Strategic management, formulation and implementation

STRATEGIC MANAGEMENT
CAPSTONE PROJECT
CASE STUDY DESIGNATED – WHICH DESIGN TO PRESENT
Submitted by: Etienne Botha
Date: 07 July 2016
Strategic Management by Copenhagen Business School -
Etienne Botha etienne@joshuarisk.co.za
1

TEAM DANMARK – A NEW VISUAL IDENTITY
QUANDARY
TWO DESIGNS
1 EVOLUTION
1 REVOLUTION
ONLY 1 LOGO REQUIRED
=
CLIENT REQUEST VS COMPANY VISIONStrategic Management by Copenhagen Business School -
2

OPTIONS AT
HAND FOR
TEAM e-TYPES
Option 1 - To present the
conventional logo with an
80% chance of winning.
edgy logo with a 20%
chance of winning
Option 3 - To present both
logos
Option 4 – wei wu wei
3

MY
ENDORSEMENT
Option 3 - Present BOTH
the conventional logo as
well as edgy logo to TEAM
DANMARK.
With an 80% as well as
20% window of
opportunity, it will not only
display poor leadership but
also void of strategy, if
passed on the prospect.
4

MY
STRATEGY - 01
Applying the principles of Mintzburg as well as
Porter in a combination of:
Phase 1: Embrace – Team DANMARK have given
specific guidelines for the final product. Evolve,
but keep existing elements and colours of the
design.
e-Types, NOT ONLY meets, but exceed client
requirements. They create a ‘wow’ factor; client
is more than interested, and suddenly yearn for
more.
5

MY
STRATEGY - 02
Phase 2: Extend – Team DANMARK are still in
conservative mode? No more.
e-Types have just created an environment where
the client is challenged inside of its own comfort
zone; they are now intrigued.
A window of opportunity opens to extend the
client’s conservative train of though, into e-
Types’ ultimate goal. Team DANMARK’s
individuality is guaranteed; e-Types’ vison
embodied.
6

MY
STRATEGY - 03
Phase 3: Evolve - Here I have chosen to replace
Extinguish with Evolve
The client still feels in control, however are now
inclined to change. From a conservative
perspective, to a more revolutionized image,
presented by e-Types, without feeling pressured.
In this meeting e-Types have laid the path for
short, medium as well as long term perspectives
with Team DANMARK, through this course of
action.
7

INFLUENCING FACTORS
TO MY DECISION‘smash the world’
1. e-Types main objective from the start-up of the company was to
revolutionize designing and the influence it could exert in their market –
Strategy of Position.
2. Just considering the huge amount of potential exposure; direct as well as
indirect, e-Types could have by winning the Team DANMARK competition,
through the Torino 2006 Winter Olympics and Beijing 2008 Summer
Olympics, makes this decision – present both logos - the proverbial no-
brainer.
3. The company can still retain its identity, ensure continuation in a positive
cash flow as well as enjoy multi-national profile-raising on the international
market. Look as if e-Types is back in the Strategy of Position?!
8
JONAS: Why win
the competition
and maybe earn
a little money?

IN
CONCLUSION
E-Types challenge the client, delivering an edgy logo, presenting both disruptive vision
and rewards.
Thus meeting the client’s expectations of being a market leader in the designing industry,
which most probably led to the fact that they got invited for the competition in the first
place. Their focus should be on value proposition.
By presenting the more conservative logo at the same time, the designers can the
highlight the nuances between the two designs, leaving an option for the customer to
make the final decision.
e-Types values and vision are represented with the client’s own identity still guaranteed.
9

LESSON
LEARNT
What makes a company and it’s people to be prosperous
Ability to Empathize
‘There is simply nothing so important in business as understanding what other people are
feeling and likely to feel in the future.’ – Geoffry James, Inc.com
This capability determines whether customers will want your products, whether
employees will accept your leadership, whether colleagues will work well with you, and
whether investors will be willing to take a risk on you.
Human dynamics need to be an influencing as well as considerate factor to be taken in
account when Strategizing.
10

STRATEGY FORMULATION
CAPSTONE PROJECT
CASE STUDY DESIGNATED – e-TYPES STRATEGY FORMULATED
Date: 05 Aug 2016
11

INTRODUCTION – STRATEGY FORMULATION
• Strategic Planning and Formulation is a step by
step process with definite objectives and end
products that can be implemented and evaluated.
Very simply, it is a process by which we look into
the future, paint a picture of that future based on
current trends, and influence the forces that will
affect us. Then formulate a road map to reach the
end-goal envisioned.
• Examining the possibilities and formulating
strategies to meet the challenges can help the
organization take full advantage of opportunities
and minimize threats. In short, e-Types can take
control of the future. e-Types can use its energies
and resources more effectively and conduct its
business more successfully, despite changes in the
environment.
12

ROADMAP – STRATEGY FORMULATION
• Seven Steps Strategy Roadmap for e-Types:
1. Set e-Types goals and vision
2. Evaluate the business environment
3. Set quantitative targets
4. Identify each divisions goals and contributions; AND GET
THEM INVOLVED
5. Do a Performance Analysis – Determine the gap between
actual reality and long term aspirations
6. Explore and Investigate all possible strategies. Verify through
business intelligence before any final decision.
7. Consider business goals, strengths, potential and limitations
as well as external factors before FINAL DECISION
13

ROADMAP – KNOWLEDGE BUILDING
• Questions needed to be covered during the process:
1. Understand e-Types clientele – who present and future, what
are their priorities, what makes them ‘tick’.
2. Clientele values and relationships – how can e-Types add
value to our clientele, become a partner vs a supplier of
clientele.
3. Technology trends – comprehend environment and industry
tendencies on a global scale.
4. Who are e-Types’ competitors – their business models, strong
points, weak points. Be aware of being your own worst
enemy!
5. Core competencies – What are our capabilities, what are we
good at.
14

ROADMAP – PROCESS OF FORMULATION
• Three approaches to e-Types Strategy Formulation:
1. Top-down analytical planning.
2. Bottom-up tactical planning.
3. Continuous feedback with planning.
Strategy must be based on facts, not opinions.
Some companies constructing a strategic planning process erroneously
treat planning exclusively as a top management responsibility. This ‘ivory
tower’ approach can result in strategic plans formulated in a vacuum by
top managers who may be disconnected from current operating realities.
Correcting the ivory tower approach to planning requires recognizing that
successful strategic planning encompasses managers at all levels of the
corporation
15

ROADMAP – DEDUCED MEASURE
• Customer Group and Market Segmentation Strategy for the Future :
There are three approaches to market segmentation that e-Types can pursue:
1. No market segmentation – Its products are targeted at the ‘average customer’
need
2. High market segmentation – A different product is offered at each market
segment
3. Focused market segmentation – A product is offered to one or a few market
segments.
The third approach to market segmentation is to target a product just at one or two
market segments. In the case of e-Types, it will be for the more ‘edgy’ market as
one, and two, the more ‘conservative’ market. To pursue this approach, e-Types
must continually develop and innovate products in both its market segments.
16

IN
CONCLUSION
Customer groups are sets of people who share a similar need for a particular product.
Because a particular product usually satisfies several different kinds of desires and needs,
many different customer groups normally exist in a market.
A company searching for a successful business model must group customers according to
the similarities or differences in their needs to discover what kinds of products to develop
for different kinds of customers.
Once a group of customers who share a similar or specific need for a product has been
identified, this group is treated as a market segment. Companies then decide whether to
make and sell a product designed to satisfy the specific needs of this customer segment.
By creating products designed to meet its clientele specific needs in each market
segment, as a company e-Types will have a blockbuster strategy and product.
17

STRATEGY IMPLEMENTATION
CAPSTONE PROJECT
CASE STUDY DESIGNATED – e-TYPES STRATEGY
IMPLEMENTATION
Date: 08 Oct 2016
18

TEAM DANMARK – A NEW VISUAL IDENTITY
QUANDARY
TWO DESIGNS
1 EVOLUTION
1 REVOLUTION
ONLY 1 LOGO REQUIRED
=
CLIENT REQUEST VS COMPANY VISIONStrategic Management by Copenhagen Business School -
19

OPTIONS AT
HAND FOR
TEAM e-TYPES
conventional logo with an
80% chance of winning.
edgy logo with a 20%
chance of winning
Option 3 - To present both
logos
Option 4 – wei wu wei
20

MY
ENDORSEMENT
Option 3 - Present BOTH
the conventional logo as
well as edgy logo to TEAM
DANMARK.
With an 80% as well as
20% window of
opportunity, it will not only
display poor leadership but
also void of strategy, if
passed on the prospect.
21

ROADMAP – STRATEGY FORMULATION
• Seven Steps Strategy Roadmap for e-Types:
1. Set e-Types goals and vision
2. Evaluate the business environment
3. Set quantitative targets
4. Identify each divisions goals and contributions; AND GET
THEM INVOLVED
5. Do a Performance Analysis – Determine the gap between
actual reality and long term aspirations
6. Explore and Investigate all possible strategies. Verify through
business intelligence before any final decision.
7. Consider business goals, strengths, potential and limitations
as well as external factors before FINAL DECISION
22

ROADMAP – DEDUCED MEASURE
• Customer Group and Market Segmentation Strategy for the Future :
There are three approaches to market segmentation that e-Types can pursue:
1. No market segmentation – Its products are targeted at the ‘average customer’
need
2. High market segmentation – A different product is offered at each market
segment
3. Focused market segmentation – A product is offered to one or a few market
segments.
The third approach to market segmentation is to target a product just at one or two
market segments. In the case of e-Types, it will be for the more ‘edgy’ market as
one, and two, the more ‘conservative’ market. To pursue this approach, e-Types
must continually develop and innovate products in both its market segments.
23

INTRODUCTION – STRATEGY IMPLEMENTATION
• Strategic Implementation - Ask most
organizational leaders about their areas of focus
and you will hear that strategy is among their
highest priorities.
• Unfortunately, too often leaders pour their
energy and resources into formulating strategy
and spend too little time figuring out how to
implement that strategy throughout the
organization.
• Strategies are frequently created, perhaps not in
an ivory tower, but often at a nice resort or
conference centre. Unfortunately, most leaders
fail—not in the formulation of strategy, but in its
implementation.
24

25
Aspects of Implementation Describe the Expected
State
Substantiate the Expected
State
Recommend Specific
Actions
1. Organizational Structure a. A flat organizational
structure can create
opportunities for business
growth. e-Types
employees, teams or
groups can circumvent
middle management and
report directly to CEO.
a. Ideas come from a
wider range of sources
in a flat organizational
structure than in
companies with many
layers of management.
b. Employees and work
groups in flat
organizations tend to be
more adaptable in
changing or unique
circumstances, due to
their smaller hierarchies
and lack of bureaucracy
a. Work groups assigned to
unique projects.
b. Since more employees
are on a level playing field,
more responsibility is
placed upon each
individual, creating a
situation where innovative,
collaborative self-starters
excel and passive followers
lag behind.
c. Organizations with a flat
structure can attract the
type of employees who are
encouraged by a work
structure that requires self-
motivation and teamwork.

26
State
State
Recommend Specific
Actions
2. Communication a. A flat organization
structure means less layers
of management between
workers and top
management. Advantages
from such a lean structure,
including improved
communications; faster,
easier and less prone to
mistakes or
misunderstandings.
a. Speed and accuracy of
communication is a big
advantage for flat
organizations.
b. This speed allows new
products and services
to be implemented
faster and with less red
tape.
a. Sincere, spontaneous
and short messages tend to
transcend organizational
and cultural barriers, even
in companies that seem to
thrive on complex
communication. Using
email and voicemail as
supplements to
conversations can cement
professional relationships.

27
State
State
Recommend Specific
Actions
2. Organizational Culture a. Organizational culture
includes the shared beliefs,
norms and values within an
organization. It sets the
foundation for strategy. For
a strategy within an
organization to develop and
be implemented
successfully, it must fully
align with the
organizational culture.
Thus, initiatives and goals
must be established within
an organization to support
and establish an
organizational culture that
embraces the organization’s
strategy over time.
a. Organizations that
remain flexible are
more likely to embrace
change and create an
environment that
remains open to
production and
communication.
b. A stable culture, one
that will support
strategy
implementation, is one
that fosters a culture of
partnership, unity,
teamwork and
cooperation among
employees.
a. When culture aligns with
strategy implementation,
an organization is able to
more efficiently operate in
the global marketplace.
Culture allows
organizational leaders to
work both individually and
as teams to develop
strategic initiatives within
the organization. These
may include building new
partnerships and re-
establishing old ones to
continue delivering the best
possible products and
services to a global market.

IN
CONCLUSION
• To successfully execute an organization’s strategy, it must be the focus of every
person in that organization. It is up to the leaders to create, monitor, and reward that
focus as it is expressed.
• The pace of business shows no signs of slowing down and the competition in any
sector isn’t getting easier. But effectively implementing strategy can be a source of
competitive advantage.
• Fortune 500 companies to small not-for-profits must be armed with the ability to
effectively implement the strategies of their organization, all while juggling 100s of
emails and voice mails, and addressing the exigencies of the day. Because
implementing strategy is not additive work for the leader; It is, in fact, their pivotal
aim.
28

Strategic management, formulation and implementation

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