A Framework For Strategy Development

Adapted from Stace, D. & Dunphy, D. (2001) Beyond The Boundaries.

The following five areas must be explored for effective strategy development.

1. Industry Analysis

Consider key strategic issues the business is likely to face in the next 5-10 years.
What are the emerging global trends / industry shifts?
What are the longer-term business possibilities?
What are the likely scenarios for the business if there is no or little change, and if there is high change in:

Industry structure
Clients, consumers, markets
Technology
Products, services
Workforce, structural issues
Stakeholder, shareholder
Resources
Competitors

2. Critical Issues Analysis

What do the customers think, need, want, and require in the future?
What is likely to have a critical impact on the performance of the business in the next 2-3 years?
What issues could arise from:

Shareholders
Government
Financial institutions
Customers
Your supply chain
Employees
Community
How urgent is it to resolve these issues?

3. Vision & Strategic Path

4. Business Plan

What do you want to achieve in the next 2-3 years?
What are the priorities?
How do you compete on service, quality, price?
What is your desired market position?
What technologies and business models are required to meet your business requirements?
What strategies and tactics are your competitors adopting?
How do you add value to customers, and to the business overall?
Where are you placed in 'best practice' benchmark comparisons?
What are the appropriate financial and non-financial ratios by which you will measure success?
How can you maximise the use of your resources?
What competencies are needed to develop the business?

5. Performance Management