I was having a great discussion about strategic frameworks with my family members and friends in India during my personal visit. Whether it is small scale product development or large scale initiatives, most of the references I heard were SWOT. Yes, SWOT is a good framework but I found that in my discussions no one had even aware of other frameworks that should be evaluated first before documenting their results in SWOT for discussion.
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats):
o Strengths and Weaknesses focus on internal factors.
o Opportunities and Threats focus on external factors.
o Provides a comprehensive look at a company's internal capabilities and external environment.
Other Frameworks
AFI Framework (Analyze, Formulation, Implementation)
o Comprehensive: Covers the full cycle
of strategic management from initial analysis to the execution and monitoring
of strategies.
o Structured: Provides a clear sequence
of steps, which helps in systematic thinking and decision-making.
o Flexibility: Can be adapted to
different types of organizations and industries.
PESTLEED Analysis (Political, Economic, Social, Technological, Legal, Environmental, Ethical, Demographic):
o Analyzes macro-environmental factors
that can affect an organization.
o Helps in understanding market growth
or decline, business position, potential, and direction for operations.
TECOP
o Technical Considerations
o Environmental Challenges
o Commercial Constraints
o Operational Excellence Thoughts
o Political Influences
This is often considered in connection with the PESTLE.
BCG Matrix (Boston Consulting Group Matrix):
o Stars: High growth, high market
share.
o Question Marks: High growth, low
market share.
o Cash Cows: Low growth, high market
share.
o Dogs: Low growth, low market share.
o Helps in portfolio management by
evaluating product lines and business units.
VRIO Framework (Value, Rarity, Imitability, Organization):
o Analyzes a firm's internal resources
and capabilities.
o Determines whether they provide a
sustainable competitive advantage.
Ansoff Matrix (Product/Market Expansion Grid):
o Market Penetration: Existing products
in existing markets.
o Product Development: New products in
existing markets.
o Market Development: Existing products
in new markets.
o Diversification: New products in new
markets.
o Helps in identifying growth
opportunities.
Value Chain Analysis:
o Identifies the primary and support
activities that add value to a product or service.
o Helps in understanding cost
advantages and identifying areas for improvement.
CAGE Analysis
o Cultural Differences: Perceived differences within the home/host and within those demographics.
o Administrative Considerations: The modus operandi in how work flow within multiple groups and companies
o Geographical Distance: The distance geographically separating companies impacting supply chain, tax, trade, etc.
o Economical Power: The power of the currency, gross domestic product, etc.
Blue Ocean Strategy:
o Focuses on creating new market space
(blue oceans) rather than competing in existing markets (red oceans).
o Encourages innovation and value
creation.
Balanced Scorecard:
o Measures organizational performance
across four perspectives: Financial, Customer, Internal Processes, and Learning
and Growth.
o Aligns business activities with the
vision and strategy of the organization.
McKinsey 7S Framework:
o Analyzes organizational effectiveness
based on seven elements: Strategy, Structure, Systems, Shared Values, Skills,
Style, and Staff.
o Helps in ensuring that all parts of
the organization work together harmoniously.
Porter's Value Chain:
o
Identifies
specific activities within the business where competitive strategies can be
best applied and where improvements in efficiency and effectiveness can be
achieved.
In summary, SWOT is not the only framework but one of the frameworks. After all, strategy is about 'competitive advantage' and we current operate in a VUCA (volatile, uncertain, complex, and ambiguous) world.
