30 Strategy Models over 75 years

ABG Springboard and Turning Point Groups

Shiv 3 May 2021

Shiv- 30 Strategy Models over 75 years

This deck outlines the various strategy tools
we use, for your basic awareness and
understanding.

There are 30 models that cover about 75 years

of strategy thinking.

Shiv- 30 Strategy Models over 75 years

1. SWOT analysis
Strengths Weaknesses

Opportunities

Threats

The most used model in all companies, because it is simple to understand and use.
Good to remember that X axis is about impact and Y axis is about probability
It is a qualitative model, strength of assumptions is important
Shiv- 30 Strategy Models over 75 years
2. Porter’s 5 Forces Model
Threat of
new Strategy has a competitive context that
entrants
involves buyers, sellers, substitutes. This

model helps you see this more holistically.

It’s a descriptive model, not a prescriptive

Supplier Rivalry from Buyer
bargaining existing bargaining
power competitors power one.

Think about power in which box is either

increasing or decreasing and why

Threat of
substitutes
Shiv- 30 Strategy Models over 75 years
3. Porters 3 Generic Strategies
Porter argues that there are 3 Generic
strategies to deliver above average results
Cost Difference
in any industry:
1. You can be the cost leader via efficiency
2. You can develop unique product
Broad 1.Cost 2. offerings or services offerings
leadership Differentiation 3. You can focus on niche segments or
markets.
Narrow 3. Focus 3.Focus
You must ask who is the cost leader in your
market, who is the most innovative , who is
stuck in the middle.
The normal journey is to get to low cost
first, then differentiate and finally broader
differentiation in a broader market.

Shiv- 30 Strategy Models over 75 years

4. Burgelman’s Strategy Dynamics Model

Company sticks Company changes

with industry rules industry rules The building of a strategy does
not happen in a vacuum. It
happens in the context of an
Environment is rule Low industry Controlled industry environment that can be stable
abiding change change or dynamic. It is important to
know what kind of an industry
you are in and what kind of a
Environment is rule Independent Runaway industry company you are. Many times
changing industry change change companies tend to say x
company can do it but we
cannot , invariable offering
excuses to give because they
dint want to change.

Shiv- 30 Strategy Models over 75 years

 5. Porter’s Value Chain
Think of your company as a
Supplier Value Chain Organizational Value Buyer Value Chain chain of activities within a
Chain chin that captures value in
the industry.
How well do the company
Support activities Infrastructure How can these create functions perform and add
HR value for a buyer value?
Technology How can we improve the
Procurement collaborating ways of
working between functions
Primary activities Inbound logistics Profit poll to create value fir the buyer?
Operations Are the individual functions
Outbound logistics the best in industry?
Sales and marketing How does your way of
Service creating value map vs
competition?

Shiv- 30 Strategy Models over 75 years

6. Core Competencies, Resource based view
Core competencies are a combination
of resources and capabilities available
in a company. They become strategic
assets when they have distinctive
Understanding
external
capability, particularly when it helps
environment achieve results.
Look at the external environment and
try and get flexible to met the external
changes.
Core
competencies The company internal dynamics are
held together by a set if values and
behaviors
A company has tacit knowledge of
Understanding Understanding what’s happening with competitors
Internal competitive
dynamics dynamics and the market.

Shiv- 30 Strategy Models over 75 years

7. Nonaka and Takeuchi’s Knowledge Spiral
• Your company wants to know what you are good at and how you can turn
that into an advantage.
• A key component is how you learn and what you know.
• Tacit knowledge is what we know and don’t need to write it down.
• Explicit is what we know and has ben codified and clearly stated
• Socialization is where most new knowledge comes from, this is about how
learning is shared in a company.
• Internalization is how we formally teach what’s written down.
• Externalization is to write down your recipes using models so that they are
easy to learn
• Combination outs your recipe and formal knowledge together to create
better ways to achieve your goals.
Shiv- 30 Strategy Models over 75 years
8.Peters,Athos and Waterman’s 7 S framework
Structure 1. Strategy depends on combining many parts in a way that

Strategy can deliver superior value

2. This framework shows that strategy is mote than
Systems managing a portfolio.

Superordinate goals 3. Organization is more than structure.

4. Each part of the organization must be aligned to create
Skills
value.
Staff 5. The key is to make the 7 work in a coherent way
6. Is there sufficient tension between these parts and what
Style
opportunities exit there?

Shiv- 30 Strategy Models over 75 years

9. Scenario Planning
• List the assumptions you are making about the future.
• Assumptions must be open and transparent and hence increase range of
options to discuss.
• Focus moves form what’s happening globally to what competition is doing
• Consider a range of obvious and less obvious options.
• Making sense : what does a trend mean?
• Anticipate changes: What might happen in the future? What might
competition do?
• Learning: how can we learn about what’s happening and with our
customers? Are we experimenting with the new learning?
• Develop strategy: Are we flexible enough to deal with an uncertain future?
Shiv- 30 Strategy Models over 75 years
10. Ansoff Growth Grid 1. This is a simple model and many

Current New product American firms used this to explore

product/service product/service
global markets in the 1970 s and

1980s.

Current market Increase penetration, Product 2. Start by listing current products and
what is retaliation development, how
and legalities? expensive and how markets.
risky?
3. Look at SWOT
New market Market development, Diversification, will it
new users and be positive or 4. Think about existing capabilities for
places? negative?
current markets and how can they

be stretched.
Shiv- 30 Strategy Models over 75 years
 11. BCG Matrix 1. This is the staple diet of MBAs.
2. When Bruce Henderson did this, it was
High Relative Low relative
market share market share more of a capital allocation model, where
do you invest and why do you invest?
3. The definition if a market is critical, if you
High market Stars Question marks
define too broadly or narrowly, then it
growth
makes no sense.
4. In the past market share was equated
Low market Cash cows Dogs
with profitability and there was enough
growth
correlation, that’s not true anymore.
5. The simplistic use of this can lead to a
stupid strategy

Shiv- 30 Strategy Models over 75 years

12. Kim and Mauborgne’s four actions
Which factors 1.Look at your product in terms of
should be
reduced below
industry customer and non customer
average?
preferences.
2.You could reduce some attribute,
eliminate it completely or raise the
Which factors
should be
New Which factors
should be level of that attribute or create a
eliminated that
industry takes fir
Value created that the
industry has
future attribute
granted? Curve never offered?

3.You are trying to avoid red oceans

where everyone is competing
You are trying to find blue oceans
Which factors
should be raised
well above
industry
benchmark?
Shiv- 30 Strategy Models over 75 years
13. Greiner’s Growth and Crisis Model
Phase 1 Phase 2 Phase 3 Phase 4 Co- Phase 5 Phase 6
Creativity Direction Delegation ordination Collaboration Alliances

Large Orgn Red tape Growth crisis

crisis

Mid size Autonomy Control crisis

crisis

Start Up Leadership
crisis

Time
Shiv- 30 Strategy Models over 75 years
 14.De Wit and Meyer’s Strategy Tensions
Find the best Make a choice

1. This model argues that strategy is

about choices that come from
different views.
Pressure for B

2. This s about trade offs

3. Every choice has an opposite that is
attractive or unattractive.
4. In every situation, consider the
extreme opposite.
5. The aim is to get a devils advocate
perspective
Strike a balance Best of both
Shiv- 30 Strategy Models over 75 years
Pressure for A
15.Cummings and Wilson- Orientation and Animation
NATO- No action Excellent, but don't 1. Strategy helps focus people and
talk only pursue too many
High Animation organization things to motivate them
2. Use animation as a synonym for
motivation
Doomed Needs a gear shift,
lethargic orgn 3. How is the strategy being
Low Animation
communicated?
4. How is it being understood?
5. What fears is it creating in the
orgn?
Low orientation High Orientation

Shiv- 30 Strategy Models over 75 years

 16. Lewin’s force field analysis
1. This is the parent of change
Existing Driving Restraining Future models
2. It examines forces that impede
desired change and enablers of
Outsi What is Tailwinds Head winds What will change
de happening happen outside 3. It argues that headwinds must be
outside? reduced and increase/use the
power of tailwinds
4. Describe the future situation
Inside What is Tailwinds Head winds What will
happening happen inside
inside?

Shiv- 30 Strategy Models over 75 years

17. Kotter’s 8 phases of change
1 Establish sense of urgency 1. In this model there are 8 steps and it
2 Create coalition starts with establishing a sense of

3 Develop clear vision urgency.

2. Building coalition for change is
4 Share vision
important
5 Empower people to clear
3. Short term wins are important to
6 Secure short term wins
pursue a strategy
7 Consolidate and keep winning 4. At some point some changes are
8 Anchor needed

Shiv- 30 Strategy Models over 75 years

18. Kaplan and Norton’s balance scorecard
1. Once you have a strategy, you must
Financial measure how it is doing.
measures for
our
shareholders 2. Strategy is more than financial
measures.
3. There is nothing called a perfect
scorecard
Customer,
Vision Processes,
what 4. You can create a range of strategic
how should
we appear to and processes
should we be focus items.
customers?
Strategy best at?

5. It is good to have a sense of

measurement.
6. Don’t get obsessed with the
Learning, how
do we keep measures or the scorecard, a rough
learning and
improving? progress in the right direction is
Shiv- 30 Strategy Models over 75 years
better than no progress.
19. Hrebiniak’s model of strategy execution
• Power and • Organization
Influence culture
1. In the 2000s there is a lot
more focus on execution of
Corporate Corporate
strategy and structure and strategy.
business business
strategy structure 2. It is about managing the
portfolio.
3. Each of the parts interacts
Incentives Change
with the other parts
and controls management
4. This is about organizing effort
• Leadership • Execution in the desired direction
results

Shiv- 30 Strategy Models over 75 years

 20. Hammer and Champy – Business process redesign

8.Ongoing 1. Develop 2. Understand 1. Processes are important to

continuous vision and existing deliver results
improvement initiatives processes 2. A lot of strategy fails because
new processes don’t come in

Business 3.Identify 3. One needs to review existing

7. Evaluate the
Process process for processes and then change it.
new process
reengineering redesign 4. Don’t be a slave to a process
that doesn’t deliver results,
change it or fix it.
6.Make new 5.Impelment
4.Identify 5. Many organizations have
process the new
change levers
operational process archaic processes

Shiv- 30 Strategy Models over 75 years

21.Michaud and Thoenig’s Strategic Orientation
1. Organizations have different perceptions of
Strong how much they need to change.
pressure
Mercenary Organic 2. Mercenary organizations face the heat but
react in a short term manner
3. Organic organizations recognize the
challenge but take a long time to correct
Weak pressure
4. Fragmented organizations are set in their
ways.
Fragmented Self sufficient
5. Self sufficient organizations sense weak
signals but are willing to put change in
Short Term Long term motion.

Shiv- 30 Strategy Models over 75 years

 22.Burgelman and Grove’s Strategy bet model
Sufficient cash 1. Its difficult for any organization to pursue
reserves multiple opportunities
Safe bet Wait to bet
2. You can alter the choice of resources by
Cash Reserves

looking at level of change

Insufficient cash
reserves 3. You need level of validation to take bets
Bet the company Desperate Bet
4. It is wise to take a betting the company
strategy after some part of the gamble is
Validated Not yet validated
Opportunity opportunity successful
5. You need time to change, you need cash
Autonomous Opportunity to come in before you burn it on a bet.

Shiv- 30 Strategy Models over 75 years

23. Argyris’s double loop and single loop learning

• Strategic plans lead to learning, each time

1. Single loop learning involves
something works or doesn’t work, it can teach a
actions and how they lead lesson.

to mismatch or errors. • The issue is whether the learning stays at the

operational level or to a broader organization level
2. Double loop learning • For example, look at last year, what worked and hat
didn’t work, how much of that learning is at all
involves actions, mismatch
levels that need to learn so that the next year is
or errors to governing better?
• Is there any mismatch between strategy and how
values
the execution is playing out in terms of recrafting or
Shiv- 30 Strategy Models over 75 years
learnings?
24.Mintzberg’s Deliberate and Emergent strategy
1. It is good to know differences
between planning something
deliberately and what actually
Intended Strategy Realized Strategy happens.
2. Look at past statements and annual
Deliberate Strategy reports and see how much of what’s
said is deliberate
3. Look for patterns over time
4. Think of where the growth ideas
came from
Unrealized Strategy Emergent Strategy 5. What role did luck play on the way?
Shiv- 30 Strategy Models over 75 years
 25. Johnson’s white space model
Poor orgn fit Rare, essentially
Nature Of Opportunity

some legacy SBU

hanging around for White Space 1. After generating new ideas, you
divestment
must check how they fit in.
Good orgn fit
2. If they are a good fit, what are you
Core business Adjacency doing with the opportunity?
3. Think about how many other people
Existing customers New customers could have the same idea?

Nature of Customer

Shiv- 30 Strategy Models over 75 years

26. Prahalad and Hart’s Bottom of the Pyramid
More than $ 1 million – 36 million people 1. The idea is that there is a bigger and attractive
market at the bottom, of people who earn less
More than than $ 2 a day.
100,000 but less 2. Me, Rajnikant Sabnavis and Kimsuka
than a million $ - Narasimhan put together the shampoo case
391 million people study slides that feature in this book.
3. This thinking made many boards challenge the
CEOs on whether they had a India, China
Between $10,000 and strategy, or emerging markets strategy.
$99,999 – 1.1 billion 4. This approach is called the sachet-isation of
people products and services.
5. People at the bottom of the pyramid are more
brand conscious than these at the top, I’ve
always said “ rich people buy brands for vanity,
Less than $10,000 per annum – 3.5 poor people buy brands for security”
billion 6. Most MNCs failed with BOP, because they
didn’t localize the strategy

Shiv- 30 Strategy Models over 75 years

2010 data
 27.Stacey’s Strategy from Complexity
High 1. In every company thee is a certain level
of agreement , disagreement on what’s
Lo Complicated Simple to proceed
Agreement

happening in the external world.

2. If your company has high levels of
Low Hi complex
uncertainty and high level of
Med Complicated path disagreement then you are at the edge of
Anarchy
chaos.
Low High
3. If there is too much agreement, the you
are sleep walking
Certainty 4. High certainty of a market or segment
invariably means lower profitability.
Shiv- 30 Strategy Models over 75 years
 28. Hart’s Sustainability Value framework

A strategy around clean A shared roadmap for 1. Start by understanding the

technology, this gets meeting unmet needs, this sustainability of your
innovation and repositioning gets growth existing strategy.
2. Don’t view sustainability as
Sustainable conforming to regulations
Value 3. Focus on efforts for cleaner
technology in your industry
A strategy around product
A strategy around pollution 4. External groups will be
stewardship, this gets
prevention, this gets cost
corporate reputation and vigilant about this in the
down and risk reduction
legitimacy future.

Shiv- 30 Strategy Models over 75 years

29. House of Strategy
1. How does the vision describe the
future?
2. How well does the mission indicate
Vision what we are trying to achieve on a
Desirable Future
daily basis?
Mission – The Purpose of your work
3. Are values generic or do they
encourage a specific way of working
Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 and build a unique culture?
4. Remove anything that confuses
5. Don’t be generic or motherhood in
Values – Culture and Capabilities
the words or sentences you use

Shiv- 30 Strategy Models over 75 years

 30. Innovation + Strategy = Adaptability

Recognize 1. The RUN loop

2. Innovations is about creating new
ideas and making those ideas useful
Strategy and Innovation 3. Strategy is about shaping the future
4. Adaptability is the ability to
recognize the need to change. All
success comes from successful

Necessary adaptation.
Understand
Adaptation
Shiv- 30 Strategy Models over 75 years