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9.1: Organizational and Industry Analysis Template

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    22936
    • Anonymous
    • LibreTexts
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    Ten–Ten Planning Process

    As noted in the last chapter, the planning process is never-ending because of the ongoing pressure in the marketplace. There is no single plan that can deal with the complexity of monopolistic competition. The first mantra of the entrepreneur is: differentiate through innovation or perish, and this is accomplished by focusing on Midas versions of products using extravagant engineering. The second mantra of the entrepreneur is: strive to reduce costs, and this is accomplished by focusing on Hermes versions of products using frugal engineering and design. The dynamic tension between delivering Midas and Hermes versions will also lead to mainstream Atlas products. A continuous process for developing business plans is necessary for competing and surviving under monopolistic competition. As discussed in the last chapter, the strategic planning process can be modeled using the diagram in Figure 9.1 "Strategic Planning Process". The mantra and mission are constantly evaluated and revisited throughout the life of the firm.

    Figure 9.1 Strategic Planning Process

    The Ten–Ten planning process contains two templates: an Organizational and Industry Analysis template and the Business Plan Overview template that identifies the mantra, mission, money, goals, objectives, and tactics in a very brief format. (These templates can be downloaded from http://glsanders.wordpress.com/) The idea behind the Ten–Ten approach is that once you have gathered some background data related to the industry and the organization, you should be able to complete the two templates in about 20 minutes.See Horan (2007). This is an alternative approach to Horan’s approach developing a brief plan. One deficiency of the Horan approach is that it does not integrate the key ideas found in the major planning approaches. The deficiency in all of the other planning approaches discussed in Chapter 8 "Strategic Planning and Ten–Ten Planning" is they take too much time and, yet, they are not comprehensive enough because they do not include and build on other approaches. The Ten–Ten approach attempts to reconcile speed with comprehensiveness. This will of course be a very rough first-cut, but it will be the foundation for developing more refined plans. The Ten–Ten process is meant to be quick and to the point, but it can be expanded to 10 hours, 10 days, or in some instances 10 weeks, but rarely more than that. These templates along with the FAD (features, attributes, and design) template can be used to develop the executive summary. This in turn can be used to develop a full-blown business plan, which is the foundation for building the business. Figure 9.2 "The Business Development Process" illustrates the entire Ten–Ten process from conceptualizing the business idea through building the business.

    Figure 9.2 The Business Development Process

    The first template is the Organizational and Industry Analysis template and it incorporates the quick SWOT analysis using concepts from supply chain analysis, Porter’s value chain analysis and five-force model,Porter (1998). the resource-based approach,Barney (1991). core competencies analysis,Prahalad and Hamel (1990). and the Blue Ocean Strategy Canvas.Kim and Mauborgne (2005). The idea is to conduct a brief industry analysis without getting bogged down in the details. This template is contained in Note 9.3 "Organizational and Industry Analysis Template (do this first)". The FAD template is a good source of information related to what products or services are going to be produced and sold. The point of the first planning template is to help you understand the current or proposed organization and the target industry. Questions 1 through 5 assist in detailing the basic question related to what business you are in and what the industry looks like. Question 6 is a simplified SWOT diagram. It is intentionally small so that that it is difficult to enter too many items. Long laundry lists are a recurring critique of SWOT analysis. One area where the simplified SWOT analysis differs from the traditional SWOT approach is that the focus is not on just internal issues, but on any areas where an organization has strengths and weaknesses. For example, the research and development (R&D) and product development areas are typically considered internal functions, but the supply and value chains along with the brand image are interconnected functions that span the internal and external organizational environment.

    Organizational and Industry Analysis Template (do this first)

    1. Give a brief description of your business model including what products or service you are producing or will produce.

      ___________________________________________________________

    2. Describe your target customers and the size of the market.

      ___________________________________________________________

    3. List and describe your current competitors.

      ___________________________________________________________

    4. List and describe your potential competitors.

      ___________________________________________________________

    5. Who will you purchase or acquire materials, components, resources, or other inputs from?

      ___________________________________________________________

    6. SWOT (consider human resources, R&D, marketing, procurement, manufacturing, distribution, engineering, IT, finance, accounting, and legal)
      • What are your strengths (products, R&D, supply chain, brand, pricing, core competencies, resources, infrastructure, scalability, and interfaces)?
      • What are your weaknesses (products, R&D, supply chain, brand, pricing, core competencies, resources, infrastructure, scalability, and interfaces)?
      • What are the opportunities (growth, market share, product lines, Blue Ocean, complementary products, lock-in, brand, and first-mover advantage)?
      • What are the threats (substitutes, emerging technologies, new entrants, economic climate, government regulations, and social/culture issues)?
    7. Strategy Canvas for new product compared with competitor or industry (price and quality are example attributes)

    Use the FAD template to add key attributes to the Strategy Canvas (you can continue the table if you need more attributes)

    Meaning of product or service BOF POD POP EXT DIS BOF POD POP EXT DIS BOF POD POP EXT DIS BOF POD POP EXT DIS BOF POD POP EXT DIS BOF POD POP EXT DIS
    Attribute name Price Quality
    Very high
    High
    Average
    Low
    Very low
    Not applicable
    BOF, Blue Ocean features and exciters; POD, points of difference and differentiators; POP, points of parity and must-haves; EXT, extinct and vestigial features; DIS, dissatisfiers

    Another important feature of the Organizational and Industry Analysis template is the presence of question 7 and the development of a strategy canvas, the Blue Ocean strategy, for identifying the current product features and how they compare with one or more competitors or with a typical product or service found in the industry marketplace. The goal is to assist in illustrating what product features are being used to differentiate the competitors and to identify other areas where you might want to reduce or add features or even increase or decrease performance.


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