Bain Strategy 101: Strategy Development in a Red Ocean | Getting Fat

Strategy development is a broad but integral component of any ambitious company, big or small, and therefore, there are numerous techniques geared towards this functional area. To begin with business strategy development, you must determine your strategic challenges by defining where you want your company to be, how you can bring your company to the desired end state, and where you currently are. The evolution from your current state to your desired end state is a matter of strategy development and strategy execution. Even though the end goal of any corporate strategy is winning, it involves a number of important pieces, including defining your companys value proposition, competitive advantages, and organizational transformation.

Joseph Bower places the emphasis of the strategic planning and financial budgeting process is at the heart of the strategy development process. Bower defines strategic intent as the observable and communicated official strategy. Capital market context is also looked at, which includes demands and influences of capital providers, like investment banks. Organizational context is comprised of organizational governance and the organizational structure, basis of performance metrics and rewards, and managements core beliefs and cognitive frames. Resource allocation based strategy planning and budgeting is a bottoms up driven way to locating and selection of important business opportunities. Within the Resource Allocation business framework, when we look at market context, we are analyzing the demands of the largest customers,and technology development. Bowers set of beliefs is called the Resource Allocation Process RAP business framework.

Right now, there are Henry Mintzberg and Joseph Bower lead the popular beliefs around strategic management. In organizational configuration, the organization takes on behaviors based on adaptation to contexts. Mintzberg also advocates a transformation of business practices, where management recognizes the need and has the ability to conduct top-down business operational process improvement. Mintzberg proposes for an organization, bottom-ups strategy to drive strategy development that adheres to organizational configuration.

Strategy development process has evolved through 5 key phases over the years. Shifts in strategic mindset represent an ever evolving, emerging business leaders, and emergence of disruptive technologies and trends. In the current day, the strategic development theme is on integrating strategic planning and execution with a stress on the primary notions of core competencies, strategy planning and execution, and balance scorecard analysis. Strategy development started with a focus on financial planning in the 1950s, moving to sustainable planning in the 1960s, to strategic planning in the 1970s and ultimately to a focus on strategic management in the present day. A lot of growth strategy is also hinged on ideas in the 1970s, where the core theme was around thinking strategically to beat competition and the business frameworks of alternative strategies, portfolio analysis, and the BCG Growth Share Matrix emerged.

The way business leaders evaluate and analyze strategy within that of modern business organizations has been shaped by military strategists since the beginning of organized warfare. Sun Tzus thoughts about the factor of terrain, in todays business landscape, translates to markets, industry structures, value propositions, and Porters Five Forces. Sun Tzu hinted at indirect business strategies when he said winning without fighting is the acme of skill on the battlefield. Sun Tzu preached to know and attack the enemys strategy. In Sun Tzus Art of War, he spoke about several core factors in military strategy and each of these factors relates to a popular concept of business strategy.

LearnPPT.com is an invaluable online resource for learning and improving your strategy development fundamentals. It contains a wealth of business strategy presentations explaining different types of business strategy frameworks and concepts. Their strategy and presentation materials have been used around the world in over 45 countries in global Fortune 500 corporations. Within its ever growing library, there is a strong emphasis on strategy development, strategic planning, and similar business concepts. LearnPPT states that all presentations have been developed by strategy and management consultants from big name consulting firms, such as McKinsey and BCG. There are numerous PowerPoints covering supporting business units, such as governance, cost management, as well as workshop planning.
Strategy Development Presentation

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