According to the Austrian / U.S. American economist and management consultant Drucker, P. F., strategies help to predict the impact of current decisions (and decisions not made) on the future of an organization. If one decides strategically he has always the problem to set the course, without knowing all he would need to know. The problem of knowledge deficit can never be solved completely, because strategic decisions concern the future. The relationships and interdependencies in a globally networked economy are much too complex and they change too fast. Nevertheless, the managers today have a number of tools that help them to see where the journey is heading. Relevant changes and developments should be recognized, that have already begun, but by superficial observation remain hidden and without appropriate consequences. Such changes must be systematically detected and analysed in the strategy process. Derived measures must be planned and implemented consistently.
The main objective of this paper is to describe, which tools private and public companies use to develop a strategy successfully and in which sequence of steps they should be used.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Phases of Strategy Development and Description of the Associated Tools
- Phase One: Market Analysis and Added Value for the Customer
- Phase Two: Determining the Market Position of the Company
- Deriving of Priorities and Objectives
- Implementing and Tracking the Strategy
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research paper aims to provide a practical guide for developing successful strategies in both private and public companies. It outlines a structured process that utilizes a series of tools to identify key market opportunities, assess the company’s position, set priorities, and implement effective strategies.
- Strategic management as a process
- Tools for strategic analysis and implementation
- Market analysis and customer value creation
- Determining market position and deriving priorities
- Importance of consistent implementation and monitoring
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction highlights the challenges faced by companies in effectively implementing strategic management practices. It argues for a structured process that integrates various tools and consistently considers market data and internal results.
The chapter on “Phases of Strategy Development and Description of the Associated Tools” outlines the different phases involved in strategic planning. It emphasizes the importance of starting with market analysis to understand customer needs and identify potential areas for value creation. The chapter also introduces tools for determining market position, deriving priorities, and implementing and tracking the strategy. This section is illustrated with a figure depicting the tools used in each phase of strategy development.
Schlüsselwörter (Keywords)
This research paper explores the concept of strategic management, focusing on tools and methodologies for successful strategy development. It covers various concepts like market analysis, value creation, competitive advantage, market positioning, stakeholder analysis, and implementation strategies. The paper analyzes the use of tools such as PESTLE analysis, Porter’s Five Forces, SWOT analysis, Balanced Scorecard, and Change Management, providing insights into their application in different phases of strategy development.
Frequently Asked Questions
What are the main phases of strategy development?
The process includes market analysis, determining market position, deriving priorities and objectives, and finally implementing and tracking the strategy.
Which tools are used for market analysis?
Common tools include PESTLE analysis for environmental factors and Porter’s Five Forces for assessing industry competition.
How does the SWOT analysis help in strategic planning?
SWOT analysis is used to evaluate the internal strengths and weaknesses of a company alongside external opportunities and threats to determine strategic direction.
What is the role of the Balanced Scorecard in strategy?
The Balanced Scorecard is used during the implementation and tracking phase to translate strategy into measurable goals across different organizational perspectives.
Why is consistent implementation important for strategic success?
Strategy development is only effective if derived measures are planned and executed consistently, with ongoing monitoring to adapt to complex, networked global changes.
- Quote paper
- Markus Kutscheid (Author), 2013, Phases of Strategy Development and Associated Tools, Munich, GRIN Verlag, https://www.grin.com/document/269187
