3 The Operational Review (see Apple Case Study
for a full strategic, business, and operational review)
Depending on the generic strategies a firm wants to adopt, based on what it can do best, we first conduct, as described on the previous page, a Strategic Review focused on the competition. This is followed, as shown on this page, by a Business Review focused on the customer, and finally, to make it all work, by an Operational Review, as developed in our case study on Apple
1 The Generic Strategies
To quote Porter, "firms pursuing the same strategy directed to the same target market constitute a strategic group". Once the firm has decided on its strategic positioning within its strategic groups relative to its competitors' in the industry, as either a cost leader, quality leader, or niche leader, it must develop its own unique marketing, technology, and sourcing strategies and be able to execute them profitably (generating both high market share and high percentage margin)
2 The Business Review
Because we've conducted hundreds of reviews throughout our 30+
year careers, we generally have a good snapshot by the 3rd week.
However, the subsequent due diligence phase can take a lot longer:
A Qualitative Review which looks at both product development
and omnichannel development. This is where today's Web
analytics tools can provide real-time insights on a customer's buying behavior along his journey across the omnichannel's network of connected physical and online stores. Surveys are also used
A Quantitative Review based on the qualitative review we
determine market demand and the targeted firm's competitive
market share. Capturing user behavior, elusive, is key
A Financial Review to ensure that the strategy will turn a profit for the targeted firm, maximizing its revenue (marketing), minimizing both its costs (operations) and its financing needs (finance) in its business (production)
A Business Model Review We look for business models able to achieve both high market share and high profit margin very early on for the targeted firm
A Risk Model Review We ensure that all 5 sources of risk, namely firm, competitive, industry, macroeconomic, and cybersecurity risks, have been integrated into the target firm's investment strategy (return on capital) and financing strategy (cost of capital). We look at
Analysis the handful of marketing, operating and financial
assumptions underlying the risk-return analysis
Decision-making the firm's (re)organizational agility, which
enables it to tactically and strategically change course when
the assumptions are no longer valid, as so often happens
Execution the way the firm actually uses both natural and
financial hedges to take long or short positions to offset its long
or short risk exposures (the net position should ideally be nil
at minimal hedging costs paid to the bank)
An Organizational Review is finally conducted to see how the firm
organizes itself to properly i) run its business, ii) serve its customers,
iii) manage its people:
Running the Business:
Marketing (customers, noncustomers)
Operations (people)
Finance (money)
Strategy & Control (performance, social responsability)
Tools (management science, information technology)
To execute the strategy on a day to day basis, we've chosen to treat the Operations function, comprised of the 7 functions below, normally
managed separately in isolation, as a single process, put under the
responsability of a single officer, the Operations Manager (COO).
The latter's goal is a qualitative one, to serve the customer, rather
than a quantitative one, to increase sales revenue per se. Resources,
that is mainly people, are then allocated and costed for each business
function as above and each "customer-serving" function as below:
Serving the Customer:
Sales
Production
Distribution
Payment
Service
Strategy & Control (performance, social responsability)
Tools (management science, information technology)
Managing People:
People
Strategy & Control (performance, social responsability)
Tools (management science, information technology)
Marketing Strategy
The Business Review
Customer
Analytics
Customer Profitabilty
Customer Acquisition
Customer Service
Marketing
Brand and Innovation Management
OPERATIONS
People
Strategy & Control
Performance, Social Responsability
Marketing Strategy
(customers)
Competitive Strategy
(people)
Customer Retention
The Industry
Finance
Money
Finance
Money
Financial Strategy
(money)
Customer
Delivery
The Customer
Sales
Production
Distribution
Payment
Service
Competitive Strategy
How We Do It
Execution
How We Conduct A Business and An Operational Review
Strategy & Control
(performance,
social responsability)
The Market
Tools
Management Science, Information Technology
Tools
(management science,
information technology)
To contact us
Or Man Partners