By John Kyriazoglou*
These methods, tools and techniques are:
v SWOT analysis,
v PEST Analysis (also known as PESTLE Analysis),
v Gap Analysis,
v Portfolio analysis,
v Value chain analysis,
v Delphi Method,
v Life cycle analysis,
v Screening strategic options,
v Financial analysis,
v Scenario planning,
v Critical success factor analysis,
v The five forces,
v Market Segmentation,
v Directional Policy Matrix,
v Competitor Analysis, and
v Change management methodology.
It's important to remember that opportunities can also be threats - for example, new markets could be dominated by competitors, undermining your position. Equally, threats can also be opportunities - for example, a competitor growing quickly and opening a new market for your product or service could mean that your market expands too.
A SWOT analysis can provide a clear basis for examining your business performance and prospects. It can be used as part of a regular review process or in preparation for raising finance or bringing in consultants for a review.
Once you have collected information on your organisation's internal strengths and weaknesses, and external opportunities and threats, enter this data into a simple table.
v Selection of basic quality and quantity criteria,
v Definition of desired future performance position,
v Measurement of current performance,
v Recognition of the gaps between the existing and the future desired position, and
v Designing and executing a strategy to achieve the desired position by bridging all the defined gaps, and by improving the processes, procedures, technology, systems, human resources, infrastructure and organizational structure.
Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. These activities are:
(1) Primary Activities - those that are directly concerned with creating and delivering a product (e.g. component assembly); and
(2) Support Activities, which whilst they are not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management). It is rare for a business to undertake all primary and support activities.
What activities a business undertakes is directly linked to achieving competitive advantage.
Value chain analysis can be broken down into a three sequential steps:
(1) Break down a market/organization into its key activities under each of the major headings in the model,
(2) Assess the potential for adding value via cost advantage or differentiation, or identify current activities where a business appears to be at a competitive disadvantage, and
(3) Determine strategies built around focusing on activities where competitive advantage can be sustained.
Each expert responds on its own and without the influence of the group or other dominating individuals,
The moderator compiles the results, and formulates a new questionnaire that is submitted to the group again ( is the usual case), until satisfactory results are achieved.
Financial analysis: Assessment of profitability and beneficial impacts likely to accrue from the strategies by the use of various financial measures, and tools, such as: payback period, ROCE, Discounted Cash Flow analysis, Shareholder Value Analysis, funds flow analysis, break-even analysis, sensitivity analysis, cost-benefit analysis ,etc. (note)
v Existing competitors,
v Existing buyers,
v Existing suppliers and
v Alternative products/services.
Using this model you build a strategy to keep ahead of these influences
Identification of the various roles in managing changes,
Establishing and maintenance of successful support for the change management project,
Establishing commitment from all staff involved via effective communication,
Identification and management of resistance to change, and
Development of cooperation through team work.
International IT and Management Consultant (with over 35 years of experience),
Editor-in-Chief for the Internal Controls Magazine, www.theiic.org
Author of several books:
(1) ‘IT Strategic and Operational Controls’, Publisher: www.itgovernance.co.uk
Direct Link: http://www.itgovernance.co.uk/products/3066
(2) ‘Addendum to IT Strategic & Operational Controls’
This book contains over 60 of IT audit programs and checklists in all IT audit areas.
Direct Link: www.itgovernance.co.uk/products/3143
(3) ‘Corporate Strategic and Operational Controls’, Publisher: www.theiic.org
with Dr. F. Nasuti and Dr. C. Kyriazoglou.
Direct Link: http://www.theiic.org/publicationsbookstore/bookstore2.html
(4) ‘Implementing Management Controls for Small and Medium-Size Companies’
AMAZON Kindle Books:www.amazon.com
Direct Link: http://www.amazon.com/dp/B007Z1WTOM
(5) ‘Pearls of Wisdom of the 7 Sages of Ancient Greece’
AMAZON Kindle Books:www.amazon.com
Direct Link: http://www.amazon.com/dp/B007YNPR8Q
Profile (1): http://www.linkedin.com/pub/john-kyriazoglou/0/9b/919
Profile (2) http://www.managementexchange.com/users/nwstdt9cyq
SSRN Free Publications: http://ssrn.com/author=1315434