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2018 | Buch

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The Strategy Planning Process

Analyses, Options, Projects

verfasst von: Prof. Dr. Rudolf Grünig, Prof. Dr. Richard Kühn

Verlag: Springer Berlin Heidelberg

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

Developing future strategies for a company is an important and complex task, and forms the core issue in this book. A company’s strategy defines its future direction, specifying its desired market position and key competitive advantages both at the level of market offers and of resources. This book provides clear, straightforward advice for professionals: after a brief introduction to strategic planning, a heuristic process for determining future strategies is presented. It shows how to analyze a company’s current situation, develop and assess options for the future, and define implementation projects. Throughout the book, detailed recommendations are illustrated with the help of numerous concrete examples. As a result of studying applications of the book in practice, the second edition benefits from a simplified, hands-on analysis and planning process at the business level.

Inhaltsverzeichnis

Frontmatter

1. Introduction

Abstract

This chapter gives an introduction to the book. First, the importance and the difficulties of strategic planning are presented. Then, the USPs (Unique Selling Propositions) and the objectives of the book are defined. Finally, the content is summarized.

Rudolf Grünig, Richard Kühn

Part I

Frontmatter

2. Strategies, Strategic Planning and Success Potentials

Abstract

This chapter introduces the three central concepts of strategies, strategic planning and success potentials. In Sect. 2.1, it is first shown that the term “strategy” can mean an intended strategy or a realized one. Furthermore, the emergent strategy is introduced as a special form of a realized strategy. The section concludes with the five features of an intended strategy. Section 2.2 creates an understanding of strategic planning as a rational approach for developing strategies, and it lists the six features of strategic planning. In Sect. 2.3, it is first shown that the main purpose of strategic planning lies in building up and maintaining success potentials. Then, the three levels of success potentials—resources, offers and market positions—are distinguished. Based on them, the ROM-model of success potentials is introduced. In an inset, the outside-in and the inside-out approach to determine and assess success potentials are distinguished.

Rudolf Grünig, Richard Kühn

3. Development of Strategic Planning and Its Integration into Strategic Management

Abstract

This chapter shows the development of strategic planning and its integration into strategic management. Section 3.1 distinguishes a preliminary phase with long-term planning and four phases of strategic planning: (1) Planning market positions with portfolio methods, (2) Determining the competitive strategy at the offer level, (3) Integration of strategic planning within strategic management and (4) Explicit integration of resources into strategic planning. An inset summarizes the two basic theoretical approaches of the market-based view and the resource-based view. Section 3.2 then shows the integration of strategic planning into strategic management and briefly explains strategy implementation and strategic control as the two sub-tasks of strategic management in addition to strategic planning.

Rudolf Grünig, Richard Kühn

4. Assessing Strategic Intentions

Abstract

This chapter treats the issue of assessing strategic intentions. Section 4.1 distinguishes three levels of concretization of strategic intentions: (1) Specific success potentials, (2) Strategies and (3) Strategic projects. As a basis for assessing success potentials and strategies, Ohmae’s strategic triangle is introduced in Sect. 4.2. Section 4.3 then shows that strategic projects can be assessed with the help of investment performance measures. An example shows the application of the net present value methods to assess a market entry project.

Rudolf Grünig, Richard Kühn

Part II

Frontmatter

5. Strategic Documents

Abstract

This chapter deals with strategic documents. Section 5.1 distinguishes and briefly describes five categories of documents: (1) Mission statements, (2) Corporate strategies, (3) Business strategies, (4) Functional strategies and (5) Strategic project plans. With the help of an example, Sect. 5.2 then shows how the documents can be combined.

Rudolf Grünig, Richard Kühn

6. Strategy Planning ProcessStrategyplanning process

Abstract

This chapter introduces the strategy planning process, which is afterwards detailed in Parts III to VIII of the book. Section 6.1 briefly explains the underlying bases. An inset notably describes five heuristic principles and shows how they are applied in the strategy planning process. Section 6.2 then presents the proposed process and summarizes the six steps. Finally, Sect. 6.3 links the recommended process with the most important analysis and planning tools: 27 methods are attributed to the six steps of the process.

Rudolf Grünig, Richard Kühn

Part III

Frontmatter

7. Defining the Current Strategic Businesses

Abstract

This chapter looks at the definition of the current strategic businesses. After an introduction, basic considerations on defining and structuring markets follow in Sect. 7.2. Based on this, Sect. 7.3 presents the notion of strategic businesses and distinguishes two types of strategic businesses: (1) Strongly independent strategic business fields and (2) Strategic business units which are linked with other businesses. Finally, a process for defining strategic businesses is proposed in Sect. 7.4. An inset shows how the process is applied.

Rudolf Grünig, Richard Kühn

8. Preparing the Strategy Planning Project

Abstract

In this chapter, the preparation of the strategy planning project is explained. Section 8.1 explains the reason why strategy planning should be seen as a project. Section 8.2 then describes the process for preparing a strategy planning project. It comprises five tasks: (1) formulating key issues, (2) determining the project scope, (3) deciding whether to hire a consultant, (4) fixing the process and the project organization and (5) budgeting the strategy planning project.

Rudolf Grünig, Richard Kühn

9. Stakeholder Analysis and Revising the Mission Statement

Abstract

In this chapter, the stakeholder analysis and the revision of the mission statement is discussed. Section 9.1 shows that the mission statement normally defines the overriding values and objectives. However, it can only fulfill its function as a normative framework if it reflects the values and objectives of important stakeholders. The stakeholder analysis is explained in Sect. 9.2. Considerations on the effects and the structure of mission statements follow in Sect. 9.3. Finally, Sect. 9.4 presents the process for carrying out a stakeholder analysis and revising the mission statement.

Rudolf Grünig, Richard Kühn

Part IV

Frontmatter

10. Global Environmental Analysis

Abstract

This chapter explains how to carry out an analysis of the global environment. Section 10.1 shows that the global environmental analysis looks at all of the aspects that affect the company and its markets. Thanks to this analysis, an image of the current and especially of the future environmental conditions can be produced. Then, Sect. 10.2 presents the PESTEL analysis and Sect. 10.3 explains the scenario analysis. The chapter concludes with a recommendation for a process to carry out an environmental analysis in Sect. 10.4. It combines the two analysis tools introduced in Sects. 10.2 and 10.3.

Rudolf Grünig, Richard Kühn

11. Analyzing the Relevant Industries

Abstract

This chapter shows how to assess the competitive situation in an industry. Section 11.1 shows that high competitive intensity in an industry strongly reduces its attractiveness for future investments. It is therefore important to analyze the current and the future competitive intensity. In Sects. 11.2 and 11.3, Porter’s five forces model and strategic groups model are then presented. Two insets show how to apply the models in practice. Based on these models, a process for the analysis of the relevant industries is recommended in Sect. 11.4.

Rudolf Grünig, Richard Kühn

12. Portfolio Analysis

Abstract

This chapter looks at the analysis of the portfolio of strategic businesses. Section 12.1 explains the purpose and the general idea of portfolio analysis. The Boston Consulting Group portfolio and the McKinsey portfolio are then presented in Sects. 12.2 and 12.3. In insets, the underlying theories of the market life cycle, the experience curve and the PIMS program are summarized. Section 12.4 concludes the chapter with a process for carrying out a portfolio analysis. An inset shows the portfolio analysis in a retail group.

Rudolf Grünig, Richard Kühn

13. Diagnosing Strategic Challenges at the Corporate LevelStrategic challengesat the corporate level

Abstract

This chapter shows how to derive strategic challenges from the analyses. After an introduction, the SWOT analysis and the TOWS matrix are explained and assessed in Sects. 13.2 and 13.3. An inset illustrates the application of the TOWS matrix in practice with the example of a wine trading company. Section 13.4 proposes a process for deriving strategic challenges at the corporate level.

Rudolf Grünig, Richard Kühn

Part V

Frontmatter

14. Developing and Assessing Strategic Options at the Corporate Level

Abstract

This chapter explains how to develop and assess corporate strategy options. Section 14.1 shows that a corporate strategy is needed by diversified companies with activities in several product groups, industry markets and/or geographical markets. It also introduces three key questions: (1) Should the portfolio of activities be reduced, maintained or extended? (2) What are the target market positions of the businesses? and (3) What investment funds are allocated to the businesses? In Sect. 14.2, diversification and concentration are then considered. They are central issues in the context of a corporate strategy. Section 14.3 then shows how to develop and assess corporate strategy options and how to define strategic objectives for the businesses. An inset offers an example showing how corporate options are developed by an international producer of polymer parts.

Rudolf Grünig, Richard Kühn

15. Developing and Assessing Strategic Projects at the Corporate Level

Abstract

This chapter looks at the development and assessment of implementation projects at the corporate level. After introductory remarks, direct implementation projects and indirect support projects are distinguished in Sect. 15.2. Then, Sect. 15.3 presents a process for the development and assessment of strategic projects at the corporate level.

Rudolf Grünig, Richard Kühn

Part VI

Frontmatter

16. Analyzing the Relevant Markets

Abstract

This chapter deals with the analysis of the relevant markets. Section 16.1 shows that the relevant markets include the served markets of the existing businesses as well as the markets of possible diversification projects. Then, Sect. 16.2 presents a generic model to describe a market as a system. With the help of an example, it is shown how the generic model can be adapted to the specific situation of a concrete market. The introduction of success factors follows in Sect. 16.3. Then, Sect. 16.4 shows how to define and analyze submarkets. An inset introduces the industry segment analysis as a specific approach of submarket definition and analysis and illustrates it with the help of an example. Finally, Sect. 16.5 proposes a process for market analysis.

Rudolf Grünig, Richard Kühn

17. Analyzing the Competitive Positions

Abstract

This chapter explains the analysis of the competitive positions in the served markets. The chapter completes Chap. 16, which shows how the markets themselves can be analyzed. After a short introduction, Sect. 17.2 presents the business model concept. Section 17.3 then explains Porter’s generic business strategies. Afterwards, Sect. 17.4 describes the strengths and weaknesses analysis. Two insets introduce the offer analysis and the VRIO analysis. They allow a detailed analysis of the success potentials at the offer level and at the resource level. They are applied if the strengths and weaknesses analysis shows the need for an in-depth analysis. Finally, Sect. 17.5 combines the tools into a process.

Rudolf Grünig, Richard Kühn

18. Diagnosing Strategic Challenges at the Business Level

Abstract

This chapter shows how a synthesis of the analysis results at the business level can be made and how strategic challenges can be derived from it. The TOWS matrix, which is used for this purpose, is presented in Chap. 13. Therefore, after an introduction, a process for the identification of strategic challenges at the business level is directly proposed in Sect. 18.2. It is illustrated with the help of an example of a producer of hydropower.

Rudolf Grünig, Richard Kühn

Part VII

Frontmatter

19. Developing and Assessing Strategic Options at the Business Level

Abstract

This chapter deals with the development and assessment of business strategy options. Following an introduction in Sect. 19.1, the network of success potentials is introduced in Sect. 19.2 and illustrated with the example of an international consulting firm. Section 19.3 presents a process for the development and assessment of business strategy options. It is based on the network of success potentials introduced in Sect. 19.2 and on the business model and the generic business strategies already explained in Chap. 17. An inset shows the development of options for the offer of bus trips.

Rudolf Grünig, Richard Kühn

20. Developing and Assessing Strategic Projects at the Business Level

Abstract

The best strategy option is selected as the future business strategy. Its implementation is the subject of this chapter. After a brief introduction, direct implementation projects and indirect support projects at the business level are distinguished in Sect. 20.3. Section 20.3 then recommends a process to develop implementation projects at the business level.

Rudolf Grünig, Richard Kühn

Part VIII

Frontmatter

21. Developing the Functional Strategies

Abstract

This chapter discusses the development of functional strategies. Section 21.1 shows that functional strategies support the corporate strategy and the business strategies and must therefore be developed last. The content, categories and effects of functional strategies are then explained in Sect. 21.2. As an example of a functional strategy, the operations strategy is introduced in an inset. Section 21.3 proposes a process for developing functional strategies.

Rudolf Grünig, Richard Kühn

22. Overall Assessment of Strategies and Strategic Projects

Abstract

This chapter deals with the overall assessment of strategies and strategic projects. In Sect. 22.2, the need for a final overall assessment is justified. Then, Sect. 22.2 proposes a process for the overall assessment of strategies and strategic projects. The assessment can show only small needs for optimization or identify major weaknesses. In the latter case, a heuristic loop leads to a fundamental revision of the entire strategies or project plans.

Rudolf Grünig, Richard Kühn

23. Preparing the Implementation

Abstract

This chapter is devoted to the preparation of implementation. After an introduction, a process for completing the strategy planning project is proposed in Sect. 23.2. It includes the development, approval and communication of strategic documents. An overview of the necessary documents is given, and their possible structures are proposed. Section 23.2 concludes with recommendations to increase adherence to strategies during the daily business.

Rudolf Grünig, Richard Kühn

24. Final Remarks

Abstract

This chapter provides a short summary and gives brief suggestions to use the proposed strategy planning process in a flexible way, based on the specific needs of the individual company.

Rudolf Grünig, Richard Kühn

Backmatter

Titel: The Strategy Planning Process
verfasst von: Prof. Dr. Rudolf Grünig
Prof. Dr. Richard Kühn
Verlag: Springer Berlin Heidelberg
Electronic ISBN: 978-3-662-56221-5
Print ISBN: 978-3-662-56220-8
DOI: https://doi.org/10.1007/978-3-662-56221-5