1. Variations on strategic analysis and discourse Doctor of Business Administration London School of Commerce Adapted May 2017
PROFESSOR ROBIN MATTHEWS
KINGSTON UNIVERSITY BUSINESS SCHOOL LONDON
RANEPA MOSCOW
MOSI YOSHKAR-OLA
ECONOMIC STRATEGIES
PRESIDENT OF THE LEAGUE OF CORPORATE STRATEGY AND ACCOUNTING
http/
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2. Variations on strategic analysis and discourse
Planning
Diversification and portfolio planning
Core businesses
People oriented strategies

3. Expected net present
value of the business/project (NPV)
Expected revenues
Expected costs
Summed over the expected life of the business/project.
Discount rate
(average cost of capital)

4. discourse

5. Dynamic capability and critical success factors
Necessary conditions for survival (CSF)
Sources of competitive advantage that it is difficult to copy

6. Rules, laws, regulations, structures, architectures, routines.
Payoffs to
stakeholder groups
Tangible and
intangible
Assets
(including
Reputation)
payoffs
Competitors and
co-operators
Outer dynamics
Inner dynamics
Global macro system
grammar
Rules, laws, regulations, structures, architectures, routines.
Mindsets, culture, norms, values, habits, moods.
Intelligence rational and emotional.
Formal and Informal, Inner and Outer.

7. payoffs Inner dynamics Outer
GRAMMAR
SYSTEM
STATE
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10. The enneagram methodology
Actual v expected
Reflection
Monitoring
Control, reporting auditing
OUTER DYNAMICS
Corporate vision/mission/
strategic intent
Principal agent
Moral hazard
Information Emotional intelligence
Incentive compatibility
Abilities
Attitudes
Rewards
Motivation
Payoffs/Utility
Attitudes to risk
Tradeoffs/stakeholders
Survival/growth
Sustainability
Corporate responsibility
PAYOFFS
INNER DYNAMICS
Activities/assets capabilities
Rational choice
Bounded rationality
Mind sets/path dependence
Decision rules
NPV/DCF/ROCE….
Time horizons
Search techniques
Strategic models and
frameworks
Meta model
The strategic process is embedded in organizational grammar

19. OUTER DYNAMICS
COMPETITIVE DYNAMICS

20. Alternative shifts in the system state
Leveraging capabilities
Is the shift in the system state from E to E2 or from E to E3?
Old system state
S(t - 1) E
Current
Capabilities
New system state a
S(ta) E3 E2
Can leverage some of the capability set
New system state b
S(tb)
Need a jump to
new capabilities

21. Costs Capabilities are networks of assets (shadowed by their associated costs, usually market values of assets)
AVOIDABLE
UNAVOIDABLE F1
Sunk costs; Unavoidable
once incurred,includes
non recoverable variable costs
and change in asset values
(True costs) V
Variable and only avoidable by cutting down output
(marginal costs) F2
Fixed and only avoidable by going out of business

23. Value chain (Porter) PRIMARY Outbound logistics
Operations (manufacturing)
Inbound logistics
Marketing
Sales
Service
SUPPORT
Infrastructure
Human resources
Purchasing
Technology

24. Outer dynamics

26. Effect on sales revenue of price reduction
Effect on sales revenue of a price increase
Elastic
Ep >1
Sales Revenue
RISES
Sales Revenue FALLS
Inelastic
Ep <1
FALLS

27. EP = │ EP │ = price elasticity
ELASTICITIES
EP = │ EP │ = price elasticity
Ey = income elasticity

28. niches
Whole market
Market
segments
Market segment

29. McKinsey view of internal organizational grammar