THE FIVE FRAMEWORKS FOR THE STUDY OF STRATEGY. Arnoldo C. Hax
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1 THE FIVE FRAMEWORKS FOR THE STUDY OF STRATEGY Arnoldo C. Hax
2 FIRST FRAMEWORK
3 SECOND FRAMEWORK Strategic Management Framework Strategy Organizational Structure Business Processes Performance Supported by: Business segmentation The Triangle The mission statement Assignment of responsibilities and authorities Detecting activities that cut across organizational units, requiring horizontal coordination Performance indicators Time-driven events Culture
4 THIRD FRAMEWORK THE FUNDAMENTAL ELEMENTS OF THE DEFINITION OF CORPORATE STRATEGY THE TEN TASKS Central Focus of Corporate Strategy The Firm Corporate Internal Scrutiny Mission of the firm Business segmentation Horizontal strategy Vertical integration Corporate philosophy Definition of Strengths and Weaknesses Corporate Environmental Scan Analysis of critical geographical locations and industrial sectors Economic outlook Technological, human resources, political, social, and legal trends Identification of Opportunities and Threats Corporate Strategic Agenda Strategic Thrusts Corporate Performance Objectives Resource Allocation Portfolio Management Managerial Infrastructure Organizational Structure and Administrative Systems Human Resources Management of Key Personnel
5 FOURTH FRAMEWORK THE FUNDAMENTAL ELEMENTS OF THE DEFINITION OF A BUSINESS STRATEGY The Mission of the Business Definition of business scope: products, markets, and geographies Identification of unique competencies Corporate Strategic Thrusts Relevant to the business unit Internal Scrutiny at the Business Level (Competitive Positioning (Past performance and future projections) Identification of internal critical factors to achieve competitive advantage Overall assessment of competitive position Definition of Strengths and Weaknesses Environmental Scan at the Business Level (Industry Structure) (Past performance and future projections) Identification of external factors contributing to industry attractiveness Overall assessment of industry attractiveness Identification of Opportunities and Threats Business Strategic Agenda Strategic Thrusts Accountability and Performance Measurements Budgeting Strategic funds programming and operational budgets
6 THE DELTA MODEL AN INTEGRATIVE STRATEGIC FRAMEWORK The Triangle SLI TCS BP Customer Segmentation and Customer Value Proposition Mission of the Business Business Scope Core Competencies Competitive Positioning Activities that drive profitability Industry Structure External factors determining industry attractiveness Business The Strategic Agenda I CT Adaptive Processes Strategic Agenda Aggregate and Granular Metrics Experimentation and Feedback OE The changes introduced by the Delta Model Add the Triangle to decide on the strategic positioning Add the Adaptive Processes to expand the implementation tasks
7 FIFTH FRAMEWORK THE FUNDAMENTAL ELEMENTS OF THE DEFINITION OF A PROCESS AND FUNCTIONAL STRATEGY Corporate Strategy Mission of the firm Strategic thrusts Process and Functional Req uirements Business Strategy Mission of the business Broad and specific action programs Process and Functional Req uirements Process and Functional Scrutiny Distinctive process and functional competencies for all strategic categories of decisions Definition of Strengths and Weaknesses Process and Functional Environmental Scan Industry and competitive analysis Process and Functional intelligence Identification of Opportunities and Threats Process and Functional Strategic Agenda A set of multiyear broad action programs Budgeting Strategic funds programming and operational budgets
Formulation of the Business Strategy. A set of multiyear broad action programs. Strategic Programming
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