CHAPTER 11

CRAFTING STRATEGIES
11.1 The Task of Crafting Strategies
• Crafting Strategies is the most critical aspect among the components of the strategic
management task whichever model is adhered to. It is in thus particular stage where
specific tasks on how to achieve the strategic objectives are drawn or addressed.
More often, challenging oneself what to achieve is relatively easy as compared to
responding to the question on how to achieve which is a much more difficult
question to answer.

• 11.2 Factors to Consider in Crafting Strategies

• Other than being guided by the vision-mission statement, foremost among the
factors that should be always considered in crafting business strategies are the six
major groups forming part of Porter’s business competition model namely: a) direct
rivalry among competing sellers,
• b) buyers, c) supplier, d) substitute, e) direct potential and new entrants, and f) various
stakeholders’ group.

Specifically, crafting strategy involves determining whether or not to pursue any of the
following:
a) concentrate on a single business or several businesses (diversification)
b) cater to a 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 or condition of payments
In a broader context, Thompson and Strickland (1999) identified several factors to
consider in crafting strategies as shown in figure 66.
11.3 Why Strategies Evolve
Strategies evolve on account of a variety or factors. Specifically, however, 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 regularly changes;
• f) new windows of opportunity; and
• g) crisis situations.
11.4 What Should be Done in Crafting
Strategies
In specific terms, developing or crafting business strategies involves the
following specific tasks:
• 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.
11.5 Characteristics of Strategy Making
• 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.
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.
While crafting strategy is management-oriented, it is actually the role played by the all parties in the organization in
crafting the strategy that determines a practical and/or achievable strategy .

11.6 The HOW’s in Crafting the Firm’s Strategy

In defining and crafting strategy the firm’s strategy, the following are the guide questions that
strategies should have to address:
a) how to grow the 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 requirements; and
j) how to make strategic vision a reality.

Figuratively, Thompson and Strickland (1999) developed a diagram defining patterns

of actions that describe a strategy as shown in Figure 67.
11.7 Timing in Crafting Strategies
While crafting strategies may have to be made in formal session, the task may
have to be done every now and then or as my be necessary particularly at the
operational level the task of crafting, implementing, and executing a strategy as not
one-time exercise maybe necessary in light of the following conditions.
a.) customer-needs and competitive conditions change;
b.) new opportunities appear, technology advance, any number of other outside
development occur;
c.) One or more aspects of executing the strategy may not be going well;
d.) new managers with different ideas take over: and
e.) organizational learning occurs.
11.8 Proactive or reactive strategy
Strategy or developing strategy may be self-driven among top management
members or reaction to a certain situation brought about by triggering points or other
factors and considerations that necessitate such as strategy.

Shown in Figure 68 is a diagram giving the top management the choice or option to
take- either go for planned strategy or go for reactive strategy.
11.9 Rule Breaking Strategies
 THANK YOU!!!
Prepared by:
Tecling, Darline B. BSHM 3-D
Daluraya, Ynna Mae T. BSHM 3-D