The Strategy Planning Process: Analyses, Options, Projects

280 Pages·2015·8.77 MB·English

by  Rudolf Grünig

Rudolf Grünig · Richard Kühn
The Strategy
Planning Process
Analyses, Options, Projects
The Strategy Planning Process
ThiSisaFMBlankPage
Rudolf Gru¨nig (cid:129) Richard Ku¨hn
The Strategy
Planning Process
Analyses, Options, Projects
Translated from German by Maude Montani
RudolfGru¨nig RichardKu¨hn
UniversityofFribourg InstituteofMarketingandManagement
Fribourg UniversityofBern
Switzerland Bern
Switzerland
ISBN978-3-662-45648-4 ISBN978-3-662-45649-1 (eBook)
DOI10.1007/978-3-662-45649-1
LibraryofCongressControlNumber:2015935730
SpringerHeidelbergNewYorkDordrechtLondon
#Springer-VerlagBerlinHeidelberg2015
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Preface
The strategyofa companydefines its future way ofdoing business. It determines
foryearstocomethetargetmarketpositionsandthecompetitiveadvantagesofthe
offersandtheresources toconstruct.Determiningthefuturestrategyisanimpor-
tantandcomplextask.Thisbookillustrateshowtoapproachit.
Thebookistheresultofafundamentalrevisionandreformulationofthebook
“Process-based Strategic Planning” (See Gru¨nig & Ku¨hn, 2011, Process-based
StrategicPlanning)publishedinsixeditions.ItispublishedinparallelinGerman
(See Gru¨nig&Ku¨hn, 2014,Strategieplanungsprozess)and inFrench(See Gru¨nig
&Ku¨hn,2015,Proce´de´ deplanificationstrate´gique).
Manyoftheideasandexamplescomefromdiscussionswithcurrentandformer
assistants, PhDs and students. The authors would like to thank them for their
interest and their contributions. The book also contains a lot of experiences and
approachesfrompractice.Theauthorsarethereforeindebtedtothemanymanagers
whohaveallowedsharingtheirstrategicwork.
Butthebiggestthanksareaddressedtothreepeople:T.Schulthesscoordinated
the project and typed the text, M. Montani translated the text from German into
English and T. Le designed the figures. The authors would like to express their
gratitudetothethreeladiesfortheirextraordinaryinvolvementandtheirexcellent
work.TheauthorswouldalsoliketothankM.Scofieldforcarefullyreviewingthe
finalversionofthemanuscript.
Fribourg,Switzerland RudolfGru¨nig
Bern,Switzerland RichardKu¨hn
July2014
v
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Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PartI IdeaofStrategicPlanning
2 Strategies,StrategicPlanningandSuccessPotentials. . . . . . . . . . . 7
2.1 Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2 StrategicPlanning. . . . .. . . . . . . . . . . . .. . . . . . . . . . . . . .. . 9
2.3 BuildingandMaintainingSuccessPotentialsastheMain
PurposeofStrategicPlanning. . . . . . . . . . . . . . . . . . . . . . . . . 10
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3 DevelopmentofStrategicPlanningandItsIntegrationInto
StrategicManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.1 DevelopmentofStrategicPlanning. . . . . . . . . . . . . . . . . . . . . 17
3.2 IntegrationofStrategicPlanningintoStrategicManagement. . . 20
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
4 AssessingStrategicIntentions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
4.1 ConcretizationLevelsofStrategicIntentions. . . . . . . . . . . . . . 25
4.2 AssessingSuccessPotentialsandStrategies. . . . . . . . . . . . . . . 26
4.3 AssessingStrategicProjects. . . . . . . . . . . . . . . . . . . . . . . . . . 29
PartII StrategicDocumentsandStrategyPlanningProcess
5 StrategicDocuments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
5.1 CategoriesofStrategicDocuments. . . . . . . . . . . . . . . . . . . . . 35
5.2 Company-SpecificCombinationsofStrategicDocuments. . . . . 38
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
6 StrategyPlanningProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
6.1 BasisoftheProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
6.2 TheProposedStrategyPlanningProcess. . . . . . . . . . . . . . . . . 42
6.3 AdaptingtheProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
vii
viii Contents
6.4 LinkingtheProcesswiththeMainAnalysisand
PlanningTools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
PartIII InitializingStrategicPlanning
7 DefiningtheCurrentStrategicBusinesses. .. . . .. . . . .. . . .. . . .. 55
7.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
7.2 DefiningandStructuringMarkets. . . . . . . . . . . . . . . . . . . . . . 55
7.3 NotionandTypesofStrategicBusinesses. . . . . . . . . . . . . . . . 57
7.4 ProcessforDefiningtheCurrentStrategicBusinesses. . . . . . . . 60
7.4.1 Overview.. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. 60
7.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 60
7.4.3 ExampleofApplyingtheProcess. . . . . . . . . . . . . . . . 62
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
8 PreparingtheStrategyPlanningProject. . . . . . . . . . . . . . . . . . . . 67
8.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
8.2 ProcessforPreparingtheStrategyPlanningProject. . . . . . . . . 68
8.2.1 Overview.. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. 68
8.2.2 FormulatingKeyIssues. . . . . . . . . . . . . . . . . . . . . . . 68
8.2.3 DeterminingtheScopeoftheProjectandDefiningthe
DocumentstoDevelop. . . . . . . . . . . . . . . . . . . . . . . . 69
8.2.4 DeterminingtheBoundaryConditions.. . . . . .. . . . .. 70
8.2.5 DecidingWhethertoHireaConsultant. . . . . . . . . . . . 71
8.2.6 FixingtheProjectProcessandtheProject
Organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
8.2.7 BudgetingtheStrategyPlanningProject. . . . . . . . . . . 75
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
9 StakeholderAnalysisandRevisingtheMissionStatement. . . . . . . 77
9.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
9.2 StakeholderAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
9.3 Notion,EffectsandContentofMissionStatements.. . . .. . . .. 78
9.4 ProcessforStakeholderAnalysisandRevisingtheMission
Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
9.4.1 Overview.. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. 80
9.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 81
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
PartIV StrategicAnalysisattheCorporateLevel
10 GlobalEnvironmentalAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . 89
10.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
10.2 PESTELAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
10.3 ScenarioAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Contents ix
10.4 ProcessfortheGlobalEnvironmentalAnalysis. . . . . . . . . . . . 94
10.4.1 Overview. .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 94
10.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 94
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
11 AnalyzingtheRelevantIndustries. . . . . . . . . . . . . . . . . . . . . . . . . 97
11.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
11.2 FiveForcesModel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
11.3 StrategicGroupsModel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
11.4 ProcessforAnalyzingRelevantIndustries. . . . . . . . . . . . . . . . 107
11.4.1 Overview. .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 107
11.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 107
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
12 PortfolioAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
12.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
12.2 BostonConsultingGroupPortfolio. . . . . . . . . . . . . . . . . . . . . 112
12.2.1 PortfolioMatrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
12.2.2 BasisofthePortfolio. . . . . . . . . . . . . . . . . . . . . . . . . 113
12.2.3 RecommendationsfortheBusinessesandthePortfolio
asaWhole. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
12.3 McKinseyPortfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
12.3.1 PortfolioMatrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
12.3.2 BasisofthePortfolio. . . . . . . . . . . . . . . . . . . . . . . . . 126
12.3.3 RecommendationsfortheBusinessesandthePortfolio
asaWhole. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
12.4 ProcessofPortfolioAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . 129
12.4.1 Overview. .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 129
12.4.2 MethodologicalDecisions. . . . . . . . . . . . . . . . . . . . . 129
12.4.3 EstablishingthePortfolio. . . . . . . . . . . . . . . . . . . . . . 131
12.4.4 AssessingthePortfolio. . . . . . . . . . . . . . . . . . . . . . . . 131
12.4.5 ExampleofApplyingtheProcess. . . . . . . . . . . . . . . . 132
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
13 DiagnosingStrategicChallengesattheCorporateLevel. . . . . . . . . 137
13.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
13.2 SWOTAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
13.3 TOWSMatrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
13.4 ProcessforDiagnosingStrategicChallengesattheCorporate
Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
13.4.1 Overview. .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 142
13.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 142
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144