Want to take your company to the next level? You need a roadmap, a strategy. Preferably one that is simple, workable and saleable. This book provides you with just that. It sets out a straightforward strategy development process, the 'Strategy Pyramid', and guides you through it. It uses a lively central case study throughout, as well as drawing on examples of how real businesses have developed winning strategies. Whether you are intent on growing your business, or setting out on your start-up, this book offers an uncomplicated, practical and readable guide on how to get the strategy you need for your business to succeed.
It offers sound advice on the following areas:
Setting goals and objectives
Forecasting market demands
Gauging industry competition
Tracking competitive advantage
Targeting the strategic gap
Bridging the gap with business strategy
Bridging the gap with corporate strategy
Addressing risk and opportunity
The FT Essential Guide to Developing a Business Strategy will help businesses of all sizes to chart and realise their growth ambitions.
Vaughan Evans is an independent strategy consultant (www.managingstrategicrisk.com) with a background in industry economics. He worked at management and technology consultants Arthur D. Little and at investment bank Bankers Trust. Vaughan graduated from Cambridge and has a Sloan Fellowship with distinction from London Business School. He is the author of four previous books, including the best-selling Financial Times Essential Guide to Writing a Business Plan.
Introduction Why strategy? What is strategy? What is the output? What is the outcome? What is a strategic plan? What is strategic planning? The Strategy Pyramid Business vs corporate strategy Part One: Strategy Development 1. Knowing Your Business Identifying key segments Essential example: Apple's saviour segments Segmentation in a start-up Essential case study: Extramural Ltd - the business 2. Setting Goals and Objectives Setting long-term goals Essential example: Life at Mars Setting SMART objectives Essential case study: Extramural Ltd - goals and objectives 3. Forecasting Market Demand Sizing the market Forecasting market demand Essential tool: Moving averages Essential example: No wrap for the cinema Forecasting demand for a start-up Market demand risks and opportunities Essential case study: Extramural Ltd - market demand 4. Gauging Industry Competition Assessing competitive intensity Assigning customer purchasing criteria Deriving key success factors Essential tool: Economies of scale Essential example: Jessops is shuttered Gauging competition in a start-up Industry competition risks and opportunities Essential case study: Extramural Ltd - industry competition 5. Tracking Competitive Advantage Rating competitive position Essential tool: Product/market risk Reviewing resources and capabilities Essential tool: The value chain Essential example: The everlasting Monsoon Creating competitive advantage in a start-up Essential example: Of diet, dance and detectives Essential case study: Extramural Ltd - competitive advantage 6. Targeting the Strategic Gap Targeting the portfolio gap Targeting the capability gap Profiling the ideal player Specifying the target gap Essential example: Could Liverpool FC be champions again? Targeting the gap in a start-up Essential case study: Extramural Ltd - strategic gap 7. Bridging the Gap: Business Strategy Opting for a generic strategy Essential tool: The experience curve Strategic repositioning and shaping profit growth options Essential tool: Uncontested market space Making the strategic investment decision Essential example: Sainsbury's fights back Bridging the gap for a start-up Business strategic risks and opportunities Essential case study: Extramural Ltd - business strategy 8. Bridging the Gap: Corporate Strategy Optimising the corporate portfolio Essential tool: The growth/share matrix Creating value from mergers, acquisitions and alliances Essential tool: Parenting value Building strategically valuable resources Essential tool: Core competences Essential example: UU U-turn Corporate strategic risks and opportunities Essential case study: Extramural Ltd - corporate strategy 9. Addressing Risk and Opportunity Reviewing plan in a market context Appraising opportunity versus risk Essential tool: Expected value and sensitivity analysis Essential example: Britney does it again Essential case study: Extramural Ltd - risk and opportunity Part Two: Strategic Planning 10. The Strategic Plan Strategy + Business Plan = Strategic Plan Contents of a strategic plan Reviewing the plan 11. The Strategic Planning Process Strategic planning in a multi-business corporation Essential tool: Deliberate vs emergent strategy Strategic planning in a small or medium-sized enterprise Strategic planning for a start-up Conclusion Appendix Structured interviewing Further Reading Glossary Index