Sagacious strategy


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

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Sagacious strategy

  1. 1. Strategy Tools  SWOT  Porter’s Five Force  STEEPLED Analysis LouAnn Conner, Founder + CEO, All Rights Reserved
  2. 2. Strengths Opportunities Weaknesses Threats SWOT Analysis • LouAnn Conner, • Founder + CEO, All Rights
  3. 3. Examples advantages of position capabilities competitive advantage unique selling points resources financial resources culture processes innovation location Strengths Weaknesses Examples capability gaps weak proposition lack of competitive strength cash flow weak value chain morale, culture system or processes management depth Examples market development competitor’s vulnerabilities technology development global influence new market tactics: surprise, major contract business/product development information or research partnership seasonal, weather Opportunities Threats Examples political environment environment challenges market demand new technology or business model loss of key team member weather, natural disaster dropping market demand new competition • LouAnn Conner, • Founder + CEO, All Rights Reserved More SWOT Ideas
  4. 4. Too little detail, often a few words description Issues depend on where the line is drawn Highly dependent on who’s involved Focus mostly on issues (not necessarily root cause) Too many cooks spoil the soup - no agreement • LouAnn Conner, • Founder + CEO, All Rights Reserved Issues with SWOT
  5. 5. Social Technology Economic Environmen t Political Legal Ethical Demographics familial ties government research spending economic growth natural resources environment regulations environment regulations bribery, all levels ethnic ratio risk (failure) tolerance Industry focus on technological effort interest rates & monetary policies global warming trade policies employment laws IP religious makeup labor and social mobility new inventions and development government spending waste disposal/ recycling international trade regulations contract laws reputation ethnic tolerance lifestyle changes rate of technology transfer unemployment policy carbon foot print government organization / attitude consumer protection business ethnics religious tolerance work/career and leisure attitudes life cycle and speed of tech obsolescence taxation sustainable energy competition regulation trade unions client confidentiality mean / average age entrepreneurial spirit energy costs and use exchange rates threats from natural causes political stability corporate governance freedom of information children per couple education changes in IT inflation rates infrastructure safety regulations bankruptcy law opaqueness of contracts/agreement s GLTG acceptance fashion/hypes changes in internet stage of business cycle air quality political party changes legal basis - differs from home country integration of minorities, women living conditions mobile technology changes/adoption consumer confidence water quality openness to FDI privacy laws income distribution treatment of elderly and disabled trade agreements access to water government payment practices Template, by no means complete but a good starting point STEEPLED Analysis • LouAnn Conner, Founder + CEO, All Rights
  6. 6. • Identifies high level (macro) points, not how they impact company • Focuses on external issues, not how they relate internally to the company • Does not address company issues, or how to tackle identified issues • LouAnn Conner, • Founder + CEO, All Rights Reserved Issues with STEEPLED Analysis
  7. 7. Factor id in STEEPLED Analysis affecting Company Specific Impact on Company Risk to Company taxation 1. double taxation - no reciprocity with US - $$ 2. complicated taxes - required for 2 countries H slow adoption of smart phones 1. existing marcom will not work 2. added cost to find new comm channels M 1. 2. H, M, L 1. 2. H, M, L STEEPLED Analysis for potential overseas expansion Next Steps after STEEPLED • LouAnn Conner, • Founder + CEO, All Rights
  8. 8. Bargaining Power of Suppliers ThreatofSubstitute ProductorServices ThreatofNewEntrant Rivalry Among Existing Competitors Bargaining Power of Buyers Porter’s 5 Forces • LouAnn Conner, • Founder + CEO, All Rights
  9. 9. Static view of situation Inside out perspective Hard to talk about industries that overlap Focused only on meso level Issues with Porter’s • LouAnn Conner, • Founder + CEO, All Rights
  10. 10. STEEPLED Porter’s SWOT internal external micro macro meso Strategy Levels • LouAnn Conner, • Founder + CEO, All Rights