Professional Documents
Culture Documents
e Types StrategyFormulation Implementation Merged GL v0 1 PDF
e Types StrategyFormulation Implementation Merged GL v0 1 PDF
4/10/2016
ENVIRONMENT ANALYSIS
2. Situation Problem
2.1. The problems that e-types had two designs, not one. They began with the brief, the
document that described what TD was asking for, in a new logo, in a new identity. This fact
generated a huge controversy. In the end, they came up with three options for how they
thought they might proceed. Present only the edgy design to the client. Probability of
winning the competition if they went this route was only about 20%. And by the way, the
designers agreed that the edgy design was unlikely to win, but they didn't care. They
weren't proud of the other design; they wanted to present work that they were proud of,
that fit their smash the world spirit. Option two, present only the classical design to the
client. Here, they believed, and by the way these numbers are just their own estimates,
they believed that they had an 80%chance of winning the competition if they went with
the classical design. And, again, the designers were adamantly opposed to it, despite it's
high probability of winning. Option three, they could present both designs and let the client
choose which design the client liked.
Solution Design
Company Mission- What they do - is clear: e-Types do identity. But e-Types vision - “Where they
want to be”– in future is not clear. Should they continue to prefer "edgy" work and build a
reputation for that? Or should they "grow up" and broaden their approach to appeal to more
clients? They want to grow large, but growth costs money. In other hand it is a very big deal for e-
types if they could win TD Competition. It is opportunity for company to raise their awareness as a
creative company.
In my opinion they should think about long term relations with TD, for opportunities not only for TD
Logo, but also for Web site, Printed materials; office accessories etc…So e-Types should more
precisely investigate Customer and their stakeholder’s needs and exploit real needs and make
new design according (New solution).
Yes it is problematic to communicate with TD about project details directly, but this issue can
be resolved by researching public resources and industry trends. e-Types should be flexible
against problems. They should create not only edgy / creative products also edgy /creative
relationships with clients. All clients, especially TD, valuable. e-Type should provide client with
great Value and client will be ready to accept proposal. So my advice is creating something
edgy with a classical tone without affecting the TD nature and current positioning - Different,
Blended variant.
Yes, wining the competition is very important, but e-Types can benefit from participation also.
Why not to organize online survey to exploit preferences about subject and Online Voting for
TD Logo’s. It will be great if e-Type will invite competitors to publish their solutions for voting. This
will demonstrate company’s openness and raise its awareness. In other hand public activities
will help TD team break any conservative limitations and make preferences in favor of more
modern design. But it is possible if e-Types have enough time to perform these activities.
But if e-Types have not enough time, my recommendation is Option three, and they could present
both designs and let the client choose which design the client liked. Because in this case still is
chance for edgy design and opened opportunity to work with TD in short distance, this is way to
break TD’s conservative environment, by educating client and implementing other projects. This
should be long term strategy. Don’t forget about income also.
Company should formulate Strategy for e-Types development which can based on the following:
Values
o Capture Opportunities and make things happen;
o Do things better than anyone else in identity industry;
o Foster openness, respect and create excitement;
o Teamwork, Innovations and Creativity.
MISSION
o We do Identity.
Vision
o We will be the most valued business partner of all our customers.
References:
http://e-types.com
https://en.wikipedia.org/wiki/E-Types- e-Types Awards
http://www.teamdanmark.dk–The Danish Elite Sport Act.
https://books.google.ge- Nordic Elite Sport: Same Ambitions, Different Track.
Strategy formulation is the process of developing the strategy1. As was perfectly explained during the
Strategy Formulation Course2, Business strategy is a critical tool for analyzing the competitive context in
which e-Types operates and for making informed recommendations for what actions it should take to
gain competitive advantage. Strategy formulation (Strategy Plan) refers to the process of choosing the
most appropriate course of action for the realization of e-Types organizational goals and objectives
and thereby achieving the organizational vision.
To formulate e-Types strategy, following questions will be answered:
The process of e-Types strategy formulation (Building Strategy Plan) will involve following steps:
1. Setting e-Types objectives - Because the key component of any strategy statement is to set the
long-term objectives of the organization. Strategy is generally a medium for realization of
organizational objectives. This will be First step in the e-Types Strategy formulation. Once the e-Types
objectives and the factors influencing strategic decisions will be determined, it will be easy to take
strategic decisions.
2. Evaluating the Organizational Environment - Industry analysis findings (Porters 5 Forces3 for Industry
Analysis and competitive intensity), was considered in the
evaluation of company’s environment in (S.W.O.T./T.O.W.S.4
Industry analysis: 1) the threat of
new entry is quite high: if anyone analysis) analysis. From analysis it is clear that for e-Types
looks as if they're making a sustained Competitive Advantage cost advantage isn’t preferable way
profit, new competitors can come
into the industry easily, reducing and company should think in the differentiation advantage for
profits. 2) Competitive rivalry is future success. Analyzing Company’s current portfolio and future
extremely high: if someone raises
prices, they'll be quickly undercut. opportunities (BCG5 matrix) we develop for e-Types SO - "Maxi-
Intense competition puts strong Maxi" - Strategy that use strengths to maximize opportunities
downward pressure on prices. 3)
Buyer Power is strong, again implying
(companion material).
strong downward pressure on prices.
4) There is some threat of substitution. Based on synthesis of collected information we formulate
following needs and vision for e-Types:
1 http://www.managementstudyguide.com
2 Strategy Formulation by Marcus Møller Larsen - Copenhagen Business School (via www.Coursera.com)
3 http://business-fundas.com/2011/michael-porters-5-forces-model/
4 https://www.mindtools.com/pages/article/newSTR_89.htm
5 BCG Growth Share matrix - http://www.netmba.com/strategy/matrix/bcg
So our recommendation for e-Types strategy is: Listening to the customer and remaining tied
to their core values are both important aspects. Customers should trust them with their
concepts. e-Types must reinforce its existing business perception and culture through. This
will raise Market Growth in the attractive industry and Raise e-Types market share. In
general lack of considering of customers’ needs is source of the sub-optimal strategies and
Companies failing. In this attractive digital market, No Company can control Customers,
Company only can propose valued for customers – (Value – Cost paid and Benefits
received - from customer side of view!). Customer will Vote between proposals otherwise
company will be candidate for List of Failed Businesses and Unsuccessful Companies.
3. E-Types Strategic Objectives - Taking into account all of the steps that are necessary to achieving
each of e-Types goals we draw e-Types strategy Objectives in 3 dimensions: Corporate, Business and
Functional objectives (companion material). They should be prioritized and planned during Strategy
Implementation process.
Strategy implementation is the translation of chosen strategy into organizational action so as to achieve
strategic goals and objectives. Оur current goal is e-Types Strategy plan development.
1. Strategy Implementation Plan Focus – From six areas of the strategy implementation: Goals and
Metrics (1), Organizational structure (2), Communication (3), Resistance and Risks (4), Organizational
culture (5), and Power and Informal networks (6), We will focus our attention on the following areas:
(1), (2) and (3).
2. Our Strategy Proposal for e-Types: - In the previous course, for e-Types following strategy was
developed6: e-Types must reinforce its existing business perception and culture through Listening to
the customer and remaining tied to their core values and continually raising customers experience
in the modern design (edgy) directions.
6 Capstone Project: Formulating a Strategy in a 21st Century Creative Company – Link There
April 10, 2016 Page 5
e-Types - CAPSTONE PROJECT: STRATEGY IMPLEMENTATION PLAN
3. Sustainability of the expected state - Proposed strategy will raise Market Growth in the attractive
Identity industry, Raise e-Types market share and positively affect company’s financial balance. In
general lack of considering of customers’ needs is source of the sub-optimal strategies and
Companies failing. In this attractive digital market, No Company can control Customers, Company
only can propose valued for customers – (Value – Cost paid and Benefits received - from customer
side of view!). Customer will Vote between proposals otherwise company will be candidate for List
of Failed Businesses and Unsuccessful Companies
4. Our recommended specific actions in the focus areas:
To Support e-Types new strategy implementation, we recommend following specific actions within that
3 Focus Areas:
Goals and Metrics (1) (Business Growth Perspectives and Sustainability considerations)7
Structure should consider Centralization – Decision making Degree, Formalization of the rules and
processes that prescribe employees behavior and specifies who and how performs different tasks.
Should be considered Specialization - creating special units which combines exploiting e-Types existing
competencies with pursuing new Edgy products, services and markets. This Unit may have specific
clear Objectives and performance measurements to support e-Types Overall Objectives. Because
Design market is very attractive and disruptive, e-Type should consider to have special workforce which
permanently predicts, detects and reacts to changes in the environment, Customers and competitor’s
behavior.
Communication (2)
As explained during the course8, for Sustainability of the expected state, it is essential to explain to e-
Types employees the new strategy and how it will be rolled out, explanation should cover:
8 https://www.coursera.org/learn/strategy-implementation/lecture/8ze1X/what-to-communicate
April 10, 2016 Page 6
e-Types - CAPSTONE PROJECT: STRATEGY IMPLEMENTATION PLAN
1. Why the company should have a new strategy in the first place. What's the Business Rationale for
this strategy, and why is change needed? What does the new strategy aim to achieve? If the
new strategy should bring new revenue or bring your company to a new line of business or
develop new capabilities.
2. What will be the new organizational structure? Will there be any changes?
3. What will be e-Types managers’ role as the leader of the organization in that structure? Is it to
make all decisions and have a very centralized organizational structure for example?
4. What will be the role of e-Types employees in the new strategy? If we're talking to the Marketing
Department, what will they need to do to help implement the new strategy? And if the strategy
involves layoffs or budget cuts or other bad news say them openly and clearly, otherwise rumors
will start.
The goal of communication is to clear up uncertainty and if there is any bad news this is what many
people in e-Types will care about.
Recommend specific actions within that 3 aspect described in the Companion Material: e-Types-
Strategy Implementation_GL v1.0.pdf
Giorgi Lobjanidze
www.linkedin.com/in/giushki Giorgi.lobjanidze@gmail.com +995 577 613434
“We challenge your ways and encourage new thinking. We craft bold solutions that inspire people around us. We
don’t follow trends, but work hard to make others follow you. We crystallize big ideas to build strong brands.
Brands that stand out and clearly communicate what they are all about. Brands that move the world forward.
Based on hard thinking, creative edge, extensive experience, and true love of brands we design that one,
visionary idea. The idea that conveys the very core of your brand, that inspires action, guides visual and verbal
communication, and provides meaningful change for your business”.
E-Types Mission - What they do - is clear: e-Types do identity. But e-Types vision - “Where they want to be” – in
future is not clear. Should they continue to prefer "edgy" work and build a reputation for that? Or should they
"grow up" and broaden their approach to appeal to more clients? They want to grow large, but growth costs
money. In other hand it is a very big deal for e-types if they could win TD Competition. It is opportunity for
company to raise their awareness as a creative company.
Treat of Substitution
1. Internet / Dotcom boom – Opens Opportunity for
startups and Existing Brands;
2. Brand Identity Market is very wide (Brand ID, Website,
Printed Materials …);
3. Edgy/Modern Identity Design not usual for potential
Customers.
Growth Share Matrix (BCG)
Using BCG Growth-Share Matrix – as a e-Types
portfolio planning model – in the Market Growth
and Market Share dimensions relative to the
Largest Competitor and taking in consideration
5 2 that Market Growth It is a proxy for industry
attractiveness and market share is a proxy for
6 competitive advantage, we have following
picture for e-Types portfolio, where:
3 4 1
SWOT Analysis
1. Strengths (What do e-Types do well?/ What unique resources can e-Type draw on? What do others see as e-Type strengths? )
1. Talented Staff in the Modern Identity industry Design;
2. Good implemented Modern / Edgy projects portfolio;
3. Team Working Synergy – Producing Joint effect in the approved projects.
4. The e-Types owners like to challenge themselves and their clients to create radical, innovative designs.
5. e-Types challenge Clients edgy ways and encourage new thinking.
6. Stated desire to reexamine and appropriately adapt their activities in a constant “learning” process;
2. Weakness (What could e-Type improve? Where does e-Type have fewer resources than others? What are others likely to see as weaknesses ?)
1. Strategic Thinking Synergy – No agreement about company future.
2. For e-Types owners, money is not as central as their personal satisfaction of doing what they love, the way they love doing it.
3. No clear arguments about Refuse to work on certain jobs;
4. Poor and not organized effort to Reexamine and appropriately adapt their activities in a constant “learning” process;
5. Long time discussions about next steps and no decisions about customers real preferences;
6. Weak habits of value proposition to customer (Value – Cost paid and Benefits received - from Client side of view );
3. Opportunity (What opportunities are open to e-Types? What trends could e-Type take advantage of? How can e-Type turn their strengths into opportunities ?)
1. Internet / Dotcom boom – Opportunity for easy research information about clients and industry trends;
2. Entering in the new market segments: Web Site, Printing materials …
3. Visibility which highlights company vision to the public;
4. Awareness as a Creative, Open and Client friendly Company;
5. Growth via a constant “learning” process”.
4. Threads (What threats could harm e-Type? What is e-Type competition doing? What threats do e-Types weaknesses expose Company to ?)
1. Internet / Dotcom boom – Opportunity for all rivals in the global and local market;
2. Refuse to work on certain jobs, turning down those clients that do not “fit in” with the creative edge e-Types is accustomed to deliver its
clients;
3. e-Types partners might send a negative message to their work force that can in turn, distance themselves from their ideals;
4. Risk of losing the “edge” and efficiently compete in a usually saturated market.
e-Types Competitive advantage
Recommended Competitive advantage:
Industry analysis Conclusions:
1) The threat of new entry is quite high: if anyone looks as if From industry and e-Types Environment analysis it is
they're making a sustained profit, new competitors can clear that for e-Types Competitive advantage, cost
come into the industry easily, reducing profits; advantage isn’t preferable way and company should
2) Competitive rivalry is extremely high: if someone raises think in the differentiation advantage for future
prices, they'll be quickly undercut. Intense competition success.
puts strong downward pressure on prices.
3) Buyer Power is strong, again implying strong downward e-Types should offer something which is so unique, so
pressure on prices. sought after so that customers are willing to pay a
4) There is some threat of substitution. premium for their product and only your product,
then Company will have a differentiation advantage.
Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and
objectives. Strategy implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate
organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better
performance. Оor goal is e-Types Strategy plan development.
For e-Types Strategy Implementation plan development following activities should be performed:
1. Recall Strategy Goals and objectives from e-Types Strategy;
2. Evaluate strategy in the Balanced Scorecard System (BSC);
3. Evaluate strategy in the Objectives and Key Results System (OKR);
4. Build Strategy implementation plan in the 6 dimensions: Goals and Metrics (1), Organizational structure (2), Communication (3), Resistance
and Risks (4), Organizational culture (5), and Power and Informal networks (6);
5. Combine previous results and Build General Strategy implementation Plan.
6. As visualized in the diagram Corrective actions can be performed during this process.
E-Types Vision Statement and Objectives
Values Business Objectives (5 forces)
• Capture Opportunities and make things happen;
1. Work closely to Clients, promote edgy designs and encourage new
• Do things better than anyone else in the identity thinking;
industry; 2. Promote radical, innovative designs for Customers and Potential
• Foster openness, respect and create excitement; Customers;
• Synergy, Teamwork, Innovations and Creativity. 3. Organize e-Types partners forum (Or some kind of Survey and Feedback
MISSION Solution) where customers can send a positive / negative message
about e--Types work and work force, Customers ideals about different
• We do Identity.
aspects of Company and Design;
Vision 4. Raise Awareness as a Creative, Open and Client friendly and Stable
• We will be the most valued business partner of our Company;
customers. 5. Organize e-Types partners forum (Or some kind of Survey and Feedback
Solution) where customers can send a positive / negative message
about e--Types work and work force, Customers ideals about different
aspects of Company and Design.
MISSION
• We do Identity.
Internal Business Process Perspective - (To satisfy Vision • Customer Perspective - (To achieve our
our customers and stakeholders, at what business • We will be the most valued business partner of vision, how should we appear to our
our customers.
processes must we excel?) customers?)
Strategy
• Develop new products; • Capture Opportunities and make things • Service Excellence;
happen; • Trusted Business Partner;
• Understanding Customer Segments; • Do things better than anyone else in the identity
• Provide Valuable Response; industry;
• Value Proposition;
• Cross-Sell the Product Line; • Foster openness, respect and create • Enhance Customer Visibility (Internal and
excitement; External).
• Shift to Appropriate Chanel. • Synergy, Teamwork, Innovations and Creativity.
• Innovative product development cycle.
Customer
Service Trusted Value Enhance
Perspective Customer
Excellence Business Partner Proposition Customer
Growth
BRAND
How should we appear
to customers?
Provide
Process That Cross-Sell
Process than Valuable
Process Enhance Customer the Product
enhance and Deliver Response
Perspective value Line
Edgy products
At what do we need
to excel to fulfill
customer Understanding Innovative product Shift to
expectations? Develop new Customer Appropriate
development cycle
products Segments Chanel
Organizational
e-Types e-Types e-Types e-Types
Perspective
Human Capital Informational Organizational Customer
How will we sustain our Capital Capital Capital
ability to improve?
E-Types strategy implementation area:
Goals and Metrics
E-Types strategy implementation area:
Organizational Structure
E-Types strategy implementation area:
Communication