Our approach to helping our clients is based on us sharing a common ambition that provides true results. We use a three step methodology for our approach that is as follows:
STAGE 1: DEFINE. Strategy, Goals, Objectives, Research, Planning
STAGE 2: DESIGN. Develop infrastructure, day to day operations, procedures, processes, technologies
STAGE 3: DELIVER. Customer interaction, services, products, marketing, sales, satisfied customers
OUR BUSINESS EVALUATION METHODOLOGY
Our evaluation of your company is based on the ability of the business owners to define their business, conduct an effective industry analysis, and identify the “key success factory” for firms competing in their industry. Our analysis is based on:
A. DEFINE THE BUSINESS. The boundary for industry analysis is the markets, capabilities, competitors and products that describe the domain of the industry.
B. DESCRIBE THE INDUSTRY STRUCTURE. For each product-market segment, an industry analysis will describe the “five-forces” of competition that includes customer segments, competitors and their strategies, suppliers, barrier to change and substitution of products or services.
C. IDENTIFY KEY SUCCESS FACTORS. The primary purpose of industry analysis is to identify the requirements and trends that determine the key success factors for the business. These factors encompass (1) customer requirements, (2) competitive factors that must be met, (3) regulations/industry standards in the business, (4) the resource requirements to implement competitive strategy, and other (5) technical requirements to build a competitive position.
Business Strategies Analysis
Competitive product-market strategies are critical to business success. Business strategy analysis requires the following:
A. IDENTIFY STRATEGIC GOALS. A firm’s strategic goals drive business strategy and address the key success factors of the industry. Strategic goals often include the vision or mission statement for the business. The two most common strategic goals are:
- Competitive and market goals that define market share or market growth and penetration for the firm’s products or services.
- Financial performance in terms of key ratios, like return on investment and sales, and growth in revenues and/or profitability.
B. DEFINE BUSINESS STRATEGY. The definition of business strategy includes six areas of analysis including (1) customer targeting strategy (2) product position and lines, (3) technologies required to implement, (4) implementing offering-marketing, (5) critical processes require to implement marketing, (6) identify the market access to offering. These address the business and its key success factors.
C. IDENTIFY INTERNAL CAPABILITIES AND SKILLS. The ability of your company’s strategies upon both the functions and business processes. Product-related functions and processes are dependent upon a firm’s R&D and manufacturing/purchasing capabilities.
- The R&D function generates proprietary technologies that can be applied to the development and production of new designs, construction materials, processes and operations.
- The time-to-market process is required to integrate new technology into a firm’s products and services.
- The manufacturing function transforms a set of purchased components and labor into a firm’s products.
- The integrated-supply-chain process coordinates purchasing of components for home assembly, outsourcing, otherwise making sure finished homes are available to meet customer order requirements.
Market-related functions and processes are directed at serving the customer in the most effective manner possible. Distribution and marketing activities, including sales and service, are central to fulfilling customer demands and ensuring customer satisfaction.
- The distribution function is essential for a firm in gaining market access.
- The market-to-collection process is used to obtain customers and deliver products.
- The marketing function provides the customer with information and education about a firm’s products and services.
- The customer-service and satisfaction process is critical to sustain a company’s brand loyalty.
D. STRATEGIC PERFORMANCE. The success with which your company effectively addresses its industry’s key success factors will determine its strategic performance. Strategic performance is measured in terms of both financial and market success.
- Financial performance is essential for continued business operations. Financial capabilities are critical in supporting functional strategies and making required infrastructure investments. For example, a company with adequate funding can expand or invest, or can provide customer financing.
- Market share demonstrates a firm’s ability to create and hold customers, which determines the long term success of a firm. The freshness of product lines and market positioning affect a firm’s ability to attract customers ahead of their competition.
Business Strategy Evaluation & Recommendations
Strategic analysis is based on assessing the effectiveness and efficiency with which a firm’s business strategy meets the requirements of its competitive marketplace. After defining the industry and business strategy, we can seek ways to improve the firm’s strategic performance. This is done by applying the traditional SWOT analysis to the firm’s strategy, and then determining the critical issues that need to be addressed. After ranking critical issues in order of importance, recommendations for action can be made.
A. EVALUATE BUSINESS STRATEGY. The business strategy definition provides the basis for its evaluation. This process assesses issues that are both internal and external to the firm.
- Internal assessments are based on the firm’s functional and process capabilities and financial resources. The internal assessment leads to an understanding of the firm’s strengths and weaknesses.
- External assessments are based on the key success factor that have been identified. The external assessment leads to an understanding of the opportunities and threats facing the firm. This assessment is often referred to as a SWOT analysis.
B. IDENTIFY CRITICAL ISSUES AND PRIORITIES. The SWOT analysis will lead to an understanding of the critical issues that face a firm in maintaining or improving its competitive and financial performance. The combination of strengths, weaknesses, opportunities, and threats must be ranked by priorities so that action can be planned in a manageable way. Since managers have limited time and resources, it is important that actions be taken in order of importance.
C. MAKE RECOMMENDATIONS. Finally, recommendations must address the critical issues for management actions in the short and long term. We are seeking to improve the effectiveness of competitive strategies and the efficiency of their implementation.