strategy development methods

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Strategy Development methods. Housekeeping. Restrooms are located every floor near the lift area Duration: 30 mins No breaks. Learners are advised to have their meals before coming to class. Canteen at the ground floor operates from 8:30am to 5:00pm Free drinks from vending machines - PowerPoint PPT Presentation

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Page 1: Strategy Development methods
Page 2: Strategy Development methods

Housekeeping

• Restrooms are located every floor near the lift area• Duration: 30 mins• No breaks. Learners are advised to have their meals

before coming to class.• Canteen at the ground floor operates from 8:30am to

5:00pm• Free drinks from vending machines• Emergency exits are located at each end of the

corridors. Incase of emergency, take the nearest exit down to the assembly area at the car park.

Page 3: Strategy Development methods

Four Corners (6 mins)On a piece of paper, draw:Favorite food Favorite hobby

If I’m an animal, what would I want to be.

One country I would like to go on vacation

Name

Page 4: Strategy Development methods

Learners’ ProfileName Current

Work RoleIndustry Subject of

expertise ( Training)

One thing you expect

to learn

One way you can

contribute today

Page 5: Strategy Development methods

What Can We Do To Enhance Learning?

Page 6: Strategy Development methods

Learning Outcomes

By the end of this session, you will be able to:• Identify the strength and weaknesses of the

company in relation to the project at hand.• Identify the opportunities and threats of the

company in relation to the project at hand.• Identify appropriate strategies before

embarking on a project

Page 7: Strategy Development methods

Strategic Planning Dept – IAL

Project

Identify strategies to increase the number of ACTA students in IAL.

Page 8: Strategy Development methods

Typical Analysis Tools• SWOT – Strength, Weaknesses, Opportunities &

Threats• 3Cs – Company, Customers & Competitors• 5Cs – 3Cs, Climate & Collaborators• 4Ps – Product, Price, Place & Publicity (Positioning)• PEST – Political, Economy, Social & Technology• Porter’s Five Forces:

– The threat of the entry of new competitors– The intensity of competitive rivalry– The threat of substitute products or services– The bargaining power of customers (buyers)– The bargaining power of suppliers

Page 9: Strategy Development methods
Page 10: Strategy Development methods

Strategy of Project"Know the enemy and know yourself; you will never be in peril in a hundred battles. "

- Sun Tzu

Chinese military strategist in the Spring and Autumn Period of China (722 - 481 BC). He wrote the Art of War ( 孫子兵法 ) composed of 13 chapters. The Art of War has long been praised as the definitive work on military strategies and tactics

知己知彼,百战百胜

Page 11: Strategy Development methods

Situation Analysis

In order to profitably satisfy customer needs, the firm must first understand the external and internal situation, including the customers, the market environment and the firm’s own capabilities.

Furthermore, it needs to forecast trends in the dynamic environment in which it operates.

Page 12: Strategy Development methods

SWOT Analysis

• It is applicable to either the corporate level or the business unit level.

• The SWOT analysis is useful when a very limited amount of time is available to address a complex strategic situation.

• SWOT: Strengths, Weaknesses, Opportunities and Threats– SWOT is a simple framework for generating strategic

alternatives from a situation analysis.– SWOT was originated in the late 1960's. The GE Growth

Council used this form of analysis in the 1980's. Because it concentrates on the issues that potentially have the most impact.

Page 13: Strategy Development methods

Generate Strategy by SWOT framework

SO: Creation of business opportunities by maximizing the company's strength. Positive Offensive.

ST: Evasion of the threat by utilizing the company's strength. Differentiation strategy.

WO: Measures of not losing the business opportunity under the company's weakness. Gradual Approach Strategy.

WT: Measures of not causing the worst situation under the company's weakness and the threat. Defensive Defense or Withdrawal.

External Factors

Opportunities Threats

Internal Factors

Strengths SO Strategy ST Strategy

Weaknesses WO Strategy WT Strategy

Page 14: Strategy Development methods

Classifies Internal and External factorsExternal Factors

Opportunity Threat

   

Strength Positive Offensive Differentiation strategy

  (Creation of business opportunities by maximizing the company's strength)

(Evasion of the threat by utilizing the company's strength)

   

Weakness Gradual Approach Defensive Defense or Withdrawal

  (Measures of not losing the business opportunity under the company's weakness)

(Measures of not causing the worst situation under the company's weakness and the threat)

   

Inte

rnal

Fac

tors

Internal aspects of your project

External factors which affect your project

Page 15: Strategy Development methods

Classifies Internal and External factorsExternal Factors

Opportunity Threat

   

Strength Positive Offensive Differentiation strategy

  (Creation of business opportunities by maximizing the company's strength)

(Evasion of the threat by utilizing the company's strength)

   

Weakness Gradual Approach Defensive Defense or Withdrawal

  (Measures of not losing the business opportunity under the company's weakness)

(Measures of not causing the worst situation under the company's weakness and the threat)

   

Inte

rnal

Fac

tors SO Strategy ST Strategy

WT StrategyWO Strategy

Guideline– Think the "SO" strategy first.– Complement with the "ST" and "WO" strategies.– You don't need to think the "WT" strategy in a project level.

Page 16: Strategy Development methods

Recent changes and trends

Politics

Economy

Society

Technology

Segment A

Segment B

Segment C

Market size

Growth rate

Consumer Benefits

Info sources

・・・Changes / trends

External Factors

Opportunities Threats

Strengths

Weaknesses

Climate - Macro Environmental Analysis 3C Analysis - Customer

SWOT

Describe the influence that the macro environment affects on customers as the changes and trends of 3C customer analysis. Describe the influence that it affects on the company as the opportunities or threats of SWOT analysis.

IALCo

mpany A

Company B

Company C

Market share

Profitability

Core competence

Brand image

Technology

Sales power

Capital

Positioning

Describe the threats and weaknesses by classifying the 3C competitor analysis.

Ref. Environmental Analysis vs. SWOT

3C Analysis – Company & Competitor

Inte

rnal

Fac

tors

Collaborators – Suppliers, Distributors & Alliances

Page 17: Strategy Development methods

Learning Outcomes

You should be able to:• Identify the strength and weaknesses of the

company in relation to the project at hand.• Identify the opportunities and threats of the

company in relation to the project at hand.• Identify appropriate strategies before

embarking on a project

Page 18: Strategy Development methods

How will you use the knowledge in your work place?