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.
Table of Contents
1. Introduction
2. Phases of Strategy Development and Description of the Associated Tools
2.1. Phase One: Market Analysis and Added Value for the Customer
2.2. Phase Two: Determining the Market Position of the Company
2.3. Deriving of Priorities and Objectives
2.4. Implementing and Tracking the Strategy
3. Conclusion
4. Bibliography
Objectives and Topics
The main objective of this paper is to examine the process of strategy development in private and public companies. It aims to identify the specific tools utilized throughout the strategy cycle and determine the optimal sequence for their implementation to ensure successful strategic management.
- The integration of disparate management tools into a seamless strategic process.
- Methods for market analysis and defining customer added value.
- Techniques for assessing market positioning and benchmarking.
- The systematic derivation of strategic priorities using SWOT and Strategy Maps.
- The role of the Balanced Scorecard in bridging strategy and execution.
- Change management strategies to ensure organizational alignment.
Excerpt from the Book
2.1. Phase One: Market Analysis and Added Value for the Customer
The first phase of the strategy development process is headed “Market Analysis and Added Value for the Customer”. The task of the phase is to analyse the target market and to identify the added value that the company can offer its customers. The starting point of the strategy development is thus outside the organization. This approach is called “The Strategy from the Outside In” by George Day and Christine Moorman. “When they design their strategy, they start with the market, not the other way around. They use deep market insights to inform and guide their outside-in view. Their outside-in strategy focuses every part of the organization on achieving, sustaining, and profiting from the customer value“. The outside-in view first considers the market that the company wants to reach with its products and services. How is this market developing, to what political, economic, social, technological, legal and environmental forces is it exposed and what opportunities and risks arise for the company?
Summary of Chapters
1. Introduction: Highlights the inconsistency of strategic management in German companies and proposes a structured, process-oriented approach to strategy development.
2. Phases of Strategy Development and Description of the Associated Tools: Details the four main phases of strategy development, including market analysis, positioning, derivation of objectives, and implementation, alongside the specific tools required for each.
3. Conclusion: Summarizes that customer-centric added value is the core of marketing strategy and emphasizes that a clear, structured process is essential for successful strategy development and implementation.
Keywords
Added Value, Alignment Pyramid, Balanced Scorecard, Business Model, Change Management, Core Competencies, Five Forces, PESTLE Analysis, Portfolio Analysis, Product Life Cycle, Stakeholder Analysis, Strategy Development, Strategic Management, Benchmarking, SWOT Analysis.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper focuses on how private and public companies can move away from using isolated tools to a structured, seamless process for effective strategy development.
What are the central themes discussed in the work?
Central themes include customer added value, market analysis, competitive positioning, performance measurement, and the human side of organizational change.
What is the main research objective?
The goal is to describe the essential tools used in strategy development and the logical sequence of steps in which they should be applied.
Which scientific methodology is employed?
The paper employs a descriptive and analytical approach, drawing on management literature and the author's professional experience to categorize strategy phases and associated diagnostic and implementation tools.
What topics are covered in the main section?
The main section covers market analysis (PESTLE, Five Forces), positioning (Benchmarking, Product Life Cycle, Ansoff Matrix, Core Competencies, BCG Portfolio), strategy derivation (SWOT, Strategy Map), and execution (Balanced Scorecard, Change Management).
How is the paper characterized by its keywords?
It is characterized by terms reflecting a structured management toolkit, spanning from initial customer value analysis to the final documentation and control via the Balanced Scorecard.
Why does the author advocate for an "Outside-In" strategy approach?
The author argues that companies must start with market insights rather than internal perspectives to ensure that the strategy is truly creating value for the customer.
How does the paper differentiate between different types of benchmarking?
It distinguishes between four types: internal, competitive, functional, and generic, noting that each provides unique perspectives for improving operational performance.
Why is the "Change Curve" significant in the context of strategy implementation?
The Change Curve is used to explain the psychological and energetic phases employees experience, helping managers anticipate and manage resistance during the implementation of new strategies.
- Citar trabajo
- Markus Kutscheid (Autor), 2013, Phases of Strategy Development and Associated Tools, Múnich, GRIN Verlag, https://www.grin.com/document/269187
