"The final analytical task is to home in on the strategic issues management needs to address in
forming an effective strategic action plan. Here, managers need to draw upon all the prior analysis,
put the company’s overall situation into perspective, and get a lock on exactly where they need to
focus their strategic attention." (Thompson and Strickland) What are the firm’s core competencies? Key competitive advantages? Where do the company’s strengths and opportunities reinforce each other?
Where do the company’s weaknesses and threats reinforce each other? To
answer these interrelated questions, construct at least three scenarios or stories about
the company’s future. For each scenario, focus on the key uncertainties about
strengths, weaknesses, opportunities and threats.
1. DECLINE. What combination of external threats, unrealized opportunities, internal
weaknesses, and decreasing strengths could result in a substantial decline in
performance? 2. SAME BUT BETTER. What combination of external opportunities and threats and
internal strengths and weaknesses could result in a gradual extension and
enhancement of past performance? 3. DRAMATIC IMPROVEMENT. What combination of realized opportunities, avoided
threats, dramatic enhancement of strengths, and correction of weaknesses could
result in significant, discontinuous improvement in performance? How much change is needed? In balance, should
the firm be on offense or defense? (Locate the
company’s relative position on the change grid to the
left.) O
Turnaround Offense W S Defense Diversification T What are the critical strategic issues that must be addressed to assure a
successful future? The critical issues can be thought of as a series of “how will
we. . . ?” questions that must be answered by the strategic planning process. The
strategic issue questions should be tailored to the company and not stated generically.
Try to keep to under 5 in order to assure focus on the truly critical issues.
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