Key Strategy Tools
Key Strategy Tools
Useful tools
How to use this book
40. The Strategic Condition Matrix (Arthur D Little)
Business vs corporate strategy
41. The 7S Framework (McKinsey)
Section 1: Knowing Your Business
42. The Opportunity/Vulnerability Matrix (Bain/LEK)
Overview
43. Brainstorming
Essential tools
44. Scenario planning
1. Identifying key segments
Section 7: Bridging the Gap: Business Strategy
2. Issue Analysis (Minto)
Overview
Example: British Aerospace’s super segment
Essential tools
Useful tools
45. Three Generic Strategies (Porter)
3. The 80/20 Principle (Pareto)
46. The Experience Curve (BCG)
4. The Segmentation Mincer (Koch)
47. Strategic repositioning and shaping profit growth options
5. 5C Situation Analysis
48. Making the strategic investment decision
6. SWOT Analysis
49. BlueOceanStrategy (Kim & Mauborgne)
Section 2: Setting Goals and Objectives
Example: Could Facebook be undone the way it undid MySpace?
Overview
Useful tools
Essential tools
50. The Tipping Point (Gladwell)
7. Setting long-term goals
51. The Price Elasticity of Demand (Marshall)
8. Setting SMART objectives
52. PIMS
9. Maximising shareholder value
53. The 4Ps Marketing Mix (McCarthy)
10. Balancing stakeholder interests
54. Product Quality and Satisfaction (Kano)
Example: Which goals count for RBS?
55. The Hierarchy of Needs (Maslow)
Useful tools
56. The Bottom of the Pyramid (Prahalad & Leiberthal)
11. Creating Shared Value (Porter & Kramer)
57. Business Process Redesign (Hammer and Champy)
12. Economic Value Added (Stern Stewart)
58. Outsourcing
13. Balanced Scorecard and Strategy Map (Kaplan & Norton)
Section 8: Bridging the Gap: Corporate Strategy
14. Core Ideology (Collins & Porras)
Overview
15. Business as a Community (Handy)
Essential tools
Section 3: Forecasting Market Demand
59. Optimising the Corporate Portfolio
Overview
60. Creating Value from Mergers, Acquisitions and Alliances
Essential tools
61. The Corporate Restructuring Pentagon (McKinsey)
16. Sizing the market and Marketcrafting (Evans)
62. Creating Parenting Value (Goold, Campbell & Alexander)
17. The HOOF Approach to Demand Forecasting (Evans)
63. Core Competences (Hamel & Prahalad)
Example: Galileo’s Hiccup in Market Demand
64. Strategically Valuable Resources (Collis & Montgomery)
Useful tools
Example: Virrce-based strategy
18. Smoothing through moving averages
Useful tools
19. The Income Elasticity of Demand
65. Strategically Distinctive Resources (Barney)
20. Survey methods of demand forecasting
66. Distinctive Capabilities (Kay)
a. Survey of customers’ intentions
67. Distinctive Competences (Snow & Hrebiniak)
b. Salesforce estimation method
68. Dynamic Capabilities (Teece, Pisano & Shuen)
c. The Delphi method
69. Deliberate and Emergent Strategy (Mintzberg)
d. Pilot test marketing
70. Stick to the Knitting (Peters & Waterman)
21. Statistical methods of demand forecasting
71. Profit from the Core (Zook)
a. Trend projection
72. The Market-Driven Organisation (Day)
b. Regression analysis
73. Value Disciplines (Treacy & Wiersema)
c. Barometric method (NBER)
74. Disruptive Technologies (Christensen)
Section 4: Gauging Industry Competition
75. Coopetition (Brandenburger & Nalebuff)
Overview
76. Growth and Crisis (Greiner)
Essential tools
77. Good Strategy, Bad Strategy (Rumelt)
22. The Five Forces (Porter)
78. Innovation Hot Spots (Gratton)
23. Assessing customer purchasing criteria
79. Strategy as Orientation or Animation (Cummings & Wilson)
24. Deriving key success factors
80. The Knowledge Spiral (Nonaka & Takeuchi)
Example: Woolworths succumbs to the five forces
81. The Eight Phases of Change (Kotter)
Useful tools
Section 9: Addressing Risk and Opportunity
25. Weighing economies of scale
Overview
26. Corporate environment as a sixth force
Essential tools
27. Complements as a sixth force (Brandenburger & Nalebuff)
82. Strategic Due Diligence and Market Contextual Plan Review (Evans)
28. PESTEL analysis
83. The Suns & Clouds Chart (Evans)
Section 5: Tracking Competitive Advantage
Example: Were the Beatles worth the risk?
Overview
Useful tools
Essential tools
84. The Composite Risk Index and the 5x5 Risk Matrix
29. Rating competitive position
85. The Risk Management Matrix
30. The Resource and Capability Strengths/Importance Matrix (Grant)
86. Expected Value and Sensitivity Analysis
Example: Cobra Beer’s clever competitive advantage
87. Black Swans (Taleb)
Useful tools
88. Strategy Bets (Burgleman & Grove)
31. The Value Chain (Porter)
32. The Product/Market Matrix (Ansoff)
33. Cross,Spider and Comb Charts
34. Benchmarking
35. Structured interviewing
Section 6: Targeting the Strategic Gap
Overview
Essential tools
36. The Attractiveness/Advantage Matrix (GE/McKinsey)
37. The Growth/Share Matrix (BCG)
38. Profiling the ideal player
39. Identifying the capability gap