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 slideshare covers frameworks that deal with both sides—Strategy 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 slideshare 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 Curve
Porter’s Five Forces
BCG Growth-Share Matrix
Marketing Mix (4/7 P’s)
Blue Ocean Strategy
SWOT Analysis
PEST Analysis
Product Lifecycle
Consumer Adoption Curve
Balanced Scorecard
Organizational Hurdles
Hoshin Kanri
Each framework is geared towards a specific type of analysis—pick and choose the best frameworks to use for your particular business problem.
Introduction to Business Strategy Development & Strategy Execution
1. Flevy Business Primer
Introduction to Business Strategy
Development & Execution
This primer is available for free at http://flevy.com/strategy-frameworks
2. Flevy Business Primer
Introduction to Business Strategy
Development & Execution
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 introduces 12
powerful business frameworks for Strategy Development and Strategy Execution.
Consolidation-
Endgame Curve
STRATEGY DEVELOPMENT STRATEGY EXECUTION
Blue Ocean
Strategy
Marketing Mix
(4/7 P’s)
Porter’s Five
Forces SWOT Analysis Product Lifecycle
BCG Growth-Share
Matrix PEST Analysis Consumer Adoption Curve
1
2
3
4
5
6
7
8
9
Balanced
Scorecard
Organizational
Hurdles
Hoshin Kanri
10
11
12
This primer is available for free at http://flevy.com/strategy-frameworks
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4. 4 4
Contents
Overview 5
Strategy Development Frameworks 7
Strategy Execution Frameworks 34
Summary 44
Appendix 50
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5. 5 5
Contents
Overview
Strategy Development Frameworks
Strategy Execution Frameworks
Summary
Appendix
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6. 6 6
Strategy without execution is merely theory—in this document, we will
discuss 12 frameworks on Strategy Development and Execution
Executive Summary
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 sides—Strategy 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 Curve
• Porter’s Five Forces
• BCG Growth-Share Matrix
• Marketing Mix (4/7 P’s)
•Blue Ocean Strategy
•SWOT Analysis
•PEST Analysis
•Product Lifecycle
•Consumer Adoption Curve
•Balanced Scorecard
•Organizational Hurdles
•Hoshin Kanri
Each framework is geared towards a specific type of analysis—pick and choose the best
frameworks to use for your particular business problem.
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7. 7 7
Contents
Overview
Strategy Development Frameworks
Strategy Execution Frameworks
Summary
Appendix
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8. 8 8
In this section, we will cover 9 strategy frameworks—6 focus on external,
competitive factors, while 3 rely on internal strategies
Strategy Development Frameworks
Consolidation-Endgame
Curve
7
Blue Ocean Strategy Marketing Mix (4/7 P’s)
4
5
8
Porter’s Five Forces SWOT Analysis Product Lifecycle
6
9
BCG Growth-Share Matrix PEST Analysis Consumer Adoption Curve
These first 6 frameworks focus more on Industry and
Competitive Analysis—they are more externally focused.
These 3 frameworks are more Product
focused—and rely on more internal
strategies.
A well developed strategy should use at least 5 of the above analyses covering both
external and internal perspectives.
1
2
3
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9. Blue Ocean
Strategy Marketing Mix
9 9
1. Consolidation-Endgame Curve
Overview
Consolidation-
Endgame Curve
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
This framework not only helps us define a more informed corporate strategy, but also helps
define our organizational structure and the proper management team.
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Adoption Curve
• The 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
lifecycle—Opening, 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 industry’s 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.
10. 1. Consolidation-Endgame Curve
4 Stages of Consolidation
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Stage IV
BALANCE & ALLIANCE
Stage III
FOCUS
Stage II
SCALE
Stage I
OPENING
DESCRIPTION
COMBINED
SHARE OF TOP
3 PLAYERS
The industries operating in
the Opening stage include
newly deregulated
industries, startups, and
spin-off industries
New industry catalysts can
include new technology,
new regulation, new ideas,
and new consumer needs
There is little to no market
concentration at this point
In the Scale stage, major
players begin to emerge
and size begins to matter
—these players take the
lead in consolidation
Niche players begin to feel
pressure
Concentration rates can
be as high as 45% in
some industries
In the Focus stage,
successful players
continue to aggressively
outgrow competition
These companies focus—
meaning they extend their
core business and
eliminate secondary
business units
The supply and value
chains begin to be
streamlined
In the final stage,
consolidation rates reach
90%, so a few players
dominate each industry at
this point
Large companies form
alliances with each other,
as growth is challenging at
this stage
Companies often look for
new Opening-stage
industries to expand into
41% 42% 50% 70%
In the final stage, industry titans dominate the landscape, controlling 70% of the market—any
number of businesses can occupy the remaining 30%.
Source: Winning the Merger Endgame, 2002
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11. 1. Consolidation-Endgame Curve
Consolidation-Endgame Curve Diagram
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Stage I
OPENING
Stage II
SCALE
Stage III
FOCUS
BALANCE & ALLIANCE
Maximum
Minimum
Combined market
share of top 3 players
The combined market share of the top 3 players follows an S-curve.
100%
50%
0%
Combined
Share of
Top 3
Players
Source: Winning the Merger Endgame, 2002
Adoption Curve
Stage IV
Time
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12. 1. Consolidation-Endgame Curve
More Information
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
• This framework is explained in detail in the
document Consolidation Endgame Curve
• Topics 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 strategies
DETAILS
• Seller: LearnPPT
• File size: 800KB
• Number of Slides: 29
RELATED DOCUMENTS/FRAMEWORKS
• Guide 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
Learn more about the Consolidation-Endgame Curve here:
https://flevy.com/browse/business-document/consolidation-endgame-curve-framework-201
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13. Porter’s Five Forces
Overview
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
BCG Matrix PEST Analysis Consumer
Adoption Curve
• Developed by Michael Porter, recognized as the father of modern business strategy, Porter’s Five Forces is one
of the most well known classic strategy frameworks
• Porter’s 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 forces—Potential 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 attract it is to compete in any industry, as well as what the overarching
strategy should be to compete successfully in the industry—success 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
Several important economic and technical characteristics of an industry are critical to the
strengths of each competitive force.
Lifecycle
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14. Porter’s Five Forces
5 Forces Explained and Framework Diagram
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Threat of New Entrants
Competitive Advantage
Lower Cost Differentiation
Cost
Leadership Differentiation
Cost
Focus
Competitive
Scope
Broad
Narrow
Barriers to entry:
Economies of scale (including shared resources)
Product differentiation (proprietary)
Capital requirements
Switching costs
Access to distribution channels
Cost disadvantages independent of scale
Government policy
Expected reaction of incumbent
Bargaining Power of Suppliers Intensity of Rivalry
Bargaining Power of Buyers
Intense rivalry results from:
Numerous or equally balanced competitors
Slow industry growth
High fixed or storage costs
Lack of differentiation or switching costs
Capacity augmented in large increments
Diverse competitors
High strategic stakes
High exit barriers
Pressure from Substitute Products
A 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.
Exit Barriers
L H
Low,
stable
returns
Low, risky
returns
High,
stable
returns
High, risky
returns
Entry
Barriers
L
H
Differentiation
Focus
A 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 defense
Influencing the balance of forces through strategic
moves
Anticipating shifts in the factors underlying the
forces and responding to them
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15. Porter’s Five Forces
More Information
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
• This framework is explained in detail in the
document Porter’s Five Forces
• Flevy has multiple documents that discuss and
teach this framework in detail:
• Porter’s 5 Forces Model and Application
• Complete Business Frameworks Guide
RELATED DOCUMENTS/FRAMEWORKS
• Growth 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-114
• Industry Analysis - http://flevy.com/browse/business-document/industry-analysis-773
Learn more about Porter’s Five Forces here:
DETAILS
• Seller: LearnPPT
• File size: 800KB
• Number of Slides: 26
https://flevy.com/browse/business-document/porters-five-forces-235
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16. BCG Growth-Share Matrix
Overview
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
• The 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 company’s 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
Question 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 company’s 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.
This 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.
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17. BCG Growth-Share Matrix
4 Quadrants Explained
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Cash Cow
Dog
Question
Mark
Star
?
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.
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18. BCG Growth-Share Matrix
BCG Matrix Framework Diagram
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Y%
Industry
Growth
X%
Star Question Mark ?
Cash Cow Dog
Z 0
Relative
Market Share
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19. BCG Growth-Share Matrix
More Information
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
• This framework is explained in detail in the
document BCG Growth-Share Matrix
• Topics covered include: quadrant definitions,
analysis steps/process, examples, templates, and
tips.
RELATED DOCUMENTS/FRAMEWORKS
• Market Analysis - https://flevy.com/browse/business-document/market-analysis-215
• Product Lifecycle - https://flevy.com/browse/business-document/product-lifecycle-227
Learn more the BCG Growth-Share Matrix here:
DETAILS
• Seller: LearnPPT
• File size: 400KB
• Number of Slides: 9
https://flevy.com/browse/business-document/bcg-growth-share-matrix-200
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20. Blue Ocean Strategy
Overview
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
• Blue 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 Strategy challenges many of the conventional principles of strategy, based on the
pursuit of “competitive strategy.”
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21. Blue Ocean Strategy
Value Creation Thinking
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Growth Focus
Value Identification
Value Creation
• Select and develop
growth option
• Align operating model to
deliver value and fair
value Concept Execution
Effective Execution
• Start with customer needs
• Look beyond traditional
markets, industries and
competitors
• Create multi-horizon
portfolio
• Develop growth platforms
for “market mining”
• Understand what the
customer values
• Prioritize initiatives
Consumer
Need
Market
Trends
Growth Platform
Value
• Venture Launch
• Organizational alignment
• Funding / Resource
Allocation
• Measurements
• Accountability
Sustainable Growth
Structure
• Infrastructure
• Culture
• Alliance Management
• M&A
Eliminate Reduce Raise Create
Costs
Value
Value
Innovation
Source: C. Kim, R. Mauborgne, Harvard Business Review (1997)
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22. Blue Ocean Strategy
Value Curve Framework and Diagram
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
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.
Eliminate
Which of the attributes
that our industry takes
for granted should be
eliminated?
Traditionals
Reduce Raise Create
Which attributes should
be reduced well below
the industry’s
standards?
+
Value
-
Source: C. Kim, R. Mauborgne, Harvard Business Review (1997)
Which attributes should be
raised well above the
industry’s standards?
Value
Innovator
Which attributes should be
created that the industry
has never offered?
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23. Blue Ocean Strategy
More Information
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
• We 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-114
2.4MB, 35 slides, includes 1-page mind map (PDF)
• Blue Ocean Strategy Primer
https://flevy.com/browse/business-document/Blue-Ocean-Strategy-Primer-113
600KB, 18 slides
RELATED DOCUMENTS/FRAMEWORKS
• Blue Ocean Strategy Canvas (Excel Template) -
https://flevy.com/browse/business-document/blue-ocean-strategy-canvas-template-448
• Growth 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
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24. SWOT Analysis
Overview
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
• The 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 company’s 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.
Many market research firms routinely publish SWOT analyses for public companies.
Adoption Curve
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25. PEST Analysis
Overview
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
• PEST 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:
• Porter’s Five Forces;
• SWOT Analysis;
• Value Chain Analysis; and
• Industry financials.
• PEST Analysis is often performed in a 3-phase process: data collection, industry trend analysis, and trend quantification.
PEST Analysis been sometimes been extended to include Legal and Environmental, forming
the name PESTLE Analysis.
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26. Marketing Mix (4/7 P’s)
Overview
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
• The 4 P’s 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 product’s marketing strategy.
• The 4 P’s refer to Price, Product, Promotion, and Placement.
• This framework has been extended to 7 P’s, to also include Physical Evidence, People, and Process.
• The definitions for the additional 3 P’s should not be confused with the People-Process-Technology framework, which is
more operationally-focused (vs. consumer-focused).
In most cases, Price and Product are the more important factors and are determined
first—as these are more closely tied to our competitive advantage.
Adoption Curve
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27. Marketing Mix (4/7 P’s)
Definitions of the P’s
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Product
A 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 line’s 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 company’s 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 company’s
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 consumer’s view of this product’s attributes versus the attributes of other products) must be taken into
account.
Price
1
2
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28. Marketing Mix (4/7 P’s)
Definitions of the P’s
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Promotion
All 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
Price used by the marketer to complement the other aspects of the marketing mix.
3
4
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29. Marketing Mix (4/7 P’s)
Definitions of the P’s
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Physical
Evidence
Elements 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
Process
The additional 3 P’s are mostly relevant to Service marketing.
5
6
7
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30. Marketing Mix (4/7 P’s)
More Information
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Porter’s Five
Forces SWOT Analysis Product
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
Below, we have compiled a number of Corporate Marketing-focused frameworks and tools.
PRICING STRATEGY
• Pricing Strategy Framework - https://flevy.com/browse/business-document/pricing-strategy-226
• Pricing Strategy Workshop - https://flevy.com/browse/business-document/pricing-strategy-workshop-764
• Price Increase Execution - http://flevy.com/browse/business-document/best-practices-in-price-increase-execution-681
PRODUCT STRATEGY
• Product Lifecycle - https://flevy.com/browse/business-document/product-lifecycle-227
• Rogers’ Five Factors - https://flevy.com/browse/business-document/rogers-five-factors-169
• Psychology of Product Adoption - https://flevy.com/browse/business-document/psychology-of-product-adoption-203
MARKETING PLAN DEVELOPMENT
• Marketing Plan Framework - https://flevy.com/browse/business-document/marketing-plan-development-framework-174
• Strategic Marketing and Sales Planning - https://flevy.com/browse/business-document/strategic-marketing-and-sales-planning-612
• Strategic Marketing Plan Template - https://flevy.com/browse/business-document/strategic-marketing-plan-template-676
The Flevy author DemandMetric specializes in Corporate Marketing tools built in Excel:
https://flevy.com/seller/demandmetric
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31. Product Lifecycle and Consumer Adoption Curve
Overview
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Forces SWOT Analysis Product
Porter’s Five
BCG Matrix PEST Analysis Consumer
• Product 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 we’re 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, the 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.
Be aware that as a product moves through its lifecycle, the likelihood of customers
switching to a substitute product increases.
Lifecycle
Adoption Curve
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32. Product Lifecycle and Consumer Adoption Curve
Product Lifecycle Mapped on Consumer Adoption Curve
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Forces SWOT Analysis Product
Porter’s Five
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
“Crossing the Chasm”
STAGE 1
INTRODUCTION
Innovators
(2.5%)
STAGE 2
GROWTH
Early Adopters
(13.5%)
Early Majority
(34%)
Late Majority
(34%)
STAGE 4
DECLINE
Laggards
(16%)
STAGE 3
MATURITY
It is useful to map all products within an industry or product category against the Adoption
Curve—to visualize dynamics among products (e.g. substitution, complements).
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33. Product Lifecycle and Consumer Adoption Curve
More Information
Consolidation-
Endgame Curve
Blue Ocean
Strategy Marketing Mix
Forces SWOT Analysis Product
Porter’s Five
Lifecycle
BCG Matrix PEST Analysis Consumer
Adoption Curve
• Both frameworks are explained in the document
Product Lifecycle, with the emphasis on Product
Lifecycle Analysis
• Additional topics covered include: Bass Diffusion
Model, Lifecycle-Performance Factor Matrix,
strategic positioning, and substitution analysis.
DETAILS
• Seller: LearnPPT
• File size: 700KB
• Number of Slides: 34
RELATED DOCUMENTS/FRAMEWORKS
• Pricing Strategy – https://flevy.com/browse/business-document/pricing-strategy-226
• Psychology of Product Adoption - https://flevy.com/browse/business-document/psychology-of-product-adoption-203
• Complete Business Frameworks Guide -
https://flevy.com/browse/business-document/complete-business-frameworks-reference-guide-644
Learn more about Product Lifecycle and Consumer Adoption Curve analyses here:
https://flevy.com/browse/business-document/product-lifecycle-227
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34. Contents
Overview
Strategy Development Frameworks
Strategy Execution Frameworks
Summary
Appendix
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35. In this section, we will cover 3 strategy execution frameworks
Strategy Execution Framework
1 2 3
Balanced Scorecard Organizational Hurdles Hoshin Kanri
Organizations spend 90-95% of their time and resources on execution—despite this, most
organizations fail at the execution of their strategies.
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36. Balanced Scorecard
Overview
Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
• The 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 company’s relationship with its customers;
• Its key internal business processes; and
• Its 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 company’s 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.
The BSC framework is flexible in that it allows for the strategy itself to evolve in response to
changes in the company’s competitive, market, and technological environments.
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37. Balanced Scorecard
4 Management Key Processes – Framework and Definitions
Communicating and Linking
• Communicating and educating
• Setting goals
• Linking rewards to performance
measures
2
Source: Balanced Scorecard, Kaplan and Norton (2005)
Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
Translating the Vision
• Clarifying the vision
• Gaining consensus
Balanced
Scorecard
Feedback and Learning
• Articulating the shared vision
• Supplying strategic feedback
• Facilitating strategy review and
learning
Business Planning
• Setting targets
• Aligning strategic initiatives
• Allocating resources
• Establishing milestones
1
3
4
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38. Balanced Scorecard
More Information
Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
• The BSC framework is explained in detail in our
document Balanced Scorecard
• Topics 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 Learning
• We have a number of other BSC documents,
listed below
RELATED DOCUMENTS/FRAMEWORKS
• BSC Strategy Map - https://flevy.com/browse/business-document/balanced-scorecard-strategy-map-256
• BSC 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
Learn more about the Balanced Scorecard here:
DETAILS
• Seller: PPTLab
• File size: 600KB
• Number of Slides: 27
https://flevy.com/browse/business-document/balanced-scorecard-134
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39. Organizational Hurdles
Overview
Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
• In 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.
In Blue Ocean Strategy, the concept of overturning conventional wisdom on doing things is
called “tipping point leadership.”
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40. Organizational Hurdles
4 Organizational Hurdles Definitions
1 2 3 4
Cognitive
Hurdle
Resource
Hurdle
• Limited resources—
whether in staff or finances
• The greater the shift in
strategy, the greater the
resources needed to
execute it
• An organization stuck on
the status quo—an
unwillingness to “rock the
boat”
Source: Blue Ocean Strategy, Kim and Mauborgne, 2005
Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
Motivational
Hurdle
Political
Hurdle
• Opposition from powerful
vested interests
• Any significant shift to an
organization will result in a
shift in political power
• An unmotivated staff
• Motivating staff to change
the status quo often takes
years—time that most
organizations cannot
afford
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41. Organizational Hurdles
More Information
Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
• The 4 Organizational Hurdles are discussed in the
document Guide to Business Strategy
Execution
• This 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 Scorecard
DETAILS
• Seller: LearnPPT
• File size: 700KB
• Number of Slides: 48
RELATED DOCUMENTS/FRAMEWORKS
• Balanced 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-375
• Formulating a Breakthrough Strategy - https://flevy.com/browse/business-document/formulating-a-breakthrough-strategy-598
Learn more Organizational Hurdles and other Strategy Execution frameworks here:
http://flevy.com/browse/business-document/guide-to-business-strategy-execution-873
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42. Hoshin Kanri
Overview
Balanced
Scorecard
Organizational
Hurdles
• Hoshin 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; and
• Hold participants accountable for achieving their part of the plan.
• Hoshin Kanri is falls under the umbrella of Lean Thinking (or called Lean Management, Lean Methodologies). Lean
frameworks strive for continuous improvement of the organization.
Hoshin Kanri strives to get every employee pulling in the same direction at the same time.
Hoshin
Kanri
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43. Hoshin Kanri
More Information
Balanced
Scorecard
Organizational
Hurdles
Hoshin
Kanri
• This framework is explained in more detail in our
document Hoshin Kanri Strategy Deployment
• Topics covered include: underlying principles of
Hoshin Kanri, PDCA Approach, Hoshin Kanri
Tools, Elements of Hoshin Kanri, Management
Reviews, and Critical Success Factors
FLEVY AUTHORS WHO SPECIALIZE IN LEAN / OPERATIONAL EXCELLENCE FRAMEWORKS
• OEConsulting - https://flevy.com/seller/oeconsulting
• Operational Excellence Consulting - https://flevy.com/seller/oec
LEAN / OPERATIONAL EXCELLENCE BUSINESS TOOLKITS
• Lean Management / Enterprise - https://flevy.com/business-toolkit/lean-management-enterprise-lean
• Six Sigma - https://flevy.com/business-toolkit/six-sigma-project-6s
Learn more about Hoshin Kanri here:
DETAILS
• Seller: OEConsulting
• File size: 11.8MB
• Number of Slides: 145
https://flevy.com/browse/business-document/Hoshin-Kanri-155
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44. Contents
Overview
Strategy Development Frameworks
Strategy Execution Frameworks
Summary
Appendix
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45. In this primer, we introduced 12 different business frameworks related to
Strategy Development and Execution
Summary
In 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.
Consolidation-
Endgame Curve
STRATEGY DEVELOPMENT STRATEGY EXECUTION
Blue Ocean
Strategy
Marketing Mix
(4/7 P’s)
Porter’s Five
4
5
7
8
Forces SWOT Analysis Product Lifecycle
BCG Growth-Share
6
9
Matrix PEST Analysis Consumer Adoption Curve
1
2
3
Balanced
Scorecard
Organizational
Hurdles
Hoshin Kanri
10
11
12
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46. Here is a list of business frameworks and methodologies that have NOT
been referenced earlier in this document
Additional Frameworks – Strategy Development
STRATEGY DESIGN & DEVELOPMENT
• Strategy Development Methodology - https://flevy.com/browse/strategy-marketing-and-sales/strategy-development-methodology-264
• Strategy 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-705
• Success 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-700
• Competitive Analysis - https://flevy.com/browse/business-document/competitive-analysis-689
• Profit Pools Framework - https://flevy.com/browse/business-document/profit-pools-concept-744
• Value 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-735
• Competitive Assessment - https://flevy.com/browse/business-document/guide-to-competitive-assessment-760
• Industry Analysis - https://flevy.com/browse/business-document/industry-analysis-773
• Market Entry Strategy - https://flevy.com/browse/business-document/market-entry-strategy-776
• Shareholder Value Analysis - https://flevy.com/browse/business-document/shareholder-value-analysis-734
• Market Modeling and Sizing - https://flevy.com/browse/business-document/building-a-market-model-and-market-sizing-376
• Business Case Development - https://flevy.com/browse/business-document/business-case-development-framework-199
• Cost Drivers Analysis - https://flevy.com/browse/business-document/cost-drivers-analysis-76
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47. Additional Frameworks – Strategy Execution
STRATEGY EXECUTION & DEPLOYMENT
• Strategy Planning & Deployment Training -
https://flevy.com/browse/strategy-marketing-and-sales/opex-strategy-planning-and-deployment-training-module-597
• McKinsey 7-S Model - https://flevy.com/browse/strategy-marketing-and-sales/mckinsey-7-s-strategy-model-197
• Corporate Performance Measurement - https://flevy.com/browse/business-document/corporate-performance-measurement-696
• Change Management Methodology - https://flevy.com/browse/business-document/change-management-methodology-241
• Benchmarking for Performance - https://flevy.com/browse/business-document/benchmarking-for-world-class-performance-156
• Scenario Planning - http://flevy.com/browse/business-document/scenario-planning-243
• Value Stream Mapping - https://flevy.com/browse/business-document/opex-value-stream-mapping-training-module-599
• Soft Side of Change Management - https://flevy.com/browse/business-document/soft-side-of-change-management-261
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48. Here are 9 of our featured sellers on Flevy—each seller has an extensive
management consulting background and many operate their own firms
Recommended Authors/Contributors
OE CONSULTING
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49. We have assembled a number of Business Toolkits, each focused on a
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50. Contents
Overview
Strategy Development Frameworks
Strategy Execution Frameworks
Summary
Appendix
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