Analysis Without Paralysis: 10 Tools to Make Better Strategic Decisions

Analysis Without Paralysis: 10 Tools to Make Better Strategic Decisions

by Babette E. Bensoussan, Craig S. Fleisher
Released June 2008
Publisher(s): Pearson
ISBN: 9780137148523

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Book description

If you’re a manager or business owner, you need tools to make better decisions--about business strategy, marketing, competition, positioning, product development, and much more. In Analysis Without Paralysis, two renowned experts on business analysis and strategy bring you those tools, in plain English!

Babette Bensoussan and Craig Fleisher teach you exactly what you need to know, without dragging you through unnecessarily complex concepts or advanced mathematics. They start with a practical, realistic introduction to the analysis process; then they walk you through ten core sets of analysis techniques that every manager can use effectively.

You’ll master classic techniques like SWOT analysis and Porter’s Five Forces, in addition to the latest approaches to competitor, financial, issue, and value chain analysis. Next, Bensoussan and Fleisher guide you through analyzing the global social, political, and macroenvironmental challenges that will increasingly shape the future of your business.

For each tool, the authors present clear descriptions, context, rationales, strengths, weaknesses, step-by-step instructions, and case study examples. The result: a book you can rely on to address your strategic and business challenges--whatever your role, experience, industry, or environment. 

  • Don’t just collect data--use it for competitive advantage
    Uncover correlations, assess trends, identify performance gaps, and identify your best opportunities

  • Get truly actionable outputs from your analysis
    Perform future-oriented analysis that leads to better competitive strategies and tactics

  • Use analysis to anticipate and adapt to rapid change
    Get early warnings of emerging threats--and respond more quickly

    • The Practical, Plain-English Guide to Business Analysis for Every Manager and Business Owner!

    You can use business analysis to address your most crucial strategic and tactical challenges--without burying yourself in advanced math or arcane theory! This friendly guide walks you through the entire business analysis process and then explains each of today’s most valuable analysis tools--in plain English. You’ll be able to make better decisions and get better results--even if you’ve never been responsible for analysis before.

    Babette Bensoussan and Craig Fleisher illuminate BCG matrix; Porter’s “Five Forces”; SWOT analysis; modern competitor, financial, issue, and value chain analysis; long-term scenario planning; emerging macroenvironmental (STEEP/PEST) techniques; and much more. You’ll find realistic case studies, in addition to practical guidance for choosing the right tools for each challenge. Even if you’ve never performed business analysis before, Analysis Without Paralysis can help you gain the insights and build the strategies for a winning future.

    Table of contents

    1. Copyright
      1. Dedication
    2. Acknowledgments
    3. About the Authors
    4. I. Introduction
      1. 1. Business Management and the Role of Analysis
        1. The Increasing Need for Effective Analysis
        2. Concluding Observations
      2. 2. The Analysis Process
        1. What Is Analysis?
    5. II. Analysis Tools
      1. 3. BCG Growth/Share Portfolio Matrix
        1. Description and Purpose
          1. Link to the Experience Curve
          2. Link to the Product Life Cycle
          3. Combining the Experience Curve and the Product Life Cycle
            1. Stars—High Growth Rate, High Market Share
            2. Cash Cows—Low Growth Rate, High Market Share
            3. Dogs—Low Growth Rate, Low Market Share
            4. Problem Children—High Growth Rate, Low Market Share
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Step 1: Divide the Company into its SBUs or Business Product Lines/Segments
          2. Step 2: Measure the Growth Rate of each SBU or SBL Market
          3. Step 3: Measure the Relative Market Share of Each SBU or SBL
          4. Step 4: Position Each SBU or SBL Along the Matrix Dimensions
            1. Plotting on the Vertical Axis—Market Growth Rate
            2. Plotting on the Horizontal Axis—Relative Market Share
            3. Plot Contribution Bubbles
          5. Step 5: Construct a Matrix for All Competitors
          6. Step 6: Assign Optimal Generic Strategies to Each Business Unit or Product Line
          7. Step 7: Further Disaggregate the Analysis
          8. Step 8: Introduce Analytical Dynamics
            1. Construct a Share Momentum Graph
            2. Sustainable Growth Rate Analysis
          9. Step 9: Iteration
            1. Strategic Evaluation
            2. Competitive Analysis
      2. 4. Competitor Analysis
        1. Description and Purpose
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Steps 1 and 2: Determine Who Your Competitors Are and Who They May Be in the Future
          2. Step 3: Decide What Information You Need About These Competitors
          3. Step 4: Conduct a Competitor Analysis of the Gathered Information
          4. Step 5: Present Your Analytical Insights to Decision Makers in an Appropriate Format and in a Timely Manner
          5. Step 6: Develop Strategy Based on the Analysis
          6. Step 7: Continually Monitor Competitors and Scan for Potential Competitors
      3. 5. Financial Ratio and Statement Analysis
        1. Description and Purpose
          1. Basic Concepts Underlying Financial Ratio and Statement Analysis (FRSA)
            1. Components of Financial Statements
            2. Assessing the Appropriateness of Ratios
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Activity or Efficiency Ratios
            1. Inventory
            2. Accounts Receivable
            3. Asset Turnover
          2. Leverage or Solvency Analysis Ratios
          3. Liquidity Analysis Ratios
          4. Profitability Analysis Ratios
          5. Other Analysis Ratios—Capital Market or Shareholder Returns
            1. Methods of Ratio or Measure Comparison
          6. Industrial Comparison
          7. Across Time Performance
            1. Consolidation and Segmented Analysis
      4. 6. Five Forces Industry Analysis
        1. Description and Purpose
          1. Threat of New Entrants
          2. Bargaining Power of Suppliers
          3. Bargaining Power of Buyers
          4. Threat of Substitute Products or Services
          5. The Degree of Rivalry Among Existing Players
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Step 1: Collect Information
          2. Step 2: Assess and Evaluate
          3. Step 3: Develop Strategy
        5. Endnote
      5. 7. Issue Analysis
        1. Description and Purpose
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Step 1: Issue Identification and Forecasting
            1. Four-Stage Life Cycle Progression of PP Issues
            2. Seven-Stage Progression of PP
            3. Issue Expansion Map Approach
            4. Issue Timing Approach
          2. Step 2: Issue Analysis and Assessment
            1. Issues Distance Approach
            2. Issue Impact Approach
            3. Issues Priority, Leveraging, and Scoring Matrices
          3. Step 3: Selection of Issues—Response Patterns and Types
      6. 8. Political Risk Analysis
        1. Description and Purpose
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Qualitative Techniques
            1. Grand Tours
            2. Old Hands
          2. Quantitative Techniques
          3. Internal Factors
            1. Governmental
            2. Societal
            3. Economic
          4. External Factors
            1. Governmental
            2. Societal
            3. Economic
        5. Endnotes
      7. 9. Scenario Analysis
        1. Description and Purpose
          1. Quantitative Method
            1. Computer-Generated Econometric Model
          2. Qualitative Methods
            1. Intuitive Method
            2. Delphi Method
            3. Cross-Impact Analysis
        2. Strengths
        3. Weaknesses
        4. How to Do It
        5. Endnote
      8. 10. Macroenvironmental (STEEP/PEST) Analysis
        1. Description and Purpose
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Step 1: Understand the Segment of the Environment Being Analyzed
          2. Step 2: Understand Interrelationships Between Trends
          3. Step 3: Relate Trends to Issues
          4. Step 4: Forecast the Future Direction of Issues
          5. Step 5: Derive Implications
      9. 11. SWOT Analysis
        1. Description and Purpose
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Step 1: List and Evaluate SWOT Elements
          2. Step 2: Analyze and Rank Strategic Factors
          3. Step 3: Identify Strategic Fit and Develop a Strategy to Improve Matches
            1. Quadrant 1: Internal Strengths Matched with External Opportunities
            2. Quadrant 2: Internal Weaknesses Relative to External Opportunities
            3. Quadrant 3: Internal Strengths Matched with External Threats
            4. Quadrant 4: Internal Weaknesses Relative to External Threats
      10. 12. Value Chain Analysis
        1. Description and Purpose
        2. Strengths
        3. Weaknesses
        4. How to Do It
          1. Step 1: Define the Company’s Strategic Business Units
          2. Step 2: Identify the Company’s Critical Value Creating Activities
          3. Step 3: Conduct Internal Cost Analysis
          4. Step 4: Conduct Internal Differentiation Analysis
          5. Step 5: Map Industry Profit Pool
            1. a. Define the Parameters of the Industry Profit Pool
            2. b. Estimate the Total Size of the Industry Profit Pool
            3. c. Estimate the Distribution of the Profit Pool
          6. Step 6: Vertical Linkage Analysis
          7. Step 7: Iteration

    Product information

    • Title: Analysis Without Paralysis: 10 Tools to Make Better Strategic Decisions
    • Author(s): Babette E. Bensoussan, Craig S. Fleisher
    • Release date: June 2008
    • Publisher(s): Pearson
    • ISBN: 9780137148523