I Business Definition, identification of:

    1. Markets to be served
    2. Products to be sold
    3. Basis upon which company will compete
II Situational Assessment
    1. Analysis of the internal and external factors that influence business performance
      a) Broad social, political and economic forces impacting the business
      b) Industry analysis - review of major competitive forces shaping industry structure such as customers, suppliers, threats from substitute products technologies, the nature of entry barriers protecting the business from new competitors
      c) Competitor analysis - develop profiles of the different competitors' business strategies
    2. Identification of strengths and weaknesses arising out of an evaluation of competencies and resources

    3. Definition of strategic objectives, addressing the following:

      a) How the company's money is to be spent
      b) A ranking of the above
      c) How the above are to be balanced so that the company's economic mission isn't jeopardized.
III Strategic Development
    1. Generation of strategic alternatives by:
      a) Running "Blue Sky" sessions to foster creative thinking about business strategies
      b) Identifying ways to change "the rules of competition"
      c) Analyzing the value-added process to create competitive advantage
      d) Anticipating competitive response and identifying likely scenarios
    2. Evaluation of the strategic options:
      a) Test strategies for internal consistency, feasibility, risk and payback
      b) Check cash flow implications
    3. Final choice of a strategy, identifies:
      a) Competitive advantage to be established through cost leadership or by providing value-added products/services
      b) Breadth of the market over which the advantage is to be pursued, either over a broad market or in a specialized market niche(s).
IV Implementation
    1. Translation of chosen strategy into workable marketing, production and finance plans, linked to budgetary objectives
    2. Identification of the "critical success factors", key activities that have to be performed flawlessly in order to ensure successful implementation
    3. Maintenance of simple and lean organizational structures
    4. Creation of a monitoring and control system using milestones and concentrating on closing performance gaps
    5. Development of an incentive scheme that rewards Managers who get things done - not those who write about what is needed
    6. Preparation of formal contingency plans

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