Business and Market Alignment Matrix

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					            Chapter Three

  Business Strategies and
Their Marketing Implications

 Objective: Understand Business Unit Level strategies
            and their role in market planning
                                                        Strategy. Methods, Models and Theories (A-Z)
3C's Model Ohmae                                          Extended Marketing Mix 7P's                   Resource-Based View Barney
4S Web Marketing Mix Constantinides                       Five Forces Porter                            Risk Management
7 Ps Booms Bitner                                         Force Field Analysis Lewin                    Root Cause Analysis
7-S Framework McKinsey                                    Four Key Traits De Geus                       Rule of Three Sheth
Action Learning Revans                                    Forget Borrow Learn Govindarajan Trimble      Scenario Planning
Acquisition Integration Approaches Haspeslagh Jemison     Game Theory Nash                              Service Profit Chain Heskett
ADL Matrix Arthur D. Little                               Growth Phases Greiner                         Seven Surprises Porter
Analogical Strategic Reasoning Gavetti Rivkin             GE Business Screen                            Shareholder Value Perspective
Ashridge Mission Model Campbell                           Groupthink Janis                              Simulation modeling
Balanced Scorecard Kaplan Norton                          Growth Share Matrix BCG                       Six Thinking Hats de Bono
Bases of Social Power French Raven                        Hierarchy of Needs Maslow                     Skandia Navigator Leif Edvinsson
BCG Matrix                                                Horizontal Integration                        SLEPT Analysis
Benchmarking                                              Impact/Value framework Hammer                 SMART Drucker
Blue Ocean Strategy Kim                                   Implementation Management Krüger              Soft Systems Methodology Checkland
Bottom of the Pyramid Prahalad                            Industry Change McGahan                       Spin-Off
BPR Hammer Champy                                         Industry Life Cycle                           Spiral Dynamics Graves
Brainstorming                                             Innovation Adoption Curve Rogers              Stage-Gate Cooper
Bricks and Clicks                                         Instrumental Approach of Stakeholder Theory   Stakeholder Value Perspective
Business Assessment Array                                 Intrinsic Stakeholder Commitment              STEEPLE Analysis
Business Intelligence                                     Kaizen philosophy                             Strategic Alignment Venkatraman
Business Process Reengineering Hammer Champy              Kepner-Tregoe Matrix                          Strategic Decay Hamel
Case Catastrophe Theory Thom                              KPIs Rockart                                  Strategic Drift Handy
Change Approaches Kotter                                  Leveraged Buy-out                             Strategic Inflection Point Grove
Change Dimensions Pettigrew Whipp                         Management Buy-out                            Strategic Intent Hamel Prahalad
Change Phases Kotter                                      Management by Objectives Drucker              Strategic Risk Management Slywotzky
Chaos Theory Lorenz                                       Managing for Value McTaggart                  Strategic Stakeholder Management
Clarkson Principles                                       Marketing Mix 4P's 5P's McCarthy              Strategic Triangle Ohmae
Clicks and Mortar                                         McKinsey Matrix                               Strategic Thrusts Wiseman
Clusters Porter                                           Mergers and Acquisitions approaches           Strategic Types Miles Snow
Co-Creation Prahalad Ramaswamy                            Mind Mapping                                  Strategic Windows Abell
Co-opetition Brandenburger                                Modeling business processes                   Strategy Dynamics Warren
Competitive Advantage Nations Porter                      Moral Purpose Mourkogiannis                   Strategy Map Kaplan Norton
Competitive Advantage framework Porter                    Normative Approach of Stakeholder Theory      STRATPORT Larreche
Complexity Theory                                         MSP OCG                                       SWOT Analysis
Contingency Theory Vroom                                  Office of Strategy Management Kaplan Norton   Systems Thinking / Dynamics Forrester
Core Competence Hamel Prahalad                            Operations Research                           TDC Matrix Internet
Core Group Theory Art Kleiner                             OODA Loop Boyd                                Ten Schools of Thought Mintzberg
Corporate Reputation Quotient Harris-Fombrun              OPM3 PMI                                      Theory of Constraints Goldratt
Cost Cutting                                              Organizational Configurations Mintzberg       Theory of Reasoned Action Ajzen Fishbein
Crisis Management                                         Outsourcing                                   Three Dimensional Business Definition Abell
CSFs Rockart                                              Parenting Advantage Goold Campbell            Tipping Point Gladwell
Cultural Dimensions Hofstede                              Parenting Styles Goold Campbell               Trajectories of Industry Change McGahan
Culture Levels Schein                                     PARTS Brandenburger                           Twelve Principles of the Network Economy Kelly
Delphi Method Helmer                                      Performance Categories Baldrige               Value Based Management
Delta Model Hax                                           Performance Management                        Value Chain Porter
Dialectical Inquiry                                       Performance Prism                             Value Creation Index
Diamond Model Porter                                      PEST Analysis                                 Value Disciplines Treacy Wiersema
Dimensions of Change Pettigrew Whipp                      Plausibility Theory                           Value Mapping Jack
Disruptive Innovation Christensen                         Portfolio Analysis                            Value Migration Slywotsky
Distinctive Capabilities Kay                              Product Life Cycle Levitt                     The Value Net Brandenburger
EFQM EFQM                                                 Product/Market Grid Ansoff                    Value Profit Chain Heskett
Enterprise Architecture Zachman                           Profit Pools Gadiesh, Gilbert                 Value Stream Mapping
Entrepreneurial Government Osborne                        Real Options Luehrman                         ValueReporting Framework PWC
Experience Curve                                          Relative Value of Growth Mass                 Vertical Integration        VRIN Barney
                                                                            Miles and Snow
                                                                            Organizational Types

                                                                            Miles and Snow, based on an in-depth cross-industry
                                                                            study of a relatively small sample or large corporations,
                                                                            developed a theory that there are three superior
                                                                            performing business types and all others are average or
                                                                            less than average. Their theory holds that in order to be
                                                                            superior, there must be a clear and direct match
                                                                            between the organization's mission/values (their
                                                                            definition), the organization's strategies (their basic
                                                                            strategy set), and the organization's functional
                                                                            strategies (their characteristics and behavior).

Prospector                                   Defender                                 Analyzer                               Reactor
1. almost continually searches for market     1.has narrow product-market             1.operates in two types of product-   1. frequently perceive change 2.
opportunities,                               domains.                                 market domains, one relatively        but are unable to respond
2. regularly experiment with potential        2. Top managers in this type are        stable, one changing.                 effectively.
responses to emerging trends.                highly expert in their limited area of   2. In stable areas, they operate      3. Because they lack a well-
3. Thus, these organizations often are the   operation                                routinely and efficiently             defined strategy
creators of change and uncertainty to         3. but do not tend to search outside    3. In more turbulent areas, they
which their competitors must respond."       their narrow domains for new             rapidly adopt competitor ideas        Basic strategy set:
                                             opportunities.”                                                                * Fails to articulate a viable
Basic strategy set:                                                                   Basic strategy set:                   marketingstrategy
* Broad domain, in a continuous state of     Basic strategy set:                      *A mixture of products and markets,   * Management articulates an
development                                  * Aggressively maintain prominence       stable and changing                   appropriate strategy, but
* Monitor wide range ofenvironmental         within its chosen market segment         * Successful imitation through        technology, structure, and
conditions, trends, and events               * Ignore developments outside of this    extensive marketing surveillance      process are not linked to
 * Creators of change- “first movers”        domain                                   * Avid follower of change             strategy appropriately
 * Growth primarily from new markets and     * Penetrate deeper into current          * Growth normally occurs through      * Management adheres to a
new products                                 markets                                  market penetration                    particular strategy-structure
* Uneven, spurt-like growth                  * Normally, growth occurs cautiously     * Growth may also occur through       relationship that is not relevant
                                             and incrementally                        product and market development        to the environment

  Porter’s Generic

                 Strategic Plan
                                                Combined Typology of
                                         Business-Level Competitive Strategies
                                                           Emphasis on new product-market growth
                                         Heavy emphasis                                         No emphasis
                                              Prospector         Analyzer        Defender        Reactor
                                                            Units with strong

                                                                 core bus.;   Units primarily
                                                             actively seeking concerned with
                                                                               maintaining a
Competitive strategy

                                           Units primarily    to expand into
                                                              rel. prod-mkts   differentiated
                                          concerned with                        position in    Units with no
                                          attaining growth                    mature markets clearly defined
                                               through           offerings                    product-market
                                             aggressive     Units with strong Units primarily development or
                       Cost leadership

                                           pursuit of new        core bus.;                     competitive
                                                                              concerned with
                                          product-market actively seeking                        strategy
                                                                               maintaining a
                                           opportunities      to expand into      low-cost
                                                              rel. prod-mkts    position in
                                                               with low-cost  mature markets
Exhibit 3.4.

How Business Strategies Differ in Scope,
Objectives, Resource Deployments, and Synergy
Dimensions         Low-cost             Differentiated         Prospector         Analyzer
                    defender             defender
                                                               Broad/dynamic      Mixture of defender
• Scope            Mature/stable/well   Mature/stable/well-     domains; tech.     and prospector
                    -defined domain;     defined domain;        cust. segments     strategies
                    mature tech.and      mature tech.and        not well-
                    cust. segments       cust. segment          established
• Goals and obj.
  Adaptability     Very little          Little                 Extensive          Mix. of defender &
  (new product                                                                     prospector strats.
  success)         Low                  Low                    High               Mix. of defender &
  Effectiveness                                                Low                 prospector strats.
  (inc. mkt shr)   High                 High                                      Mix. of def. &
  Efficiency                                                   Need cash for       prosp. strats
  (ROI)                                                         product dev. (?
                                                                or *)             Need cash for
• Resource         Generate excess      Generate excess $                          prod. dev. but <
  deployment        cash (cashcows)      (cash cows)           Danger in           prospectors
                                                               sharing            Danger in sharing
• Synergy          Need to seek         Need to seek            operating fac.     operating fac. and
                    operating            operating synergies    and programs -     programs - better
                    synergies to         to achieve             better to share    to share
                    achieve              efficiencies           tech./mktg         tech./mktg. skills
                    efficiencies                                skills

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