Business Policy Homework Part-2B

Wiki Template Part-2: Gaps, Issues and New Strategy

BUSI 4940 – Business Policy

PART 2-B

SELECTING A NEW STRATEGY

In the previous steps, you evaluated the current fit in the company and, in doing so, highlighted the major issues/problems faced by the firm. Your task now is to generate and evaluate possible solutions. Given your previous work, you probably have a number of ideas of what the company “could do”. Note that this is very different from what they “should do”. Following the process outlined below will help you move from generic “coulds” to justifiable “shoulds”.

1. DATA COLLECTION

This is where you can collect all your ideas, new and old, about what the company could do. Try to brainstorm here, being open and not rejecting things at this point. The intent is to get all of the ideas out on the table, and the only caveat is that the ideas be directed at solving the issues/problems addressed in the previous step. However, do try to channel your thinking into two broad categories:

Strategic Adjustments : These are changes in strategy components (goals, product focus/market, focus, value proposition and core activities) that the firm could consider

Capability Changes : These are changes in business capabilities in the areas of operations, customers, and innovation that the firm could consider to address the strategic adjustments proposed (above) by you.

2. ORGANIZATION AND ANALYSIS OF DATA

With all the ideas on the table, you now need to sort through and organize them into at least two viable strategic proposals (you are welcome to do more than two if you want). For each proposal, you need to document the following:

a. Describe the specific changes in strategic components being recommended

b. Describe, in general, the changes to the current capabilities that need to be made so that the firm can successfully implement its new strategy

c. identify (at least broadly) the impact that all these changes would have on both the revenues and expenses of the company

d. Finally, you must clearly explain how and why you believe the proposal addresses the major issues/problems facing the company and improves overall fit

Note : While there can be some overlap in the two proposals, they need to be unique in substantive ways .

Proposal -1

a. ______________________________________________________________________

b. ______________________________________________________________________

c. ______________________________________________________________________

d. ______________________________________________________________________

Proposal-2

a. ______________________________________________________________________

b. ______________________________________________________________________

c. ______________________________________________________________________

d. ______________________________________________________________________

NOTE: A chart like that shown below can be an effective way to ensure that you are addressing each of the areas outlined above and to compare the 2 proposals.

Chart for Comparing Strategic Proposals

	Current	Proposal 1	Proposal 2
Strategy
Goals	Identify current strategy components here	Use this space to identify what each strategy component would look like in proposal 1. Note that this may be the same as in the current strategy or may be different depending on the nature of the proposal	Use this space to identify what each strategy component would look like in proposal 2. Note that this may be the same as in the current strategy or may be different depending on the nature of the proposal
Product Focus
Market focus
Value Proposition
Core Activities
Capabilities
Operational	Identify current capabilities here	Use this space to identify the capabilities needed to support proposal 1. Note if these are current capabilities or new ones that need to be developed	Use this space to identify the capabilities needed to support proposal 2. Note if these are current capabilities or new ones that need to be developed
Customer
Innovation
Cost/Revenue Implications		Identify broad cost and revenue implications of proposal 1 here	Identify broad cost and revenue implications of proposal 2 here
Addressing Issues and Fit	Identify Current Issues and MisFit	Show how proposal 1 addresses issues and improves fit here	Show how proposal 2 addresses issues and improves fit here

3. CONCLUSIONS AND RECOMMENDATIONS - STRATEGIC CHOICE

Now you must make a choice between your proposals. Use the information in your tables as well as any other thoughts you have to determine your preferred proposal. Then answer the following questions.

· Which proposal do you prefer? ________________________________________________

· Why do you prefer this proposal? _______________________________________________

· Which proposal carries more risk? Why? _____________________________________

· What might occur (inside or outside the firm) that would make your preferred proposal fail? _____________________________________________________________________

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