The Manager's Guide to Strategy

I enjoyed reading this book which I found to be fascinating and enlightening. The book describes strategy and its role in ensuring that organisations achieve their mission. It is a comprehensive book on various aspects of strategy including the need to focus on customer needs, environmental analysis, strategy formulation, strategy implementation, corrective adjustments to strategy with time and the process of ensuring that employees and other stakeholders are motivated to ensure the success of the strategy. The book is well written, well presented and easy to follow and understand. It is very practical and with many good examples. I would strongly recommend managers at all levels to read this interesting, practical and insightful book on strategy. The book is also useful and handy for students doing an MBA or other postgraduate studies in business. Cover......Page 1 Copyright......Page 6 Contents......Page 7 Preface......Page 11 1. What Is Business Strategy?......Page 17 The Power of Business......Page 18 The Basics of Strategy......Page 21 What Is Our Business Idea?......Page 23 What Is Our Business Purpose?......Page 25 What Is Our Advantage?......Page 26 Who Are Our Customers?......Page 27 What Is Our Product?......Page 29 How Do We Reach the Market?......Page 31 What Trends and New Factors Will Change Our Business?......Page 34 How Shall We Do Business?......Page 35 A Word About Strategy Implementation and Evaluation......Page 37 Manager's Checklist for Chapter 1......Page 38 2. Goal Setting: The First Step in Strategy......Page 40 Corporate Goals......Page 41 "The Vision Thing"......Page 42 Constructing a Corporate Vision......Page 45 Products and Services......Page 47 Customers......Page 48 Markets......Page 49 Putting It All Together......Page 53 Organizational Goals That Make Sense......Page 55 Manager's Checklist for Chapter 2......Page 57 Reference......Page 58 3. A Strategy Road Map......Page 59 Where Is Strategy Born?......Page 60 Evaluating Current Performance......Page 62 Environmental Analysis......Page 66 Social Factors......Page 67 Economic Factors......Page 68 Political and Regulatory Factors......Page 69 Technological Factors......Page 70 Structure......Page 72 Industry Evolution......Page 73 Competition......Page 75 Internal Analysis......Page 76 Resources......Page 77 Culture......Page 78 So Where Are We Now?......Page 79 SWOT Analysis......Page 80 Evaluate Options, Evaluate Results......Page 81 Manager's Checklist for Chapter 3......Page 83 4. Customer Analysis......Page 84 Steps in Customer Analysis......Page 86 Who Are Our Customers? Who Buys from Competitors?......Page 87 Point-of-Sale Information......Page 91 Customer Surveys......Page 93 Focus Groups......Page 95 Can We Meet the Needs of Those Buying from Competitors, Without Sacrificing Value to Our Customers?......Page 98 What Else Can We Do for Our Customers to Create Value for Them and for Ourselves?......Page 104 Manager's Checklist for Chapter 4......Page 106 5. Internal Business Analysis......Page 107 Results Audit......Page 108 People Audit......Page 109 Functions and Processes Audit......Page 113 Relationships Audit......Page 116 SWOT Analysis......Page 117 Strengths......Page 118 Weaknesses......Page 120 Opportunities......Page 122 Putting the SWOT Analysis Together......Page 123 Manager's Checklist for Chapter 5......Page 125 6. Strategic Choices......Page 126 Low-Cost Producer Strategy......Page 127 Differentiator Strategy......Page 128 Choosing and Committing......Page 129 Strategic Direction......Page 131 Product and Market Focus......Page 132 Resources......Page 133 Operational Capabilities......Page 135 Organization......Page 136 Aligning Resources, Operational Capabilities, and Organization......Page 137 Classes of Strategies......Page 138 Integration Strategies......Page 139 Market Development Strategies......Page 141 Product Development Strategies......Page 142 Diversification Strategies......Page 143 Divestiture Strategies......Page 145 Manager's Checklist for Chapter 6......Page 146 7. Strategic Thinking: Optimizing Assets......Page 147 Asset Optimization......Page 148 People......Page 150 Property......Page 156 Relationships......Page 162 Manager's Checklist for Chapter 7......Page 165 8. Strategic Thinking: Core Business Analysis......Page 166 Core Research......Page 167 Defining the Core......Page 168 Evaluate the Core Markets......Page 171 Deliver Excellence in the Operation of the Core Business......Page 174 Explore the Financial Performance Potential Without Anything New......Page 176 Look to Adjacencies......Page 178 Manager's Checklist for Chapter 8......Page 187 9. Strategic Thinking: Ten Tested Business Strategies......Page 188 Consolidation......Page 189 Bypassing......Page 192 Value Migration......Page 194 Teaming Up......Page 196 Digital Delivery......Page 198 Deep Connections......Page 200 ASAP......Page 201 Customization......Page 203 Mass Market......Page 204 Fix-It-for-Me......Page 205 This Is Interesting, but What Do I Do Now?......Page 206 Manager's Checklist for Chapter 9......Page 207 10. Implementing Strategic Decisions......Page 208 Four Key Principles......Page 209 A System for Implementing Strategy: The Balanced Scorecard......Page 212 Elements of the Balanced Scorecard Approach......Page 213 Background......Page 214 Strategy......Page 215 Balanced Scorecard: La Casa di Poggi......Page 216 Balanced Scorecard: Summary......Page 220 A Final Thought......Page 221 Manager's Checklist for Chapter 10......Page 222 References for Strategic Planning......Page 225 Index......Page 229 Cover 1 Copyright 6 Contents 7 Preface 11 1. What Is Business Strategy? 17 The Game of Business 18 The Power of Business 18 The Basics of Strategy 21 An Overview of Strategy Development 23 What Is Our Business Idea? 23 What Is Our Business Purpose? 25 What Is Our Advantage? 26 Who Are Our Customers? 27 What Is Our Product? 29 How Do We Reach the Market? 31 What Trends and New Factors Will Change Our Business? 34 How Shall We Do Business? 35 A Word About Strategy Implementation and Evaluation 37 Manager's Checklist for Chapter 1 38 2. Goal Setting: The First Step in Strategy 40 Corporate Goals 41 "The Vision Thing" 42 Constructing a Corporate Vision 45 Mission Statements 47 Products and Services 47 Customers 48 Markets 49 Putting It All Together 53 Organizational Goals That Make Sense 55 Manager's Checklist for Chapter 2 57 Reference 58 3. A Strategy Road Map 59 Where Is Strategy Born? 60 Evaluating Current Performance 62 Environmental Analysis 66 Social Factors 67 Economic Factors 68 Political and Regulatory Factors 69 Technological Factors 70 Industry Analysis 72 Structure 72 Industry Evolution 73 Competition 75 Internal Analysis 76 Structure 77 Resources 77 Culture 78 So Where Are We Now? 79 Strategy Formulation 80 SWOT Analysis 80 Developing Strategy Options 81 Evaluate Options, Evaluate Results 81 Manager's Checklist for Chapter 3 83 4. Customer Analysis 84 Basic Customer Questions 86 Steps in Customer Analysis 86 Who Are Our Customers? Who Buys from Competitors? 87 Why Do They Buy from Us? Why Do Some Buy from Competitors? 91 Point-of-Sale Information 91 Customer Surveys 93 Focus Groups 95 Can We Meet the Needs of Those Buying from Competitors, Without Sacrificing Value to Our Customers? 98 What Else Can We Do for Our Customers to Create Value for Them and for Ourselves? 104 Manager's Checklist for Chapter 4 106 5. Internal Business Analysis 107 Internal Audit 108 Results Audit 108 People Audit 109 Functions and Processes Audit 113 Relationships Audit 116 SWOT Analysis 117 Strengths 118 Weaknesses 120 Opportunities 122 Putting the SWOT Analysis Together 123 Manager's Checklist for Chapter 5 125 6. Strategic Choices 126 Generic Strategies 127 Low-Cost Producer Strategy 127 Differentiator Strategy 128 Niche Player Strategy 129 Choosing and Committing 129 Positioning 131 Strategic Direction 131 Product and Market Focus 132 Execution 133 Resources 133 Operational Capabilities 135 Organization 136 Aligning Resources, Operational Capabilities, and Organization 137 Classes of Strategies 138 Integration Strategies 139 Market Penetration Strategies 141 Market Development Strategies 141 Product Development Strategies 142 Diversification Strategies 143 Divestiture Strategies 145 On to Strategic Thinking 146 Manager's Checklist for Chapter 6 146 7. Strategic Thinking: Optimizing Assets 147 Asset Optimization 148 Asset Categories 150 People 150 Property 156 Relationships 162 Manager's Checklist for Chapter 7 165 8. Strategic Thinking: Core Business Analysis 166 Core Research 167 Strategic Development Using the Core Business Approach 168 Defining the Core 168 Working the Core 171 Evaluate the Core Markets 171 Deliver Excellence in the Operation of the Core Business 174 Explore the Financial Performance Potential Without Anything New 176 Penetrate the Market Deeply 178 Look to Adjacencies 178 Manager's Checklist for Chapter 8 187 9. Strategic Thinking: Ten Tested Business Strategies 188 Background 189 Consolidation 189 Bypassing 192 Value Migration 194 Teaming Up 196 Digital Delivery 198 Deep Connections 200 ASAP 201 Customization 203 Mass Market 204 Fix-It-for-Me 205 This Is Interesting, but What Do I Do Now? 206 Manager's Checklist for Chapter 9 207 10. Implementing Strategic Decisions 208 Strategic Decision Making 209 Four Key Principles 209 A System for Implementing Strategy: The Balanced Scorecard 212 Elements of the Balanced Scorecard Approach 213 Balanced Scorecard in Action 214 Background 214 Strategy 215 Balanced Scorecard: La Casa di Poggi 216 Balanced Scorecard: Summary 220 Change 221 A Final Thought 221 Manager's Checklist for Chapter 10 222 References for Strategic Planning 225 Index 229

How Top Managers Create and Implement Strategies that Benefit Their Companies and Their Careers

As a manager, every decision you make must both support and drive your organization's strategic goals. But first you must understand those goals—what they are, how they were arrived at, how you can contribute to them, and what you can do to help achieve them.

Manager's Guide to Strategy provides you with proven, up-to-date concepts, tools, and insights for effective strategy formulation, along with myriad examples of successful and not-so-successful strategies from real companies. The latest results-focused volume in McGraw-Hill's bestselling Briefcase Books series, this step-by-step introduction to strategy and strategic planning will show you how to:

• Formulate long-term goals, and create a plan to achieve those goals
• Factor your best customers and their needs into every strategic decision
• Evaluate and revise strategies to take advantage of new opportunities

Successful companies and managers recognize that strategy development is a continuous, iterative, and interactive process. Learn how to both think and act strategically—for the benefit of your organization, your customers, and your career—in Manager's Guide to Strategy.

Briefcase Books are written specifically for today's busy manager. Each book features eye-catching icons, checklists, and sidebars to guide managers step-by-step through everyday workplace situations. Look for these innovative design features to help you navigate through each page:

[Key Terms icon] Clear definitions of key strategy development terms and jargon

[Smart Managing icon] Ideas for intelligent strategy development and implementation

[Tricks of the Trade icon] How-to hints for efficient, effective strategic management

[Mistake proofing icon] Advice for minimizing errors when planning strategy

[Caution icon] Warning signs of strategic planning attempts going wrong

[For Example icon] Examples from a variety of companies, large and small

[Tools icon] Boxes where you'll find specific strategic planning procedures

Roger A. Formisano is a professor of executive education at UW-Madison, focused on the areas of strategy, leadership, governance, and mergers and acquisitions.

Annotation How Top Managers Create and Implement Strategies that Benefit Their Companies "and Their Careers As a manager, every decision you make must both support and drive your organization's strategic goals. But first you must understand those goals--what they are, how they were arrived at, how you can contribute to them, and what you can do to help achieve them."Manager's Guide to Strategy provides you with proven, up-to-date concepts, tools, and insights for effective strategy formulation, along with myriad examples of successful and not-so-successful strategies from real companies. The latest results-focused volume in McGraw-Hill's bestselling Briefcase Books series, this step-by-step introduction to strategy and strategic planning will show you how to: Formulate long-term goals, and create a plan to achieve those goals Factor your best customers and their needs into every strategic decision Evaluate and revise strategies to take advantage of new opportunities Successful companies and managers recognize, that strategy development is a continuous, iterative, and interactive process. Learn how to both think and act strategically--for the benefit of your organization, your customers, and your career--in "Manager's Guide to Strategy. Briefcase Books are written "specifically for today's busy manager. Each book features eye-catching icons, checklists, and sidebars to guide managers step-by-step through everyday workplace situations. Look for these innovative design features to help you navigate through each page: [Key Terms icon] Clear definitions of key strategy development terms and jargon[Smart Managing icon] Ideas for intelligent strategy development andimplementation[Tricks of the Trade icon] How-to hints for efficient, effective strategic management[Mistake proofing icon] Advice for minimizing errors when planning strategy[Caution icon] Warning signs of strategic planning attempts goi Translated into 16 languages! The reader-friendly, icon-rich Briefcase Books series is must reading for all managers at every level. All managers, whether brand new to their positions or well-established in the organizational hierarchy, can use a little "brushing up" now and then. The skills-based Briefcase Books series is filled with ideas and strategies to help managers become more capable, efficient, effective, and valuable to their organizations. The best strategies--and the most capable managers--are those that effectively match an organization's capabilities with its customers' needs. The Manager's Guide to Strategy shows managers how to analyze a firm's position in the marketplace, formulate and execute a profitable strategy, then evaluate and revise that strategy over time. It details techniques for making employees excited about and committed to a strategy, and explains how to use strategy to take advantage of opportunities as they arise--to the mutual benefit of both a company and its customers.