JSW model described on three elements of strategic planning. The three elements are as below,
1) Strategic Position Analysis
2) Strategic Choice
3) Strategy into Action
1) Strategic Position/ Analysis:
Assess :
- SWOT
- Culture, belief and assumptions of the organization
- Expectation and power of stakeholders
2) Strategic Choice:
To do strategic choice, we have to follow below three steps
- Generation of strategic options.
- Evaluation of those options.
- Selection of strategy / option that organization will pursue. There can be more than one strategy chosen.
Selection of strategy often is a subjective judgement and likely to be influenced by value of managers.
Broadly there are 2 ways in which a strategy can be pursued.
1) Internal development = Organic growth
2) External development = Merger / Acquisition / Franchise
3) Strategy into Action:
Implementing a strategy has three elements,
1) Enabling organization’s resources according to the strategy.
2) Structuring the organizations according to the strategy.
3) Manage the change across the organization.
Example of Strategic Position/ Analysis:
– If MacD wants to start Mac Café then they firstly have to analyse the market, competitors, customer behaviour. Then they have to see their own capabilities and their strengths and weakness.
– Their culture / belief/ vision should not get disturbed by Mac Café. They are known for providing products at low cost and at pocket friendly rate.
Example of Strategic Choice:
– They have to decide that how want to grow whole Mac Café, organically or through acquisition.
Example of Strategy into Action:
– To implement the project there will be lots of changes they have to make in their stores.
– They also have to train employees and they have to arrange all the necessary resources like coffee beans and other material
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