# Business Strategy - Phase 2 Processes Backlog

## Overview

This document contains the Phase 2 processes backlog for the Business Strategy specialization. These processes cover strategic analysis frameworks, competitive positioning, growth strategies, corporate strategy, strategic planning cycles, and strategy execution methodologies.

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## Process Categories

| Category | Process Count | Description |
|----------|---------------|-------------|
| Strategic Analysis | 5 | Environmental scanning and strategic assessment frameworks |
| Competitive Positioning | 4 | Competitive strategy and differentiation processes |
| Growth Strategy | 4 | Growth planning and expansion methodologies |
| Corporate Strategy | 4 | Portfolio management and corporate-level decisions |
| Strategy Execution | 5 | Planning cycles, implementation, and monitoring |

**Total Processes: 22**

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## Category 1: Strategic Analysis

### Process 1.1: Porter's Five Forces Industry Analysis

**Process ID:** `business-strategy/porters-five-forces-analysis`

**Description:** Systematic industry analysis using Michael Porter's Five Forces framework to assess industry attractiveness and competitive dynamics.

**Key Activities:**
- Analyze threat of new entrants (barriers to entry, capital requirements, economies of scale)
- Assess bargaining power of suppliers (concentration, differentiation, switching costs)
- Evaluate bargaining power of buyers (volume, price sensitivity, backward integration threat)
- Identify threat of substitute products (price-performance, switching costs, propensity)
- Analyze competitive rivalry intensity (number of competitors, growth rate, differentiation)
- Synthesize findings into industry attractiveness assessment
- Develop strategic implications and recommendations

**Outputs:**
- Five Forces analysis matrix
- Industry attractiveness scorecard
- Strategic positioning recommendations
- Competitive dynamics report

**References:** Porter (1980), Porter (1998)

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### Process 1.2: PESTEL Environmental Analysis

**Process ID:** `business-strategy/pestel-analysis`

**Description:** Comprehensive macro-environmental scanning using PESTEL framework to identify external factors affecting strategic decisions.

**Key Activities:**
- Analyze Political factors (government policies, regulations, political stability)
- Assess Economic factors (growth rates, inflation, exchange rates, unemployment)
- Evaluate Social factors (demographics, cultural trends, lifestyle changes)
- Examine Technological factors (innovation, automation, R&D activity)
- Review Environmental factors (climate change, sustainability, environmental regulations)
- Analyze Legal factors (employment law, consumer protection, industry regulations)
- Prioritize factors by impact and probability
- Develop strategic responses to key factors

**Outputs:**
- PESTEL analysis matrix
- Key factor prioritization grid
- Trend impact assessment
- Strategic implications report

**References:** Porter (1980), Mintzberg et al. (2009)

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### Process 1.3: SWOT Strategic Assessment

**Process ID:** `business-strategy/swot-strategic-assessment`

**Description:** Internal and external strategic assessment using SWOT framework with TOWS matrix for strategy development.

**Key Activities:**
- Identify internal Strengths (capabilities, resources, competitive advantages)
- Analyze internal Weaknesses (gaps, vulnerabilities, constraints)
- Scan external Opportunities (market trends, emerging needs, favorable conditions)
- Assess external Threats (competitive pressures, market risks, disruptions)
- Develop TOWS strategies (SO, WO, ST, WT combinations)
- Prioritize strategic options by feasibility and impact
- Create action plans for priority strategies

**Outputs:**
- SWOT analysis matrix
- TOWS strategy matrix
- Strategic option ranking
- Implementation roadmap

**References:** Mintzberg et al. (2009), Rumelt (2011)

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### Process 1.4: VRIO Resource Analysis

**Process ID:** `business-strategy/vrio-resource-analysis`

**Description:** Resource-based competitive advantage analysis using VRIO framework to identify sustainable competitive advantages.

**Key Activities:**
- Inventory key organizational resources and capabilities
- Assess Value: Does the resource enable value creation or neutralize threats?
- Evaluate Rarity: Is the resource scarce among current and potential competitors?
- Analyze Imitability: Is the resource difficult or costly to imitate?
- Examine Organization: Is the firm organized to capture value from the resource?
- Classify resources by competitive implication (parity, temporary, sustained advantage)
- Develop resource development and protection strategies

**Outputs:**
- Resource and capability inventory
- VRIO analysis matrix
- Competitive advantage assessment
- Resource investment priorities

**References:** Barney (1991), Barney & Hesterly (2018)

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### Process 1.5: Value Chain Analysis

**Process ID:** `business-strategy/value-chain-analysis`

**Description:** Porter's value chain analysis to identify sources of competitive advantage through activity optimization.

**Key Activities:**
- Map primary activities (inbound logistics, operations, outbound logistics, marketing/sales, service)
- Map support activities (firm infrastructure, HR management, technology development, procurement)
- Analyze cost drivers for each activity
- Identify differentiation opportunities in each activity
- Benchmark activities against competitors
- Identify linkages and optimization opportunities
- Develop activity system improvements

**Outputs:**
- Value chain map
- Activity cost analysis
- Differentiation opportunity matrix
- Optimization recommendations

**References:** Porter (1985), Porter (1996)

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## Category 2: Competitive Positioning

### Process 2.1: Competitive Positioning Strategy

**Process ID:** `business-strategy/competitive-positioning-strategy`

**Description:** Development of competitive positioning using Porter's generic strategies framework (cost leadership, differentiation, focus).

**Key Activities:**
- Analyze current competitive position and market dynamics
- Assess cost leadership opportunities (economies of scale, efficiency, cost control)
- Evaluate differentiation opportunities (product features, brand, service, technology)
- Identify focus strategy options (segment selection, narrow scope advantages)
- Avoid "stuck in the middle" positioning
- Develop positioning statement and value proposition
- Create positioning implementation roadmap

**Outputs:**
- Competitive position assessment
- Generic strategy selection analysis
- Positioning statement
- Implementation plan

**References:** Porter (1980), Porter (1985)

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### Process 2.2: Blue Ocean Strategy Development

**Process ID:** `business-strategy/blue-ocean-strategy`

**Description:** Create uncontested market space using Blue Ocean Strategy frameworks including value innovation and Four Actions Framework.

**Key Activities:**
- Analyze current industry strategy canvas
- Apply Six Paths Framework to reconstruct market boundaries
- Execute Four Actions Framework (Eliminate, Reduce, Raise, Create)
- Develop value innovation proposition
- Create new strategy canvas with differentiated value curve
- Assess three tiers of noncustomers
- Develop sequence of blue ocean strategy (buyer utility, price, cost, adoption)

**Outputs:**
- Strategy canvas (current and new)
- Four Actions Framework analysis
- Value innovation proposition
- Blue ocean implementation roadmap

**References:** Kim & Mauborgne (2015), Kim & Mauborgne (2017)

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### Process 2.3: Competitor Intelligence Analysis

**Process ID:** `business-strategy/competitor-intelligence-analysis`

**Description:** Systematic competitor analysis including identification, profiling, monitoring, and response planning.

**Key Activities:**
- Identify direct, indirect, and potential competitors
- Develop comprehensive competitor profiles (strategy, capabilities, performance)
- Analyze competitor strengths and weaknesses
- Monitor competitor activities and market signals
- Predict likely competitor moves and responses
- Develop competitive response scenarios
- Create competitive early warning system

**Outputs:**
- Competitor identification map
- Competitor profile database
- Competitive dynamics analysis
- Response scenario playbook

**References:** Porter (1980), SCIP best practices

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### Process 2.4: Market Positioning (STP Framework)

**Process ID:** `business-strategy/stp-market-positioning`

**Description:** Segmentation-Targeting-Positioning (STP) framework for market positioning strategy development.

**Key Activities:**
- Segment market using multiple bases (demographic, geographic, psychographic, behavioral)
- Evaluate segment attractiveness (size, growth, profitability, competition)
- Assess strategic fit with organizational capabilities
- Select target segments based on attractiveness and fit
- Develop positioning strategy for each target segment
- Create positioning statements and value propositions
- Design perceptual maps and validate positioning

**Outputs:**
- Market segmentation analysis
- Segment attractiveness matrix
- Target segment selection rationale
- Positioning statements and perceptual maps

**References:** Porter (1985), Kotler marketing strategy frameworks

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## Category 3: Growth Strategy

### Process 3.1: Ansoff Matrix Growth Strategy

**Process ID:** `business-strategy/ansoff-matrix-growth-strategy`

**Description:** Product-market growth strategy development using Ansoff Matrix framework.

**Key Activities:**
- Assess market penetration opportunities (existing products, existing markets)
- Evaluate product development options (new products, existing markets)
- Analyze market development possibilities (existing products, new markets)
- Examine diversification strategies (new products, new markets)
- Assess risk levels for each growth strategy
- Prioritize growth options based on strategic fit and risk appetite
- Develop growth initiative roadmap

**Outputs:**
- Ansoff Matrix analysis
- Growth option assessment
- Risk-return analysis
- Growth strategy roadmap

**References:** Ansoff (1957), Zook & Allen (2001)

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### Process 3.2: BCG Portfolio Analysis

**Process ID:** `business-strategy/bcg-portfolio-analysis`

**Description:** Portfolio management analysis using BCG Growth-Share Matrix for resource allocation decisions.

**Key Activities:**
- Map business units/products on growth-share matrix
- Identify Stars (high growth, high share - invest for growth)
- Identify Cash Cows (low growth, high share - harvest for cash)
- Identify Question Marks (high growth, low share - selective investment)
- Identify Dogs (low growth, low share - divest or restructure)
- Develop portfolio balance strategy
- Create resource allocation recommendations

**Outputs:**
- BCG matrix visualization
- Business unit classification
- Portfolio balance assessment
- Resource allocation plan

**References:** BCG Henderson Institute, BCG Classics

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### Process 3.3: GE-McKinsey Portfolio Analysis

**Process ID:** `business-strategy/ge-mckinsey-portfolio-analysis`

**Description:** Multi-factor portfolio analysis using GE-McKinsey Nine-Box Matrix for strategic investment decisions.

**Key Activities:**
- Define industry attractiveness factors and weightings
- Define competitive position factors and weightings
- Score each business unit on both dimensions
- Plot business units on nine-box matrix
- Classify units as Invest/Grow, Selective Investment, or Harvest/Divest
- Develop strategic priorities for each quadrant
- Create investment allocation recommendations

**Outputs:**
- Industry attractiveness assessment
- Competitive position assessment
- Nine-box matrix visualization
- Investment strategy recommendations

**References:** McKinsey & Company strategy frameworks

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### Process 3.4: Three Horizons Growth Planning

**Process ID:** `business-strategy/three-horizons-growth-planning`

**Description:** Time-phased strategic initiative portfolio using McKinsey Three Horizons framework.

**Key Activities:**
- Define Horizon 1 initiatives (core business defense and optimization, 0-2 years)
- Identify Horizon 2 opportunities (emerging business development, 2-5 years)
- Explore Horizon 3 possibilities (future growth options and innovation, 5+ years)
- Balance portfolio across horizons
- Align resource allocation with horizon priorities
- Establish governance for each horizon
- Create integrated horizons roadmap

**Outputs:**
- Three Horizons initiative portfolio
- Horizon-specific strategies
- Resource allocation by horizon
- Integrated growth roadmap

**References:** McKinsey & Company, Baghai et al. (1999)

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## Category 4: Corporate Strategy

### Process 4.1: McKinsey 7S Organizational Alignment

**Process ID:** `business-strategy/mckinsey-7s-alignment`

**Description:** Organizational alignment analysis using McKinsey 7S Framework for strategy implementation.

**Key Activities:**
- Assess Strategy alignment (plan for competitive advantage)
- Evaluate Structure alignment (organizational design, reporting)
- Analyze Systems alignment (processes, procedures)
- Examine Shared Values alignment (core beliefs, culture)
- Review Skills alignment (capabilities, competencies)
- Assess Style alignment (leadership approach)
- Evaluate Staff alignment (human resources, talent)
- Identify alignment gaps and develop remediation plans

**Outputs:**
- 7S current state assessment
- Alignment gap analysis
- Hard elements improvement plan
- Soft elements development plan

**References:** McKinsey & Company, Peters & Waterman

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### Process 4.2: Corporate Portfolio Strategy

**Process ID:** `business-strategy/corporate-portfolio-strategy`

**Description:** Corporate-level portfolio strategy including vertical integration, horizontal integration, diversification, and restructuring decisions.

**Key Activities:**
- Assess vertical integration opportunities (forward, backward)
- Evaluate horizontal integration options (M&A, alliances)
- Analyze diversification strategies (related, unrelated)
- Consider restructuring needs (divestiture, spin-off, turnaround)
- Calculate portfolio synergies and parenting advantage
- Perform transaction cost analysis (make vs. buy)
- Assess core competence leverage opportunities

**Outputs:**
- Portfolio strategy assessment
- Integration opportunity analysis
- Synergy valuation
- Portfolio optimization recommendations

**References:** Collis & Montgomery (2005), Goold et al. (1994)

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### Process 4.3: Core Competence Analysis

**Process ID:** `business-strategy/core-competence-analysis`

**Description:** Identification and leverage of core competencies for competitive advantage across business units.

**Key Activities:**
- Identify potential core competencies
- Apply core competence tests (customer value, competitor differentiation, extendability)
- Map competencies to business units and products
- Assess competence strength and sustainability
- Identify competence gaps and development needs
- Develop competence leverage strategy across businesses
- Create competence investment and protection plan

**Outputs:**
- Core competence inventory
- Competence-product matrix
- Competence assessment scorecard
- Development and leverage strategy

**References:** Prahalad & Hamel (1990), Hamel & Prahalad (1994)

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### Process 4.4: M&A Strategic Assessment

**Process ID:** `business-strategy/ma-strategic-assessment`

**Description:** Strategic assessment for mergers, acquisitions, and divestitures including synergy analysis and integration planning.

**Key Activities:**
- Define strategic rationale and deal thesis
- Screen and evaluate potential targets/partners
- Conduct strategic due diligence
- Analyze revenue and cost synergies
- Assess cultural compatibility and integration risks
- Develop integration planning framework
- Create value capture roadmap

**Outputs:**
- Strategic rationale document
- Target screening analysis
- Synergy valuation model
- Integration planning framework

**References:** Deloitte M&A, McKinsey M&A, Bain M&A frameworks

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## Category 5: Strategy Execution

### Process 5.1: Strategic Planning Cycle

**Process ID:** `business-strategy/strategic-planning-cycle`

**Description:** Annual strategic planning process including preparation, analysis, formulation, and implementation planning.

**Key Activities:**
- Execute preparation phase (stakeholder engagement, data gathering, planning calendar)
- Conduct analysis phase (external environment, internal capabilities, competitive position)
- Perform strategy formulation (options generation, evaluation, selection)
- Develop implementation planning (initiative prioritization, resource allocation, governance)
- Document strategic plan with clear objectives and measures
- Establish review cadence and adaptation mechanisms
- Communicate strategy across organization

**Outputs:**
- Strategic planning calendar
- Environmental and competitive analysis
- Strategic plan document
- Implementation roadmap

**References:** Kaplan & Norton (1996), Mintzberg (1994)

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### Process 5.2: Balanced Scorecard Implementation

**Process ID:** `business-strategy/balanced-scorecard-implementation`

**Description:** Strategy execution using Balanced Scorecard framework across financial, customer, process, and learning perspectives.

**Key Activities:**
- Define financial perspective objectives and measures
- Define customer perspective objectives and measures
- Define internal process perspective objectives and measures
- Define learning and growth perspective objectives and measures
- Create strategy map linking objectives across perspectives
- Establish targets and initiatives for each measure
- Implement performance management and review process

**Outputs:**
- Balanced Scorecard framework
- Strategy map
- KPI definitions and targets
- Performance review process

**References:** Kaplan & Norton (1996), Kaplan & Norton (2004)

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### Process 5.3: OKR Goal Setting

**Process ID:** `business-strategy/okr-goal-setting`

**Description:** Objectives and Key Results (OKR) implementation for strategic goal setting and alignment.

**Key Activities:**
- Define ambitious qualitative objectives aligned with strategy
- Establish measurable key results (3-5 per objective)
- Cascade OKRs from organization to teams
- Ensure transparency and alignment across organization
- Implement quarterly OKR cycles with check-ins
- Conduct OKR grading and retrospectives
- Adapt and iterate OKRs based on learning

**Outputs:**
- Company-level OKRs
- Team-level OKRs
- OKR alignment matrix
- Quarterly review cadence

**References:** Doerr (2018), Intel and Google OKR practices

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### Process 5.4: Scenario Planning

**Process ID:** `business-strategy/scenario-planning`

**Description:** Developing alternative future scenarios for strategic planning and risk management.

**Key Activities:**
- Identify key driving forces and uncertainties
- Select critical uncertainties for scenario framework
- Develop scenario framework (2x2 matrix of uncertainties)
- Create detailed scenario narratives
- Analyze strategic implications for each scenario
- Test current strategy against scenarios
- Identify signposts and triggers for early warning
- Develop strategic options for scenario adaptation

**Outputs:**
- Driving forces analysis
- Scenario framework and narratives
- Strategy stress test results
- Signpost monitoring system

**References:** Schwartz (1991), Shell scenario planning

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### Process 5.5: Strategy Execution Monitoring

**Process ID:** `business-strategy/strategy-execution-monitoring`

**Description:** Ongoing monitoring and adaptation of strategy execution with governance and performance management.

**Key Activities:**
- Establish strategy governance structure and decision rights
- Define KPIs and performance dashboards
- Implement regular review cadences (monthly, quarterly, annual)
- Track initiative progress and milestone achievement
- Monitor external environment for strategic triggers
- Conduct root cause analysis for variances
- Adapt strategy based on learning and changing conditions
- Manage strategic risks and opportunities

**Outputs:**
- Governance framework
- Performance dashboards
- Review meeting cadence
- Strategy adaptation recommendations

**References:** Kaplan & Norton (2008), Bossidy & Charan (2002)

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## Process Priority Matrix

| Priority | Process ID | Strategic Impact | Implementation Complexity |
|----------|------------|------------------|---------------------------|
| High | porters-five-forces-analysis | High | Medium |
| High | competitive-positioning-strategy | High | Medium |
| High | balanced-scorecard-implementation | High | High |
| High | strategic-planning-cycle | High | Medium |
| Medium | pestel-analysis | Medium | Low |
| Medium | swot-strategic-assessment | Medium | Low |
| Medium | ansoff-matrix-growth-strategy | Medium | Medium |
| Medium | bcg-portfolio-analysis | Medium | Medium |
| Medium | scenario-planning | Medium | High |
| Medium | okr-goal-setting | Medium | Medium |
| Low | vrio-resource-analysis | Medium | Medium |
| Low | value-chain-analysis | Medium | Medium |
| Low | blue-ocean-strategy | High | High |
| Low | stp-market-positioning | Medium | Medium |
| Low | competitor-intelligence-analysis | Medium | Medium |

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## Implementation Phases

### Phase 2A: Foundation Processes (Months 1-2)
1. Porter's Five Forces Industry Analysis
2. PESTEL Environmental Analysis
3. SWOT Strategic Assessment
4. Competitive Positioning Strategy
5. Strategic Planning Cycle

### Phase 2B: Growth and Portfolio Processes (Months 3-4)
1. Ansoff Matrix Growth Strategy
2. BCG Portfolio Analysis
3. GE-McKinsey Portfolio Analysis
4. Three Horizons Growth Planning
5. Core Competence Analysis

### Phase 2C: Corporate and Execution Processes (Months 5-6)
1. McKinsey 7S Organizational Alignment
2. Corporate Portfolio Strategy
3. M&A Strategic Assessment
4. Balanced Scorecard Implementation
5. OKR Goal Setting

### Phase 2D: Advanced Processes (Months 7-8)
1. VRIO Resource Analysis
2. Value Chain Analysis
3. Blue Ocean Strategy Development
4. Market Positioning (STP Framework)
5. Competitor Intelligence Analysis
6. Scenario Planning
7. Strategy Execution Monitoring

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## Dependencies and Prerequisites

| Process | Prerequisites | Dependencies |
|---------|---------------|--------------|
| Porter's Five Forces | Industry data access | None |
| PESTEL Analysis | Macro data sources | None |
| SWOT Assessment | Internal data, Five Forces, PESTEL | Five Forces, PESTEL (recommended) |
| VRIO Analysis | Resource inventory | None |
| Value Chain Analysis | Process documentation | None |
| Competitive Positioning | Five Forces, SWOT | Five Forces, SWOT |
| Blue Ocean Strategy | Current strategy canvas | Competitive Positioning |
| Competitor Intelligence | Market intelligence access | Five Forces |
| STP Framework | Market data | None |
| Ansoff Matrix | Market analysis, capability assessment | SWOT |
| BCG Portfolio | Business unit data | None |
| GE-McKinsey Portfolio | Business unit data | None |
| Three Horizons | Innovation pipeline | Portfolio Analysis |
| 7S Alignment | Organizational assessment | Strategy formulation |
| Corporate Portfolio | Business unit assessment | Portfolio Analysis |
| Core Competence | Capability inventory | VRIO (recommended) |
| M&A Assessment | Target information | Corporate Portfolio |
| Strategic Planning Cycle | All analysis frameworks | Multiple |
| Balanced Scorecard | Strategy formulation | Strategic Planning Cycle |
| OKR Goal Setting | Strategy formulation | Strategic Planning Cycle |
| Scenario Planning | Environmental analysis | PESTEL |
| Execution Monitoring | Balanced Scorecard or OKRs | BSC or OKR |

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## Version History

| Version | Date | Changes |
|---------|------|---------|
| 1.0 | 2024-01-23 | Initial Phase 2 processes backlog |

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## Related Documents

- [README.md](./README.md) - Business Strategy specialization overview
- [references.md](./references.md) - Comprehensive reference materials
