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Index
About This eBook
Title Page
Copyright Page
Praise for the Second Edition of Business and Competitive Analysis
Praise for the First Edition of Business and Competitive Analysis
Dedication Page
Contents
Acknowledgments
About the Authors
Preface
How to Use the Book
Section 1: Essentials of Performing Business and Competitive Analysis
1. Business and Competitive Analysis: Definition, Context, and Benefits
Understanding the Terminology
Competitive
Strategic
Analysis
Intelligence
Analysis as a Component in the Intelligence Cycle
Competitive Analysis and Decision Making
The Competitive Context Facing Contemporary Enterprises
Contemporary Context Facing the Analyst
Shifting Organizational Priorities for Analysts and Analysis
Summary
References
Endnotes
2. Performing the Analysis Process
Understanding the “Customers” of Your Analysis Work
Defining the Analysis Problem
Identifying the Scope of the Analysis
Intelligence Analysis at Differing Organizational Levels
Strategic Intelligence Analysis
Tactical Intelligence Analysis
Operational Intelligence Analysis
Micro Intelligence Analysis
Evaluating the Inputs to Analysis
Making Sense of the Analysis
Facts
Perceptions
Beliefs
Assumptions
Projections
Synthesis
Infrastructure to Support the Analysis Process
Intelligence Solutions
Limitations of Intelligence Solutions
Managing the Internal Network
Developing and Managing the External Network
Proactivity, Efficiency, and Perpetual Learning
Summary
Fleisher and Bensoussan’s 10 Commandments for Business and Competitive Analysis
References
Endnotes
3. Avoiding Analysis Pitfalls by Developing Analytical Fitness
Trade-Offs Made by Analysts
Analysis of Failure
Failure Location
Sources of Failure
Four-Level Hierarchical Model of Analysis Failures
Individual Analyst-Level Failures
Analysis Task-Level Failures
Internal Organizational-Level Failures
External Environment-Level Failures
The Movement to a New Generation of Analysis
Overcoming the Barriers and Improving Performance through Developing Analytical Fitness
Summary
References
Endnotes
4. Communicating Analysis Results
The Art of Effective Communication
Packaging the Results of Your Analysis
Delivering the Message
Face-to-Face Briefings
Written Reports and Briefings
Presentations in Meetings, Seminars, and Workshops
E-Mail/Instant Messaging
Web-Based Intelligence Solutions and Systems
Exercises and Planning Sessions
Common Products and Reports Used by Analysts
News Bulletins and Newsletters
Assessments
Competitor Profiles
Battlecards
Strategic Impact Worksheets
Intelligence Briefings
Situation Analysis
Special Intelligence Summaries
Creating the Report
Communication Difficulties Faced by Analysts
Effective Listening and Answering the Questions of Decision Makers
Conduct Communication Follow-Up and Gather Feedback
Pragmatic Considerations
Summary
References
Endnotes
5. Applying the FAROUT Method
Applying the Techniques
An Evaluation Scheme for Assessing the Adequacy of Tools and Techniques: FAROUT
Using the FAROUT Rating System
References
Endnotes
Section II: New and Classic Methods of Business and Competitive Analysis
6. A Better SWOT Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the SWOT Technique
Worksheet
FAROUT Summary
Related Tools and Techniques
References
7. Analysis of Competing Hypotheses
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Identify the Possible Hypotheses to Be Considered
Step 2: List the Significant Evidence in Support of and Against Each Hypothesis
Step 3: Prepare a Matrix with Hypotheses Across the Top and Evidence Down the Side
Step 4: Refine the Matrix
Step 5: Draw Tentative Conclusions About the Relative Likelihood of Each Hypothesis by Trying to Disprove It
Step 6: Analyze How Sensitive Your Conclusion Is to a Few Critical Pieces of Evidence
Step 7: Report Conclusions
Step 8: Identify Milestones for Future Observation That May Indicate Events Are Taking a Different Course Than Expected
Summary
Worksheet
FAROUT Summary
Related Tools and Techniques
References
8. Benchmarking Analysis
Background
Strategic Rationale and Implications
Taxonomy of Benchmarking
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Identify the Processes That Need to Be Benchmarked
Step 2: Identify Performance Measures
Step 3: Evaluate Your Own Firm’s Capabilities
Step 4: Identify Firms to Be Benchmarked
Step 5: Conduct Research of Selected Firms
Step 6: Analyze the Collected Data and Develop an Action Plan
Worksheet
FAROUT Summary
Related Tools and Techniques
References
9. Business Model Analysis
Background
Strategic Rationale and Implications
The Business Model
Classification of Business Models
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Articulate the Value Proposition
Step 2: Specify the Target Segment
Step 3: Determine Competitors
Step 4: Evaluate the Value Chain and the Cost Model
Step 5: Evaluate the Value Network
Step 6: Determine the Revenue Model for the Firm
Step 7: Determine the Critical Success Factors for the Industry
Step 8: Complete an Analysis Grid Detailing Each Element of the Business Model
Worksheet
FAROUT Summary
Related Tools and Techniques
References
10. Competitive Positioning Analysis
Background
Strategic Rationale and Implications
Develop and Build on the Firm’s Position
Maintain and Hold the Firm’s Strong Market Position
Defend a Dominant Position
Withdraw from a Market
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Identify Current Strategy and Market/Product/Project Parameters
Step 2: Conduct Analysis
Step 3: Review Results and Formulate Positioning Strategy
Summary
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
11. Competitor Cash Flow Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Processes for Applying the Technique
Future Cash Flow Analysis
Tip Sheet on Cash Flow Analysis
Worksheet
FAROUT Summary
Related Tools and Techniques
References
12. Critical Success Factors Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Leidecker and Bruno’s Identification Techniques
Determining Critical Success Factor Importance
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
13. Driving Forces Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Identifying an Industry’s DFs
Step 2: Assessing the Impact of the DFs
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
14. Event and Timeline Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Plot the Target Firm’s History of Key Events on a Line
Develop a Chronological Table of Events
Develop an Events Matrix
Event and Causal Factors Analysis
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
15. Historiographical Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Develop a General Proposition About the Analytical Target
Step 2: Collect Primary Information
Step 3: Collect and Relate Secondary Information
Step 4: Cross-Reference and Select the Best Sources for the Third Draft
Step 5: Analysis, Validation, and Reporting
Worksheet
FAROUT Summary
Related Tools and Techniques
References
16. Indications and Warning Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Establish a Set of Indicators
Step 2: Establish Meaning Behind Indicators
Step 3: Validate and Rank Indicators Against Threshold Levels to Determine When Warnings Need to Be Issued
Step 4: Determine and Recommend Appropriate Firm Responses to the Warning
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
17. Industry Fusion Analysis
Background
General Environment
Operating Environment/Industry Analysis
Internal Environment
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Worksheet
FAROUT Summary
Related Tools and Techniques
References
18. Interpretation of Statistical Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Percentage Changes
Percentiles and Quartiles
Normal Distribution and Bell Curve
Summarizing Data with One Value—Central Tendency
Standard Deviation
Comparing Data
Regression Analysis
Correlation
P-Values
Worksheet
FAROUT Summary
Related Tools and Techniques
References
19. Linchpin Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Linchpin Assumption Sensitivity Analysis
Process for Using Linchpin Analysis in Assessing Risk
Worksheet
FAROUT Summary
Related Tools and Techniques
References
20. McKinsey 7S Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
21. Product Line Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Initial Product Audit
Step 2: Assess the Product Relative to Its Position in the Product Life Cycle
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
22. Scenario Analysis
Background
Strategic Rationale and Implications
Methods for Generating Scenarios
Quantitative Method: Computer-Generated Econometric Model
Qualitative Methods
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Processes for Applying the Technique
Worksheet
FAROUT Summary
Related Tools and Techniques
References
23. SERVO Analysis
Background
Strategy
Environment
Resources
Values
Organization
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Evaluate the Current Performance of the Firm
Step 2: Assess the Current Strategy and Discern Whether Change Is Necessary
Step 3: Develop and Evaluate Strategic Options and Programs
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
24. Shadowing
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Team Composition
Team Structure
Performance Goals
Shadowing
Developing a Shadow Market Plan
Mini Case Studies
Case 1: Deregulating Utility
Case 2: Packaged-Food Multinational
Case 3: Ready-to-Eat Foods
Case 4: Pharmaceutical Firm
Worksheet
FAROUT Summary
Related Tools and Techniques
References
25. Strategic Relationship Analysis
Background
Strategic Rationale and Implications
Purposes Served by SRs
Two Key Strategic Relationship Processes
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Studying Your Own Firm’s Relationship Formation Readiness
Studying a Rival’s Relationships
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
26. Supply Chain Management (SCM) Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Rules and Tools
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Endnotes
27. Technology Forecasting
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
1. Expert Opinion
2. Trend Extrapolation
3. Growth Curves
4. Historical Analogy
5. Scenarios
6. Modelling, Simulations, and Gaming
7. Morphological Analysis
8. Relevance Trees
9. Monitoring
10. Creativity Stimulators
Using the Information
Worksheet
FAROUT Summary
Related Tools and Techniques
References
28. War Gaming
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Is a War Game the Way to Go?
Step 2: Getting a Business War Game Off the Ground
Step 3: Who Should Play?
Step 4: Preparing for Your War Game
Step 5: Playing the Game
Step 6: After the Game
Worksheet
FAROUT Summary
Related Tools and Techniques
References
29. Win/Loss Analysis
Background
Strategic Rationale and Implications
Key Intelligence Topics and Questions
Strengths and Advantages
Weaknesses and Limitations
Process for Applying the Technique
Step 1: Determine the Target Segments and Identify Prospects
Step 2: Understand Internal Cultural Issues
Step 3: Develop the Questionnaire
Step 4: Prepare for the Interviews
Step 5: Conduct Interviews
Step 6: Analyze and Interpret
Step 7: Disseminate
Worksheet
FAROUT Summary
Related Tools and Techniques
References
Index
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