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Flevy Business PrimerIntroduction to Business Strategy Development & ExecutionThis primer is available for free at http://flevy.com/strategy-frameworks

Flevy Business PrimerIntroduction to Business Strategy Development & ExecutionA successful business requires both a well developed strategy and the ability to execute on that strategy. Strategy without execution is merely theory. Many companies develop robust strategies, but fail at operationalizing their strategies into implementable steps. This document introduces 12 powerful business frameworks for Strategy Development and Strategy Execution. Consolidation- Endgame CurveBlue Ocean StrategyMarketing Mix (4/7 Ps)Porters Five ForcesSWOT AnalysisProduct LifecycleBCG Growth-Share MatrixPEST AnalysisConsumer Adoption Curve123456789Balanced ScorecardOrganizational HurdlesHoshin Kanri101112STRATEGY DEVELOPMENTSTRATEGY EXECUTIONThis primer is available for free at http://flevy.com/strategy-frameworks

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Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensiveknowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy whether it's to jumpstart projects, to find reference or comparison materials, or just to learn.Contact UsPlease contact us with any questions you may have about our company.General Inquiries [email protected]/PR [email protected] [email protected]


Contents

Overview5Strategy Development Frameworks7Strategy Execution Frameworks34Summary44Appendix50


Contents

OverviewStrategy Development FrameworksStrategy Execution FrameworksSummaryAppendix


Strategy without execution is merely theoryin this document, we will discuss 12 frameworks on Strategy Development and ExecutionExecutive SummaryEach framework is geared towards a specific type of analysispick and choose the best frameworks to use for your particular business problem.A successful business requires both a well developed strategy and the ability to execute on that strategy. Strategy without execution is merely theory. Many companies develop robust strategies, but fail at operationalizing their strategies into implementable steps.This document covers frameworks that deal with both sidesStrategy Development and Strategy Execution. In this presentation, we will discuss 12 business frameworks. For each framework, we will provide an overview, explain its proper usage, and highlight the analyses involved.This document will also provide references to more detailed documentation, guides, and methodologies if you would like more information.The following business frameworks will be discussed:Consolidation-Endgame CurvePorters Five ForcesBCG Growth-Share MatrixMarketing Mix (4/7 Ps)Blue Ocean StrategySWOT AnalysisPEST AnalysisProduct LifecycleConsumer Adoption CurveBalanced ScorecardOrganizational HurdlesHoshin Kanri


Contents



In this section, we will cover 9 strategy frameworks6 focus on external, competitive factors, while 3 rely on internal strategiesStrategy Development FrameworksA well developed strategy should use at least 5 of the above analyses covering both external and internal perspectives.Consolidation-EndgameCurveBlue Ocean StrategyMarketing Mix (4/7 Ps)Porters Five ForcesSWOT AnalysisProduct LifecycleBCG Growth-Share MatrixPEST AnalysisConsumer Adoption CurveThese first 6 frameworks focus more on Industry and Competitive Analysisthey are more externally focused.These 3 frameworks are more Product focusedand rely on more internal strategies.123456789


1. Consolidation-Endgame CurveOverviewThis framework not only helps us define a more informed corporate strategy, but also helps define our organizational structure and the proper management team.Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveThe Consolidation-Endgame Curve framework (also known as Consolidation Curve or Endgame Curve) is not a well known framework, but is one that offers incredibly insights into market dynamics and competitive strategies.This framework was developed by the management consulting firm AT Kearney after they performed a study on 25,000 firms, representing 98% of the global market cap. The firm realizes that all industries go through the same 4-stage lifecycleOpening, Scale, Focus, Balance & Alliance.Across all industries, the same characteristics are exhibited at each stage of the Curve.By appropriately identifying our stage and understanding the defining traits and behavior of our stage, we can better understand and predict market and competitive behavior and trends. Every major strategic and operational move should be evaluated with regard to the industrys stage in the Consolidation Curve. On a more subtle note, the industry stage also governs what type of management and leadership works best for the company. In other words, the management team in the Scale phase may not possess the right skills to run the company at the Balance & Alliance stage.


1. Consolidation-Endgame Curve4 Stages of ConsolidationIn the final stage, industry titans dominate the landscape, controlling 70% of the marketany number of businesses can occupy the remaining 30%.Source: Winning the Merger Endgame, 2002Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveStage IVBALANCE & ALLIANCEStage IIIFOCUSStage IISCALEStage IOPENINGDESCRIPTIONCOMBINED SHARE OF TOP 3 PLAYERS 41% 42% 50% 70%

The industries operating in the Opening stage include newly deregulated industries, startups, and spin-off industriesNew industry catalysts can include new technology, new regulation, new ideas, and new consumer needsThere is little to no market concentration at this pointIn the Scale stage, major players begin to emerge and size begins to matterthese players take the lead in consolidationNiche players begin to feel pressureConcentration rates can be as high as 45% in some industriesIn the Focus stage, successful players continue to aggressively outgrow competitionThese companies focusmeaning they extend their core business and eliminate secondary business unitsThe supply and value chains begin to be streamlinedIn the final stage, consolidation rates reach 90%, so a few players dominate each industry at this pointLarge companies form alliances with each other, as growth is challenging at this stageCompanies often look for new Opening-stage industries to expand into


1. Consolidation-Endgame CurveConsolidation-Endgame Curve DiagramThe combined market share of the top 3 players follows an S-curve.Source: Winning the Merger Endgame, 2002Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption Curve100%0%Combined Share of Top 3 PlayersTime50%MaximumMinimumCombined market share of top 3 players

Stage IOPENINGStage IISCALEStage IIIFOCUSStage IVBALANCE & ALLIANCE


1. Consolidation-Endgame CurveMore InformationConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveThis framework is explained in detail in the document Consolidation Endgame CurveTopics covered include: stages of consolidation, growth strategy implications, stage impact on financials, stage impact on strategy and operations, stage impact on management/organization, Value-Building Growth Matrix, and niche strategiesLearn more about the Consolidation-Endgame Curve here:https://flevy.com/browse/business-document/consolidation-endgame-curve-framework-201 DETAILSSeller: LearnPPTFile size: 800KBNumber of Slides: 29RELATED DOCUMENTS/FRAMEWORKSGuide to Business Strategy Design - https://flevy.com/browse/business-document/complete-guide-to-business-strategy-design-375 Growth Strategy Toolkit - https://flevy.com/browse/business-document/growth-strategy-208 Five Stages of Business Growth - https://flevy.com/browse/business-document/five-stages-of-business-growth-249


Porters Five ForcesOverviewSeveral important economic and technical characteristics of an industry are critical to the strengths of each competitive force.Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveDeveloped by Michael Porter, recognized as the father of modern business strategy, Porters Five Forces is one of the most well known classic strategy frameworks.Porters Five Forces is a framework used for industry analysis and understand the various dynamics amongst industry players and external forces.It is based on the theory that competition in any industry is dependent on 5 basic forcesPotential Entrants, Internal Rivalry, Suppliers, Buyers, and Substitutes (or Complements). The collective strength of these forces determines the ultimate profit potential and allocation in the industry.Using this framework, we can determine how attractive/desirable it is to compete in any industry, as well as what the overarching strategy should be to compete successfully in the industrysuccess is determined by the ability to develop a sustainable competitive advantage.It can also be used to assess which industry trends may pose as opportunities or threats.


Porters Five Forces5 Forces Explained and Framework DiagramConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurvePressure from Substitute ProductsBargaining Power of BuyersBargaining Power of SuppliersThreat of New EntrantsIntensity of RivalryLow, stable returnsLow, risky returnsHigh, stable returnsHigh, risky returnsExit BarriersEntry BarriersLHLHCostLeadershipDifferentiationCostFocusDifferentiationFocusCompetitive AdvantageCompetitiveScopeBroadNarrowLower CostDifferentiationA supplier group is powerful when:It is dominated by a few companies and is more concentrated than the industry it sells to.There are no substitute products.The industry is not an important customer.Its products are important to the industry.Products are differentiated or suppliers have built up switching costs.It poses a credible threat of forward integration.Barriers to entry:Economies of scale (including shared resources)Product differentiation (proprietary)Capital requirementsSwitching costsAccess to distribution channelsCost disadvantages independent of scaleGovernment policyExpected reaction of incumbentIntense rivalry results from:Numerous or equally balanced competitorsSlow industry growthHigh fixed or storage costsLack of differentiation or switching costsCapacity augmented in large incrementsDiverse competitorsHigh strategic stakesHigh exit barriersA buyer group is powerful when:It is concentrated or purchases large volumes relative to seller sales.The products represent a significant fraction of the buyers costs or purchases.The products are standard or undifferentiated.It faces few switching costs.It earns low profits.It poses a credible threat of backward integration.The bought product is unimportant.It has full information.Search for products that can perform the same function.Assess buyers propensity to substitute.Focus on those that:Are improving their price performance trade-off compared with the industries products.Require low switching costs.Are produced by industries earning high profits.Take offensive or defensive actions to create a defensible position against the forces:Positioning the firm so its capabilities provide the best defenseInfluencing the balance of forces through strategic movesAnticipating shifts in the factors underlying the forces and responding to them


Porters Five ForcesMore InformationConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveThis framework is explained in detail in the document Porters Five ForcesFlevy has multiple documents that discuss and teach this framework in detail:Porters 5 Forces Model and ApplicationComplete Business Frameworks GuideLearn more about Porters Five Forces here:https://flevy.com/browse/business-document/porters-five-forces-235 DETAILSSeller: LearnPPTFile size: 800KBNumber of Slides: 26RELATED DOCUMENTS/FRAMEWORKSGrowth Strategy Toolkit - https://flevy.com/browse/business-document/growth-strategy-208 Blue Ocean Strategy - https://flevy.com/browse/business-document/blue-ocean-strategy-the-peaceful-strategy-114Industry Analysis - http://flevy.com/browse/business-document/industry-analysis-773


BCG Growth-Share MatrixOverviewThis framework helps the us allocate resources and is can be used as an analytical tool in brand marketing, product management, strategic management, or portfolio analysis.Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveThe BCG Growth-Share Matrix (also called Product Portfolio and Boston Matrix) is a classic competitive positioning strategy framework developed by the management consulting firm Boston Consulting Group (BCG).The growth-share matrix displays graphically in a 2-by-2 matrix one of two scenarios: The position of each business of a companys portfolio; or Compares the position of various players in one industry.The two axes of the matrix are 1) market/industry growth and 2) relative market share (RMS). We then plot our products onto the matrix and quadrant associated with the product drives its strategy. The quadrants are defined as follows:Star high RMS, high market growth;Cash cow High RMS, low market growth;Dog Low RMS, low market growth; andQuestion mark Low RMS, high market growth.The key premise to this framework is that products located in each of the quadrants will be in fundamentally different cash flow positions and should be managed differently.This framework is used to assess trends in the evolution of a companys portfolio of business (when matrix is drawn for both the current year and past years). It can also be used to understand the competitive position of each business, possible cash requirements, and focus attention on key issues.


BCG Growth-Share Matrix4 Quadrants ExplainedConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption Curve Cash Cow Dog QuestionMarkStar?Cash cows are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth.

Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off.

Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief stardom to dogdom.


BCG Growth-Share MatrixBCG Matrix Framework DiagramConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveIndustryGrowthX%Y%RelativeMarket Share0ZCash CowDogQuestion MarkStar?


BCG Growth-Share MatrixMore InformationConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveThis framework is explained in detail in the document BCG Growth-Share MatrixTopics covered include: quadrant definitions, analysis steps/process, examples, templates, and tips.Learn more the BCG Growth-Share Matrix here:https://flevy.com/browse/business-document/bcg-growth-share-matrix-200 DETAILSSeller: LearnPPTFile size: 400KBNumber of Slides: 9RELATED DOCUMENTS/FRAMEWORKSMarket Analysis - https://flevy.com/browse/business-document/market-analysis-215Product Lifecycle - https://flevy.com/browse/business-document/product-lifecycle-227


Blue Ocean StrategyOverviewBlue Ocean Strategy challenges many of the conventional principles of strategy, based on the pursuit of competitive strategy.Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveBlue Ocean Strategy is growth strategy framework focused on the idea of creating an uncontested market space--i.e. a "blue ocean." This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors head-on. The Blue Ocean Strategy framework evolved from a framework called Value Innovation developed by Gemini Consulting (now Capgemini Consulting) in the late 90s.At the heart of Blue Ocean Strategy, we have concept of Value Innovation. Value without innovation tends to focus on value creation on an incremental scale, i.e. something that improves value but is not sufficient to make us really stand out in the marketplace. Innovation without value tends to be technology-driven, market pioneering, or futuristic, often shooting beyond what buyers are ready to accept and pay for.Value Innovation occurs only if we align innovation with utility, price, and cost positions. The focus here is not time-to-market, bleeding-edge technology or best practices. It is the ambition to break one of the most commonly accepted dogmas of competition-based strategy: the value-cost trade-off.It is conventionally believed that companies can either create greater value to customers at a higher cost, or create reasonable value at a lower cost. Here, strategy is seen as making a choice between differentiation and cost. In contrast, to create blue oceans, we need to pursue differentiation and low cost simultaneously, by looking within and beyond our industry boundaries and redefining a market altogether.


Blue Ocean StrategyValue Creation ThinkingConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveGrowth FocusValue IdentificationValue CreationEffective ExecutionStart with customer needsLook beyond traditional markets, industries and competitorsCreate multi-horizon portfolioDevelop growth platforms for market miningUnderstand what the customer valuesPrioritize initiativesValueSelect and develop growth option Align operating model to deliver value and fair valueConcept ExecutionVenture LaunchOrganizational alignmentFunding / Resource AllocationMeasurementsAccountability

Sustainable Growth Structure InfrastructureCultureAlliance ManagementM&AEliminateReduceRaiseCreateCostsValueValue InnovationSource: C. Kim, R. Mauborgne, Harvard Business Review (1997)


Blue Ocean StrategyValue Curve Framework and DiagramConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveSource: C. Kim, R. Mauborgne, Harvard Business Review (1997)Which of the attributes that our industry takes for granted should be eliminated?Which attributes should be reduced well below the industrys standards?Which attributes should be raised well above the industrys standards?Which attributes should be created that the industry has never offered?Eliminate Value InnovatorValue+-ReduceRaiseCreate Traditionals A powerful framework used in Blue Ocean Strategy analysis is the Value Curve, which depicts where traditional, incumbent players are placing their value. It allows us to visualize where competition places value, where customers place value, and where are potential opportunities to disrupt the market. We can determine which specific value attributes to eliminate, to reduce, to raise, and to create. By creating new value attributes, we creating a blue ocean to compete in.


Blue Ocean StrategyMore InformationConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveWe have 2 frameworks that do a great job of explaining the Blue Ocean Strategy framework: The Peaceful Strategy https://flevy.com/browse/business-document/Blue-Ocean-Strategy---The-Peaceful-Strategy-1142.4MB, 35 slides, includes 1-page mind map (PDF) Blue Ocean Strategy Primer https://flevy.com/browse/business-document/Blue-Ocean-Strategy-Primer-113600KB, 18 slides

RELATED DOCUMENTS/FRAMEWORKSBlue Ocean Strategy Canvas (Excel Template) - https://flevy.com/browse/business-document/blue-ocean-strategy-canvas-template-448Growth Strategy Toolkit http://flevy.com/browse/business-document/growth-strategy-208 Growth Opportunity Assessment - https://flevy.com/browse/business-document/growth-opportunity-assessment-759 Business Model Innovation - https://flevy.com/browse/business-document/business-model-innovation-136


SWOT AnalysisOverviewMany market research firms routinely publish SWOT analyses for public companies.Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveThe SWOT Analysis (also called SWOT Matrix) is one of the earliest strategy frameworks. It was developed in the 1960s at Harvard Business School by Learned, Christensen, Andrews, and Guth.The name is an acronym for Strengths, Weaknesses, Opportunities, and Threats.This framework provides basic directions for structuring strategic analysis.The underlying theory is that assessment of competitive position should combine both an external and an internal analysis. The internal factors are Weaknesses and Strengths, whereas the external factors are Opportunities and Threats.We can conduct SWOT analyses for our own organization in addition to our competitors, so that we gain added insight into our companys competitive position.The output of this analysis is often displayed in the form of a 2x2 matrix.SWOT Analysis is often conducted in conjunction with PEST Analysis.


PEST AnalysisOverviewPEST Analysis been sometimes been extended to include Legal and Environmental, forming the name PESTLE Analysis.Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurvePEST Analysis is a framework evaluating macro-environmental factors used in the environmental scanning component of strategic management. The PEST analysis framework has become increasingly popular and relevant as the first decade of the 21st century have given rise to green business and environmental concerns from the public.PEST is an acronym for Political, Economic, Social, and Technological, which are the macro-environmental factors to analysis in this analysis. This analysis is often performed in conjunction with other popular frameworks, as a means of enhancing the understanding and output of these other frameworks. Specifically, it is often used to help explain the analysis in the following frameworks:Porters Five Forces;SWOT Analysis;Value Chain Analysis; andIndustry financials.PEST Analysis is often performed in a 3-phase process: data collection, industry trend analysis, and trend quantification.


Marketing Mix (4/7 Ps)OverviewIn most cases, Price and Product are the more important factors and are determined firstas these are more closely tied to our competitive advantage.Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveThe 4 Ps of marketing, often just called Marketing Mix, is perhaps the commonly used corporate marketing framework. The marketing mix refers to the 4 levers to adjust when determining the essence of products marketing strategy.The 4 Ps refer to Price, Product, Promotion, and Placement.This framework has been extended to 7 Ps, to also include Physical Evidence, People, and Process.The definitions for the additional3 Ps should not be confused with the People-Process-Technology framework, which is more operationally-focused (vs. consumer-focused).


Marketing Mix (4/7 Ps)Definitions of the PsConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption Curve ProductA product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass-produced service is a computer operating system. Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves through each stage. The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product lines depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the companys resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies.

The amount a customer pays for the product. The price is very important as it determines the companys profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The reference value (where the consumer refers to the prices of competing products) and the differential value (the consumers view of this products attributes versus the attributes of other products) must be taken into account. Price12


Marketing Mix (4/7 Ps)Definitions of the PsConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption Curve PromotionAll of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations.

Refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix.

Placement34


Marketing Mix (4/7 Ps)Definitions of the PsConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption Curve Physical EvidenceElements within the store the store front, the uniforms employees wear, signboards, etc.

The employees of the organization with whom customers come into contact.

The processes and systems within the organization that affects its marketing process.

People ProcessThe additional 3 Ps are mostly relevant to Service marketing.567


Marketing Mix (4/7 Ps)More InformationConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveThe Flevy author DemandMetric specializes in Corporate Marketing tools built in Excel:https://flevy.com/seller/demandmetric Below, we have compiled a number of Corporate Marketing-focused frameworks and tools.

PRICING STRATEGYPricing Strategy Framework - https://flevy.com/browse/business-document/pricing-strategy-226Pricing Strategy Workshop - https://flevy.com/browse/business-document/pricing-strategy-workshop-764Price Increase Execution - http://flevy.com/browse/business-document/best-practices-in-price-increase-execution-681

PRODUCT STRATEGYProduct Lifecycle - https://flevy.com/browse/business-document/product-lifecycle-227Rogers Five Factors - https://flevy.com/browse/business-document/rogers-five-factors-169Psychology of Product Adoption - https://flevy.com/browse/business-document/psychology-of-product-adoption-203

MARKETING PLAN DEVELOPMENTMarketing Plan Framework - https://flevy.com/browse/business-document/marketing-plan-development-framework-174Strategic Marketing and Sales Planning - https://flevy.com/browse/business-document/strategic-marketing-and-sales-planning-612Strategic Marketing Plan Template - https://flevy.com/browse/business-document/strategic-marketing-plan-template-676


Product Lifecycle and Consumer Adoption CurveOverviewBe aware that as a product moves through its lifecycle, the likelihood of customers switching to a substitute product increases.Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveProduct Lifecycle analysis is a tool to predict how sales will develop based on the age of the product category. Marketers and strategists can use this analysis to predict sales growth, associated customer and competitor behaviors, and, in turn, devise the appropriate product marketing strategy.The Product Lifecycle itself it divided into 4 stages of development: Introduction, Growth, Maturity (and Saturation), and Decline (and Termination).The length of each period varies tremendously. Some products have very short cycles, whereas others can take decades or even centuries to go through the cycle. The lifecycle can be mapped against the consumer adoption curve, where the peak of the curve generally occurs in the maturity stage of the Product Lifecycle.The Product Lifecycle is typically mapped against the Consumer Adoption Curve to draw out key marketing and competitive insights. By understanding what stage of the Consumer Adoption Curve were at, we can gain invaluable insights into the who our target customer are, as well as their defining attributes.The Consumer Adoption Curve is defined by 5 sequential stages: Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. Typically, there is a chasm between the Early Adopters and Early Majority.Product Lifecycle Analysis also provides a framework to understand the competitive environment. It makes an underlying assumption that sales and profitability follow a predictable pattern for all industries and all products within those industries.


Product Lifecycle and Consumer Adoption CurveProduct Lifecycle Mapped on Consumer Adoption CurveIt is useful to map all products within an industry or product category against the Adoption Curveto visualize dynamics among products (e.g. substitution, complements).Consolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveInnovatorsEarly AdoptersEarly MajorityLate MajorityLaggards


Product Lifecycle and Consumer Adoption CurveMore InformationConsolidation- Endgame CurveBlue Ocean StrategyMarketing MixPorters Five ForcesSWOT AnalysisProduct LifecycleBCG MatrixPEST AnalysisConsumer Adoption CurveBoth frameworks are explained in the document Product Lifecycle, with the emphasis on Product Lifecycle AnalysisAdditional topics covered include: Bass Diffusion Model, Lifecycle-Performance Factor Matrix, strategic positioning, and substitution analysis.Learn more about Product Lifecycle and Consumer Adoption Curve analyses here:https://flevy.com/browse/business-document/product-lifecycle-227 DETAILSSeller: LearnPPTFile size: 700KBNumber of Slides: 34RELATED DOCUMENTS/FRAMEWORKSPricing Strategy https://flevy.com/browse/business-document/pricing-strategy-226 Psychology of Product Adoption - https://flevy.com/browse/business-document/psychology-of-product-adoption-203Complete Business Frameworks Guide - https://flevy.com/browse/business-document/complete-business-frameworks-reference-guide-644


Contents



In this section, we will cover 3 strategy execution frameworksStrategy Execution FrameworkOrganizations spend 90-95% of their time and resources on executiondespite this, most organizations fail at the execution of their strategies.Balanced ScorecardOrganizational HurdlesHoshin Kanri123


Balanced ScorecardOverviewThe BSC framework is flexible in that it allows for the strategy itself to evolve in response to changes in the companys competitive, market, and technological environments.BalancedScorecardOrganizational HurdlesHoshin KanriThe Balanced Scorecard (BSC) is a Strategy Performance Management tool. It is a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. It was developed by Robert Kaplan and David Norton.The BSC approach is called balanced, because it supplements traditional financial measures with 3 key non-financial areas:A companys relationship with its customers;Its key internal business processes; andIts learning and growth.This approach enables companies to track financial results, while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they need for future growth.BSC also provides a framework for companys to translate their strategy into measurable and actionable KPIs and objectives. Specifically, it ties 4 key management processes (Translating the Vision, Communicating and Linking, Business Planning, and Feedback and Learning) into both short-term and long-term strategic objectives.


Balanced Scorecard4 Management Key Processes Framework and DefinitionsSource: Balanced Scorecard, Kaplan and Norton (2005)BalancedScorecardOrganizational HurdlesHoshin KanriBalancedScorecard1234


Balanced ScorecardMore InformationBalancedScorecardOrganizational HurdlesHoshin KanriThe BSC framework is explained in detail in our document Balanced ScorecardTopics covered include: Four Processes (Translating the Vision, Communicating and Linking, Business Planning, Feedback and Learning), Four Perspectives (Financial Measures, Customer Relationships, Internal Business Processes, Learning and Growth), Personal Scorecard, and Strategic LearningWe have a number of other BSC documents, listed belowLearn more about the Balanced Scorecard here:https://flevy.com/browse/business-document/balanced-scorecard-134 DETAILSSeller: PPTLabFile size: 600KBNumber of Slides: 27RELATED DOCUMENTS/FRAMEWORKSBSC Strategy Map - https://flevy.com/browse/business-document/balanced-scorecard-strategy-map-256BSC Training - https://flevy.com/browse/business-document/opex-balanced-scorecard-training-module-567 BSC Overview & Examples - https://flevy.com/browse/business-document/introduction-to-balanced-scorecard-723


Organizational HurdlesOverviewIn Blue Ocean Strategy, the concept of overturning conventional wisdom on doing things is called tipping point leadership.BalancedScorecardOrganizational HurdlesHoshin KanriIn Blue Ocean Strategy, the authors identify 4 main Organizational Hurdles that the organization must overcome for successful business execution. These hurdles arise when a company develops a new strategy to departs from the status quo.These hurdles are the Cognitive Hurdle, Resource Hurdle, Motivational Hurdle, and Political Hurdle.Although all companies face different degrees of these hurdles, many may only face a subset of the 4 hurdles. To overcome these hurdles effectively, organizations must abandon perceived wisdom on effecting organizational change.


Organizational Hurdles4 Organizational Hurdles DefinitionsSource: Blue Ocean Strategy, Kim and Mauborgne, 2005BalancedScorecardOrganizational HurdlesHoshin Kanri1234Limited resourceswhether in staff or financesThe greater the shift in strategy, the greater the resources needed to execute itOpposition from powerful vested interestsAny significant shift to an organization will result in a shift in political powerAn organization stuck on the status quoan unwillingness to rock the boatAn unmotivated staffMotivating staff to change the status quo often takes yearstime that most organizations cannot afford


Organizational HurdlesMore InformationBalancedScorecardOrganizational HurdlesHoshin KanriThe 4 Organizational Hurdles are discussed in the document Guide to Business Strategy ExecutionThis document focuses on the topic of strategy execution and covers a number of concepts and frameworks: Building Blocks to Execution, 17 Traits of Successful Execution, Transformation Program Design, Balanced ScorecardLearn more Organizational Hurdles and other Strategy Execution frameworks here:http://flevy.com/browse/business-document/guide-to-business-strategy-execution-873 DETAILSSeller: LearnPPTFile size: 700KBNumber of Slides: 48RELATED DOCUMENTS/FRAMEWORKSBalanced Scorecard - https://flevy.com/browse/business-document/balanced-scorecard-134 Guide to Business Strategy Design - https://flevy.com/browse/business-document/complete-guide-to-business-strategy-design-375Formulating a Breakthrough Strategy - https://flevy.com/browse/business-document/formulating-a-breakthrough-strategy-598


Hoshin KanriOverviewHoshin Kanri strives to get every employee pulling in the same direction at the same time.BalancedScorecardOrganizational HurdlesHoshin KanriHoshin Kanri (also known as Policy Deployment, Hoshin Planning, or just Hoshin) is a Strategic Planning/Strategic Management Methodology. It is based on a concept popularized in Japan in the late 1950s by Yoji Akao. "Each person is the expert in his or her own job, and Japanese TQC (Total Quality Control) is designed to use the collective thinking power of all employees to make their organization the best in its field, Yoji Akao. This is the fundamental principle of Hoshin Kanri. In other words, this framework ensures that the strategic goals of our company drive progress and action at every level within the organization. This eliminates the waste that comes from inconsistent direction and poor communication. This framework is intended to help an organization:Focus on a shared goal;Communicate that goal to all leaders;Involve all leaders in planning to achieve the goal; andHold participants accountable for achieving their part of the plan.Hoshin Kanri falls under the umbrella of Lean Thinking (or called Lean Management, Lean Methodologies). Lean frameworks strive for continuous improvement of the organization.


Hoshin KanriMore InformationBalancedScorecardOrganizational HurdlesHoshin KanriThis framework is explained in more detail in our document Hoshin Kanri Strategy DeploymentTopics covered include: underlying principles of Hoshin Kanri, PDCA Approach, Hoshin Kanri Tools, Elements of Hoshin Kanri, Management Reviews, and Critical Success FactorsLearn more about Hoshin Kanri here:https://flevy.com/browse/business-document/Hoshin-Kanri-155 DETAILSSeller: OEConsultingFile size: 11.8MBNumber of Slides: 145FLEVY AUTHORS WHO SPECIALIZE IN LEAN / OPERATIONAL EXCELLENCE FRAMEWORKSOEConsulting - https://flevy.com/seller/oeconsultingOperational Excellence Consulting - https://flevy.com/seller/oecLEAN / OPERATIONAL EXCELLENCE BUSINESS TOOLKITSLean Management / Enterprise - https://flevy.com/business-toolkit/lean-management-enterprise-leanSix Sigma - https://flevy.com/business-toolkit/six-sigma-project-6s


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In this primer, we introduced 12 different business frameworks related to Strategy Development and ExecutionSummaryConsolidation- Endgame CurveBlue Ocean StrategyMarketing Mix (4/7 Ps)Porters Five ForcesSWOT AnalysisProduct LifecycleBCG Growth-Share MatrixPEST AnalysisConsumer Adoption Curve123456789Balanced ScorecardOrganizational HurdlesHoshin Kanri101112STRATEGY DEVELOPMENTSTRATEGY EXECUTIONIn this document, we provided high level overviews of 12 different frameworks related to Strategy Development and Strategy Execution. These are the same tools and analyses performed by top tier consulting firms, although only a small sample of the wide array of frameworks and tools available. You can find countless more frameworks available at Flevy (http://flevy.com).Using and applying these frameworks is an art. Depending on your specific business situation, the usage and applications of these frameworks will change significantly. To learn more about any of these topics, we advise you take a look at the recommended documents referenced throughout this presentation. We have also included additional recommended documents in the following slides.


Here is a list of business frameworks and methodologies that have NOT been referenced earlier in this documentAdditional Frameworks Strategy DevelopmentSTRATEGY DESIGN & DEVELOPMENTStrategy Development Methodology - https://flevy.com/browse/strategy-marketing-and-sales/strategy-development-methodology-264Strategy Development (PLAN Framework) - https://flevy.com/browse/business-document/plan-for-performance-methodology-746 Evolution of Strategy - https://flevy.com/browse/strategy-marketing-and-sales/evolution-of-strategy-705Success Is System, Failure Is Component - https://flevy.com/browse/business-document/success-is-system-failure-is-component-302 Core Competencies Analysis - https://flevy.com/browse/strategy-marketing-and-sales/core-competencies-analysis-75 Customer Segmentation - https://flevy.com/browse/business-document/customer-segmentation-700Competitive Analysis - https://flevy.com/browse/business-document/competitive-analysis-689Profit Pools Framework - https://flevy.com/browse/business-document/profit-pools-concept-744Value Creation Framework - https://flevy.com/browse/business-document/value-creation-framework-745 Services Growth Strategy - https://flevy.com/browse/business-document/services-growth-and-effectiveness-strategy-735Competitive Assessment - https://flevy.com/browse/business-document/guide-to-competitive-assessment-760Industry Analysis - https://flevy.com/browse/business-document/industry-analysis-773Market Entry Strategy - https://flevy.com/browse/business-document/market-entry-strategy-776Shareholder Value Analysis - https://flevy.com/browse/business-document/shareholder-value-analysis-734Market Modeling and Sizing - https://flevy.com/browse/business-document/building-a-market-model-and-market-sizing-376Business Case Development - https://flevy.com/browse/business-document/business-case-development-framework-199Cost Drivers Analysis - https://flevy.com/browse/business-document/cost-drivers-analysis-76


Additional Frameworks Strategy ExecutionSTRATEGY EXECUTION & DEPLOYMENTStrategy Planning & Deployment Training - https://flevy.com/browse/strategy-marketing-and-sales/opex-strategy-planning-and-deployment-training-module-597McKinsey 7-S Model - https://flevy.com/browse/strategy-marketing-and-sales/mckinsey-7-s-strategy-model-197Corporate Performance Measurement - https://flevy.com/browse/business-document/corporate-performance-measurement-696 Change Management Methodology - https://flevy.com/browse/business-document/change-management-methodology-241Benchmarking for Performance - https://flevy.com/browse/business-document/benchmarking-for-world-class-performance-156 Scenario Planning - http://flevy.com/browse/business-document/scenario-planning-243Value Stream Mapping - https://flevy.com/browse/business-document/opex-value-stream-mapping-training-module-599Soft Side of Change Management - https://flevy.com/browse/business-document/soft-side-of-change-management-261


Here are 9 of our featured sellers on Flevyeach seller has an extensive management consulting background and many operate their own firmsRecommended Authors/ContributorsLooking for more business frameworks? Check out our 10 must-have frameworks:http://flevy.com/business-frameworks TEAM NEOSI https://flevy.com/seller/teamneosiCorporate Communications frameworks from McKinsey specialists with combined 40+ years experience.LANCE LATHAM https://flevy.com/seller/lancelathamFrameworks related to Operations Management, Process Improvement, and Manufacturing.PAUL ALLEN SMITH https://flevy.com/seller/paulsaFrameworks related to IT and Risk. E.g., ITIL, PRINCE2, Risk Management.DOCUMENTS FILES https://flevy.com/seller/documentsfilesConsulting frameworks and documents spanning Strategy, Operations, Finance.OEC https://flevy.com/seller/oecFrameworks focused on delivering Operational Improvement (e.g. 8D Problem Solving, Lean, Six Sigma).STRATICX https://flevy.com/seller/straticxFrameworks on Corporate and BU Strategy, Business Transformation, M&A, and Operational Improvement.OE CONSULTING https://flevy.com/seller/oeconsultingTopics includeLean Management,Quality Management, andStrategic Planning & Deployment. LEARN PPT https://flevy.com/seller/learnpptBusiness frameworks and toolkits. E.g., Corporate Strategy, Change Management, Operational Improvement.PPT LAB https://flevy.com/seller/pptlab Classic Business Frameworks. E.g., McKinsey 7-S Model, Balanced Scorecard, Christensen's Innovation, etc.


We have assembled a number of Business Toolkits, each focused on a different business projecta small selection has been included belowFlevy.com Business ToolkitsWe are constantly adding new end-to-end Business Toolkits to Flevy:https://flevy.com/business-toolkits Balanced Scorecard Toolkit https://flevy.com/business-toolkit/balanced-scorecard-bsc Business Case Development Toolkit https://flevy.com/business-toolkit/business-case-development-bcaseChange Management Toolkit https://flevy.com/business-toolkit/change-management-cmPerformance Management Toolkit https://flevy.com/business-toolkit/performance-management-perfPricing Strategy Toolkit https://flevy.com/business-toolkit/pricing-strategy-psProduct Launch Toolkit https://flevy.com/business-toolkit/product-launch-strategy-plsStrategic Planning Toolkit https://flevy.com/business-toolkit/strategic-planning-spValue Chain Analysis Toolkit https://flevy.com/business-toolkit/value-chain-analysis-vc We have 40+ Business Toolkits


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You can download a Strategy Development Discussion deck for free from Flevy.comPARTIAL PREVIEWDownload a Strategy Development Discussion Deck for Free here:http://flevy.com/share DESCRIPTIONThis is a discussion deck template for a corporate strategy development session. In this discussion, we go through a 2-prong approach to growth and evaluate the merits of various growth drivers. From the 2-prong approach, various scenarios can be generated in the discussions and dashboards are used to evaluate each scenario.

SD_TOOLKIT_FS_V5.PPT


Why is that only 20% of the sales team generate such a disproportionate amount of the sales? What if you were to only hire the best of the best?THE 16 HUMANISTIC ATTRIBUTES + BEHAVIORAL QUADRANTDownload the Fiaccabrino Selection Process Primer for Free here:http://flevy.com/fiaccabrino-selection-process DESCRIPTIONIn most sales organizations, there are 2 crippling truths1) 80-90% of sales are generated by only 20% of the sales team and 2) turnover is abysmal.The Fiaccabrino Selection Process (FSP) is a proven methodology for increasing sales and reducing turnover. It teaches you how to select only the "best of the best" for your organization. Whereas the methodology was originally developed for a sales organization, it can easily be modified and tweaked for other functions.The core of the framework is to understand 16 critical Humanistic Attributes.



Got business documents?You can join Flevy.com and sell your business documentsFlevy presents an effortless way for you to capitalize on your otherwise idle business documentsYou set the prices and retain 70% of each saleNo sign up fees No commitmentsupload as many or few documents as you wantRegister here: http://flevy.com/registerWe approve documents every 2-3 daysOnce the document is live on the Flevy marketplace, we will do the marketing and salesQuestions? Email us at [email protected] Earn passive income on Flevy by selling your old business documents register here: http://flevy.com/register



Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensiveknowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy whether it's to jumpstart projects, to find reference or comparison materials, or just to learn.Contact UsPlease contact us with any questions you may have about our company.General Inquiries [email protected]/PR [email protected] [email protected]

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