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OVERVIEW OF THE STRATEGY DEVELOPMENT PROCESS Here is an overview of the five steps of the strategy development process: Set and revisit aspirations Conduct situation analysis/understand uncertainty Determine strategic posture Build the strategy Test and plan for execution 15 Overview 1.3.3. REVISIT THE ASPIRATION Aspirations should be revisited at the end of the strategy development process because the fact-base and debates of the process may significantly reshape the aspiration. In addition, companies should periodically revisit their aspirations to keep them fresh and relevant to the organization. As the future unfolds – as the rate of industry change shifts, status becomes more certain or uncertain, or viewpoints change when they gain more knowledge about the industry – the client must look back and revisit the company aspirations. Aspirations are dynamic and should change as often as the industry does. Thus a company in a stable industry may only need to revisit aspirations every 5-10 years, while an internet competitor may see its aspirations shift by the month or even week. 44 Set and Revisit Aspirations See Reference # 7 49 Situation Analysis/Understanding Uncertainty See Reference # 1,2 STRUCTURE OF THIS CHAPTER This chapter describes two key stages in developing a situation analysis: Set the baseline (p. 50) - determine a client’s core capabilities and how it is positioned vis à vis its competitors and customers. Develop perspectives on the future (p. 75) Understand external forces (p. 76) - critical external forces shaping the future of the industry Assess uncertainty (p. 92) – key uncertainties, and which ones can be mitigated and which ones must be managed Examine industry structure (p. 117) – the structure and basis of conduct Define basis of competitive advantage (p. 127)– the current and likely future sources of competitive advantage 2.1.1. ELEMENTS OF THE BASELINE The purpose of setting the baseline is to develop with the clie
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