Porters Five Forces – content, application, and critique

The Porters Five Forces model determines competitiveness and attractiveness of an industry

The model of the Five Competitive Forces was developed by Michael E. Porter in his book „Competitive Advantage: Creating and Sustaining Superior Performance“ in 1980. Since than it has become an important tool for analyzing an organizations industry structure in strategic processes. The Porters Five Forces model is actually one of the best-known tools for […]

Strategy making in the past and today – Part 2: Problems with the traditional strategy process

This part two of our article series about traditional and new approaches to strategy development looks at the problems related to the traditional strategy process. They mainly arise from today’s dynamic and unpredictable business environment – a condition that the original process was not designed for.

Strategy making in the past and today – Part 1: The traditional strategy process

Traditional process for strategic planning

Management theory and practice widely accept today that businesses operate in a more and more complex, dynamic, less predictable environment. This situation requires managers to develop new ways of thinking and acting. Nevertheless, many managers still follow the old approach of strategic positioning and strategic planning. This basic model proved to be very worthwhile for […]

Corporate culture – Do not underestimate its impact on merger success

Types of cultural integration in a merger

It is widely recognized that cultural differences between the partners of a merger are one of the most common reasons for failure in mergers. This may happen during pre-merger negotiations or during post-merger integration. Despite all Due Diligence, the two partners of a merger fail to form a new successful unit that is able to […]

Financial Modelling for strategic planning – Use these proven best practices to improve results and credibility!

Example of an input section of a financial model

For many strategists, self-developed Excel sheets are the tool of choice to support strategic planning. Despite its popularity, Excel and other spreadsheet programs have their downsides. I have discussed the pros and cons as well as some alternatives in an earlier article. However, by following a set of proven best practices, you can minimize these […]

Excel spreadsheets for strategic planning – use with care!

Excel spreadsheet used as a template for strategic planning

Are you one of those strategic planners who rely on Excel spreadsheets? Don’t worry, you are not alone. Excel is and remains fairly popular in strategic planning. However, there is no denying – Excel is not the perfect solution for this purpose. There are some significant risks and downsides. In this article, I discuss the […]