Strategy tools and techniques

This chapter seeks to address this problem for senior managers by, first, analysing just how scientific, as a function, business strategy actually is. The chapter seeks to answer this question by first asking how frequently business managers use management tools, in which industries and for which activities Second, the objectives behind the use of tools and techniques and their performance are analysed. Finally, we address the question of whether or not the current strategy tools and techniques appear to be used appropriately or not. 

The discussion that follows provides a description of the general use of strategy tools and techniques in total, and across the 7 business activities outlined earlier in chapter 1. The analysis then focuses on the use of tools and techniques across the 16 industry sectors and the 6 industry sector groupings also outlined in chapter 1. 

Table 3.1 The Total Use of Strategy Tools and Techniques (44 Tools with 478 Tool Usages in Total Recorded)... 

It is interesting to consider the uses to which particular strategy tools and techniques are put when companies do decide to use them. The evidence seems to indicate that, while companies may not use these tools as extensively as they should, when they do decide to use them they tend to focus broadly on key strategic rather than operational issues. This is borne out by the findings reported in Table 3.3. 

Table 3.3 The Use of Strategy Tools and Techniques by Business Activity -continued...

When considering which industry sectors use strategy tools and techniques more than others it is clear that in general terms some use them much... 

Having analysed the use of strategy tools and techniques in some detail, and seen that they are not used as extensively as they might be, but that... 

Table 3.5 Overall Objectives for Introducing Strategy Tools and Techniques... 

Table 3.7 The use and Impact of Strategy Tools and Techniques by Industry Sector and Groupings...

That said some industries appear to value the use of strategy tools and techniques more than others. The top performance scores for both firm and function combined were recorded in the Basic Chemicals (0.80), the Confectionery (0.78), the Computer Hardware (0.76), the Media Entertainment (0.75), IT Solutions (0.73), and Construction (0.71) industry sectors. The lowest combined performance scores were reported in the Publishing (0.43), Transport Equipment (0.56) and Aerospace (0.57) sectors. In the middle performance rank came Power Water (0.62), Retail Financial Services, Telecommunications and Tourism Leisure (all scoring 0.63), Retail Distribution (0.65), Oil Gas (0.66) and, finally. Healthcare (0.69). 

Table 3.10 The Use and Performance of Strategy Tools and Techniques in High, Medium and Low Risk Sectors...

See the reference to the three applications (Seller/lnternal/Buyer) in strategy tools and techniques (chapter 2). 

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