The Strategy Planning Process

269 Pages·2018·10.079 MB·English

by  Rudolf Grünig, Richard Kühn

Rudolf Grünig · Richard Kühn
The Strategy
Planning Process
Analyses, Options, Projects
Second Edition
The Strategy Planning Process
Rudolf Gru¨nig (cid:129) Richard Ku¨hn
The Strategy Planning
Process
Analyses, Options, Projects
Second Edition
Translated from German by Maude Montani
RudolfGrünig RichardKühn
ChairofManagement FormerDirectoroftheInstituteofMarketing
UniversityofFribourg andManagement
Fribourg,Switzerland UniversityofBern
Bern,Switzerland
ISBN978-3-662-56220-8 ISBN978-3-662-56221-5 (eBook)
https://doi.org/10.1007/978-3-662-56221-5
LibraryofCongressControlNumber:2017962292
#Springer-VerlagGmbHGermany,partofSpringerNature2015,2018
OriginalGermaneditionpublishedbyHaupt-Verlag,Bern,2018
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Preface
The strategy of a company defines its future way of doing business. It will
determinethetargetmarketpositionsandthecompetitiveadvantagesoftheoffers
andtheresourcestoconstructforyearstocome.Determiningthefuturestrategyis
an important and complex task. This book illustrates how to approach it. It is
published in parallel in German (see Grünig and Kühn 2018a) and French (see
GrünigandKühn2018b).
Consulting projects, master theses, and case study solutions based on the first
editionofthisbookwere systematically analyzed.As aconsequence,theanalysis
andplanningprocessesatthebusinesslevelweresimplified.Thepropositionsinthe
secondeditionarethereforeeasiertoapply.
Manyoftheideasandexamplescomefromdiscussionswithcurrentandformer
assistants, PhDs, and students. The authors would like to thank them for their
interest and their contributions. The book also contains many experiences and
approachesfrompractice.Theauthorsarethereforeindebtedtothemanymanagers
whohaveallowedsharingtheirstrategicwork.
Butthebiggestthanksareaddressedtothreepeople:T.Schulthesscoordinated
theproject,M.MontanitranslatedthetextfromGermanintoEnglishandproposed
valuableideasforimprovements,andT.Letypedthetextanddesignedthefigures.
The authors would like to express their gratitude to the three ladies for their
extraordinaryinvolvementandtheirexcellentwork.
Fribourg,Switzerland RudolfGrünig
Bern,Switzerland RichardKühn
September2017
References
Gru¨nigR,Ku¨hnR(2018a)Strategieplanungsprozess,2ndedn.Haupt,Bern
Gru¨nigR,Ku¨hnR(2018b)Proce´de´deplanificationstrate´gique,2e`mee´d.Haupt,Berne
v
Brief Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
PartI IdeaofStrategicPlanning
2 Strategies,StrategicPlanningandSuccessPotentials. . . . . . . . . . . 7
3 DevelopmentofStrategicPlanningandItsIntegrationinto
StrategicManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4 AssessingStrategicIntentions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
PartII StrategicDocumentsandtheStrategyPlanningProcess
5 StrategicDocuments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
6 StrategyPlanningProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
PartIII InitializingStrategicPlanning
7 DefiningtheCurrentStrategicBusinesses. .. . . .. . . . .. . . .. . . .. 57
8 PreparingtheStrategyPlanningProject. . . . . . . . . . . . . . . . . . . . 69
9 StakeholderAnalysisandRevisingtheMissionStatement. . . . . . . 77
PartIV StrategicAnalysisattheCorporateLevel
10 GlobalEnvironmentalAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . 89
11 AnalyzingtheRelevantIndustries. . . . . . . . . . . . . . . . . . . . . . . . . 97
12 PortfolioAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
13 DiagnosingStrategicChallengesattheCorporateLevel. . . . . . . . . 137
PartV DevelopingtheCorporateStrategy
14 DevelopingandAssessingStrategicOptionsattheCorporate
Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
vii
viii BriefContents
15 DevelopingandAssessingStrategicProjectsattheCorporate
Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
PartVI StrategicAnalysisattheBusinessLevel
16 AnalyzingtheRelevantMarkets. . . . . . . . . . . . . . . . . . . . . . . . . . . 175
17 AnalyzingtheCompetitivePositions. . . . . . . . . . . . . . . . . . . . . . . . 185
18 DiagnosingStrategicChallengesattheBusinessLevel. . . . . . . . . . 203
PartVII DevelopingtheBusinessStrategies
19 DevelopingandAssessingStrategicOptionsattheBusinessLevel. . . 211
20 DevelopingandAssessingStrategicProjectsattheBusinessLevel. . . 223
PartVIII FinalizingStrategicPlanning
21 DevelopingtheFunctionalStrategies. . . . . . . . . . . . . . . . . . . . . . . 229
22 OverallAssessmentofStrategiesandStrategicProjects. . . . . . . . . 237
23 PreparingtheImplementation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
24 FinalRemarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PartI IdeaofStrategicPlanning
2 Strategies,StrategicPlanningandSuccessPotentials. . . . . . . . . . . 7
2.1 Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2 StrategicPlanning. . . . .. . . . . . . . . . . . .. . . . . . . . . . . . . .. . 9
2.3 BuildingUpandMaintainingSuccessPotentialsastheMain
PurposeofStrategicPlanning. . . . . . . . . . . . . . . . . . . . . . . . . 10
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3 DevelopmentofStrategicPlanningandItsIntegrationinto
StrategicManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.1 DevelopmentofStrategicPlanning. . . . . . . . . . . . . . . . . . . . . 17
3.2 IntegrationofStrategicPlanningintoStrategicManagement. . . 23
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
4 AssessingStrategicIntentions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
4.1 ConcretizationLevelsofStrategicIntentions. . . . . . . . . . . . . . 27
4.2 AssessingSuccessPotentialsandStrategies. . . . . . . . . . . . . . . 28
4.3 AssessingStrategicProjects. . . . . . . . . . . . . . . . . . . . . . . . . . 31
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
PartII StrategicDocumentsandtheStrategyPlanningProcess
5 StrategicDocuments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
5.1 CategoriesofStrategicDocuments. . . . . . . . . . . . . . . . . . . . . 37
5.2 Company-SpecificCombinationsofStrategicDocuments. . . . . 40
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
6 StrategyPlanningProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
6.1 BasisoftheProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
6.2 TheProposedStrategyPlanningProcess. . . . . . . . . . . . . . . . . 44
6.3 LinkingtheProcesswiththeMainAnalysisandPlanningTools. . . 49
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
ix
x Contents
PartIII InitializingStrategicPlanning
7 DefiningtheCurrentStrategicBusinesses. .. . . .. . . . .. . . .. . . .. 57
7.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
7.2 DefiningandStructuringMarkets. . . . . . . . . . . . . . . . . . . . . . 57
7.3 NotionandTypesofStrategicBusinesses. . . . . . . . . . . . . . . . 59
7.3.1 Notion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
7.3.2 Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
7.4 ProcessforDefiningtheCurrentStrategicBusinesses. . . . . . . . 63
7.4.1 Overview.. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. 63
7.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 63
7.4.3 ExampleofApplyingtheProcess. . . . . . . . . . . . . . . . 65
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
8 PreparingtheStrategyPlanningProject. . . . . . . . . . . . . . . . . . . . 69
8.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
8.2 ProcessforPreparingtheStrategyPlanningProject. . . . . . . . . 70
8.2.1 Overview.. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. 70
8.2.2 FormulatingKeyIssues. . . . . . . . . . . . . . . . . . . . . . . 71
8.2.3 DeterminingtheScopeoftheProject. . . . . . . . . . . . . 71
8.2.4 DecidingWhethertoHireaConsultant. . . . . . . . . . . . 71
8.2.5 FixingtheProjectProcessandtheProject
Organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
8.2.6 BudgetingtheStrategyPlanningProject. . . . . . . . . . . 75
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
9 StakeholderAnalysisandRevisingtheMissionStatement. . . . . . . 77
9.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
9.2 StakeholderAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
9.3 Notion,EffectsandContentofMissionStatements.. . . .. . . .. 78
9.4 ProcessforStakeholderAnalysisandRevisingtheMission
Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
9.4.1 Overview.. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. 80
9.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 80
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
PartIV StrategicAnalysisattheCorporateLevel
10 GlobalEnvironmentalAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . 89
10.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
10.2 PESTELAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
10.3 ScenarioAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
10.4 ProcessfortheGlobalEnvironmentalAnalysis. . . . . . . . . . . . 94
10.4.1 Overview. .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 94
10.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 94
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Contents xi
11 AnalyzingtheRelevantIndustries. . . . . . . . . . . . . . . . . . . . . . . . . 97
11.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
11.2 FiveForcesModel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
11.3 StrategicGroupsModel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
11.4 ProcessforAnalyzingRelevantIndustries. . . . . . . . . . . . . . . . 107
11.4.1 Overview. .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 107
11.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 107
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
12 PortfolioAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
12.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
12.2 BostonConsultingGroupPortfolio. . . . . . . . . . . . . . . . . . . . . 112
12.2.1 PortfolioMatrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
12.2.2 BasisofthePortfolio. . . . . . . . . . . . . . . . . . . . . . . . . 113
12.2.3 RecommendationsfortheBusinessesandthePortfolio
asaWhole. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
12.3 McKinseyPortfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
12.3.1 PortfolioMatrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
12.3.2 BasisofthePortfolio. . . . . . . . . . . . . . . . . . . . . . . . . 126
12.3.3 RecommendationsfortheBusinessesandthePortfolio
asaWhole. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
12.4 ProcessforPortfolioAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . 129
12.4.1 Overview. .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 129
12.4.2 Methodologicaldecisions. . . . . . . . . . . . . . . . . . . . . . 129
12.4.3 EstablishingthePortfolio. . . . . . . . . . . . . . . . . . . . . . 131
12.4.4 AssessingthePortfolio. . . . . . . . . . . . . . . . . . . . . . . . 131
12.4.5 ExampleofApplyingtheProcess. . . . . . . . . . . . . . . . 132
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
13 DiagnosingStrategicChallengesattheCorporateLevel. . . . . . . . . 137
13.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
13.2 SWOTAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
13.3 TOWSMatrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
13.4 ProcessforDiagnosingStrategicChallengesattheCorporate
Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
13.4.1 Overview. .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 142
13.4.2 DescriptionoftheSteps. . . . . . . . . . . . . . . . . . . . . . . 142
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
PartV DevelopingtheCorporateStrategy
14 DevelopingandAssessingStrategicOptionsattheCorporate
Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
14.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
14.2 DiversificationandConcentrationasKeyStrategicIssues. . . . . 148
14.2.1 ReasonsforDiversificationorConcentration. . . . . . . . 148