Enumerate the critical role of crafting

strategies;
Discuss the factors to be considered in
crafting strategies;
Demonstrate the hows in crafting strategies;
Distinguish proactive from reactive strategies;
and
Describe the context of rule breaking
strategies.
 It is the task that serves as the fulcrum and
determining factor that separates the
planning phase and the evaluation phase
 concentrate on a single business or several
businesses
cater to a broad range of customers of focus on
particular niche
develop a wide or narrow product line
pursue a competitive advantage based on:
i. low cost
ii. product superiority
iii. unique organizational capabilities
iv. differentiated products
v. service advantage
vi. terms or conditions of payment
 Social
Competitive Company
political,
conditions opportunities
regulatory
and industry and threats to
and
attractiveness companys
community
well-being
factors

Determine
Companys Strategic relevance of Identify and
Craft the
internal and evaluate
Situation external alternatives
strategy
factors

Resource
Influence Shared
strengths,
of values and
capabilities
key company
and
executives culture
weaknesses
 shifting market conditions;
fresh moves of competitors;
new technologies and innovations;
evolving customer preferences;
political and regulatory changes;
new windows of opportunity; and
crisis situations
 forming responses to changes in industry and
competitive conditions, buyer needs and
preferences, economy, regulations, etc.;
crafting competitive moves to produce
sustainable and competitive advantages;
building competitively valuable competencies
and capabilities;
uniting strategic initiatives of functional
areas; and
addressing strategic issues facing the
company
 strategy is action-oriented
strategy evolves over time
strategy-making is never ending or ongoing
concern
meaningful strategy is time and output-
oriented
strategy requires the participation of all
parties
 how to grow the business;
how to please customers;
how to outcompete rivals;
how to respond to changing market conditions;
how to manage each functional piece of the
business and develop needed organizational
capabilities;
how to achieve performance targets;
how to achieve sustainable competitive
advantage;
how to respond to changing market conditions
and new customer requirements; and
how to make strategic vision a reality
 Actions to Actions to outcompete
diversify rivals

Actions to strengthen Responses to changing

resources & capabilities external circumstances
Patterns of
Actions
How functional That Define Actions to alter
geographic coverage
activities are managed Strategy

Actions to merge or
Efforts to pursue new opportunities acquire rival companies
or defend against threats
Actions to strategic alliances and
collaborative partnership
 customer needs and competitive conditions
change;
new opportunities appear; technology
advances; any number of other outside
developments occur;
one or more aspects of executing the strategy
may not be going well;
new managers with different ideas take over;
and
organizational learning occurs
 Planned Strategy refers to a strategy that was
purposively developed or crafted regardless
of the situation of the business organization
Reactive Strategy refers to a strategy that is
developed as a reaction to or a result of
certain factors that the strategy needs to
respond to
 option to do something unusual or one that
is even
beyond the books or outside-of-the-box and
what is perceived
form:
a) challenge fundamental conventions by
reconceiving a product or service
b) redefining the marketplace
c) redrawing industry boundaries