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

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