GHR's online KCard repository
KCard : Standard strategy
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Strategy
A strategy is meant to provide guidance for the decisions
to be made in a company (at all levels is best). It should provide an overall
goal to achieve and some orientations to achieve them. A good strategy is a
strategy that exploits opportunities, neutralises threats, leverages
strengths and dismisses weaknesses. Elaborating a strategy thus generally requires at
least the following elements :
Environment
Michael PORTER provided a simple model to help
analyse an organisation's environment. This is called the 5 porter forces.
These forces are: clients, suppliers, competitors, substitutes and potential
new competitors. With these forces in mind one can analyse the
company's environment in order to identify potential opportunities or
threats. Resources
Resources are everything and anything a company has
available for use. This ranges from human resources to financial resources
going through production facilities, knowledge basis, research and
development results, ... By studying its resources (or lack of resources) a
company can identify its strengths and weaknesses. Formulation
To formulate a strategy the external and internal
analysis results will be combined in order to find proficient matches. A formal method which exists for this is called the
TOWS analysis, which suggests creating a 3*3 matrix with the external
analysis in the first column and the internal analysis in the first line. The
upper left cell stays blank. In the four remaining cells you right down the
intersection strategy. The strategies found can then be extracted from the
matrix and be reworked (blended, merged, filtered) to contribute to the
strategy formulation. |
Ideas to develop
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