an emerging small business framework addressing the growth strategy challenge is called Blue Ocean Strategy. Value Innovation Strategy thinking looks at fostering innovation, value creation, and effective execution. The theory behind Blue Ocean Strategy is to make competition irrelevant, thus creating a blue ocean; on the other hand, in the traditional competitive environment, enterprise play in a highly saturated, red ocean company environment. With value creation, a competitive business selects and develops the optimal expansion strategy by finding the most economical balance among costs and value. Effective enterprise execution is dependent on both concept implementation and developing a sustainable progress structure. With value identification, a company truly understands what the customer values and prioritizes its resources and business initiatives accordingly.
Most business usually engage in pricing strategy work streams, as they release new products and services or tweak existing services. The approach of financial modeling is oftentimes linked to building a pricing strategy business case for a new product or service. On the other hand, creating a pricing strategy business case focuses one primary question initially: whether to skim the market or penetrate the market. The price of a product tells the consumer much about the product, as people are prone to likening price with quality. Many times, the required pricing data isn’t available, so we must use MS Excel to project values, such as sales volumes, using built-in linear Excel functions. MS Excel is the modeling tool of choice for financial analysts when doing pricing analysis and modeling, such as price sensitivity modeling, game theory analyses, and cost structure analysis. Price penetration strategy involves bringing a product or service at a low initial entry price , usually less than existing competing products available in the market. Price skimming involves introducing the new offering at a relatively high price point. Pricing strategy allows the business to optimize its bottom line, in addition to position its products in an optimal place in the product landscape.
When a initiativehas been backed by the business case (which is both financially and non-financially) and is approved by the management team, the business case template is then continuously maintained and refined to measure the business initiative’s progress compared with the initial financial metrics and assumptions. This powerpoint then becomes a working document used during the initiative tracking process. Developing a business case is a thorough process, requiring both quantitative and qualitative evaluation and analysis.
For traditional progress strategy thinking, most people rely on the well established enterprise framework Porter’s Five Forces, developed by Michael Porter. Through this framework-based organization evaluation, a company can decide on its competitive strategy, which falls into either one of four categories: cost leadership, differentiation strategy, cost focus, or differentiation focus. In Porter’s Five Forces, we assess 5 industry forces that affect any competitive environment, which include internal rivalry, threat of new entrants, buyer power, supplier negotiation power, and threat of substitution products.
One of the most frequently created Excel spreadsheet models in any growing company is one for a capital budgeting business case. The business case example typically takes the form of an Excel spreadsheet or can be a business case ppt and quantifies the financial components of the project, projecting key metrics for making any important business decision: for example, Net Present Value, ROI, Breakeven, Cost of Investment. In fact, any business engagement requiring investment should be supported and justified by a business case spreadsheet. This document will also be tracked on an ongoing basis to measure the success of the undertaken business initiative.
Even though the business case powerpoint is typically employed as the rational element, its uses can be both political and emotional in nature. If we were to take a political perspective, the business case is used to gain buy-in and develop a relationship with key management and create a vision of what the company could become. Taking an emotional perspective, the document is used to gain insight into those drivers of key executive issues, assess the financial pulse of the organization, and provide quantifiable and objective backing to business projects or other investments. If we were to take a political perspective, it is used to create political risk for business engagement key stakeholder if opportunities selected are not acted upon and show that an unified approach must be taken. It can also be leveraged to create career wins for oneself, engagement sponsor, and other key stakeholders if quantified opportunities are acted upon.
Development can be achieved several ways, which can be bucketized the two buckets of increasing small business scope and growing the value from current enterprise. To expand the organization scope, a company can branch off into new segments, expand into new categories, produce new services, innovate new brands, develop new formats and distribution channels, and expand geographically.
A lot of firms lack the capability to managing short-term and long-term strategic thinking and investing properly to fuel growth-enabled firms. There are examples of when external triggers (such as regulatory change, technology) for a company to move out of core company competencies to unexplored space. Corporations need to focus on its core to ensure there is proper development before focusing on secondary sales revenue streams. A frequent case is for an organization to practical experience a slowdown in growth in its primary enterprise and lack innovative ideas and products in the pipeline to fuel future growth. Many times, firms knowledge unjustified focus on new company development without developing the core, and therefore spreading the organization and management thin.
