Glossary of techniques for strategic analysis. This article provides a glossary of analytical techniques, страница 5

Hussey, D. E. (1994). Strategic Management: Theory and Practice, 3rd edition, chapters 9 and 10, Pergamon Press, Oxford.

Steiner, G. A. (1979). Strategic Planning: What Every Manager Must Know, p. 139, Free Press, New York.

See also: group competitive intensity map, industry analysis, industry mapping, strategic group mapping and value chains.

Core competencies

The concept of core competencies has been suggested as a more useful way of looking at an organization than the strategic business unit concept. Competencies are the skills, knowledge and technologies that an organization possesses on which its success depends. Those that are core are the ones that should be nurtured. Instead of developing strategy based on thinking only of dominating markets, it may be more useful to think in terms of core competencies, which will segment the organization in a totally different way.

The references quoted do not offer a technique for analysing competencies, but it should be possible to move from the concepts to a form of portfolio analysis which positions activities by core competencies.

Hemel, G. and Heene, A. (eds.) (1994). Competence-based Competition, Wiley, Chichester.

Ohmae, K. (1983). The Mind of the Strategist, chapter 14, Penguin Books, London, (This book does not use the term core competencies, but offers some thoughts which are relevant to the concept.)

Prahalad, C. K. and Doz, Y. L. (1987). The Multinational Mission, pp. 62±3 and 240±2, Free Press, New York.

Prahalad, C. K. and Hamel, G. (1990). The core competence of the corporation, Harvard Business Review, May±June.

See also: MCC decision matrix and technology grid.

Corporate modelling

Computer-based simulations of the total company or of a business activity within the company are useful in assessing the expected results of strategies. Manual quanti®cation of options can be tedious. Models speed this up, make it possible to consider more options and sensitivities, and reduce the risk of mathematical error. In the 1960s, when many of the earlier models were developed, modelling was a major investment of time and money and of course used mainframe computers making access dif®cult. With the availability of personal computers, modelling is now within the reach of all. Useful models can be built on spread-sheet programs, and can be highly sophisticated suites of models, or a relatively simple way of looking at changes in the pro forma ®nal accounts.

Chandler, J. and Cockle, P. Techniques of Scenario Planning, McGraw Hill, London.

McNamee, P. B. (1985). Tools and Techniques of Strategic Management, Pergamon Press, Oxford. McNamee, P. B. (1988). Management Accounting: Strategic Planning and Marketing, Heinemann Professional Publishing, Oxford.

McNamee, P. B. and McHugh, M. (1991). A hierarchical approach to modelling the strategic management process. In: D. E. Hussey (ed.),

International Review of Strategic Management, 2.1, Wiley, Chichester.

Critical skills analysis

See critical success factors.

Critical success factors

(Also known as critical skills analysis or key success factors.)

An approach to strengths and weakness analysis which is also useful in competitor analysis and, if taken to lower levels of resolution, in the design of information systems. It seeks to identify the 5±10 things that have to be done well in order to be successful in a speci®c business. Lever Brothers and McBrides (own label contractors) are both in the detergent business, but they do not have the same critical success factors. Among those critical to Lever Brothers are product innovation, market segmentation and promotional skills. None of these matter to McBrides, who among other things have to be able to formulate substitutes for branded goods quickly, produce to low cost and have ¯exible manufacturing capability.

Concentration on critical success factors is one way of honing the strengths and weakness analysis so that the important strategic issues are identi®ed and dealt with. The approach also provides a standard against which it is possible to evaluate one's own business against those of competitors.