Presentation is loading. Please wait.

Presentation is loading. Please wait.

(c) Macmillan & Tampoe 2001 1 The Strategy Formulation Process Analytical Tools to Support the Strategy Formulation Process.

Similar presentations


Presentation on theme: "(c) Macmillan & Tampoe 2001 1 The Strategy Formulation Process Analytical Tools to Support the Strategy Formulation Process."— Presentation transcript:

1 (c) Macmillan & Tampoe The Strategy Formulation Process Analytical Tools to Support the Strategy Formulation Process

2 (c) Macmillan & Tampoe Thinking Tools for Strategists Intellectual frameworks e.g., Porters five forces model Value and supply chain models Structured Approaches e.g., SWOT analysis Scenario Planning Encoded Logic as Software Statistical techniques to test hypotheses and strength of feeling & relationships

3 (c) Macmillan & Tampoe Models as Analytical Tools Intellectual Frameworks Situational Analysis Simulations

4 (c) Macmillan & Tampoe Intellectual Frameworks - Models Models represent reality as understood by the model builder Models identify the main and secondary influencers associated with an issue Models represent the inter-relationships and interactions of these influences Once built and validated the model helps assess the results of different actions and events

5 (c) Macmillan & Tampoe Situational Analysis Models that derive the relationships based on the data presented e.g., neural networks, data envelopment analysis Benefits are that findings are based on data rather than on preconceptions Risks are that conclusions must be drawn from the results by experienced analysts who have a good understanding of the issues

6 (c) Macmillan & Tampoe Simulations Models that imitate real life Simulations have deterministic and random elements Real value derived from testing for the bizarre ideas Helps in the learning process where practical experience is limited E.g., expert systems, heuristic models

7 (c) Macmillan & Tampoe Strategy Software - Benefits Makes using the intellectual frameworks easier The encoded logic is a true representation of accepted theory Useful for those who understand but are not experts in the area Facilitates far greater analysis and what if testing

8 (c) Macmillan & Tampoe Strategy Software - Risks Accepting answers without validating the encoded logic Invalid inputs and assumptions Over-modeling because it can be done more easily working the figures to get the desired answer

9 (c) Macmillan & Tampoe Categories of Software Strategic Modeling Strategic Thinking Database Analysis Knowledge Transfer Expert Systems Decision Support Systems

10 (c) Macmillan & Tampoe Application of Strategy Support Tools New business, new venture, merger and acquisition analysis Assessment of risks and rewards Assessment of trends in industry, economy Assessing effects of alternative strategies Evaluating competitors Assessing strengths of opinion and relationships Modeling cost structures of organisations

11 (c) Macmillan & Tampoe Choosing Strategy Software Look for: Quality of documentation, training and help Reliability of encoded logic and repeatability Longevity of software and vendor Functionality - too much is as bad as too little Interfaces with other applications, compatibility with the Web, and data exchange Commercial terms and conditions Intellectual property of results


Download ppt "(c) Macmillan & Tampoe 2001 1 The Strategy Formulation Process Analytical Tools to Support the Strategy Formulation Process."

Similar presentations


Ads by Google