Business Unit Strategy Plan Template [Compatibility Mode]

8/14/2019 Business Unit Strategy Plan Template [Compatibility Mode] www.gazhoo.com

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CONFIDENTIAL

Strategic PlanTemplate


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STRATEGY PLANNING INSTRUCTIONS

The objective of these templates is to provide completeness andconsistency of Business Unit (BU) strategic plan submissions.These templates are not intended to replace or constrain BU

strategic thinking and should be adapted to reflect a particularBUs sectoral context as required

Each section begins with a summary that is based on a synthesisof questions and analyses that follow. The suggested approach

would be to first complete the relevant back-up analyses and thenwork towards the overall synthesis

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TABLE OF CONTENTS

I. Executive summary

II. Environmental and internal assessmentA. Industry dynamics and its implicationsB. Competitive assessment

.

III. Strategic definition and implications

A. Strategy articulation.

C. Financial projectionD. Risks/contingencies and strategic alternatives

. x s

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BU STRATEGIC PLAN DEVELOPMENT

Environmental and internal assessment Strategic definition and implications

Industrydynamics andimplications

What are the majorchanges in industrydynamics and resulting

Strategyarticulation

What strategy will your BUpursue over the next 3 years?

oppor un es an r s s

What are your competitive What will be the impact of

+ +

assessment

s reng s anweaknesses?

initiatives

ma or s ra eg c n a ves

+ +

Internalassessment

How does your currentbusiness emphasis fit withindustry opportunity and

Financialprojections

What are the expectedfinancial returns of yourstrategy?

Risk/contingen- What strategic alternatives

+

3

cies & strategicalternatives

ave you cons ere


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I. EXECUTIVE SUMMARY

Instructions:e xecut ve ummary

provides a synthesis of theEnvironmental and Internal

Assessments and theresultant BU

Strategic Plans

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II. ENVIRONMENTAL AND INTERNALASSESSMENT

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IIA. INDUSTRY DYNAMICS AND IMPLICATIONS SUMMARY

A. What are the major changes in industry dynamics and the resulting opportunities and risks?

Instructions:

The answer to this

requires a recapitulationof the sections main

findings

A.1 What industry are you competingin? What are the various segments

in the industry?

A.2 How is industry structure changing(demand, supply, and industrychain economics)? What are theresulting opportunities and risks?

Instructions:

These subsectionscontain a 1-2 sentence

A.3 What is the expected competitorconduct? What are the resultingopportunities and risks?

summary of the relevantfindings

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. a are e presen an u ureexternal factors that could presentnew opportunities and risks?


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IIA. INDUSTRY DYNAMICS AND IMPLICATIONS BACK-UP 1

.competing in? What arethe various segments inthe industry?

Industry segmentation Definition

Sizing Instructions:

Exhibit 1 could provide

answering this question

Industry definition:

Industry segmentation:

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. ow s n us ry

structure changing withrespect to demand,supply, and industrychain economics? What

By segment Substitutes, ability to differentiate

Volatility, cyclicality Economics of supply

Producer concentration and diversity Import competition

Instructions:

Exhibit 2,3 or 4 could provide

are the resulting

opportunities andrisks?

Capacity utilization Entry/exit barriers

Cost structure (fixed and variable) Industry chain economics

Customer and supplier bargaining power


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.competitor conduct?What are the resultingopportunities andrisks?

Marketing initiatives Industry capacity changes

M&As, divestitures Vertical integration/disaggregation

Alliances and partnerships Cost control and efficiency improvements

Instructions:

Exhibit 2,3 or 4 could providea useful framework foranswering this question

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.and future externalfactors that couldpresent newopportunities and

Changes in regulation/government policy Technological breakthroughs Instructions:

Exhibit 2,3 or 4 could providea useful framework for

risks? answering this question

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IIB. COMPETITIVE ASSESSMENT SUMMARY

B. What are your competitive strengths and weaknesses?Instructions:

The answer to thisoverarching question

requ res a recap tu at on

of the sections mainfindings

B.1 What are the capabilitiesrequired to succeed inthis industry?

Instructions:

These subsections

B.2 How do you compareagainst these necessary

contain a 1-2 sentencesummary of the relevant

findings

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capabilities?


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IIB. COMPETITIVE ASSESSMENT BACK-UP 1

B.1 What are the

capabilities required tosucceed in thisindustry?

, . . , ,

distribution/sales network, intangible assets (intellectual capital, network, brands, talents) Distinctive skills/competencies that create competitive advantage, e.g.innovation, talent

development

nstruct ons:

Exhibit 5 could providea useful framework foranswering this question

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IIB. COMPETITIVE ASSESSMENT BACK-UP 2

B.2 How do you compare

against thesenecessarycapabilities?

.

Benchmark performance against the industrys relevant key performance indicators (KPIs)*,with margin and market share as the required minimum

Strengths and weaknesses of your competitive position vs. necessary capabilities:

ns ruc ons:

Exhibits 6 and 7 couldprovide a useful framework

for answering this question

Benchmark performance against the relevant industrys KPIs:

Exhibit 8 could providea useful framework foranswering this question

13* KPIs are a handful of levers that drive the value of the industry/business


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IIC. INTERNAL ASSESSMENT SUMMARY

.the competitive landscape?

Instructions:

The answer to this

requires a recapitulationof the sections main

findings

C.1 Which segments of thebusiness are providingthe highest returns?

C.2 What have been theerformance trends

Instructions:

These subsections

along major BU KPIs?

C.3 Which intangible assets*could be near-term

-summary of the relevant

findings

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potential sources ofvalue?

* Please refer to Exhibit 12 for further description


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IIC. INTERNAL ASSESSMENT BACK-UP 2

-

C.2 What have beenperformance trendsalong major BU KPIs?

, . . ,operating income, margins, capital employed

Assessment of underlying trend drivers Expected evolution

= -

Instructions:

All interest bearing debt (short and long) +

minority interest + stockholders equity

provide a useful frameworkfor answering this question

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IIC. INTERNAL ASSESSMENT BACK-UP 3

-C.3 Which intangible

assets could be near-term potential sourcesof value?

, , , Conversion into sources of value

Instructions:

a useful framework foranswering this question

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III. STRATEGIC DEFINITION ANDIMPLICATIONS

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IIIA. STRATEGY ARTICULATION SUMMARY

A. What strategy will your BU pursue over the next 3 years?Instructions:


requ res a recap u a on


A.1 Where to compete?

A.2 What is your customer valueproposition for the differentsegments you are going toserve?

Instructions:


A.3 What is your businessmodel?

A.4 How does your chosenstrategy exploit industry

summary o e re evanfindings

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opportunities and addressindustry/competitive threats?


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IIIA. STRATEGY ARTICULATION BACK-UP 1

A.1 Where to compete?

Target market

Distribution channels Product (breadth and depth)

Geographic scope

Instructions:

x t cou prov e

a useful framework foranswering this question

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.value proposition forthe different segmentsyou are going toserve?

Benefits that you will offer the customers

Product pricing Position against competition vis--vis the benefits provided and the price charged

Who is your target customer?

What are the explicit benefits you provide to your customers?

What perceived value do you provide to the customer better than competition?

How much value do your customers attach to the benefits you provide?

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A.3 What is your businessmodel?

Competitive advantage in delivering these benefits to the customer

Instructions:

Exhibit 15 could provide

How will the value proposition be provided and communicated?

a useful framework for


Which of your BUs existing strengths can be leveraged? What skills/capabilities do you need tobuild?

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IIIB. STRATEGIC INITIATIVES SUMMARY

B. What will be the impact of major strategic initiatives?

Instructions:


requires a recapitulation


B1. What major strategic initiativesare required to successfullyimplement your selected

business model?

B2. What are the sources of valuecreated from each strategicinitiative?

Instructions:


B3. How much value will be createdfrom each strategic initiative?

B4. What resources will

summary of the relevantfindings

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each strategic initiativerequire?


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IIIB. STRATEGIC INITIATIVES BACK-UP 1

.initiatives are requiredto successfully imple-ment your selectedbusiness model?

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Business Unit Strategy Plan Template [Compatibility Mode]