.2.1 Overview 95
7.2.2 Determining the scope 95
7.2.3 Determining the objectives and boundary conditions 96
7.2.4 Deciding whether to hire a consultant 98
7.2.5 Fixing the project organization 99
7.2.6 Fixing the process and the milestones 102
7.2.7 Budgeting the cost 102
8 Strategic analysis 105
8.1 Need for analysis before strategies are developed 105
8.2 Content and conclusions of analysis 106
8.3 Description of the applied methods 109
8.3.1 Choice of the methods applied in analysis 109
8.3.2 Global environmental analysis 110
8.3.3 Description of the market system 111
8.3.4 Identification of success factors 113
8.3.5 Analysis of strengths and weaknesses 116
8.3.6 Stakeholder value analysis 117
8.4 Process of strategic analysis 120
8.4.1 Overview 120
8.4.2 Determining the preconditions for analysis 120
8.4.3 Carrying out the analysis 125
9 Revision or production of the mission statement 128
9.1 Nature, effects and content of mission statements 128
9.2 Process of revising or producing the mission statement 131
9.2.1 Overview 131
9.2.2 Steps of revising or producing the mission statement 133
Part IV Developing the corporate strategy 135
10 Defining the strategic businesses 138
10.1 Strategic business as a three dimensional construct 138
10.2 Two types of strategic business 140
10.3 Constellations of strategic business fields and strategic business units 145
10.4 Defining strategic businesses 147
11 Assessing relevant industries with the help of competitive intensity models 155
11.1 Basic reflections on the assessment of competitive intensity 155
11.2 Analyzing industry structure with the Five Forces model 157
11.2.1 Basic concept 157
11.2.2 Areas of application 159
11.2.3 Procedure 159
11.3 Analyzing structures within industries with the Strategic Groups model 167
11.3.1 Basic concept 167
11.3.2 Areas of application 168
11.3.3 Procedure 169
12 Setting up and assessing the portfolio of businesses 175
12.1 Basis of portfolio methods 175
12.2 Market growth - market share portfolio 177
12.2.1 Portfolio matrix 177
12.2.2 Norm strategies 181
12.2.3 Recommendations for the portfolio as a whole 182
12.3 Industry attractiveness - competitive strength portfolio 183
12.3.1 Portfolio matrix 183
12.3.2 Norm strategies and recommendations for the portfolio asa whole 191
12.4 Portfolio analysis and planning process 192
12.4.1 Overview of the process 192
12.4.2 Preliminary methodological decisions 193
12.4.3 Description of the current portfolio 194
12.4.4 Predicting changes in real market growth or industry attractiveness 194
12.4.5 Assessment of the current portfolio 195
12.4.6 Planning the target portfolio 195
12.4.7 Portfolio analysis and planning in a retail group 196
13 Corporate strategy development process 202
13.1 Overview 202
13.2 Defining the strategic businesses 204
13.3 Describing the current corporate strategy and forecasting developments relevant to its assessment 205
13.4 Assessing the current corporate strategy 212
13.5 Developing and assessing options for future corporate strategy 213
13.5.1 Developing options 213
13.5.2 Formulating the general intention 216
13.5.3 Determining the future businesses and their targets 220
13.5.4 Determining the way to construct, develop or divest businesses 224
13.5.5 Assessing the options and formulating the provisional corporate strategy 228
Part V Developing the business strategies 230
14 Generic business strategies 233
14.1 Basic reflections on the generic business strategies 233
14.2 Overview of the generic business strategies 233
14.3 Broad scope price strategy 237
14.4 Broad scope differentiation strategy 239
14.5 Niche focus strategies 240
14.5.1 A niche as a specific form of industry segment 240
14.5.2 Identification and assessment of niches with the help of industry segment analysis 242
14.5.3 Requirements for niches 244
14.6 Success conditions and risks of the generic business strategies 247
14.6.1 Success conditions of the generic business strategies 247
14.6.2 Risks of the generic business strategies 250
14.7 Transitional strategies and strategy alternation 252
14.7.1 Basic reflections on transitional strategies and strategy alternation 252
14.7.2 Transitional strategies 253
14.7.3 Strategy alternation 256
15 Specifying business strategies at the level of the offer 259
15.1 Basic reflections on specifying business strategies at the level of the offer 259
15.2 Specifying the offer for a price strategy 259
15.2.1 Three areas of specification 259
15.2.2 Specifying the products and services 260
15.2.3 Specifying the mix of products and services 260
15.2.4 Specifying the pricing 262
15.3 Specifying the offer for a differentiation strategy 263
15.3.1 Importance of a clear view of the served industry segments and of the main competitors 263
15.3.2 Strategic positioning of the offer 264
15.3.3 Ideas for the strategic positioning of the offer 266
15.4 Identification of success factors and analysis of strengths and weaknesses as basis for specifying the offer 273
16 Specifying business strategies at the level of resources 277
16.1 Basic reflections on specifying business strategies at the level of resources 277
16.2 Understanding resources 278
16.3 Valuable resources 279
16.4 Determining which resources to build or maintain 282
16.4.1 Overview 282
16.4.2 Identifying the resources creating customer value 283
16.4.3 Determining which of the resources creating customer value are rare 289
16.4.4 Assessing sustainability of the resources creating customer value and found to be rare 290
17 Business strategy development process 291
17.1 Overview 291
17.2 Describing and assessing the current business strategy 293
17.3 Determining and assessing options for the future generic business strategy and the target industry segments 294
17.4 Determining the future competitive advantages 295
17.4.1 Network of success potentials as an approach to developing the future competitive advantages 295
17.4.2 Basic possibilities for competitive advantages 302
17.4.3 Criteria for assessing the future competitive advantages 303
17.5 Developing the business strategy of a watch manufacturer 305
Part VI Implementing, assessing and approving the strategies 311
18 Defining the implementation 313
18.1 Basic reflections on implementing strategies 313
18.2 Types of strategic program 318
18.3 Process of defining the implementation 321
18.3.1 Overview 321
18.3.2 Steps of defining the implementation 322
19 Final assessment of strategies and implementation 327
19.1 Need for a final assessment 327
19.2 Assessment criteria 327
19.2.1 Overview 327
19.2.2 Assessment of the overall value of strategies 327
19.2.3 Assessment with the remaining sets of criteria 333
19.3 Process of final assessment of strategies and implementation 338
19.3.1 Overview 338
19.3.2 Steps of final assessment of strategies and implementation 338
20 Formulating and approving the strategic documents 341
20.1 Basic reflections on strategic documents 341
20.2 Process of formulating and approving the strategic documents 341
20.2.1 Overview 341
20.2.2 Steps of formulating and approving the strategic documents 341
Final remarks 347
Glossary 348
Index 357
Bibliography 362