3A Business Consulting Strategy Approaches 3A Business Consulting 1 The Strategy Work – the Generic Way Mapping external issues External & internal toolbox Mapping internal issues Evaluation Strategy platform Analysis Brain storming Scenarios Strategy work Creativity Innovativeness Experience Strategy development “The future belongs to those who see the opportunities before they become obvious” Theodore Levitt 3A Business Consulting 2 Defining the Business and Strategy Development – the 3A Approach External environment Internal environment Market analysis Market players Resources and capabilities Customer analysis Strategic alliances Company value chain Industry overview Competitive arena Core competencies Assessment S. W. O. T. Critical key issues Business platform Strategy options Mission vision Strategy evaluation Values Defining the specific business arena Strategy Strategic goals Strategy implementation Business plan 3A Business Consulting 3 The External Environment The company's external environment Political, economic, social and technological factors – PEST analysis Defining the market Five forces Portfolio approaches Industry value chain Competitor analysis Key success factors ”The challenge of estimating the future market for new technologies is estimating the demand for products that do not yet exist by asking customers that have not yet heard about the products” Georg Day 3A Business Consulting 4 The External Environment Illustration of the main elements in the industry value chain Raw material Processing Sales & marketing Physical distribution Customers 3A Business Consulting 5 The Internal Environment The company's internal environment Resource and competence analysis The value chain Culture and values 3A Business Consulting 6 The Internal Environment Analysis of main company functions and processes to establish an understanding of current business operations Product R&D, technology and systems development Human resources management Value added General administration Inbound Operations Outbound Marketing logistics logistics & sales Service 3A Business Consulting 7 Combining the External and Internal Factors SWOT analysis Internal Strengths Weaknesses Strengths and weaknesses explored in the resource-based analysis External Opportunities Threats Opportunities and threats explored in the environment-based analysis “When the weather is windy, some seek shelter, others build windmills” Mao Tse-Zsung 3A Business Consulting 8 The Business Platform What, how and to whom must the business operate? What Customer functions/ customer needs Who Customer groups Technology/ competences How “Success comes by out-thinking, rather than out-punching your competitors…” Ron Handley, Strategy Workshop Facilitators Ltd. 3A Business Consulting 9 The Business Platform Linking values, mission and vision Vision Values and policies Mission Strategy Values: Definition of key company operational values Mission: Definition of the purpose we are in business for Vision: Description of where we are heading and what we want to achieve 3A Business Consulting 10 3A Strategy Work is Pragmatic All companies are different, therefore strategy development needs a pragmatic rather than a dogmatic approach Strategy process and strategy content are adapted to the individual company and its specific circumstances within the business context The strategy development work can be carried out by a top-down or a bottom-up approach 3A Business Consulting 11 3A Case Examples of Strategy Work Case 1: Strategy development for major international food and dairy company Case 2: Strategic development plan for a complete national industry sector Case 3: Strategy work for major Nordic food company Case 4: Strategy development for global food ingredients company Case 5: Strategy outline for functional foods for a major Scandinavian food company Case 6: Strategy platform and development of business plan for a biotech company Case 7: Development of complete strategy including feasibility study for a new food company 3A Business Consulting 12 3A Strategy Work – Insight and Foresight Insight: “A moments insight is sometimes worth a life’s experience” Oliver Wendell Holmes Foresight: “Those who face the unprepared with preparation are victorious” Sun Tzu, The Art of War 3A Business Consulting 13