Sagacious strategy

10
Strategy Tools SWOT Porter’s Five Force STEEPLED Analysis LouAnn Conner, Founder + CEO, All Rights Reserved
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    20-Sep-2014
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    Business

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A look at different strategy tools: STEEPLED, SWOT and Porters 5 Forces. How they can help a company and what are their weaknesses. Used in teaching Conceptual Environment for Business class. Supersedes previous slides

Transcript of Sagacious strategy

Page 1: Sagacious strategy

Strategy Tools SWOT Porter’s Five Force

STEEPLED Analysis

LouAnn Conner, Founder + CEO, All Rights Reserved

Page 2: Sagacious strategy

Strengths Opportunities

Weaknesses Threats

SWOT Analysis

• LouAnn Conner,

• Founder + CEO, All Rights Reserved

Page 3: Sagacious strategy

Examplesadvantages of position

capabilitiescompetitive advantageunique selling points

resourcesfinancial resources

cultureprocessesinnovation

location

Strengths Weaknesses

Examplescapability gaps

weak propositionlack of competitive

strengthcash flow

weak value chainmorale, culture

system or processesmanagement depth

Examplesmarket development

competitor’s vulnerabilitiestechnology development

global influencenew market

tactics: surprise, major contract

business/product development

information or researchpartnership

seasonal, weather

Opportunities

Threats

Examplespolitical environment

environment challengesmarket demand

new technology or business model

loss of key team memberweather, natural disasterdropping market demand

new competition

• LouAnn Conner,

• Founder + CEO, All Rights Reserved

More SWOT Ideas

Page 4: Sagacious strategy

Too little detail, often a few words description Issues depend on where the line is drawn Highly dependent on who’s involved Focus mostly on issues (not necessarily root cause) Too many cooks spoil the soup - no agreement

• LouAnn Conner,

• Founder + CEO, All Rights Reserved

Issues with SWOT

Page 5: Sagacious strategy

SocialTechnolo

gyEconomic

Environment

Political Legal Ethical Demographics

familial tiesgovernment

research spending

economic growth

natural resources

environment regulations

environment regulations

bribery, all levels

ethnic ratio

risk (failure) tolerance

Industry focus on

technological effort

interest rates & monetary

policies

global warming

trade policiesemployment

lawsIP

religious makeup

labor and social mobility

new inventions and development

government spending

waste disposal/ recycling

international trade

regulationscontract laws reputation

ethnic tolerance

lifestyle changes

rate of technology

transfer

unemployment policy

carbon foot print

government organization /

attitude

consumer protection

business ethnics

religious tolerance

work/career and leisure attitudes

life cycle and speed of tech obsolescence

taxationsustainable

energycompetition regulation

trade unionsclient

confidentialitymean /

average age

entrepreneurial spirit

energy costs and use

exchange rates

threats from natural causes

political stability

corporate governance

freedom of information

children per couple

education changes in IT inflation rates infrastructuresafety

regulationsbankruptcy

law

opaqueness of contracts/agree

ments

GLTG acceptance

fashion/hypeschanges in

internetstage of

business cycleair quality

political party changes

legal basis - differs from

home country

integration of minorities,

women

living conditions

mobile technology

changes/adoption

consumer confidence

water qualityopenness to

FDIprivacy laws

income distribution

treatment of elderly and

disabled

trade agreements

access to water

government payment practices

Template, by no means complete but a good starting point

STEEPLED Analysis

• LouAnn Conner,

• Founder + CEO, All Rights Reserved

Page 6: Sagacious strategy

• Identifies high level (macro) points, not how they impact company• Focuses on external issues, not how they relate internally to the company• Does not address company issues, or how to tackle identified issues

• LouAnn Conner,

• Founder + CEO, All Rights Reserved

Issues with STEEPLED Analysis

Page 7: Sagacious strategy

Factor id in STEEPLED Analysis affecting

Company

Specific Impact on Company

Risk to Company

taxation1. double taxation - no reciprocity with US - $$2. complicated taxes - required for 2 countries

H

slow adoption of smart phones

1. existing marcom will not work2. added cost to find new comm channels

M

1.2.

H, M, L

1.2.

H, M, LSTEEPLED Analysis for potential overseas expansion

Next Steps after STEEPLED

• LouAnn Conner,

• Founder + CEO, All Rights Reserved

Page 8: Sagacious strategy

Bargaining Power of Suppliers

Th

reat

of

Su

bsti

tute

Pro

du

ct

or

Serv

ices

Th

reat o

f New

En

tran

t

Rivalry Among Existing

Competitors Bargaining Power of Buyers

Porter’s 5 Forces

• LouAnn Conner,

• Founder + CEO, All Rights Reserved

Page 9: Sagacious strategy

Static view of situation Inside out perspective Hard to talk about industries that

overlap Focused only on meso level

Issues with Porter’s

• LouAnn Conner,

• Founder + CEO, All Rights Reserved

Page 10: Sagacious strategy

STEEPLED

Porter’s

SWOTinternal

external

micro

macro

meso

Strategy Levels

• LouAnn Conner,

• Founder + CEO, All Rights Reserved