Strategic Models

For IIPM, Ahmedabad Business Policy & Strategic Management -Gaurav Vatsa

Center Heavy Model

Centre Heavy: An Example

Product Design

Economies of Scale

COST EFFICIENCY

Supplier Costs

Process Restructuring

Diverging Radial

Diverging Radial An Example- CSR

Better Brand Value
CSR

Stakeholder Interests

Differentiate

Better Operating Efficiency

Diverging Radial: Reasons for Collaboration/ Alliance

Two Factor Matrix

High

LOW

LOW

High

Two Factor Matrix- An Example

Automobile Industry

High

Niche: Luxury High Prices

Customer Expectations

LOW

LOW

High

Expected Volumes

High

Niche: Luxury High Prices B/C-Segment

Customer Expectations

LOW

LOW

High

Expected Volumes

Two Factor Matrix: An Example

High

Niche: Luxury High Prices B/C-Segment

Customer Expectations

Low Prices Undercut Comp.

LOW

LOW

High

Expected Volumes

High

Niche: Luxury High Prices B/C-Segment

Customer Expectations
??

Low Prices Undercut Comp.

LOW

LOW

High

Expected Volumes

Notes for Two Factor Matrix

Choosing the 2 factors depends on the individuals analysis and the industry. For example purpose, weve considered the Automobile industry. The two factors considered here are , Volumes Expected and Customers Expectations in terms of features, quality, fuel efficiency etc. The question mark is a strategic zone where companies dont like to enter. Its a failure zone companies may launch into the High Vol.-High Expectation zone. Over time, expectations are not met i.e. Customer Expectations turn low which in turn Reduces the volumes of the company leading to failure.

Branch Model

Branch: Example- Activity Listing

Internally Performed Activities

Suppliers

Manufacturing

Retail Outlets

Logistics

Logical Framework: Strategic Linkage

IMPACT

OUTCOME

OUTPUT

ACTIVITY

RESOURCES

Funnel An Example
Industry Structure Competitive Space Competitive Dynamics Strategic Positioning

Environmental Trends

Customer & Benefits Segment,Size Channels Perceptual Space Value Proposition

Market

Industry

Strategic Situation/Position
PESTEL FACTORS Industry Attractiveness, dynamics, & competition Customer needs & desires (Met/ Unmet)

External Factors

Strategic Situation/Position
Capabilities & Resources (know-how, people, money, etc)
Competitive position (through customers eyes & in industry)

Internal Factors

Vision, values & culture

Strategy Formulation Model

Where we want to be How we will do it

Where we are

ANALYSIS

BASIS

COMPONENTS

Determining Specifics
Performance Measurement Targets / Standards of Performance Initiatives and Projects Action Plans

Evaluate

Environmental Scan Significant Issues Values / Guiding Principles Major Goals Specific Objectives Align / Fit with Capabilities Gaps

Situation Past, Present and Future

Mission & Vision

Performance Management Review Progress Balanced Scorecard Take Corrective Actions Feedback upstream revise plans

Background Information

Situational Analysis

SWOT Strengths, Weaknesses, Opportunities, Threats

Cyclic Process
Purpose/Values/ Vision Why are we here? What underpins our approach? Foresight

Capability Analysis

Business Environment Climate - culture Stakeholders Employee Capability Environment Resources Core processes Core and critical competencies Finance, Marketing, Admin, Operations, Communications etc.

Success Model (Stakeholder mapping

Evaluation

Operating Model Breakthroughs Strategic initiatives Milestone identification Principles and Policies Behavioural Standards

Balanced Scorecard People dimensions Customers Leadership Innovation