Strategic Consulting (eBook)

Philippe Chereau is professor at SKEMA Business School, in France, China and the United States where he manages the Master (MSc) in Entrepreneurship and Innovation. He previously held various executive positions in industry and strategy consulting. He has taught strategic management, business modelling, innovation and entrepreneurship in several Masters and executive education programs (SKEMA Business School, Aix-Marseille Université, MINES ParisTech). He regularly conducts executive training and consulting missions with a focus on entrepreneurial ventures. Corporate references include ENGIE (GDF-Suez), Covance, Façonnable, the network of French Chambers of Commerce, and numerous start-ups from life sciences and IT sectors. He is also referenced as innovation expert by the European Union and advisor of innovation and entrepreneurship of Xi’an Jiaotong University Suzhou Research Institute in China.Pierre-Xavier Meschi is professor at IAE Aix-en-Provence (Aix-Marseille Université). He heads the CERGAM (research center in management of Aix-Marseille Université). He is also affiliated professor at SKEMA Business School. He attended the ITP (International Teacher Program) at London Business School. He has taught corporate strategy and international strategy in various MBA programmes over the world, including Universidade de São Paulo, EDHEC Business School, SASAC-HEC Beijing program, Trier Universität, KEDGE Business School, EADA Barcelona and HEC Executive. He has also been involved in teaching in executive education programs and consulting activities in large international companies. Corporate clients have included Bank of Shanghai, Airbus Helicopters France and Germany, EADS-MDBA, STMicroelectronics and PetroVietnam.

Foreword: What Strategy for Strategy Consulting? 6
Acknowledgments 11
Contents 12
List of Figures 13
List of Tables 16
1: Introduction 18
2: Assessing the Environment 24
2.1 The Consulting Mission 24
2.2 Theory, Methodology and the Tools for the Mission 27
2.2.1 Theoretical Background 27
2.2.2 Methodology and Tools for the Mission 31
2.2.2.1 The Value/Performance Elasticity Test 33
2.2.2.2 Strategic Segmentation 36
2.2.2.3 Key Success Factors 41
2.2.2.4 Competitive Systems 44
2.2.2.5 Strategic Groups 49
2.3 Conclusion 51
Further Reading 53
On the Distinction Between “Platform” and “Pipeline” and Its Implications for Strategic Analysis 53
On the SCP Paradigm or the “Structuralist Approach” to Strategic Analysis 54
On the “Reconstructionist Approach” to Strategic Analysis 54
On Strategic Analysis 54
On the PIMS, Its Origin, Its Database, Results and Current Developments 54
The following website can also be consulted: http://pimsonline.com. 54
On the Process of Strategic Segmentation 54
On Identifying Key Success Factors and Value Functions 54
On Using Strategic Groups to Create New Competitive Spaces and “Blue Oceans” 54
3: Defining Strategic Positioning 55
3.1 The Mission 55
3.2 Theory, Methodology and the Tools for the Mission 57
3.2.1 The Theoretical Background 57
3.2.1.1 Strategic Positioning: A Key Stage in Strategic Planning 57
3.2.1.2 Strategic Capabilities 59
3.2.1.3 Strategic Intent 63
3.2.1.4 Strategic Configurations 64
3.2.1.5 Strategic Options and Piloting the Strategy 67
3.2.2 Methodology and Tools for the Mission 67
3.2.2.1 The Value Chain and the Value Network 69
3.2.2.2 Strategic Capabilities 75
3.2.2.3 Benchmarking 75
3.2.2.4 Generic Models of Competitive Strategy 79
3.2.2.5 Strategic Diagnostic 80
3.2.2.6 Assessing Strategic Options 87
From Assessing Strategic Options to the Strategic Plan 89
Further Reading 94
 On Strategic Capabilities 94
On Strategic Configurations 94
On Value Networks and Value Capture 94
On Matrices of Competitive Positioning 95
On Strategic Planning 95
4: Choosing a Growth Strategy 96
4.1 The Consulting Mission 96
4.2 Theory, Methodology and the Tools for the Mission 99
4.2.1 Theoretical Background 99
4.2.2 Methodology and Tools for the Mission 104
4.2.2.1 The Profitable Growth Test 105
4.2.2.2 The Strategic Model for Profitability 110
4.2.2.3 The Granularity Test 117
4.2.2.4 The Diversification Feasibility Test 121
Further Reading 125
On the Ansoff’s Growth Matrix, Diversification and the Success of Conglomerates from Emerging Economies 125
On Profitable Growth, Its Measures and Leverages 125
On James Kilts, the “ZOG” and Gillette’s Growth Strategy 125
On Granularity and Its Application to the Strategic Choices for Growth 125
5: Expanding Internationally 126
5.1 The Consulting Mission 126
5.2 Theory, Methodology and the Tools for the Mission 130
5.2.1 Theoretical Background 130
5.2.2 Methodology and Tools for the Mission 133
5.2.2.1 The RAT/CAT Test for Examining the Pertinence of Internationalisation 134
5.2.2.2 Analysing the Company’s International Position 136
5.2.2.3 Defining a Strategic Choice for Internationalisation or the 3A Test 141
5.2.2.4 Selecting an Entry Mode 148
5.2.2.5 Organising Internationally 152
Further Reading 157
On Distance, CAGE Model, Semi-Globalisation and Questioning Globalisation and the Global Integration of Geographical Markets 157
On Internationalisation Strategies, International Organisations, the Sources of Ghemawat’s AAA Strategies and Local Integration as an Extension of Local Adaptation 158
6: Combining Strategy and Innovation 159
6.1 The Consulting Mission 159
6.2 Theory, Methodology and the Tools for the Mission 161
6.2.1 Theoretical Background 161
6.2.1.1 Strategy and Innovation: The Need for Fit 161
6.2.1.2 Innovation Behaviour: Innovation Nature, Source and Activity 164
The Nature of Innovation 166
The Source of Innovation 168
Innovation Activities 170
6.2.1.3 Strategy, Innovation and Performance: The Importance of Context for Capturing Innovation Revenues 175
6.2.2 Methodology and Tools for the Mission 177
6.2.2.1 The Diagnostic of Innovation Management 179
6.2.2.2 Profiling the Capabilities of Innovation Management 185
6.2.2.3 The Analysis of the Strategic Innovator Profile 187
6.2.2.4 The Test of Strategy/Innovation Fit 192
6.2.2.5 The Choice of Innovation Portfolio 193
Further Reading 205
On the Relationship Between Strategy and Innovation 205
On Innovation Management 206
7: (Re)Designing the Business Model 207
7.1 The Consulting Mission 207
7.2 Theory, Methodology and the Tools for the Mission 210
7.2.1 Theoretical Background 210
7.2.1.1 Business Model: What Exactly Does This Mean? 210
7.2.1.2 Business Model and Strategy 214
7.2.1.3 The Specific Case of Platform Business Models 217
7.2.1.4 Why, When and How to Reinvent the Business Model? 220
7.2.2 Methodology and Tools for the Mission 225
7.2.2.1 The Business Model Blueprint 226
7.2.2.2 The Business Model Strategic Positioning 231
7.2.2.3 The Diagnostic of the Business Model Effectiveness 234
7.2.2.4 The Diagnostic of the Business Model Competitive Positioning 238
7.2.2.5 The Innovation of the Business Model 241
Further Reading 246
On the Different Types of Business Models and Their Construction 246
On the Strategy/Business Model Relationship 246
On Business Model Innovation 246
8: Conclusion 247
8.1 The Conditions for a Successful Strategic Consulting Mission 247
8.2 How to Sell a Consulting Mission 249
8.2.1 Approaching Clients and Building Legitimacy 249
8.2.2 Drawing Up the Mission Budget Proposal 251
Erratum to: Strategic Consulting 255
Index 256