ABSTRACT:
How does an organization go about analyzing how well it is positioned to achieve its intended objectives? Over the years a number of tools and approaches have been developed to assess different aspects of a business or an industry. In this paper we will look at a few of the existing tools and briefly discuss their purpose.
In this paper the following tools are being discussed: marketing tools; BCG Matrix and Ansoff Matrix, Performance measuring tools; Balanced Scorecard and SWOT, Change Management tools; McKinsey’s 7 S Framework and External Environment analysis tools; PESTLE and Porter’s 5 Forces. All these address different aspects of the business but ultimately give input into the Strategic Planning process.
Figure 1: Tools …show more content…
The focus on high growth and the market share can make management ignore the increasing fluidity of the business and does not take into consideration the fact that even businesses with a low market share can still generate profit and be profitable.
g. ANSOFF MATRIX
The Ansoff Matrix is a strategic planning tool developed by and named after Igor Ansoff. Its use is to devise strategies for future growth while understanding the risk of the different options devised.
The output of this matrix is a series of suggested growth strategies and to get to the output approaches for each option are brainstormed and a risk analysis for each option is conducted. Then, using a Decision Matrix Analysis, which is not discussed in this paper, can be used to choose the best option.
Using the matrix has numerous benefits like the fact that is provides focus for the business, it sets out clears objectives and indicates levels of possible risk and give possible growth strategies. It however can be too simplistic and doesn’t take into consideration the external environment and focuses mainly on the market potential and not on the resources that will be required to support the chosen
How does an organization go about analyzing how well it is positioned to achieve its intended objectives? Over the years a number of tools and approaches have been developed to assess different aspects of a business or an industry. In this paper we will look at a few of the existing tools and briefly discuss their purpose.
In this paper the following tools are being discussed: marketing tools; BCG Matrix and Ansoff Matrix, Performance measuring tools; Balanced Scorecard and SWOT, Change Management tools; McKinsey’s 7 S Framework and External Environment analysis tools; PESTLE and Porter’s 5 Forces. All these address different aspects of the business but ultimately give input into the Strategic Planning process.
Figure 1: Tools …show more content…
The focus on high growth and the market share can make management ignore the increasing fluidity of the business and does not take into consideration the fact that even businesses with a low market share can still generate profit and be profitable.
g. ANSOFF MATRIX
The Ansoff Matrix is a strategic planning tool developed by and named after Igor Ansoff. Its use is to devise strategies for future growth while understanding the risk of the different options devised.
The output of this matrix is a series of suggested growth strategies and to get to the output approaches for each option are brainstormed and a risk analysis for each option is conducted. Then, using a Decision Matrix Analysis, which is not discussed in this paper, can be used to choose the best option.
Using the matrix has numerous benefits like the fact that is provides focus for the business, it sets out clears objectives and indicates levels of possible risk and give possible growth strategies. It however can be too simplistic and doesn’t take into consideration the external environment and focuses mainly on the market potential and not on the resources that will be required to support the chosen