Module 1
STRATEGY DEVELOPMENT IN PRACTICE 10 Arguments in support of and against leadership 40
Amazon’s Six-Page Memo 10 Strategic leadership 41
Competitive advantage 12 Key elements in the role of the strategic leader 41
competitive advantage from data 12 Strategic thinking 42
Value-add from
12 Japan Airlines — The Power of Strategic Leadership 42
customer data
Marginal value: add from data 12 LEADERSHIP STYLES 45
Data depreciation 12 TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP 45
Data non-substitutability 12 LEADERSHIP STYLES BASED ON THE INTENSITY OF CHANGE 48
Product imitation 12 Collaborative style: 48
Use of individual
customer data to 12 Consultative style: 48
improve the product
Speed to market 12 Directive style 48
Letting Purpose be the Guide — Mars Petcare 14 Coercive style: 48
LEADERSHIP STYLES BASED ON TEAM AND
value proposition 14 49
INDIVIDUAL DEVELOPMENTAL STAGE
Value Proposition Canvas 15 Directing 49
productivity frontier 16 Coaching 49
STRATEGIC FIT AND STRATEGIC STRETCH 17 Supporting 49
valley of death 19 Delegating 49
LEADERSHIP STYLES BASED ON ORGANISATIONAL
Organisational Maturity and the Capability Maturity Model (CMM) 20 50
LIFE CYCLE STAGE by Rothschild (1993)
Corporate strategy 21 Risktakers 50
Business Strategy 21 Caretakers 50
Functional Strategy 21 Surgeons 50
Hagel and Singer (2000) 22 Undertakers 50
customer relationship business 22 THE ROLE OF LEADERS IN STRATEGY 51
product innovation business 22 COMMUNICATION 52
infrastructure business 22 Personal Learning Clouds (PLC’s) 53
John Kotter Vision 25 DECISION MAKING 53
Vision 25 Rational Approach to Decision Making 53
Mission 25 Command 54
Values 25 Collaborative 54
Goals = SMART 26 Consensus 54
business model 27 Convenience 54
Business Model Canvas
29 Business ethics 55
Osterwalder (2013)
Driving forces of globalisation 31 Values and Ethics 55
Globalisation risks and considerations for leaders and managers 33 Classical View of Ethics 55
Benefits of globalisation 36 7-Eleven’s Labour Cost Woes 56
LEADERSHIP 36 Socio-Economic View of Ethics 57
THE ROLE OF THE CPA IN STRATEGY
traits approach 37 58
AND LEADERSHIP
behavioural approach 37
Managerial styles in the Blake and Mouton leadership grid 38
Country club manager 38
Team manager 38
Impoverished manager 38
Authority-obedience manager 38
contingency approac 38
managing VS leading 39
Module 2
Why external analysis is difficult? 72 Summarising the Remote Environment Analysis 112
industry analysis 73 Michael Porter - five forces model 115
Gathering Data for Industry External Environment Analysis 73 PORTER’S FIVE FORCES 116
boiling the ocean 73 Threat of New Entrants to the Industry 116
Big data 74 Entry barriers 116
bang for your buck 74 POWER OF SUPPLIERS TO THE INDUSTRY 118
some sources for gathering information about an industry and the external environment in which
74 Power of Buyers 119
it operates.
Advanced Analytics in the Fisheries Industry 75 Power of Substitutes 120
DEFINING THE INDUSTRY FOR ANALYSIS 79 Indirect Substitutes 121
THE INDUSTRY VALUE CHAIN 81 Power of Complements 122
IT Outsourcing 86 Intensity of Industry Rivalry 122
INDUSTRY SEGMENTATION 87 Drawing Conclusions About Industry Profitability 123
INDUSTRY LIFE CYCLE 89 Markets 126
start-up phase, a growth phase, a maturity phase (usually by far the largest phase), a shake-out and a 90 Market Segmentation 126
decline phase 91 Market Segment Analysis 127
Disrupting the Industry Life Cycle 92 COMPETITION IN THE INDUSTRY 129
Mature Organisations’ Response to Disruptive Technologies 92 Strategic competition 129
Silent Disruption of the Accounting Services Industry 93 BASIS OF COMPETITION 129
REMOTE ENVIRONMENT ANALYSIS 99 INDUSTRY KEY SUCCESS FACTORS 131
remote environment Vs Industry Environment 100 COMPETITIVE POSITION 132
STEEPLE analysis 101 Identifying and Assessing Competitors 132
Social 102 value proposition 133
Technological 104 strategic groups 136
FURTHER IMPLICATIONS FOR LEADERSHIP
Technological forces that impact on global industries 105 138
AND MANAGEMENT
Affective Computing 105 DATA MANAGEMENT APPROACH 138
Environmental 107 RESPONDING TO CHANGE 138
Economic 106 REVISITING THE ROLE OF THE CPA 139
Political 109
Legal 109
Ethical 111
Module 3
Stakeholders 149 Porter’s generic strategies 168
Typical stakeholder groups 150 differentiation advantage 168
STEP 2: ASSESS ALIGNMENT OF STAKEHOLDER NEEDS 152 Generic Strategy: Differentiation 169
STEP 3: ASSESS THE RELATIVE POWER OF
154 Generic Strategy: Low Cost 171
STAKEHOLDER GROUPS
four stakeholder categories 154 Generic Strategy: Focus 173
Crowds 154 Connecting Innovation and Business Strategy 174
Context setters 154 OPERATIONAL DRIVERS 176
Subjects 154 EFFECTIVE MEASUREMENT CRITERIA 176
Players 155 Common Organisational Performance Measures 177
STEP 4: DEVELOP TECHNIQUES FOR INTERACTING WITH
155 COMPETITIVE BUSINESS ENVIRONMENT BENCHMARKS 178
STAKEHOLDER GROUPS
Partner 155 Benchmarking 178, 192
Manage 155 balanced scorecard (BSC).Kaplan and Norton (1996) 179
Inform 155 Examples of BSC measures 181
Consult 155 PEOPLE AND ORGANISATIONAL DRIVERS 185
ASSESSING CURRENT PERFORMANCE 157 VALUES 185
THE IMPORTANCE OFTHE IMPORTANCE OF
Access to Good Data 157 185
LOOKING AHEAD AND MANAGING KNOWLEDGE
Ability to Analyse the Data 158 explicit knowledge 186
Turn Analytic Insight into Commercial Insight 159 tacit knowledge 186
RESOURCES AND CAPABILITIES
Rio Tinto’s Analytics System 161 187
IN STRATEGY
FRAMEWORK FOR PERFORMANCE ASSESSMENT 162 Tangible resources 189
STRATEGIC DRIVERS 163 Intangible Resources 189
industry and markets 163 Human Resources 189
customers 163 Identifying Capabilities 190
products and services 164 functional analysis 190
Boston Consulting Group Product Matrix BCG 166 value chain analysis 191
channels and 167 APPRAISING RESOURCES AND CAPABILITIES 192
competitive advantage. 168 strategic resource or capability 192
low-cost advantage 168 Valuable 192
Rare 192
Costly to Imitate or Replicate 192
Non-Substitutable 192
SWOT ANALYSIS 197
GAP ANALYSIS 199
FURTHER LEADERSHIP AND MANAGEMENT
202
IMPLICATIONS FOR INTERNAL ANALYSIS
Module 4
INNOVATION IN BUSINESS 210 OBJECTIVES/Enablers OF MARKET ENTRY 258
extended SWOT analysis 213 MARKET ATTRACTIVENESS 259
Ansoff product/market matrix 214 MARKET DEVELOPMENT RESOURCES 261
MARKET PENETRATION — GROWTH IN EXISTING
217 COMMON MODES OF ENTRY INTO NEW GEOGRAPHIC MARKETS 263
PRODUCTS AND MARKETS
PRODUCT DEVELOPMENT — NEW PRODUCTS FOR
219 Exporting 263
EXISTING MARKETS
MARKET DEVELOPMENT — EXISTING PRODUCTS FOR
220 Approaches to exporting 264
NEW MARKETS
DIVERSIFICATION 222 Licensing 265
related diversification 222 Franchising 266
unrelated diversification 223 Strategic Alliances 267
NEW PRODUCT DEVELOPMENT (NPD) 226 Joint Ventures 268
key steps of a generic new product development process 227 Foreign Direct Investment (greenfield site vS brownfield site) 269
new drug development process 231 MERGERS AND ACQUISITIONS 271
ROLE OF MARKET RESEARCH 233 Horizontal integration 271
Kano diagram 234 Vertical integration 271
Summary of Kano’s performance attributes 235 backward integration 271
NEW SERVICE DEVELOPMENT 236 forward integration 271
key components of service design 237 M&A guidelines 273
EMBEDDING PRODUCTS INTO SERVICES
239 ADVANTAGES AND DISADVANTAGES OF DIFFERENT ENTRY MODES 274
WITH TECHNOLOGY
design thinking 241 ACCOUNTING ISSUES ASSOCIATED WITH MARKET EXPANSION 277
Blue Ocean strategy 244 Foreign Exchange Risks 277
Red Ocean Strategy VS Blue Ocean Strategy 244 Preparing Multiple Sets of Reports 278
Value innovation 245 Incompatible IT Systems 279
Factors of Competition and the Strategy Canvas 245 Varying Business Conduct Standards 279
Four Actions Framework 247 Taxation 279
Cirque du Soleil — Applying Blue Ocean Thinking 248 Transfer Pricing 280
eliminate–raise–reduce–create grid: 249 INTELLECTUAL PROPERTY (IP) 281
USING IT TO SUPPORT NEW PRODUCT AND
251 IP STRATEGY 282
SERVICE DEVELOPMENT
Standards 253 IP RIGHTS INFRINGEMENT 284
Winning Standards Wars 253 PROTECTING IP RIGHTS 284
PRODUCTS TO EMBED IN A SERVICE 254 LEADERSHIP 286
NEW MARKET DEVELOPMENT 255 Six paradoxes of leading innovation 286
IDEO’s 10 faces of innovation personas The anthropologist, The
International growth options (FDI) 257 287
experimenter, The cross-pollinator, The caregiver
Integrated domestic firm 257 Key questions for finance professionals to consider and answer 289
Export: foreign agent/distributor 257
Export: foreign sales subsidiary 257
Foreign production subsidiary 257
Integrated foreign subsidiaries 257
Module 5
ALIGNING VISION, MISSION, VALUES, GOALS AND STRATEGY 297
strategic themes 297
VISION AND STRATEGY DEVELOPMENT 298
MISSION 299
VALUES 299
GOALS 299
LEADERSHIP AND MANAGEMENT ROLES IN STRATEGIC ALIGNMENT 301
STRATEGIC DRIVERS AND CONSIDERATIONS 303
Operational, organisational and people, product and services levers 305
STRATEGIC DRIVERS 306
OPERATIONS 307
Linking the strategic driver, strategic option and operations 307
ORGANISATION AND PEOPLE 309
Linking the market’s strategic driver with a strategic option to the organisational and people levers 309
Product and Service Key Success Factors 310
Key Success Factors for New Market Development 311
THE INTERACTION OF DRIVERS AND LEVERS 311
EVALUATING THE STRATEGIC OPTIONS AND DETERMINING THE STRATEGIC FIT 314
VALUE/EFFORT ASSESSMENT 314
Low-hanging fruit 315
Blood, sweat and tears 315
Delegate or dump 315
Dead ducks 315
WEIGHTED CRITERIA EVALUATION TOOL 315
EVALUATION USING BUSINESS ANALYTICS 318
Data Lakes 320
RISK ASSESSMENT 321
RISK MANAGEMENT FRAMEWORK 322
RISK TREATMENT 326
RISK ASSESSMENT USING BUSINESS ANALYTICS 326
QUANTIFYING COSTS AND BENEFITS 328
‘What-if’ Analysis (Impact of risk = value to the organisation X estimated percentage risk) 328
Cost–Benefit Analysis 328
TIMING RISKS 329
INTEGRATING STRATEGIC OPTIONS 330
RUMELT’S CRITERIA 332
external consistency 332
internal consistency 334
feasibility 335
competitive advantage. 336
FINALISING STRATEGY DEVELOPMENT 340
SETTING KEY PERFORMANCE METRICS (KPMS) 340
Module 6
DESIGNING AND DEVELOPING IMPLEMENTATION PLANS 366 STRUCTURED APPROACH TO MANAGING CHANGE 383
Compelling case Well-defined Clear vision strategy Adequate resources Organisational/physical
THE 7-S FRAMEWORK 366 384
capability Sufficient motivation Robust communication mechanisms
Strategy 366 Kotter’s Eight-Step Process for Change 385
Structure 368 IMPACT OF CHANGE ON AN ORGANISATION 388
Components of Structure (Complexity, Formalisation, Centralisation) 369 PROJECT AND PROGRAM MANAGEMENT 389
Drivers of Structure 369 Virtual Teams 392
Centralisation Versus Decentralisation 372 MONITORING IMPLEMENTATION, PERFORMANCE AND THE EXTERNAL ENVIRONMENT 395
Mechanistic Versus Organic Systems 372 Digital Twin 396
Systems 374 PERFORMANCE MEASUREMENT 396
Style 366 Balanced Scorecard 396
Shared values 367 Dashboards 398
Skills 367 ONGOING MONITORING OF THE ENVIRONMENT 399
Staff 377 REWARD SYSTEMS 400
Managing Teams 377 Reasons implementation can fail 402
Managing Culture 377 COMMON PITFALLS IN STRATEGY IMPLEMENTATION 403
Developing a Strategy-Supportive Culture 377 Transforming Strategic Thinking into Action 403
Managing Across Cultures 380 Paralysis by Analysis 404
CHANGE MANAGEMENT 380 Resistance 404
Change Strategy 381 Factors influencing resistance to change 405
Business Impact Assessment 381 Managing the Politics of Strategy Implementation 405
Change Readiness Assessment 381 Politics and Power Defined 406
Stakeholder Management 381 Role of Managers in Dealing With Politics 406
Communication 382 Environmental Uncertainty 407
THE ROLE OF CPAs IN STRATEGY IMPLEMENTATION 408
