STRATEGIC FORMULATION

Formulation of Diesel's business and corporate strategy

Formulation of Diesel's business and corporate strategy

Introduction

The formulation of the business strategy is always based on the need to respond efficiently and effectively in a (generic and specific) complex, with great changes and subject to periods of crisis. The strategy is the pattern or model of decisions of a company that determines and reveals its objectives, purposes or goals, which defines the main policies and plans to achieve those objectives and type of business that the company will pursue, the kind of economic and human organization it is or intended to be, and the nature of the economic contribution and economic attempts to provide to its shareholders, employees, customers and community (Wheelen, 2010, pp. 22-31).

In this section, the author will outline the stages, steps and processes involved in the formulation of business and corporate strategy of Diesel as part of the strategic management process.

Discussion & Analysis

Features of the development of corporate strategy

This article discusses features of the development of Diesel's corporate strategy. It is noted that as a strategy, it is necessary to clearly define at what level will be planning - depend on this list and the sequence of actions to develop a strategy.

The process of developing corporate strategy will be divided into six stages (Dess, 2010, pp. 43-47):

Setting strategic goals

Allocation of business lines

Evaluation of the business lines

Formation of the business portfolio and the development of alternatives to development

Defining powers of the management company (the centre of corporate governance).

The formalization of the developed strategy

In the first stage, the goal of owners and senior management at Diesel will define the goals to be achieved. Defining goals is largely dependent on the direction and ambition of the situation in which the business is located. Diesel will aim to "maintain market share," and a 10-fold increase in the value of the company for five years.

At the stage of the selection of business areas, Diesel Company will make a priority list of businesses that are within the accepted scope of the company. And each of the selected market segments will be described in the following information sections (Pearce, 2000, pp. 78-87):

Factors that determine the behaviour of the market and having a significant impact on the volume of supply. Among them may be widespread (purchasing power, the dollar, etc.) and more specialized (availability of substitutes);

Analysis of the success stories of competitors and identify key success factors. For example, the company has taken a leading position in the market through effective branding and the fact that competitors have relied on mass and were forced to cede market share.

Such an analysis would narrow the number of market segments examined from several hundred to a dozen of the most attractive business destinations (Hethorn, 2008, pp. 89-97). In assessing the prospects of the business lines for each of the market segments selected in the previous step, the analysis of market conditions and forecasts will be conducted.

In the fourth stage, we will formulate of a set of potentially interesting areas ...