• Each section begins with a summary that is based on a synthesis
of questions and analyses that follow. The suggested approach would be to first complete the relevant back-up analyses and then work towards the overall synthesis
1
TABLE OF CONTENTS
I. Executive summary II. Environmental and internal assessment
A. Industry dynamics and its implications B. Competitive assessment C. Internal assessment III. Strategic definition and implications A. Strategy articulation B. Strategic initiatives C. Financial projection D. Risks/contingencies and strategic
– Definition
– Sizing
Industry definition:
Industry segmentation:
7
IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – BACK-UP 2
A.2 How is industry structure changing with respect to demand, supply, and industry chain economics? What are the resulting opportunities and risks?
• Industry chain economics
– Customer and supplier bargaining power
8
IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – BACK-UP 3
A.3 What is the expected competitor conduct? What are the resulting opportunities and risks?
9
IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – BACK-UP 4
A.4 What are the present and future external factors that could present new opportunities and risks?
• Impact and likelihood of major industry discontinuities
– Changes in regulation/government policy – Technological breakthroughs
10
IIB. COMPETITIVE ASSESSMENT – SUMMARY
• What are the major
changes in industry dynamics and resulting opportunities and risks?
• What are your competitive
strengths and weaknesses?
Strategic definition and implications
alternatives IV. Exhibits
2
BU STRATEGIC PLAN DEVELOPMENT
Environmental and internal assessment
Industry dynamics and implications
+
Competitive assessment
financial returns of your strategy?
Risk/contingencies & strategic alternatives
• What strategic alternatives
have you considered?
3
I. EXECUTIVE SUMMARY
4
Training materials 8 June 2001
This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.
CONFIDENTIAL
BU Strategic Plan Template Book
Jim Ayala – PHO Melissa Gil – PHO Regina Manzano – PHO Suresh Mustapha – PHO Steve Shaw – HKO Shelly Yeh – PHO Choon-Gin Tan – SIOble assets (intellectual capital, network, brands, talents)
• Distinctive skills/competencies that create competitive advantage, e.g.innovation, talent
B. What are your competitive strengths and weaknesses?
B.1 What are the capabilities required to succeed in this industry?
B.2 How do you compare against these necessary capabilities?
development
12
IIB. COMPETITIVE ASSESSMENT – BACK-UP 2
B.2 How do you compare against these necessary capabilities?
• Strengths and weaknesses of your competitive position vs. necessary capabilities • Benchmark performance against the industry’s relevant key performance indicators (KPIs)*,
STRATEGY PLANNING INSTRUCTIONS
• The objective of these templates is to provide completeness and
consistency of BU strategic plan submissions. These templates are not intended to replace or constrain BU strategic thinking and should be adapted to reflect a particular BU’s sectoral context as required
• Major industry competitor moves
– Marketing initiatives – Industry capacity changes – M&As, divestitures – Vertical integration/disaggregation – Alliances and partnerships – Cost control and efficiency improvements
II. ENVIRONMENTAL AND INTERNAL ASSESSMENT
5
IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – SUMMARY
A. What are the major changes in industry dynamics and the resulting opportunities and risks?
A.1 What industry are you competing in? What are the various segments in the industry?
A.2 How is industry structure changing (demand, supply, and industry chain economics)? What are the resulting opportunities and risks?
6
IIA. INDUSTRY DYNAMICS AND IMPLICATIONS – BACK-UP 1
A.1 What industry are you competing in? What are the various segments in the industry?
• Industry definition • Industry segmentation