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Part 3 Key strategy models

Gerben van den Berg Kogan Page ePub


Models for Step 1: Searchlight

Step 1: Searchlight

Step 1: Searchlight is about setting the scope of the strategy process: both content-wise and process-wise (see Part 2). In this step several strategy models can be used, particularly those that help express ambitions or a vision and mission statement, or models that help define the companys business playing field and business scope.


Strategy 3.0

FIGURE 12.1   Strategy 3.0


The Strategy 3.0 model gives companies a conceptual framework about how their strategy formulation process can evolve with changing times. Organizations are often used to a top-down strategy formulation process, which basically aims at making profits for the shareholder. Modern times call for a more participative and iterative strategy formulation, which allows organizations and network partners with whom they share important values to aim for a higher purpose.


This model is particularly useful as a mental framework in Step 1. It allows companies to think about who they are and what they stand for in the world. It leads to fundamental discussions on the DNA of the company and how it fits into the world of tomorrow (regarding trends in the environment, development with customers and owners, values of employees etc). By explicitly discussing the raison dtre and values (passion and purpose) of the organization, the process for formulating strategy is shaped.

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Designing transformation

Nick Udall Kogan Page ePub


What is needed now?

Our world lacks clear leadership and it is changing faster than ever before. This is a clich I know, and yet leaders would be wise to take heed. Technology is changing the game. Boundaries are blurring. Complexity is everywhere. Traditional jobs are eroding. Hyper-dependency continues to increase. Politics and big business have lost our trust, and to some their legitimacy. And, the media is trapped, lurching from one breaking news event to the next, looking for who is to blame.

We are living and working through a period of quantum change.

So whos holding the container and space for us to move co-creatively into the future? Its not the G8 or the G20. Its not the UN. So who? It cant be the so-called superpowers. And, at the other end of the spectrum, it cant be smart mobs. Lets face it, we are already experiencing a crisis of leadership.

So what is needed now?


The future will continue to get more Volatile, Uncertain, Complex and Ambiguous

Bob Johansen, Institute for the Future

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01 Introduction to logistics and distribution

Rushton, Alan Kogan Page ePub


Introduction to logistics and distribution


The key components of logistics transport, inventory, warehousing have been fundamental elements of industrial and economic life for countless years, but it is only in the last 20 years or so that logistics has been recognized as a major function in its own right. The main reason that this recognition has only been relatively recent is the nature of logistics itself. It is a function made up of many sub-functions and many subsystems, each of which has been, and may still be, treated as a distinct management operation. Both the academic and the business world now accept that there is a need to adopt a more holistic view of these different operations in order to take into account how they interrelate and interact with one another.

The appreciation of the scope and importance of logistics and the supply chain has led to a more scientific approach being adopted towards the subject. This approach has been aimed at the overall concept of the logistics function as a whole but, importantly, includes the interrelationship of the individual subsystems as well. Much of this approach has addressed the need for, and means of, planning logistics and the supply chain, but has necessarily considered some of the major operational issues.

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3. Marketing channels

Anders Parment Kogan Page ePub


Marketing channels

Marketing channels are crucial to making the offer available to customers. Due to the complexity and size of a car, there is a need for a physical point for delivering, maintaining, and repairing the car. These services have often been provided by the dealer, and its likely that automobile dealerships will constitute a major part of the marketing channels in the future too.

Marketing channels fulfil many more functions for car makers and buyers than just giving access to car ownership. Marketing channels make sure car makers provide good market coverage when it comes to after-sales services, get their products adequately exposed, and get access not only to buyers overall but, in the best case, buyers with a profile that fits with the car makers brand intentions. The more intensive the competition, the more important it is for a company to have great marketing channels.

Dealers will be necessary for the foreseeable future

There is and will be a need for a dealer from a number of perspectives. First of all and maybe most important, the buyer wants a dealer. Even for bicycles and lawnmowers compared to cars, very cheap products customers want a place to go for information, support, product demonstration, etc. In many industries, low-cost providers offer relatively complex products white goods, brown goods, garden tools, etc at low prices with very limited service. Over time, however, they tend to add personnel and expertise to be able to offer services many buyers want. Their cost advantage may remain, but its derived from scale advantages in marketing, procurement and administration and, very important, negotiation advantages with manufacturers gained through market power.

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4. Breaking through mental-model boundaries

Steve Bax Kogan Page ePub


Breaking through mental-model boundaries

There is no such thing as a saturated market, only saturated mental models.

An orbit-shifting challenge needs orbit-shifting ideas to bring it to reality. To discover orbit-shifting ideas, mere ideation is not enough. What is needed is the ability to first recognize and then break through mental-model boundaries.

A number of organizations with ambitious CEOs come up with orbit-shifting aspirations like three in three (grow three times the current business in the next three years) or create a new business equal to the size of the current business. The core reason why most of these organizations dreams dont even take off, let alone succeed, is that when managers finally get down to identifying opportunities and developing strategies they remain stuck in the old orbit. Orbit-shifting aspirations pursued with mental models that are trapped in the current orbit fail to take off.

Locked-in mental models

When confronted with the map shown in Figure 4.1, most people recoil with confusion and flip it around immediately so that it is, right side up! They instinctively react against the inverted map although in fact it is not inverted at all. It is another valid perspective of the world. A teacher in Argentina shared this map with us along with an interesting story. One day, she asked her students to draw a map of the world, with Argentina on it. Now, we all know that Argentina is at the bottom left of a conventional map. However, one student drew Argentina at the centre of the world. The teacher corrected the student, by showing her where Argentina ought to be. The child replied with something so profound that it led the teacher into extensive research on the narrow perspectives of cartographers in map-making. She said, For me, Argentina is at the centre of the world. World maps are actually designed only to provide us locational information and can be presented in any number of ways. Yet, almost all maps are presented in only one way, with the North Pole at the top. Seeing the same thing in the same way for many years, transforms it from being mere information into becoming a mental model, one that we are unaware of. It becomes the only way of looking at the world. The mental model is by now well and truly locked in. Present us with a perfectly accurate map with the south at the top and we immediately turn it around, because it just doesnt fit into our conditioned mental model.

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