Strategy

1. Elements of a Strategy Statement

1.1. Objective：objective should include not only an end point but also a time frame for reaching it

1.1.1. Do not equal ultimate purpose and the ethical values

1.1.2. Its only profit center is the individual financial adviser. Other activities,even investment banking, serve as support functions and are not held accountable for generating profit

1.2. Scope：the part of the landscape in which the firm will operate

1.2.1. A firm’s scope encompasses three dimensions

1.2.1.1. Customer or offering

1.2.1.2. Geographic location

1.2.1.3. Vertical integration

1.3. Advantage：what your business will do differently from or better than others defines the all-important means by which you will achieve your stated objective

1.3.1. Form

1.3.1.1. The unique activities or the complex combination of activities allowing that firm alone to deliver the customer value proposition

1.3.1.2. A statement of the customer value proposition

1.3.2. Example

1.3.2.1. Merrill Lynch

1.3.2.2. Wells Fargo

1.3.2.3. LPL Financial

2. Developing a Strategy Statement

2.1. The first step is to create a great strategy, which requires careful evaluation of the industry landscape

2.1.1. Detailed understanding of customer needs

2.1.2. Segmenting customers

2.1.3. Identifying unique ways of creating value for the ones the firm chooses to serve

2.2. Capturing essence in a readily communicable manner

2.3. Should be a brief statement that reflects the three elements of an effective strategy

2.4. The value proposition chart and activity-system map should be attached