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strategic planning in changing times

Develop a strategic fit between the goals and capabilities of your organisation and its evolving market opportunities

Proactive organisations that wish to remain competitive must determine the optimal strategy for the organisation given its objectives, resources and capabilities whilst taking the current and expected future business environment into account.  The objective of strategic planning is to develop and maintain a strong strategic fit between the goals and capabilities of an organisation and its changing market opportunities.

“It is important for organisations not to ‘drift’ in a strategic vacuum, but instead undergo a structured process of searching and defining the purpose of the organisation.”

Key strategy questions:
What is our business?   
Who are our target customers?
What do our target customers value?
What should our business be?

How can Activated Logic help?

Assess dynamic between competitive advantages and challenges
There is a dynamic relationship between the challenges (and opportunities) from the external environment which influences the organisation, and how the organisations competitive strengths are able to assist the organisation to respond to these challenges.

Building on the findings from section-1 (Adapting to the changing business environment) by identifying the major business challenges from the external environment, and countering these with the competitive advantage findings from section-2 (Creating value through competitive advantage) is important as it provides the core inputs for the business portfolio composition process, described below.

Deciding on business portfolio composition
The primary objective in formulating the portfolio composition of an organisation through organic innovation, acquisition and divestiture is to assemble a collection of synergistic and integrated business units that are of strategic relevance – that is consistent with the objectives of the organisation.

Although Activated Logic frequently makes assessments of the general macro-environment, Activated Logic is specifically experienced in researching the micro-environment of your organisation, specifically; the core-strengths and competitive advantages of your organisation, the objectives of your organisation and making recommendations about optimal business portfolio composition.

Incorporating the product/market expansion grid
The final strategic step between deciding on business portfolio composition and going to market is a process of strategic business unit subordination, where priority products and markets are selected which will constitute the organisations actual marketing and strategic interests.

The product/market expansion grid incorporates information on whether the target markets are new markets or pre-existing markets and the products intended to penetrate those markets whether they are existing or new products.  There are a range of other major considerations that are also taken into account and eventually a broad strategy of a market penetration, market development, product development, diversification or a hybrid approach is developed to extract maximum value from each product and market segment.

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