Frameworks & Templates B290 Simon Rodan

Some frameworks SWOT BCG Growth Share Matrix Scenario planning McKinsey 7-S Rokudan Strat Map NOTE: no one frame is a silver bullet

SWOT Strengths Opportunities Positive A B C… f(A) f(B) f(C)… Weaknesses Threats D E F… f(D) f(E) f(F)… Negative Internal External

BCG Growth Share Matrix ? High Total Market Growth (Cash use) Low Low High Firm Market Share (Cash generation)

Scenario planning Identify key drivers Internal / external uncertainties Impact on firm Likelihood of occurrence Pick the most important Build a matrix of “outcome combinations” 1. Input price rise: p=50%, impact=0.2 2. Interest rate rise: p=20%, impact=0.1 3. FDA approval: p=50%, impact=0.4 4. NME discovery: p=10%, impact=0.3 3. FDA approval No Yes 4. NME discovery Scenario A Scenario B Scenario C Scenario D

McKinsey’s 7-S Framework Style Strategy Skills Shared values Staff Systems Structure

The Strategy Map VISION MISSION Strategic Goal #1 Strategic Goal #2 Strategic initiative Strategic initiative Strategic initiative Strategic initiative Strategic initiative Strategic initiative Project Project Project Project Project Project Project Project Project Project Project Project