The Environmental Scanning Data Program

In this scenario, the concepts and analytic tools that can be used to develop a strategic plan with regard to thinking strategically would include Michael Porter's Five Forces Analysis and an Industry Analysis ("Porter's Five Forces"). Michael Porter's Five Forces supplier power, buyer power, barriers to entry, threat of substitutes, and rivalry can be used to help the strategist understand the industry context that the company operates in ("Porter's Five Forces"). In this case, for example, before determining what their goals for the company are, the chairman and CEO should investigate the company's position relative to its power with buyers and suppliers. If it is a buyer's market, then it needs to tailor its offerings to suit what buyers want, or they will likely go elsewhere. If it is a supplier's market, they need to predicate their strategy on the strength of supplier power. Barriers to entry, threat of substitutes, and rivalry all need to be factored into their strategy to produce a strategic plan that will leverage their strengths, sidestep threats and weaknesses, and help them successfully accomplish their goals.

An industry analysis can provide some of the same information, but in different terms. The strength of the industry as a whole and its areas of weakness are important information to combine with the five forces affecting the company to come up with a strategic plan that considers the positives and negatives on every front.

Another challenge to strategic thinking is that although the company has obtained some useful data, it has not processed the data in a meaningful manner that could aid strategic thinking. Knowing that the clientele has expanded to include new age groups is good information, but without knowing what types of products sell in each age group, the strategists cannot employ strategic thinking to make optimum use of that information. Neither does it have statistics on the success of its servicing, accessorizing, and advisory services. In effect, it has good starter information but needs to augment it with details that make it more useful for strategizing.

In terms of concepts and analytic tools, in the case of Oz! toys, the Grand Strategy Clusters Matrix was an effective analytic tool to use because it allowed the strategists to assess Oz! in terms of its place in the growth cycle. Generic tools and concepts may or may not provide useful information, whereas the Grand Strategy Clusters Matrix can be trusted to provide useful information specific to Oz's industry position with reference to its growth phase. Since the strategy for a mature company differs considerably from that of a new company just starting out, this specificity is much to be desired in formulating a specific, proactive, effective strategy for the company. Furthermore, as Oz's business progresses through future phases of growth, the Grand Strategy Clusters Matrix should continue to be revisited to adjust and reformulate the strategy commensurate with the changes relative to growth phase.

 

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