Internal and

External Strategic
Analysis

Strategy:
Arenas
Vehicles
Vision Goals Differentiators
& & Staging Economic
Mission Objectives Logic

A diagramatic representation of Hambrick and Fredrickson model of Strate

1 Arenas : The arenas attempt to answer the question: Where will we be active? Typically, the arenas woul
technology in which the organisation will participate.

2 Vehicles : The vehicles attempt to answer the question : How will we get there? The vehicles thus, are th
development.

3 Differentiators : The differentiators attempt to answer the question : How will we win in the marketplac
help it to compete in the market. Some examples of differentiators could be price, quality, reliability etc.

4 Staging : The staging attempts to answer the question : What will be our speed and sequence of moves?
resources as well as limitations that determine when a organisation moves into a market and at what spee

5 Economic Logic : The economic logic attempts to answer the question : Hoe will we obtain our returns?
profit will be created is the economic logic of the firm.
 Implementation Levers
and Strategic Leadership

model of Strategic Management

the arenas would comprise of products, services, distribution channels, geographic markets and

icles thus, are the means for entering new arenas such as through acquisitions, alliances or internal

n the marketplace? The differentiators are the features and attributes of a firm's products or services that
, reliability etc.

uence of moves? Thus, the staging refers to the timing and the pace of strategic moves. There are
and at what speed.

tain our returns? Every organisation has to earn a profit over and above its cost of capital. Explaining how
 Financial
Perspective
 The Balanced Scorecard
Translating strategies into Actions
Long term Shareholder value

Financial Improve cost structure

Perspective Revenues, Earnings, Return on Capital, Cashflow

Customer value proposition

Customer
Perspective Q P S

Internal Operations Customer

Mgmt Mgmt Innovation
Perspective Processes Processes Processes

Human Capital
Learning & Information Capital
Innovation Organisational Capital
Perspective
Culture Leadership Alignment
Scorecard
into Actions
er value

ture
apital, Cashflow

osition

Regulatory &
Innovation Social
Processes Processes

n Capital
tion Capital
onal Capital

Alignment Teamwork