After careful analysis, you will diagnose one or two key issues (which may differ from the original challenge you perceived), formulate a strategic response, and recommend how to implement it.
Final diagnosis. Describe the problem or opportunities facing the firm. Consider the following general themes:
- Are the firm’s value chain (primary and support) activities mutually reinforcing?
- Do the firm’s resources and capabilities fit with the demands of the eternal environment?
- Does the firm have a clearly defined strategy that will create a competitive advantage?
- Is the firm making good use of its strengths and taking full advantage of its opportunities?
- Does the firm have a serious weakness or face significant threats that need to be mitigated?
- Throughout the semester you conducted much of the above analysis. The final section of your paper should provide a way ahead for the firm.
Once you understand the problem, your next step is to propose one or two feasible solutions. A solution should answer three questions: what, why, how? What should the leaders of the company do? Why is this an appropriate course of action? How should they put it into action? The first two questions draw directly from your strategic analysis and problem diagnosis.
The third question should be answered in an Implementation Plan, address the following questions:
- What activities need to be performed? The value chain is a very useful tool when you need to figure out how different parts of the company are likely to be affected. What are the implications of your plan with respect to both primary activities (e.g., operations and sales/marketing/service) and support activities (e.g., human resources and infrastructure)?
- What is the timeline? What steps must be take first and why? Which ones are most crucial? Which activities can proceed simultaneously, and which ones are sequential in nature? How long is your plan going to take?
- How are you going to finance your proposal? Does the company have adequate cash on hand, or does it need to consider debt and/or equity financing? How long until your proposal breaks even and pays for itself?
- What outcomes is your plan likely to achieve? Provide goals that are “SMART”: specific, measureable, achievable, realistic, and timely in nature. Make a case for how your plan will help the firm to achieve a strategic competitive advantage.
- While some solutions are clearly better than others, it is important to remember that there is no single, correct answer to any situation.
