Design Institute - Prototype Awards Seminar
20 Nov 2004
Presentation
Presentationon
onBusiness
BusinessStrategy
Strategy
Strategic
StrategicIdentification
Identification&&Screening
Screeningof
of
Business
BusinessDevelopment
Development Opportunities
Opportunities
Presented by Troy Dyer
Copyright Troy Dyer 2004
Presenter background
Troy Dyer is a management consultant specialising in business & corporate strategy. He works
independently via his firm Audax Ideas. His clients range from large listed companies to privately
owned medium sized high growth businesses. Troys services include advising high growth business
on raising capital for business development and expansion. For more info refer
[Link]
Troy also serves as the Executive Officer of SAVCA (the South African Venture Capital & Private
Equity Association), one of his clients at Audax Ideas. The assignment is on a part-time basis,
complementing his strategy consulting activities. Working with the SAVCA Chairman and Executive
Committee, Troys responsibilities are to facilitate and guide the strategic development of the VC/PE
industry in SA, to develop and deliver an annual menu of value-adding services to SAVCA members,
and to manage the administrative aspects of the association. For more info refer [Link]
In addition to consulting, Troy has pursued his academic interest in the areas of entrepreneurship
and strategy by lecturing on a part-time basis. He has been a visiting lecturer on the MBA
programmes of two of SAs top rated business schools - the Gordon Institute of Business Science
(also known as GIBS - at the University of Pretoria), and at Wits Business School.
Prior to specialising in strategy consulting, Troy completed his [Link] and [Link] degrees at Wits
University, and his MBA degree at the Wharton School, University of Pennsylvania. He is qualified
as a CA(SA).
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 2
Objectives of this presentation
Discuss linkages between
Personal Vision
Business Vision
Business Opportunity
Business Strategy
Present a set of analytical tools and frameworks for
Identifying and screening business opportunities
Categoring business opportunities
Developing a high level business strategy
Indicate how the above fits into a Business Plan framework
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 3
Connecting personal vision to business strategy
Business
Opportunit
y
Personal
Vision
Business
Vision
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Business
Strategy
Copyright Troy Dyer 2004
Page 4
Constructing & Deconstructing Personal & Business Vision
(1)
Personal
Personaland
and/ /or
orBusiness
BusinessVision
Vision (1)
Core
CoreIdeology
Ideology
Core
CoreValues
Values
The individual and / or
companys essential
mores and principles that
guide its choices and
actions
Enacted and not merely
espoused values
Core
CorePurpose
Purpose
The individual
and / or companys
essential reason
for existing and for
going forward
Long term
mission
Envisioned
EnvisionedFuture
Future
10
10to
to30
30yryrBHAG
BHAG
Vivid
VividDescription
Description
Big, Hairy, Audacious
Goals
Can be quantitative
or qualitative
Involves David vs.
Goliath type of
thinking
Dreaming the
impossible dream
A clear picture of what
the future will look like
Guided by passion,
emotion and conviction
A compelling image to
which everyone can
relate
(1) Model adapted from Building Your Companys Vision by James Collins and Jerry Porras (HBR, Sep-Oct, 1996)
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 5
Using PESTLE framework to identify growth opportunities
Strategic
Forces
(PESTLE
framework)
Categories of
Entrepreneurial
Business
Opportunity
Ideas for business
opportunities
Investment
criteria
Top 5
Opportunities
P
E
S
T
L
E
PESTLE Forces:
Political
Economic
Social
Technology
Legal
Environmental
Model developed by Audax Ideas Management Consulting
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 6
Combining the PESTLE analysis with an industry
structure analysis to identify growth opportunities
Po
litic
a
al
c
i
g
olo
n
ch
Te
New
Entrants
Supplier
Power
Economic
Industry Rivalry
Substitute
s
c ia
o
S
Legal
Buyer
Power
En
vir
on
m
en
ta
Adapted from model in Competitive Strategy - by Michael Porter
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 7
RA: a measure of the combined
attractiveness of:
(1) The venture in terms of its economic
profile and harvest potential
(2) The market in terms of its capacity
to generate large, sustainable and
growing profits
(3) The industry in terms of the relative
power of various forces which determine
the size and share of margins
O
pp
Venture
Market
Industry
Relative Attractiveness (RA)
Linking personal vision, business vision, business
opportunity and business strategy
Ideal
New
Venture
Position
Relative Competitive Position (RCP)
or
tu
n
Pe
rs
bu an on
al
Vi sin d
si es
on s
ity
C
om C
pe ore
te
nc
i
es
Entry Point:
What are the ventures out there that:
(1) we want to create or develop
(2) represents a business opportunity
(3) we can (or could) do well at
Capabilities
RCP: a measure of:
Customers
(1) The extent of our capabilities to provide a
product or service,
(2) which our customers want and are willing
to pay for,
Competitors
(3) in a manner which is better than our
competitors, in a sustainable and valueadding manner
Model developed by Audax Ideas Management Consulting
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 8
Business economics,
risks and projected
returns on investment
Market size, growth and
potential margins
Industry structure and
degree of
competitiveness
Macro-economic,
political & regulatory
environment
RelativeAttractiveness
Attractivenessof
of
Relative
Opportunity
Opportunity
The RA/RCP matrix provides a useful approach to
mapping out a business strategy
High
(2) Build
required
capabilities
(1) Invest &
pursue
opportunity
Low
(4) Avoid /
Wait & Reassess in
future
(3) Identify
niche
opportunities
Low
High
Relative
RelativeCompetitive
CompetitivePosition
Position
Customer needs & wants
Competitor capabilities
Our capabilities
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 9
Products&&Services
Services
Products
The Business Development Matrix is another way to map
out different strategies for growing a business
New
Existing
Product
Development
Market
Penetration
Existing
New Business
Development
Market
Development
Identify
Identifyopportunities
opportunitiesfor
foreach
eachtype
typeofof
business
businessdevelopment
development
Assess relative attractiveness of
Assess relative attractiveness of
different
differentopportunities
opportunities
Assess
Assessour
ourrelative
relativecompetitive
competitive
position
in
the
pursuit
position in the pursuitofofdifferent
different
opportunities
opportunities
Agree
Agreeoverall
overallbusiness
businessdevelopment
development
strategy
strategy
New
Target
TargetCustomers
Customers&&Markets
Markets
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 10
The work done on business strategy fits into an overall
Business Plan framework
Executive Summary
Description of the business concept, the
business opportunity and the business
strategy
Target market and projections
Competitive advantages
Costs
Economics, profitability
Harvest potential
The lead entrepreneur & the management
team
The offering to investors
Detailed Contents
The industry and the company and its products
/ services
Market research and analysis
Economics of the business
Marketing plan
Design and development plans
Manufacturing and operations plan
Management team
Overall schedule
Critical risks, problems, and assumptions
The financial plan
Proposed company offering
Appendices
Financial Analysis
Industry and Market Analysis
Manufacturing / Operations Analysis
Organisation Design
Product Design
Other
Source: New Venture Creation, by Timmons and Spinelli - Chapter 12
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 11
The Prioritization Matrix may be used to structure a more
detailed Action Plan
High
Ease of Implementation
(in terms of complexity,
resource requirements,
etc
Low
2. Other
quick hits second level
of priority
1. Quick Hits
- actions
with highest
priority
4. List
actions now,
review later
to see if
priority has
changed
3. Medium
term actions
- detailed
plan may be
required
Low
High
Potential Impact of the Action
(in terms of positive contribution
to business objectives
List
Listthe
theactions
actionsand
andthen
thenevaluate,
evaluate,categorize
categorizeand
andprioritize
prioritizeaccording
accordingto
tothe
theabove
abovematrix
matrix
Design Institute - Prototype Awards Seminar - 20 November 2004 - Presentation on Business Strategy
Copyright Troy Dyer 2004
Page 12
Thank you
