Strategic Analysis Framework

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Strategic Analysis Framework
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C. KEY SUCCESS FACTORS
A. DEFINE THE BUSINESS

• CUSTOMER REQUIREMENTS
• COMPETITIVE REQUIREMENTS
• RESOURCE REQUIREMENTS
• REGULATORY OR INDUSTRY REQUIREMENTS
• TECHNICAL REQUIREMENTS

HOW IS THE BUSINESS CHANGING?
CUSTOMER TARGETS
PRODUCT SERVICE OFFERINGS
WHAT IS THE BUSINESS?
ESSENTIAL SKILLS
B. INDUSTRY VALUE STRUCTURE
PRIMARY COMPETITORS
4. ENTRY AND EXIT BARRIERS
3. SUPPLIERS BY KEY COMPONENTS
2. COMPETITORS BY PRODUCT-MARKET STRATEGY
1. CUSTOMERS BY SEGMENTS
5. SUBSTITUTE PRODUCTS/SERVICES
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A. DEFINE THE BUSINESS
CUSTOMER TARGETS
PRODUCT SERVICE OFFERINGS
WHAT IS THE BUSINESS?
ESSENTIAL SKILLS
PRIMARY COMPETITORS
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B. DESCRIBE THE INDUSTRY STRUCTURE
4. ENTRY AND EXIT BARRIERS
3. SUPPLIERS BY KEY COMPONENTS
2. COMPETITORS BY PRODUCT-MARKET STRATEGY
1. CUSTOMERS BY SEGMENTS
5. SUBSTITUTE PRODUCTS/SERVICES
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C. EXTERNAL KEY SUCCESS FACTORS
CUSTOMER REQUIREMENTS What is required to attract
and maintain customers? COMPETITIVE
REQUIREMENTS How do competitors build market
share? RESOURCE REQUIREMENTS What infrastructure
and assets are needed to be a major
player? REGULATORY OR INDUSTRY REQUIREMENTS What
standards must be met to stay in this
business? TECHNICAL REQUIREMENTS What are the
leading technologies in this business?
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Competing for Customers
Company
Customers
Increase Value
Cut Costs
Competition
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II. Business Strategy Analysis
D. STRATEGIC PERFORMANCE
Business Performance
Market Performance
A. STRATEGIC MISSION/GOALS

• Customers
• Competitors
• Resources
• Standards
• Technologies

C. COMPETITIVE CAPABILITIES
KEY SUCESS FACTORS FOR THIS BUSINESS
B. BUSINESS STRATEGY
Research
Product development
Product Related Activities
Operations
Product availability
Logistics
Customer fulfillment
Market Related Activities
Marketing
Customer satisfaction
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COMPETITIVE BUSINESS STRATEGY
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STRATEGIC FUNCTIONS PROCESSES
Research Development
Product development process
Product Related Activities
Operations
Products availability process
Sales Distribution
Customer fulfillment process
Market Related Activities
Marketing Service
Customer satisfaction process
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Sustaining Competitive Advantage
Market-related Advantages
Technology Leadership

Operations Leadership
Customer Access Leadership
Marketing Leadership
Product-related Advantages
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D. STRATEGIC PERFORMANCE

• Customer and Marketplace Performance
• Customer Satisfaction
• Customer Retention
• Customer Satisfaction Relative to Competitors
• Market Share
• Competitiveness

• Business Performance
• Product Service Quality
• Asset Productivity and Growth
• Supplier Performance
• Public Responsibility
• Financial Performance

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III. Strategic Business Evaluation
A. STRATEGY EVALUATION
EXTERNAL ISSUES
INTERNAL ISSUES
S W O T
DEVELOPMENTS
Key success factors
Product-related skills
CUSTOMERS
OPERATIONS
COMPETITION
LOGISTICS
REGULATIONS
Market-related skills
TECHNOLOGIES
MARKETING
FINANCIAL RESOURCES
RESOURCES
B. CRITICAL ISSUES AND PRIORITIES
C. RECOMMENDATIONS
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Strategic Management

• Requires MANAGEMENT with LEADERSHIP and VISION.
• Requires PRODUCTS/SERVICES to attract and keep
  CUSTOMERS.
• Requires EMPLOYEES with CORE SKILLS and
  KNOWLEDGE central to its PRODUCTS SERVICES.
• Requires GOALS and STRATEGIES that
• provide business roadmaps.
• address key success factors of the business.
• Requires RESOURCES and INCENTIVES to accomplish
  business strategies.
• Requires the INFRASTRUCTURE and PROCESSES
  required to accomplishment business strategies.

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Leadership is central to Strategic Management

• Leadership is the Job of the Chief Executive
  Officer or the General Manager of a Business
  Unit.
• Leaders provide the vision for an organizations
  mission, goals, and strategy at the corporate and
  business levels of the organization.
• Leaders must recruit key staff, the develop the
  organization and systems that support the
  implementation of strategy.
• Leaders must allocate limited resources to
  support the implementation of strategy.

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A. DEFINE THE BUSINESS
C. IDENTIFY THE KEY SUCCESS FACTORS
I. INDUSTRY ANALYSIS
1. THE PRIMARY MARKET

• Identify One Product-Market Segment.
• Market
• Product/Service
• Capabilities needed

CUSTOMER DRIVEN REQUIREMENTS
2. THE PRIMARY PRODUCT
COMPETITOR DRIVEN REQUIREMENTS
INDUSTRY/REGULATORY REQUIREMENTS
3. ESSENTIAL CAPABILITIES
B. ANALYZE THE INDUSTRY VALUE CHAIN
RESOURCE REQUIREMENTS
4. KEY COMPETITORS
4. ENTRY/EXIT BARRIERS
TECHNOLOGY REQUIREMENTS
3. KEY SUPPLIERS (KEY INPUTS)
1. KEY BUYERS
2. COMPETITORS THEIR STRATEGIES
5. SUBSTITUTES
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II. DESCRIBE BUSINESS STRATEGY
D. STRATEGIC/FINANCIAL PERFORMANCE
A. PRODUCT-MARKET GOALS
CURRENT PRODUCT-MARKET PERFORMANCE
PRODUCT-MARKET GOALS
CURRENT FINANCIAL PERFORMANCE
FINANCIAL PERFORMANCE GOALS
C. CORE COMPETENCIES
KEY SUCCESS FACTORS
B. BUSINESS STRATEGY
PRODUCT DEVELOPMENT
CUSTOMER DRIVEN REQUIREMENTS
TARGET MARKET
COMPETITOR DRIVEN REQUIREMENTS
PRODUCT/LINE
PRODUCT POSITION
PRODUCT AVAILABILITY
INDUSTRY/REGULATORY REQUIREMENTS
CUSTOMER DELIVERY
PROCESSES
TECHNOLOGY
MARKET ACCESS
RESOURCE REQUIREMENTS
CUSTOMER SERVICE
TECHNOLOGY REQUIREMENTS
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III. STRATEGIC EVALUATION OF BUSINESS STRATEGY
A. STRATEGY EVALUATION
INTERNAL EVALUATION OF
EXTERNAL EVALUATION OF
PRODUCT DEVELOPMENT
STRENGTHS
OPPORTUNITY
WEAKNESS
THREAT
CUSTOMER REQUIREMENTS
PRODUCT AVAILABILITY
COMPETITOR DRIVEN REQUIREMENTS
CUSTOMER DELIVERY
INDUSTRY/REGULATORY REQUIREMENTS
RESOURCE REQUIREMENTS
CUSTOMER SERVICE
TECHNOLOGY REQUIREMENTS
FINANCIAL SITUATION
B. CRITICAL STRATEGIC ISSUES (RANKED BY
IMPORTANCE)
C. RECOMMENDED ACTIONS (Who?, What?, When?)
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A. WHAT IS THE BUSINESS?
C. IDENTIFY THE KEY FACTORS FOR SUCCESS
I. Industry Analysis
Target Market
People that reward themselves (celebrate).
CUSTOMER DRIVEN REQUIREMENTS
Taste, Flavors, Variety, Brand Image
Super premium ice treats packaged in pints for
retail sales to people treating.
Key Products
Individual (pints) super premium ice cream
COMPETITOR DRIVEN REQUIREMENTS
Healthier with great taste, new flavors, and
wider distribution
Key Capabilities
Brand, Flavors, Shelf space.
INDUSTRY/REGULATORY REQUIREMENTS
Nutritional labeling
RESOURCE REQUIREMENTS
B. ANALYZE THE INDUSTRY STRUCTURE
Extensive distribution network.
Key Competitors
Haagen Dazs, Blue Bell Breyers
Entry/Exit Barriers
Entry Brand name, shelf space and distribution.
TECHNOLOGY REQUIREMENTS
Quality production processes.
Key Suppliers
Key Buyers
Key Competitors and Strategies
Major supermarkets, Mom Pop Grocery Stores,
Convenience Stores. Frozen Food Distributors.
Dairy Farmers Mix-In Ingredient suppliers Sugar
cane farmers Equipment makers
Haagen Dazs Breyers Blue Bell, etc. Sell
pint size to Supermarkets
Substitutes
Other Ice Cream, Ice Milk, Frozen Novelty Items,
Ice Cream Sandwiches, Sherbet, Sorbet, Frozen
Yogurt
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II. BJs Business Strategy Analysis
D. STRATEGIC/FINANCIAL PERFORMANCE
A. PRODUCT-MARKET GOALS
Product-Market Performance Measures
Product-Market Goals
Make and distribute the highest quality
all-natural ice cream.
Leading market leader of super premium ice cream.
Financial Performance Goals
Financial Performance Measures
Achieve profitable growth, value for the
shareholders and opportunities for employees,
while doing good.
To operate the company on a sound financial basis
of profitable growth
C. INTERNAL CAPABILITIES
SUCESS FACTORS
B. BUSINESS STRATEGY
CUSTOMER REQUIREMENTS
Product Development Capabilities
Target Markets
Ice cream lovers (treat themselves).
Taste, Flavors, Variety, Brand Image
Internal Flavor Development (mouth feel).
Write-in suggestions for new flavors, taste
testing all flavors.
COMPETITOR REQUIREMENTS
Product Line
Product Position
Healthy with exceptional taste, new flavors, and
wide distribution
30 Flavors Packaged in Pint Size containers.
Affordable top quality ice cream - 4/pint.
Product Availability Capabilities
National distribution via Dryers to food
retailers.
INDUSTRY/REGULATORY REQUIREMENTS
Nutritional labeling
Technology
Processes
Access
Customer Delivery Capabilities
RESOURCE REQUIREMENTS
Groceries, distributors, public events and press.
Production upgrades.
Production DistributionSpecial events.
Supermarkets and convenience stores.
Extensive distribution network.
Customer Service Capabilities
TECHNOLOGY REQUIREMENTS
Money back guarantee.
Quality production processes.
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III. Strategic Evaluation
A. STRATEGY EVALUATION
EXTERNAL EVALUATION
INTERNAL EVALUATION
Product Development Capabilities
CUSTOMER REQUIREMENTS
Strengths/Weaknesses
Opportunities/Threats
Flavor Development (mouth feel). Suggestions,
taste testing all flavors.
Taste, Flavors, Variety, Brand Image
Growingcompet-ition, Labeling
Unique flavors and names 30 varieties Social
service, All natural product
New Low Fat flavors Overseas markets
Domesticmarkets Broader distribu-tion,
High Fat content
COMPETITOR REQUIREMENTS
Product Availability Capabilities
Healthy with exceptional taste, new flavors, and
wide distribution
National distribution via Dryers to food
retailers.
INDUSTRY/REGULATORY REQUIREMENTS
Customer Delivery Capabilities
Nutritional labeling
Supermarkets and convenience stores.
RESOURCE REQUIREMENTS
Extensive distribution network.
Customer Service Capabilities
Money back guarantee.
TECHNOLOGY REQUIREMENTS
Quality production processes.
Financial Capabilities
Critical Issues
Government labeling, Increased Competition,
Continued Expansion
Recommended Actions

(Who?, What?, When?)
Labeling requires that BJ increase low fat
alternative products, and promote all natural
ingredients. Increased competition forces
increased product variety/flavors, and wider
distribution/penetration. This may require JV or
Strategic Alliance with other firms to expand
international markets.