Flevy Strat Devdep

Flevy Business Primer
Introduction to Business Strategy

Development & Execution
This primer is available for free at http://flevy.com/strategy-frameworks

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.
STRATEGY DEVELOPMENT STRATEGY EXECUTION

1 4 7 10
Consolidation- Strategy Framework Marketing Mix Balanced
Endgame Curve Canvas (4/7 P’s) Scorecard
2 5 8 11
Porter’s Five Organizational
SWOT Analysis Product Lifecycle
Forces Hurdles
3 6 9 12
BCG Growth-Share
PEST Analysis Consumer Adoption Curve Hoshin Kanri
Matrix
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Contents
 Overview 5
 Strategy Development Frameworks 7
 Strategy Execution Frameworks

34
 Summary
44
 Appendix
50

4
Contents
 Overview
 Strategy Development Frameworks
 Summary
 Appendix

5
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 • Strategy Framework Canvas • Consumer Adoption Curve
• Porter’s Five Forces • SWOT Analysis • Balanced Scorecard
• BCG Growth-Share Matrix • PEST Analysis • Organizational Hurdles
• Marketing Mix (4/7 P’s) • Product Lifecycle • 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.

6
Contents
 Overview
 Summary
 Appendix

7
In this section, we will cover 9 strategy frameworks—6 focus on external,
competitive factors, while 3 rely on internal strategies
Strategy Development Frameworks
1 4 7
Consolidation-Endgame Strategy Framework
Marketing Mix (4/7 P’s)
Curve Canvas
2 5 8
Porter’s Five Forces SWOT Analysis Product Lifecycle
3 6 9
BCG Growth-Share Matrix PEST Analysis Consumer Adoption Curve
These first 6 frameworks focus more on Industry and These 3 frameworks are more Product
Competitive Analysis—they are more externally focused. 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.

8
Consolidation- Strategy
Marketing Mix
Endgame Curve Canvas
1. Consolidation-Endgame Curve Porter’s Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
BCG Matrix PEST Analysis
Overview 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 type of framework is called a Maturity Model. Maturity Models gauge the “maturity” of an organization in a number of
disciplines or functions. They help pinpoint the specific areas of improvement in order to reach the next level of maturity.
The Consolidation-Endgame Curve assesses the growth maturity of the industry.
• 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.
This framework not only helps us define a more informed corporate strategy, but also helps
define our organizational structure and the proper management team.

9
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
4 Stages of Consolidation Adoption Curve
Stage I Stage II Stage III Stage IV

OPENING SCALE FOCUS BALANCE & ALLIANCE
DESCRIPTION  The industries operating in  In the Scale stage, major  In the Focus stage,  In the final stage,
the Opening stage include players begin to emerge successful players consolidation rates reach
newly deregulated and size begins to matter continue to aggressively 90%, so a few players
industries, startups, and —these players take the outgrow competition dominate each industry at
spin-off industries lead in consolidation  These companies focus— this point
 New industry catalysts can  Niche players begin to feel meaning they extend their  Large companies form
include new technology, pressure core business and alliances with each other,
new regulation, new ideas, eliminate secondary as growth is challenging at
 Concentration rates can
and new consumer needs be as high as 45% in business units this stage
 There is little to no market some industries  The supply and value  Companies often look for
concentration at this point chains begin to be new Opening-stage
streamlined industries to expand into
COMBINED
SHARE OF TOP 41% 42% 50% 70%
3 PLAYERS
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

10
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Consolidation-Endgame Curve Diagram Adoption Curve
Stage I Stage II Stage III Stage IV

OPENING SCALE FOCUS BALANCE & ALLIANCE
100%
Combined
Share of
Top 3
Players Maximum
Combined market
share of top 3 players
50%
Minimum
Time
0%
The combined market share of the top 3 players follows an S-curve.
Source: Winning the Merger Endgame, 2002

11
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
More Information Adoption Curve
• This framework is explained in detail in the DETAILS

document Consolidation Endgame Curve • Author: LearnPPT
• Topics covered include: stages of consolidation, • File size: 800KB
growth strategy implications, stage impact on
• Number of Slides: 29
financials, stage impact on strategy and
operations, stage impact on
management/organization, Value-Building Growth
Matrix, and niche strategies
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
• Additional Maturity Models - https://flevy.com/business-toolkit/maturity-model
Learn more about the Consolidation-Endgame Curve here:

https://flevy.com/browse/business-document/consolidation-endgame-curve-framework-201

12
Marketing Mix
2. Porter’s Five Forces Porter’s Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
• 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 attractive/desirable 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.

13
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
5 Forces Explained and Framework Diagram Adoption Curve
Threat of New Entrants
Barriers to entry: Competitive Advantage

 Economies of scale (including shared resources)
 Product differentiation (proprietary) Lower Cost Differentiation
 Capital requirements
 Switching costs Cost
Differentiation
Broad Leadership
 Access to distribution channels Competitive
 Cost disadvantages independent of scale Scope
 Government policy Cost Differentiation
Narrow Focus Focus
 Expected reaction of incumbent
Bargaining Power of Suppliers Intensity of Rivalry Bargaining Power of Buyers
A supplier group is powerful when: Intense rivalry results from: A buyer group is powerful when:
 It is dominated by a few companies and is more  Numerous or equally balanced competitors  It is concentrated or purchases large volumes relative
concentrated than the industry it sells to. to seller sales.
 Slow industry growth
 The products represent a significant fraction of the
 There are no substitute products.  High fixed or storage costs buyers’ costs or purchases.
 The industry is not an important customer.  Lack of differentiation or switching costs  The products are standard or undifferentiated.
 Its products are important to the industry.  Capacity augmented in large increments  It faces few switching costs.
 Products are differentiated or suppliers have built  Diverse competitors  It earns low profits.
up switching costs.  It poses a credible threat of backward integration.
 High strategic stakes  The bought product is unimportant.
 It poses a credible threat of forward integration.  High exit barriers  It has full information.
Pressure from Substitute Products

Exit Barriers
 Search for products that can perform the same  Take offensive or defensive actions to create a
L H function. defensible position against the forces:
 Assess buyers’ propensity to substitute.  Positioning the firm so its capabilities provide the
Low, best defense
Low, risky Focus on those that:
stable
L returns  Are improving their price performance trade-off  Influencing the balance of forces through strategic
Entry returns
Barriers compared with the industries products. moves
High,  Anticipating shifts in the factors underlying the
H High, risky  Require low switching costs.
stable
returns  Are produced by industries earning high profits. forces and responding to them
returns

14
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer

document Porter’s Five Forces • Author: LearnPPT
• Flevy has multiple documents that discuss and • File size: 800KB
teach this framework in detail:
• Porter’s 5 Forces Model and Application
• Porters’ Five Forces (FlevyPro)
• Complete Business Frameworks Guide
• Growth Strategy Toolkit - https://flevy.com/browse/business-document/growth-strategy-208
• Strategy Framework Canvas - https://flevy.com/browse/business-document/blue-ocean-strategy-the-peaceful-strategy-114
• Industry Analysis - http://flevy.com/browse/business-document/industry-analysis-773
• Porter’s Value Chain - https://flevy.com/browse/flevypro/strategy-classics-porters-value-chain-4058
Learn more about Porter’s Five Forces here:

https://flevy.com/browse/business-document/porters-five-forces-235

15
Marketing Mix
3. BCG Growth-Share Matrix Porter’s Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
• 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; and
 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.

16
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
4 Quadrants Explained Adoption Curve
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
Cash Cow 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
Dog 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
Question large net cash consumption. A question mark has the potential to gain market share and become a
Mark 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
Star 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.

17
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
BCG Matrix Framework Diagram Adoption Curve
Y%
Star Question Mark
?
Industry
Growth
Cash Cow Dog

X%
Z 0
Relative
Market Share

18
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer

document BCG Growth-Share Matrix • Author: LearnPPT
• Topics covered include: quadrant definitions, • File size: 2.1MB
analysis steps/process, examples, templates, and
tips.
• 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:

https://flevy.com/browse/business-document/bcg-growth-share-matrix-200

19
Marketing Mix
4. Strategy Framework Canvas Porter’s Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
• By now, you can tell there are numerous Strategy frameworks available. As there are so many tools available, it can be
difficult to determine what the right approach is for our organization.
• The Strategy Framework Canvas (SFC) is a unifying choice framework that guides us in selecting the appropriate
strategy for the circumstances at hand and execute it effectively. This model is particularly useful for large
organizations that are now stretched across a more diverse and faster-changing range of business situations.
• SFC identifies 5 distinct archetypal approaches to strategy:
1. Classic (e.g. Porter’s Five Forces, BCG Growth-Share Matrix)
2. Adaptive (e.g. First Mover Advantage, Dynamic Capabilities)
3. Visionary (e.g. Blue Ocean Strategy, Innovator’s Dilemma)
4. Leader (e.g. S-Curve, Ecosystem Strategy)
5. Renewal (e.g. Transformation/turnaround strategies)
• Once we determine the Strategy approach to take, the next step is to adopt a Strategy framework most befitting our
organization. Key considerations include our Corporate Culture, Organizational Design, Leadership Style,
Competitive Positioning, and Core Competencies, to name a few.
SFC helps us determine which approach, or combination of approaches, is most appropriate

for various facets of our organization—i.e., for different business units or geographies.

20
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Five Strategy Environments BCG Matrix PEST Analysis
Adoption Curve
Business environments differ along 3 distinct dimensions: Predictability (can we forecast it?), Malleability (can
we shape it—either alone or in collaboration with other organizations?), and Harshness (can we survive it?).
Using these dimensions, we can create a matrix that reveals the 5 distinct environments:
RENEWAL
My resources are Be Viable
severely constrained
ADAPTIVE LEADER
Be the
I can’t predict it and I Be Fast I can’t predict it, but I
orchestrator
can’t change it can change it
CLASSIC VISIONARY
I can predict it, Be Big I can predict it and I Be First
but I can’t change it can change it
Each environment requires a distinct approach to both strategy and execution.

21
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
SFC Application BCG Matrix PEST Analysis
Adoption Curve
The Strategy Framework Canvas provides management with a new tool for describing and selecting the
appropriate approach to strategy in a particular part of the organization. In fact, it can actually be applied on 3
levels of our organization:
To match and correctly execute the appropriate

approach to strategy for a specific part of the  Almost
Almost all
all large
large organizations
organizations
business—e.g. for different business units focused comprise
comprise of of multiple
multiple businesses
businesses and
and
Strategy geographies—each with a uniquely
1 Selection
on different industries (at different levels of geographies—each with a uniquely
distinct
distinct strategic
strategic character.
character.
maturity), for different product lines (at different
Therefore, large organizations
Therefore, large organizations
levels of their product lifecycles), for different require
require the
the simultaneous
simultaneous execution
execution
geographies (e.g. emerging vs. developed markets) of
of different
different approaches
approaches toto strategy
strategy
To effectively manage multiple approaches to  For

For aa given
given business
business in in aa larger
larger
Strategy organization, its strategy approach
2 Management
strategy in different parts of the organization or over organization, its strategy approach
must
must alsoalso evolve.
evolve. Inevitably,
Inevitably, any
any
time (in the same part of the company)
business or business model
business or business model matures matures
through
through aa lifecycle—each
lifecycle—each stage stage of
of
this
this lifecycle
lifecycle requires
requires aa different
different
Strategy To help the leadership team implement the resulting
3 Execution portfolio of approaches
approach
approach
This framework also provides a logical process to connect strategizing and execution
for each Strategy approach.

22
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer

document Strategy Framework Canvas. • Author: LearnPPT
• Additional concepts covered include historical • File size: 3.8MB
chronology of strategy frameworks, pitfalls, case
examples, leadership roles, the success trap,
ambidexterity, sustainable growth, exploiters vs.
explorers, etc.
• Strategy Chessboard - https://flevy.com/browse/business-document/strategy-chessboard-3125
• Complete Guide to Business Strategy Design -
https://flevy.com/browse/busines-document/complete-guide-to-business-strategy-design-375
• Strategy Development Methodology - https://flevy.com/browse/business-document/strategy-development-methodology-264
Learn more the Strategy-Framework Canvas here:

https://flevy.com/browse/strategic-planning/strategy-framework-canvas-3431

23
Marketing Mix
5. SWOT Analysis Porter’s Five

Forces
SWOT Analysis
Product
Lifecycle
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.

24
Marketing Mix
6. PEST Analysis Porter’s Five

Forces
SWOT Analysis
Product
Lifecycle
Consumer
• 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.

25
Marketing Mix
7. Marketing Mix (4/7 P’s) Porter’s Five

Forces
SWOT Analysis
Product
Lifecycle
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.

26
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Definitions of the P’s Adoption Curve
1 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
Product 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
2
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
Price
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.
27
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
3 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
Promotion 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
4
strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be
Placement used by the marketer to complement the other aspects of the marketing mix.

28
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
5
Physical Elements within the store — the store front, the uniforms employees wear, signboards, etc.
Evidence
6
The employees of the organization with whom customers come into contact.
People
7 The processes and systems within the organization that affects its marketing process.
Process
The additional 3 P’s are mostly relevant to Service marketing.

29
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
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
• Value-based Pricing Strategy - https://flevy.com/browse/business-document/value-based-pricing-strategy-1096
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/author/demandmetric

30
Marketing Mix
8. Product Lifecycle, 9. Consumer Adoption Curve Porter’s Five

Forces
SWOT Analysis
Product
Lifecycle
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 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, there 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.

31
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
Product Lifecycle Mapped on Consumer Adoption Curve Adoption Curve
INTRODUCTION GROWTH MATURITY DECLINE

STAGE 1 STAGE 2 STAGE 3 STAGE 4
“Crossing the Chasm”
Innovators Early Adopters Early Majority Late Majority Laggards
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).

32
Marketing Mix

Forces
SWOT Analysis
Product
Lifecycle
Consumer
• Both frameworks are explained in the document DETAILS

Product Lifecycle, with the emphasis on Product • Author: LearnPPT
Lifecycle Analysis
• File size: 700KB
• Additional topics covered include: Bass Diffusion
Model, Lifecycle-Performance Factor Matrix,
strategic positioning, and substitution analysis.
• Product Innovation Management - https://flevy.com/browse/flevypro/product-innovation-management-3263
• Kano Customer Satisfaction Model - https://flevy.com/browse/flevypro/kano-customer-satisfaction-model-2425
• Product Strategy: Smart Customization - https://flevy.com/browse/flevypro/product-strategy-smart-customization-3779
Learn more about Product Lifecycle and Consumer Adoption Curve analyses here:
https://flevy.com/browse/business-document/product-lifecycle-227

33
Contents
 Overview
 Summary
 Appendix

34
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.

35
Balanced Organizational Hoshin
Scorecard Hurdles Kanri
10. Balanced Scorecard

Overview
• 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.

36

4 Management Key Processes – Framework and Definitions
1 Translating the Vision
• Clarifying the vision

• Gaining consensus
2 Communicating and Linking 4 Feedback and Learning
• Communicating and educating • Articulating the shared vision

Balanced • Supplying strategic feedback
• Setting goals
• Linking rewards to performance
Scorecard • Facilitating strategy review and
measures learning
3 Business Planning
• Setting targets
• Aligning strategic initiatives
• Allocating resources
• Establishing milestones
Source: Balanced Scorecard, Kaplan and Norton (2005)

37

More Information
• The BSC framework is explained in detail in our DETAILS

document Balanced Scorecard • Author: PPTLab
• Topics covered include: Four Processes • File size: 600KB
(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
• BSC Deployment Process - 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
• Supercharge Strategy Execution - https://flevy.com/browse/business-document/supercharge-strategy-execution-1870
• Strategy Map - https://flevy.com/browse/flevypro/strategy-map-2488
Learn more about the Balanced Scorecard here:

https://flevy.com/browse/business-document/balanced-scorecard-134

38
11. Organizational Hurdles

Overview
• In Strategy Framework Canvas, 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 Strategy Framework Canvas, the concept of overturning conventional wisdom on doing

things is called “tipping point leadership.”

39

4 Organizational Hurdles Definitions
1 2 3 4
Cognitive Resource Motivational Political
Hurdle Hurdle Hurdle Hurdle
• An organization stuck on • Limited resources— • An unmotivated staff • Opposition from powerful

the status quo—an whether in staff or finances • Motivating staff to change vested interests
unwillingness to “rock the • The greater the shift in the status quo often takes • Any significant shift to an
boat” strategy, the greater the years—time that most organization will result in a
resources needed to organizations cannot shift in political power
execute it afford
Source: Strategy Framework Canvas, Kim and Mauborgne, 2005

40

More Information
• The 4 Organizational Hurdles are discussed in the DETAILS

document Guide to Business Strategy • Author: LearnPPT
Execution
• File size: 700KB
• 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
• Strategic Management Office (SMO) Primer: https://flevy.com/browse/flevypro/smo-series-strategic-management-office-primer-3393
• Formulating a Breakthrough Strategy - https://flevy.com/browse/business-document/formulating-a-breakthrough-strategy-598
• Managing Strategy through Execution - https://flevy.com/browse/flevypro/10-principles-of-managing-strategy-through-execution-2975
Learn more Organizational Hurdles and other Strategy Execution frameworks here:
http://flevy.com/browse/business-document/guide-to-business-strategy-execution-873

41
12. Hoshin Kanri

Overview
• 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 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.

42
12. Hoshin Kanri

More Information
• This framework is explained in more detail in our DETAILS

document Hoshin Kanri Strategy Deployment • Author: OEConsulting
• Topics covered include: underlying principles of • File size: 11.8MB
Hoshin Kanri, PDCA Approach, Hoshin Kanri Tools,
Elements of Hoshin Kanri, Management Reviews,
and Critical Success Factors
• We have an additional framework that discusses
Hoshin Policy Deployment in depth:
https://flevy.com/browse/hoshin/policy-deployment-597
FLEVY AUTHORS WHO SPECIALIZE IN LEAN / OPERATIONAL EXCELLENCE FRAMEWORKS

• OEConsulting - https://flevy.com/author/oeconsulting
• Operational Excellence Consulting - https://flevy.com/author/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:

https://flevy.com/browse/business-document/Hoshin-Kanri-155

43
Contents
 Overview
 Summary
 Appendix

44
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.
STRATEGY DEVELOPMENT STRATEGY EXECUTION

1 4 7 10
Consolidation- Strategy Framework Marketing Mix Balanced
Endgame Curve Canvas (4/7 P’s) Scorecard
2 5 8 11
Porter’s Five Organizational
SWOT Analysis Product Lifecycle
Forces Hurdles
3 6 9 12
BCG Growth-Share
PEST Analysis Consumer Adoption Curve Hoshin Kanri
Matrix

45
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

46
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

47
Here are 9 of our featured authors on Flevy—each author has an extensive
management consulting background and many operate their own firms
Recommended Authors/Contributors
PPT Lab LearnPPT Singapore-based OpEx Consulting
https://flevy.com/author/pptlab https://flevy.com/author/learnppt https://flevy.com/author/oeconsulting
Classic Business Frameworks. E.g., Business frameworks and toolkits. E.g., Topics include Lean Management,
McKinsey 7-S Model, Balanced Corporate Strategy, Change Quality Management, and
Scorecard, Christensen's Innovation, etc. Management, Operational Improvement. Strategic Planning & Deployment. 30+
years of experience.
STRATICX US-based OpEx Consulting Documents & Files

https://flevy.com/author/straticx https://flevy.com/author/oec https://flevy.com/author/documentsfiles
Frameworks on Corporate and BU Frameworks focused on delivering Consulting frameworks and documents
Strategy, Business Transformation, M&A, Operational Improvement (e.g. 8D spanning Strategy, Operations, Finance.
and Operational Improvement. Problem Solving, Lean, Six Sigma). 25+
years of experience.
Highway of Change P-Square Partners Clarity College

https://flevy.com/author/highwayofchange https://flevy.com/author/phanconsulting https://flevy.com/author/teamneosi
Frameworks on Change, Project, and Consulting frameworks related to Problem Corporate Communications frameworks
Process Management. 40+ years of Solving, Organizational Design, and from McKinsey specialists with combined
experience. Account Management. 40+ years experience.
Looking for more business frameworks? Check out our 10 must-have frameworks:
http://flevy.com/business-frameworks

48
We have assembled a number of Business Toolkits, each focused on a different
business project—a small selection has been included below
Flevy.com Business Toolkits
• Balanced Scorecard Toolkit
https://flevy.com/business-toolkit/balanced-scorecard-bsc
• Business Case Development Toolkit
https://flevy.com/business-toolkit/business-case-development-bcase
• Change Management Toolkit
https://flevy.com/business-toolkit/change-management-cm
• Performance Management Toolkit
https://flevy.com/business-toolkit/performance-management-perf
• Pricing Strategy Toolkit
https://flevy.com/business-toolkit/pricing-strategy-ps
• Product Launch Toolkit
https://flevy.com/business-toolkit/product-launch-strategy-pls
• Strategic Planning Toolkit
https://flevy.com/business-toolkit/strategic-planning-sp
• Value Chain Analysis Toolkit
We have 350+ Business Toolkits https://flevy.com/business-toolkit/value-chain-analysis-vc
We are constantly adding new end-to-end Business Toolkits to Flevy:

https://flevy.com/business-toolkits

49
Contents
 Overview
 Summary
 Appendix

50
You can download a Strategy Development Discussion deck for free from
Flevy.com
Download a Strategy Development Discussion Deck

for Free here:
http://flevy.com/share
DESCRIPTION PARTIAL PREVIEW
• This is a discussion deck template for a

corporate strategy development session.
• In this discussion, we go through a 2-prong
approach to growth and evaluate the merits of
various growth drivers.
• From the 2-prong approach, various scenarios
can be generated in the discussions and
dashboards are used to evaluate each
scenario.

51
Digital Transformation is being adopted across most industries, resulting in
Operational and Growth Improvements
Download our free primer on

Digital Transformation Strategy:
https://flevy.com/download/digital-transformation-125
DESCRIPTION 8 LEVERS TO DIGITAL TRANSFORMATION
• This deck introduces a framework for crafting a

Digital Transformation Strategy fitting for your
organization—one that encapsulates both
Growth and Operational Improvement benefits.
• It delineates 6 emerging technology trends that
are foundational to most Digital Transformation
Strategies.
• These emerging technology trends allow us to
leverage 8 levers to Digital Transformation (see
the diagram to the right). Explanations and
examples are provided for each these levers.

52
Why is that only 20% of the sales team generate such a disproportionate amount
of the sales? What if you were to only hire the “best of the best?”
Download the Fiaccabrino Selection Process Primer

for Free here:
http://flevy.com/fiaccabrino-selection-process
DESCRIPTION THE 16 HUMANISTIC ATTRIBUTES + BEHAVIORAL QUADRANT

• In most sales organizations, there are 2
crippling truths—1) 80-90% of sales are
generated by only 20% of the sales team and
2) turnover is abysmal.
• The Fiaccabrino Selection Process (FSP) is a
proven methodology for increasing sales and
reducing turnover. It teaches you how to select
only the "best of the best" for your organization.
• Whereas the methodology was originally
developed for a sales organization, it can easily
be modified and tweaked for other functions.
• The core of the framework is to understand 16
critical Humanistic Attributes.

53
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Flevy Business Primer

Introduction to Business Strategy

This primer is available for free at http://flevy.com/strategy-frameworks

STRATEGY DEVELOPMENT STRATEGY EXECUTION

This primer is available for free at http://flevy.com/strategy-frameworks

Flevy was founded under the principle that

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 Strategy Development Frameworks 7

 Strategy Execution Frameworks

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 Strategy Development Frameworks

 Strategy Execution Frameworks

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 Strategy Development Frameworks

 Strategy Execution Frameworks

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1. Consolidation-Endgame Curve Porter’s Five

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1. Consolidation-Endgame Curve Porter’s Five

Stage I Stage II Stage III Stage IV

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1. Consolidation-Endgame Curve Porter’s Five

Stage I Stage II Stage III Stage IV

The combined market share of the top 3 players follows an S-curve.

Source: Winning the Merger Endgame, 2002

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1. Consolidation-Endgame Curve Porter’s Five

• This framework is explained in detail in the DETAILS

Learn more about the Consolidation-Endgame Curve here:

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2. Porter’s Five Forces Porter’s Five

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2. Porter’s Five Forces Porter’s Five

Threat of New Entrants

Barriers to entry: Competitive Advantage

Bargaining Power of Suppliers Intensity of Rivalry Bargaining Power of Buyers

Pressure from Substitute Products

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2. Porter’s Five Forces Porter’s Five

• This framework is explained in detail in the DETAILS

Learn more about Porter’s Five Forces here:

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3. BCG Growth-Share Matrix Porter’s Five

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3. BCG Growth-Share Matrix Porter’s Five

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3. BCG Growth-Share Matrix Porter’s Five

Cash Cow Dog

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3. BCG Growth-Share Matrix Porter’s Five

• This framework is explained in detail in the DETAILS

Learn more the BCG Growth-Share Matrix here:

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4. Strategy Framework Canvas Porter’s Five

SFC helps us determine which approach, or combination of approaches, is most appropriate

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4. Strategy Framework Canvas Porter’s Five