Analysis - Special Libraries Association · PDF fileIntroductory Case Study: ... KITs/KIQs for McD’s Using Issue Analysis . The Intelligence Collaborative ... improve client service

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Analysis

“Quick Takes”

SLA Presentation

October 15, 2014

Derek Johnson


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1. Brief Introduction to Four (4) Analysis Techniques:

Issues Analysis

Scenario Analysis

SWOT Analysis

Win/Loss Analysis

2. Acknowledgements

Agenda


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As Chief Executive Officer and Managing Director –

Worldwide Services of Aurora WDC, Derek Johnson

spends most of his time guiding the overall strategy of the

business and directing the firm’s external consulting

opportunities with clients. Prior to this promotion in March

2010, he served the prior seven years as Chief Operating

Officer and Director of Research with the firm.

Prior to joining Aurora in 2003, Mr. Johnson was in the

Investment Management industry as an account and

portfolio manager. He served as Wisconsin’s SCIP chapter

co-chair from 2007-2009 and remains on the steering

committee, was Program Chair of the 2009 SCIP

International Conference, and is a SCIP Catalyst Award

recipient. He is also a Chartered Financial Analyst (CFA),

with this designation conferred upon him in 2001.

Chief Executive Officer

@dljalpha

[email protected]


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Analysis Frameworks

At its most basic definition, an analysis

framework is problem solving tool. It is

a way in which information can be

assessed and analyzed in a particular

context to solve a specific issue.

Not all frameworks are created equally,

and not all frameworks are appropriate

to answer any strategic question. The

framework used to assess data should

match the issue.


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Issues Analysis


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Outline Issue Analysis

Introductory case: McDonald’s issues

Overview

Advantages

Limitations

Process for Applying the Method

Complimentary Analysis Methods


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McDonald’s was founded in 1940 by businessman Ray Kroc and is now headquartered in Oak Brook, Illinois.

McD’s faces a variety of external challenges, some like nutrition concerns, employment, global growth have become “issues.” Many of these issues are listed and described in some detail at: www.mcspotight.org

Already facing increased competition from formidable rivals like Subway and fighting to grow market share on many fronts, it now has government policy makers, activist groups and regulators in many countries putting the company in their sights and want to restrict its discretion to operate.

Introductory Case Study: McDonald’s Issues

http://www.mcspotight.org/


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A Current, Strategic Issue for McDonald’s


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What legitimate criticisms is McD’s receiving from its key stakeholders?

In which countries are laws or rules changing that impact McD’s operations?

Are there laws or regulations changing anywhere around the globe that can reduce McD’s discretion to operate?

Relative to identified issues, which groups support us? Which ones oppose us?

What institutional arenas do we need to be active in to influence public policy making?

What actions should McD’s be taking to level the competitive “playing field level?”

Introductory Case Study: KITs/KIQs for McD’s Using Issue Analysis


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Process:

Before an issue can be analyzed, it has to be identified.

Three tasks are precursors to issue analysis:

- Identifying issue categories

- Identifying their source

- Assessing their evolutionary development

Information-search techniques for identifying issues:

- Content analysis

- Scenario development

- Survey techniques


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Scenario Analysis


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A scenario is a detailed, consistent description of what the future may look like and is based on a set of assumptions that are critical for an economy’s, industry’s, or technology’s evolution.

Scenario analysis is a structured way of developing multiple scenarios that address two common decision-making errors —under-prediction and over prediction of change.

The overall purpose of scenario analysis is to build a shared baseline for strategic thinking and provide strategic early warning.

Short Description


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Is the industry an attractive one for us to enter or to remain in?

What technology platforms will be dominant in 5-10 years?

Will personal computing be done primarily by mobile telephony, or other means in the next decade?

What new applications and uses can be found for our current products and services?

Can/How can our company influence the industry forces that are reducing our profits?

Some KITs/KIQs for Using Scenario Analysis


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Follows systematic and recognizable phases.

The process is highly interactive, intense and imaginative.

Phases of Scenario Development:

Process for Applying the Technique


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Founded by Bill Gates and Paul Allen in 1975, Microsoft is one of the most successful computing-industry companies of the last 3 decades.

It has seen 3 major shifts occur, all of which it successfully navigated from the front: 1) MS-Dos, 2) Windows, 3) Office Suite.

Today, it faces a new breed of challenges and rivals, from large rivals like Google, Linux, Apple, open sources, the cloud, and its own momentum.

What will the future look like for Microsoft? Will it still lead in 10 years?

Introductory Case: The Future for Microsoft


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SWOT Analysis


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Opportunities:

Chances to make greater profits, attractive factors that offer reasons for the organization to develop

Threats:

Elements in the environment that could

cause trouble for the business.

Strengths :

Characteristics of the business or a team that give it an advantage over others in the industry.

Weaknesses:

Characteristics that place the firm at a disadvantage relative to others.

Background: The 4 Elements


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SWOT forces managers to better understand the factors that can have the greatest impact on an organization’s performance.

These factors are the organization’s strategic issues - existing either inside or outside the organization that are likely to have a major impact on the firm’s ability to meet its competitive

Constant review of strengths, weaknesses, opportunities and threats is required as issues evolve, change.

Strategic Rationale


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Factors over which you have more control

Factors that you have less control over

Strengths: Advantages that make an organization more competitive than peers. Beware of internal biases- stick to the facts

Opportunities: A situation in the external environment (trend or overlooked need) that supports the demand for a product/svc. that could enhance position

List and Evaluate

Weaknesses: Area where organization performs poorly, has inferior capabilities and will keep it from achieving its objectives

Threats: Unfavorable situation, trend or change in external environment that threatens organization’s ability to compete (barrier or constraint)


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The ABC Bank is one of the more conservative banks in Hong Kong.

Advantages: deals only with inter-banking and corporate banking. Has no bad debts, and is flush with cash.

Disadvantages: It remains very low profile within the HK market.

Opportunities: It is looking to grow out from its Hong Kong base and has unused capacity

Threats: There is always political uncertainty, and the competition on the mainland is fierce.

Case Study: ABC Bank in Hong Kong


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Internal

External

Strengths S1 - Cash rich

S2 - Steady cash deposits

(US $300,000 per month)

S3 - No bad debt

Weaknesses W1 - Lack of public awareness

W2 - Weak technological

systems

W3 - Lack of staff development

Opportunities

O1 - Foreign trading /market

O2 - Acquire new technology

from foreign banks

Strengths/Opportunities

Strategies

S1, S2, O1 - Setup an

affiliation with a US (FDIC)

bank or saving and loans

(F)

Weaknesses/Opportunities

Strategies

W2, O2 - Setup IT system with

a US bank or S&L (I)

W1 – Increase awareness

through new banking

partnership/affiliation (F)

Threats

T1 - Political changes from

China

T2 - Highly competitive

banking

Strengths/Threats

Strategies

S1, S2, S3, T1 - Expand

boundary to foreign

banking community (C)

Weaknesses/Threats

Strategies W2, W3, T1 - Setup

banking/cultural exchange

programs for staff

development (L)

SOURCE: Adapted from Andrew Sai On Ko and S.F. Lee, “Implementing the strategic formulation framework for the banking industry of Hong Kong”,

Managerial Auditing Journal 15/9 [2000] 469-477.

Case Study: ABC’s Enhanced SWOT


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Win/Loss Analysis


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Cost effective, insightful, and ethical method for gathering information about your market, customers, and competitors.

WLA identifies your customer's perceptions of specific sales situations and how you compared to your competitors.

The analysis provides information about the performance of both your firm and your competitors.

This information can then be used to focus sales staff more effectively in the marketplace and also to inform research and development of products.

Short Description


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Tactical Benefits Strategic Benefits

• Helping the sales team win more business.

• Improve client retention.

• Identify regularly why/how you lose against each of your competitors.

• Establish an action plan to address gaps in perceptions.

• Change behaviour and culture to improve client service.

• Identify traits of your successful sales people.

• Predict likelihood of winning/losing a sale more accurately.

• Change the sales mindset from one of making excuses for sales loss.

• Increase firm profits and revenue.

• Forecast revenue streams more accurately.

• Enhance the product/service offering and mix.

• Influence more timely product /service development.

• Alter the firm's culture to a more client service/needs focus.

• Select appropriate market alliances.

• Support the firm’s early warning system.

• Identify competitor trends over time to enable action.

Source: Adapted from Naylor, E. "Increasing sales through win/loss analysis,” Competitive Intelligence Magazine, 2002 5(5) pp 5–8.

Strategic and Tactical Benefits


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What were the reasons we lost the sales competition for … (a big client)?

Are our prices truly non-competitive with our rivals? Or are other factors impacting client retention decisions?

How/why can a top rival keep beating us on bids for regional clients?

Are there opportunities to gain clients that we are not capitalizing on?

What operational changes do we need to make to better satisfy existing clients? Help our sales force?

Introductory Case Study: Some KITs/KIQs for Using Win/Loss Analysis


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WLA is direct feedback from a client or potential client about why you won or lost a specific sale or contract.

The wins highlight your firm's strengths and your competition's weaknesses.

Losses highlight your firm's weaknesses and your competition's strengths (Ritchie, 1992).

Feedback obtained from a number of interviews is analysed.

More detailed than post-mortem.

From Win/Loss reviews, by

Rick Marcet, 2011

Overview


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WLA brings together information about customers, competitors, and your own firm – within the buying decision.

Implications are highly dependent on the quality of the raw data.

Analysts have the opportunity to learn about customers' perceptions.

Should be an independent evaluation and conducted regularly.

Strategic Rationale


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Connect with Dr. Fleisher via:

Email:[email protected]

Twitter: http://twitter.com/CraigFleisher

Acknowledgements

Dr. Craig S. Fleisher is Chief Learning Officer and

Director, Professional Development at Aurora WDC.


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Questions?

Thank you!

Documents

Analysis - Special Libraries Association · PDF fileIntroductory Case Study: ... KITs/KIQs for McD’s Using Issue Analysis . The Intelligence Collaborative ... improve client service