crafting a corporate strategy

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  • 8/22/2019 Crafting a Corporate Strategy

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    Crafting a Corporate Strategy

    Does the Company have enough businesses in very attractive industries?

    Will the proportion of mature or declining businesses cause corporate growth

    to be sluggish?

    Are the companys businesses overly vulnerable to seasonal or recessionary

    influences or to threats from emerging new technologies?

    Does the firm have enough cash cows to finance cash hogs with potential to

    be star performers?

    Does the make up of the business portfolio put the company in good position

    for the future?

    The Performance Test

    Alter the strategic plans for some or all of the businesses in the

    portfolio.

    Add new business units to the corporate portfolio.

    Divest weak-performing or money-losing businesses.

    Form cooperative alliances to try to alter conditions responsible for

    subpar performance potentials.

    Upgrade the companys resource base.

    Lower corporate performance objectives.

    Identifying Additional Diversification Opportunities

    Firms with unrelated diversification strategies - HUNT for ATTRACTIVE

    financial returns .

    Firms with related diversification strategies - GO for ATTRACTIVE

    industries with GOOD strategic or resource fit.

    Managing the Process of Crafting Corporate Strategy

    Building Resource Strengths and Organizational

    Capabilities

    The managers task is to convert the strategic plan into action and get on

    with what needs to be done to achieve the vision and targeted objectives.

    A Framework for Executing Strategy

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    Every MANAGER has an active role in the process of executing the

    firms strategic plan and all employees are PARTICIPANTS.

    Managing strategy implementation is more art than science

    The Principal Strategy-Implementing Tasks The Strategy Implementers Action Agenda:

    What to do now vs. later

    What requires much time and personal attention

    What can be delegated to others

    Building an organization with the competencies, capabilities, and

    resource strengths needed for successful strategy execution

    Allocating ample resources to strategy-critical activities

    Establishing strategy supportive policies

    Instituting best practices and pushing for continuous improvement Installing info, communication, and operating systems that enable

    company personnel to better carry out their strategic roles proficiency

    Tying rewards and incentives to the achievement of key strategic

    targets

    Shaping the work environment and corporate culture to fit the strategy

    Exercising the strategic leadership needed to drive implementation

    forward