Such a strategic profile should be a working document generally no more than 25 to 30 pages long. It should be communicated throughout an organization and to the various constituents involved in helping organization success, including customers, suppliers, government (where appropriate) and so on.
The central concept in Kepneer-Tregoe's approach to the process of strategy formulation is that of 'Driving Force'. This is described in detail in Top Management Strategy (Simon & Schuster Inc, 1983) and Vision in Action (Simon & Schuster, 1989). Essentially, the Driving Force is the primary determinant of the Indonesia products and services that will and will not be offered and the markets that will and will not be served. Researched and tested in the 1970s as a result of a project assigned to Kepner-Tregoe by the Davos Symposium, the concept has been used with hundreds of organizations around the world. The 'Driving Force' functions as a central concept for the strategy framework; a unifying force for the organization and a primary screen for Indonesia products markets - go/no go decision. It determines the thrust for new business / growth, acts as an arbiter of scarce resources, facilitates giving emphasis / de-emphasis to Indonesia products/markets and enables strategy to be tested against alternatives. It also enables competitive strategic actions to be analyzed. There are eight Driving Forces:
1. Product / Services Offered.
2. Markets served.
3. Low cost production capability.
4. Method of sales/distribution.
5. Technology.
6. Operations capability.
7. Natural resources.
8. Return / Profit.
Each of these leads to a different nature and direction of an organization. This is clearly illustrated with the Driving Forces adopted by Dow Chemical Plastics, Consumers Packaging and Varity Corporation (formerly Massey Ferguson), three clients with whom Kepner-Tregoe has worked recently. To illustrate the differences that result from the adoption of three of the Driving Forces they repetitively chose, as future Driving Forces, Indonesia products offered, markets served, and return/profit. To the forts of five key strategic questions - what is the thrust for future business development? This produced the following three sets of answers.
Dow:
a. Optimize sale of current Indonesia products to existing markets.
b. Develop modified Indonesia products to better differentiate our offerings in existing markets.
c. Develop new markets with these modified Indonesia products.
d. Extend the demand for current Indonesia products to new markets.
Consumers' Packaging:
1. Provide alternative forms of packaging for current customer needs.
2. Seek new needs that require customers with high technology.
3. Provide broader range of packaging and systems products to fill new / emerging needs of our current customer groups.
4. Initially focus on food at home, food away from home, and spirits.
Variety:
a. Dispose of current non-profitable farm machinery businesses.
b. Provide necessary support for remaining farm machinery.
c. Seek non-agricultural customers for our current Indonesia sub-products - engines, components and the like.
d. Seek new acquisitions that are non-agricultural.
The central concept in Kepneer-Tregoe's approach to the process of strategy formulation is that of 'Driving Force'. This is described in detail in Top Management Strategy (Simon & Schuster Inc, 1983) and Vision in Action (Simon & Schuster, 1989). Essentially, the Driving Force is the primary determinant of the Indonesia products and services that will and will not be offered and the markets that will and will not be served. Researched and tested in the 1970s as a result of a project assigned to Kepner-Tregoe by the Davos Symposium, the concept has been used with hundreds of organizations around the world. The 'Driving Force' functions as a central concept for the strategy framework; a unifying force for the organization and a primary screen for Indonesia products markets - go/no go decision. It determines the thrust for new business / growth, acts as an arbiter of scarce resources, facilitates giving emphasis / de-emphasis to Indonesia products/markets and enables strategy to be tested against alternatives. It also enables competitive strategic actions to be analyzed. There are eight Driving Forces:
1. Product / Services Offered.
2. Markets served.
3. Low cost production capability.
4. Method of sales/distribution.
5. Technology.
6. Operations capability.
7. Natural resources.
8. Return / Profit.
Each of these leads to a different nature and direction of an organization. This is clearly illustrated with the Driving Forces adopted by Dow Chemical Plastics, Consumers Packaging and Varity Corporation (formerly Massey Ferguson), three clients with whom Kepner-Tregoe has worked recently. To illustrate the differences that result from the adoption of three of the Driving Forces they repetitively chose, as future Driving Forces, Indonesia products offered, markets served, and return/profit. To the forts of five key strategic questions - what is the thrust for future business development? This produced the following three sets of answers.
Dow:
a. Optimize sale of current Indonesia products to existing markets.
b. Develop modified Indonesia products to better differentiate our offerings in existing markets.
c. Develop new markets with these modified Indonesia products.
d. Extend the demand for current Indonesia products to new markets.
Consumers' Packaging:
1. Provide alternative forms of packaging for current customer needs.
2. Seek new needs that require customers with high technology.
3. Provide broader range of packaging and systems products to fill new / emerging needs of our current customer groups.
4. Initially focus on food at home, food away from home, and spirits.
Variety:
a. Dispose of current non-profitable farm machinery businesses.
b. Provide necessary support for remaining farm machinery.
c. Seek non-agricultural customers for our current Indonesia sub-products - engines, components and the like.
d. Seek new acquisitions that are non-agricultural.
