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The strategy tools you need for your business to succeed!
Let Key Strategy Tools be your guide to developing a winning strategy for your firm. Cherry-pick the most useful approaches for your business and create a robust strategy that withstands investor scrutiny and becomes your roadmap to success.
Covering 88 tools and framed within an innovative strategy development process, the Strategy Pyramid, this user-friendly manual takes you through each step of the process. Whether analysing your market, building competitive advantage or addressing risk and opportunity, you’ll find the strategic thinking tools you need at every stage in your strategy development.
Following in the footsteps of the hugely successful Key Management Models and Key Performance Indicators, this book delivers professional-level information in the practical and accessible framework synonymous with the Key series.
Publisher's acknowledgements
Introduction
The Strategy Pyramid
How to use this book
Business vs corporate strategy
Section 1: Knowing Your Business
Overview
Essential tools
1. Identifying key segments
2. Issue Analysis (Minto)
Example: British Aerospace’s super segment
Useful tools
3. The 80/20 Principle (Pareto)
4. The Segmentation Mincer (Koch)
5. 5C Situation Analysis
6. SWOT Analysis
Section 2: Setting Goals and Objectives
Overview
Essential tools
7. Setting long-term goals
8. Setting SMART objectives
9. Maximising shareholder value
10. Balancing stakeholder interests
Example: Which goals count for RBS?
Useful tools
11. Creating Shared Value (Porter & Kramer)
12. Economic Value Added (Stern Stewart)
13. Balanced Scorecard and Strategy Map (Kaplan & Norton)
14. Core Ideology (Collins & Porras)
15. Business as a Community (Handy)
Section 3: Forecasting Market Demand
Overview
Essential tools
16. Sizing the market and Marketcrafting (Evans)
17. The HOOF Approach to Demand Forecasting (Evans)
Example: Galileo’s Hiccup in Market Demand
Useful tools
18. Smoothing through moving averages
19. The Income Elasticity of Demand
20. Survey methods of demand forecasting
a. Survey of customers’ intentions
b. Salesforce estimation method
c. The Delphi method
d. Pilot test marketing
21. Statistical methods of demand forecasting
a. Trend projection
b. Regression analysis
c. Barometric method (NBER)
Section 4: Gauging Industry Competition
Overview
Essential tools
22. The Five Forces (Porter)
23. Assessing customer purchasing criteria
24. Deriving key success factors
Example: Woolworths succumbs to the five forces
Useful tools
25. Weighing economies of scale
26. Corporate environment as a sixth force
27. Complements as a sixth force (Brandenburger & Nalebuff)
28. PESTEL analysis
Section 5: Tracking Competitive Advantage
Overview
Essential tools
29. Rating competitive position
30. The Resource and Capability Strengths/Importance Matrix (Grant)
Example: Cobra Beer’s clever competitive advantage
Useful tools
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