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20 Business Strategy Questions

20 Business Strategy Questions

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Published by: samsunisha on Feb 07, 2011
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Arun Kumar Davay arundavay@gmail.com

‡ 1. Why do we exist²i.e., what is our PURPOSE? 1.1. Whom do we serve? 1.2. What value do we deliver? 1.3. Why do we matter? 1.4. What is our ambition?

‡ 2. How do we make money²i.e., what is our BUSINESS RECIPE? ‡ 2.1. What is our ³difference´? ‡ 2.2. How do we deliver our value proposition? ‡ 2.3. What makes our strategy superior? ‡ 2.4. How will it evolve?

‡ 3. What kind of organization should we be²i.e., what should our ‡ ORGANIZATIONAL CHARACTER be? ‡ 3.1. What assumptions guide us? ‡ 3.2. What turns us on? ‡ 3.3. What is not negotiable? ‡ 3.4. How do we behave?

‡ 4. What must we do, and how will we make it happen²i.e., what are our GOALS and PRIORITIES, and what ACTIONS must we take? ‡ 4.1. What results do we seek? (Goals) ‡ 4.2. On what few high-impact issues must we concentrate our resources? (Priorities) ‡ 4.3. What must we do about them²i.e., what action must we take? ‡ 4.4. What must we do in the next 30 days, and who is responsible?

‡ 5. How will we win the support of our stakeholders²i.e., what STRATEGIC CONVERSATION will capture their attention and imagination, and how will we reach them? ‡ 5.1. Whom must we talk to? ‡ 5.2. What do they need to know? ‡ 5.3. How can we reach them? ‡ 5.4. How should they respond?

Organizational strategy is a learning process that includes five elements:
‡ ‡ Assessing where we are: Collecting information about and making sense of the organization¶s competitive environment. ‡ ‡ Understanding who we are and where we want to go: Organization¶s aspirations, its vision, mission, and core values. ‡ ‡ Learning how to get there: Formulation of strategy, including determination of priorities. ‡ ‡ Making the journey: Translating the strategy into action by identifying and implementing tactics. ‡ ‡ Checking our progress: Continuing assessment of the organization¶s effectiveness, leading then to a reassessment at the organization¶s new level of performance, which it has achieved through the other elements. This starts the learning process all over again.

Competitive Intelligence
‡ The advantages of collecting information about competition are: ‡ An understanding of competitive environment will determine the evolution, implementation and effectiveness of any strategy. ‡ Clearing up the fog surrounding the business environment. ‡ Forecast future developments in the business environment. ‡ Determining whether current strategy is sustainable or obsolete. ‡ Adapting the current strategy to the changing scenario. ‡ Preparing pre-emptive competitive moves on the basis of the information collected.

Competitive Strategies
‡ The three winning strategies suggested by Michael Porter include: ‡ Overall Cost Leadership: Companies strive to attain economies of scale and constantly lower costs of production and distribution leading to greater market share. ‡ Differentiation: Unlike the Overall cost leadership a company following the Differentiation strategy creates a unique product line. It emerges as the class leader in the Industry and has the first mover advantage. ‡ Focus: In this type the company is focused and serves a few market segments rather than having a product for every segment at various price points.

Strategic Selling
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Perform the complete Selling function Announce a special reason for µbuying now¶ Remind people to buy Tie in with some special buying event Create awareness of the brand Create brand image Combat competitive claims Correct false impressions, misinformation

Strategic Selling
Build confidence in company and Brand Build consumer demand Secure universal distribution Establish a reputation platform for new products ‡ Aid salespeople in getting large orders ‡ Build morale of sales force ‡ Impress the Trade ‡ ‡ ‡ ‡

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