Okonkwo Prelims

Level 4: implementation plan

The fourth level (Figure 9.5) of the business strategy modelling process

involves the development of an implementation plan for the chosen strategy

option. The plan features connected factors such as a risk assessment, the cost

of the strategy plan, the required execution time-frame, the potential success

or failure rate and a contingency plan. The implementation plan also includes

a thorough assessment of the internal resources and competences for imple-

menting the recommended strategy. The criteria for the implementation plan

is not rigid but can be aligned to a luxury company’s specific requirements.

The chosen criteria must, however, be justified in order to be effective.

Level 5: performance measurement indicators

The final step in the business strategy modelling process is the identification

of suitable performance measurement indicators that will be used to check the

progress of the implemented business strategies. These indicators are often

applied in the weeks and months following the adoption of the business strat-

egy model. Their main objective is to track the progress of the business model

and to identify areas of improvement.

The following are three performance measurement frameworks that

address the needs of the luxury fashion goods industry (see also Figure 9.6):

1 The Balanced Scorecard

2 The 7-S Framework

3 The Brand Asset Evaluator

The balanced scorecarddeveloped by Kaplan Norton is one of the most effi-

cient tools in clarifying and communicating vision and strategy into action. It

works from four perspectives:

(a) The financial perspective, which places an emphasis on the need for

financial data as an indicator of the effectiveness of the business strategy.

It also provides a means of incorporating risk assessments and cost-bene-

fit data in the strategy implementation process.

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luxury fashion branding

Level 4: implementation plan

Implementation

criteria

Risk Cost Time Total

Strategy one XX XX X XXXXX

Strategy two XXX XXX XX XXXXXXX

Figure 9.5 The implementation planning level of the luxury fashion business

model