crafting a corporate strategy
TRANSCRIPT
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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