The Consultant’s Guide to Strategic Analysis
This article discusses slides taken from a strategy consulting presentation on the Strategic Analysis Framework. You can download the full PPT here.
This presentation focuses on the essential topic of Strategic Analysis, providing a structured approach to understanding and improving your organization’s strategic positioning. It emphasizes the importance of a thorough analysis to inform decision-making and drive effective strategies.
The framework consists of 3 distinct phases: Current Situational Analysis, Analysis Assessment, and Solution Analysis. Each phase builds on the previous one, utilizing various analytical tools such as the Basic Portfolio Matrix and PEST Analysis to evaluate internal characteristics, competitive positioning, and potential strategic alternatives. This methodical approach ensures a comprehensive understanding of your organization’s strengths, weaknesses, and opportunities for growth.
Structured Framework for Strategic Analysis Phases
The slide outlines a structured three-phase approach to strategic analysis: Analysis of Current Situation, Assessment of Current Situational Analysis, and Solution Analysis. Each phase includes key sections that guide your analytical process, starting with an understanding of your organization’s internal characteristics and financial performance, complemented by external macro-environmental factors.
In the second phase, you evaluate the summarized data to propose a strategic direction, identifying gaps that need addressing. This synthesis of internal and external insights informs your strategic decisions. The final phase focuses on generating and selecting strategic alternatives, defining goals and evaluation criteria to ensure alignment with your organization’s objectives.
This comprehensive framework serves as a roadmap for navigating complex strategic decisions, emphasizing the importance of thorough analysis at each stage. Utilize this structured approach to enhance clarity in your strategic planning processes.
Read a more in-depth analysis of this PPT slide here.
Framework for Comprehensive Current Situation Analysis
The slide presents a Current Situation Analysis framework, essential for understanding your organization’s operational context. It begins with basic descriptors, such as firm ownership, control, and the flow of goods, which lay the groundwork for deeper analysis.
Next, it outlines Internal Characteristics, focusing on resources, skills, and attributes that define your organization’s capabilities. The Current Strategy Description details corporate and competitive strategies, while the External Analysis examines industry dynamics. Additionally, Macro-Environment Scanning assesses external macroeconomic factors, and the Financial Performance Analysis reviews historical financial data, providing a comprehensive overview for informed decision-making.
Read a more in-depth analysis of this PPT slide here.
Framework for Analyzing Corporate and Competitive Strategies
The slide presents a framework for analyzing a company’s strategy at 2 levels: corporate strategy and competitive (business) level strategy. Corporate strategy defines the overall scope of the organization and prompts you to identify the specific businesses in which your organization operates. Key questions include which sectors you are engaged with and the associated product-customer segments for each business. This understanding is vital for guiding resource allocation and strategic direction.
In contrast, competitive level strategy focuses on how each business unit competes in its market. It emphasizes the need to analyze your firm’s strategic stance and value chain, detailing how each unit generates revenue and differentiates itself from competitors. A clear description of these elements is essential for evaluating the effectiveness of your competitive approach.
The visual elements on the slide illustrate the relationships between corporate and competitive strategies, highlighting their interconnectedness. This framework serves as a foundational tool for executives to assess their organization’s strategic positioning and make informed decisions about future directions.
Read a more in-depth analysis of this PPT slide here.
Framework for Current State Assessment and Strategic Direction
The slide presents a structured approach for assessing your organization’s current state, consisting of 3 sequential components. First, summarize current performance using metrics or portfolio matrices to identify existing issues. This evaluation clarifies the nature of any problems within your organization.
The second component involves projecting expected performance based on the current strategy. You should forecast future outcomes to determine if maintaining the existing strategy will lead to new challenges. This step encourages the development of a “most likely” scenario for your industry, allowing for a dynamic analysis of potential external changes.
Finally, formulate a rationale for action to guide your strategic decisions. This involves selecting broad strategic options and determining the appropriate analytical methods, such as Net Present Value (NPV) or a multi-goal framework. By following this methodology, you gain clarity on your challenges and opportunities, enabling more effective solutions.
Read a more in-depth analysis of this PPT slide here.
Strategic Analysis: Basic Portfolio Matrix Overview
This slide presents a Basic Portfolio Matrix for assessing your organization’s competitive position against industry attractiveness. It features 4 quadrants defined by 2 axes: “Industry Attractiveness” (Low to High) and “Firm’s Competitive Position” (Weak to Strong). Each quadrant indicates different strategic options based on your current standing and market conditions.
The upper left quadrant, where industry attractiveness is high and competitive position is strong, suggests optimal conditions for growth. Conversely, the lower left quadrant indicates low attractiveness and a weak position, signaling potential risks. The remaining quadrants represent opportunities for improvement or strategic shifts, allowing you to adapt your strategies based on market dynamics.
The matrix includes indicators for specific products or business units, helping you evaluate performance relative to the market. This adaptable framework emphasizes the importance of situational assessment in strategic planning, guiding your decision-making processes to align with both internal capabilities and external conditions.
Read a more in-depth analysis of this PPT slide here.
Framework for Political Strategy Elements
The slide outlines a framework for political strategy, emphasizing key components that guide organizations in assessing their political positioning. At its core, “POLITICAL STRATEGY” emerges from evaluating the costs and benefits associated with specific issues, driving informed decision-making.
The framework consists of 5 main components. First, “LEVEL & TYPE OF INCLUSIVITY ALTERNATIVES” addresses the scope of engagement, ranging from firm-specific to industry-wide strategies. Next, “TYPE OF ARGUMENT ALTERNATIVES” categorizes arguments into factual, efficiency-based, and equity-focused types, highlighting the need for persuasive communication. The “TARGET ALTERNATIVES” section identifies relevant political systems and entities, while “FINANCIAL CONTRIBUTIONS ALTERNATIVES” discusses the strategic implications of financial engagement. Finally, “DELIVERY ALTERNATIVES” outlines methods for implementing strategies, whether through direct provision or outsourcing.
Read a more in-depth analysis of this PPT slide here.
Strategic Positioning Using the GE Matrix
The General Electric (GE) Matrix is a strategic tool for assessing your organization’s position within its industry. It categorizes business units based on 2 dimensions: industry attractiveness and your firm’s competitive position. The matrix features 4 quadrants, each indicating a different strategic action: “Invest,” “Maintain,” and “Harvest or Divest.” This visual representation helps you make informed decisions about resource allocation and strategic direction.
The vertical axis ranks “Industry Attractiveness” from high to low, while the horizontal axis represents the “Firm’s Competitive Position,” ranging from strong to weak. Units in the high attractiveness and strong competitive position quadrant should receive investment to capitalize on growth opportunities. Conversely, units in the low attractiveness and weak competitive position quadrant require a strategy to minimize investment or exit the market.
Key factors influencing these assessments include market size, growth rates, competition intensity, and external influences such as social and regulatory factors. Understanding these elements allows you to allocate resources effectively and align your strategic planning with overall business objectives.
