CRAFTING

STRATEGIES
Reporters:
Kathlyn Joy Salazar
Almiralane Lising
Art Daniel Malong
CRAFTING STRATEGY
Crafting a strategy is the task that serves as
the fulcrum and determining factor that
separates the planning phase and the
evaluation phase.

It is the most critical aspect among the

components of the strategic management
because it is in this particular stage where
specific tasks on how to achieve the
strategic objectives are drawn or
addressed.
Factors to consider in Crafting
Strategies
a.) Direct rivalry among competing sellers
b.) buyers
c.) supplier
d.) substitute
e.) potential and new entrants
f.) various stakeholders’ group

- From the six major groups forming part of Porter’s business competition
model
Crafting strategy involves determining
whether or not to pursue any of the
following:
a. Concentrate on a single business or several
businesses (diversification)
b. Carter to broad range of customers or focus on a
particular niche
c. Develop a wide or narrow product line
d. Pursue a competitive advantage based on:
i. Low cost
ii. Product superiority
iii. Unique organizational capabilities
iv. Differentiated products
v. Service advantage
vi. Terms and conditions of payment
In a border context, Thompson and Strickland (1999)
identified several factors to consider in crafting
strategies.

Factors shaping the choice of company

strategy
Why strategies evolve?
The challenge to strategize evolves because of the
need to react or contain the following specific
conditions:

a. Shifting market conditions ;

b. Fresh moves of competitors;
c. New technologies and innovations;
d. Evolving customer preferences;
e. Political and regulatory changes;
f. New windows of opportunity; and
g. Crisis situations.
What should be done in Crafting
Strategies?
a. Forming responses to changes in industry and
competitive conditions, buyer needs and
preferences, economy, regulations, etc.;
b. Crafting competitive moves to produce
sustainable competitive advantage;
c. Building competitively valuable competencies
and capabilities;
d. Uniting strategic initiatives of functional areas;
and
e. Addressing strategic issues facing the company.
Characteristics of Strategy Making
The inherent character of strategy which is responding to the question of
“how to do it?” or “how to achieve it?” is by itself a truly difficult matter.

What makes strategy difficult and challenging are the following basic
characteristics of strategy:

a. Strategy is action-oriented. The task of crafting strategy puts

action or legwork upon the strategic objectives set forth as
motivated by stated vision-mission.
b. Strategy evolves over time. As time goes by and market
preferences keep on changing, so are strategies that should
be responsive to it.
c. Strategy-making is never ending or ongoing concern.
Crafting strategy is continuing process driven by changes of
time.
d. Meaningful strategy is time and output-oriented. Out of the
strategy set forth, results are expected within specific time
frame.
e. Strategy requires the participation of all parties.
 QUESTIONS THAT STRATEGIES SHOULD
HAVE TO ADDRESS
a) How to grow a business
b) How to please customers
c) How to outcompete rivals
d) How to respond to changing market conditions
e) How to manage each functional piece of the business
and develop needed organizational capabilities
f) How to achieve strategic and financial objectives
g) How to achieve performance targets
h) How to achieve sustainable competitive advantage
i) How to respond to changing market conditions and
new customer requirement
j) How to make strategic vision a reality
Thompson and Strickland Developed a diagram defining
patterns of actions that describe a strategy

Efforts to
Actions to
Pursue new
strengthen
opportunities
resources &
or defend
capabilities
against
threats
How to
Actions functional
to activities
diversify are
Patterns of managed

actions that Actions to

Actions to
outcompete define alter
rivals geographic
strategy coverage

Actions to
Responses to form
changing Actions to strategic
external merge or alliances and
circumstances acquire rival collaborative
companies partnerships
Timing in Crafting Strategies
Customer-needs and competitive conditions
a.)
change

b.)
New opportunities appear; technology advances;
any number of other outside developments occur

c.) One or more aspects of executing the strategy

may not be going well

d.) New managers with different ideas take over

e.) Organizational learning occurs

 Proactive or
Reactive Strategy
 Planned Reactive
Strategy Strategy

Refers to a Refers to a
strategy that was strategy that is
purposively developed as a
developed or reaction to or a
crafted regardless result of a certain
of the situation of factors that the
the business strategy needs to
organization respond to.
Company
experiences,
Know-how,
Resource,
Strengths and Actual
Weaknesses, Company
and Strategy
Competitive
Capabilities
 Challenge fundamental
conventions by reconceiving a
product or service (e.g.,
creating a single-use of
disposable camera)
Rule
Redefining the marketplace
Breaking (e.g., detouring retailers by
selling online at the company’s
Strategy website)

Redrawing industry boundaries

(e.g., getting credit cards from
shell oil or general motors or AOL)
THANK YOU! 