When developing a new business portfolio for your company, what is the kind of industry you target? The analysis of the industry structure is very important to define if you are investing in potential STARS or DOGS. Industry structure is referred to as: industry size, growth rate, growth drivers, number of players, channels, control points, etc. BCG matrix is a great instrument for analysis of our current businesses portfolio and gives us a very good idea of what are the stars that will become cash cows in the future. Those companies who are more efficient in developing STARS are seeding for a bright future. Please refer to http://vectorstudy.com/management-theories/bcg-matrix for more detailed information on BCG matrix information.

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If you have any experience on business strategy and business development, please feel free to comment on it in this blog.

Thanks,

Marcio

McKinsey Growth Pyramid

Today I'd like to share a very helpful strategic schema, that can support the work around creating an effective growth strategy.

I always like to structure my thinking based on graphic schemas. They help you understand complex thinking and they easily support changes and adaptations of the idea.

Concerning the design of growth strategies, I often look at the McKinsey Growth Pyramid:

I have used this matrix on some of my most recent Strategy Designs, and it was proven to be very helpful to conduct discussions and guide thinking.

Strategy design and implementation

A good strategy is nothing without a good implementation. The company can define itself, establish vision and mission statements and develop a perfect plan to win in the marketplace. If this plan is not discussed internally, validated and known by all employees, and fully implemented, from the plant operators to the board of directors; the final result is ZERO. (actually it's worst than that!)
I always hear about strategy gurus that are completely theoretical: this has partial value.
A good strategy has to have an extraordinary rationale, business sense, fits in the context, market value, and (most important) implementation plan.
The implementation plan is the part that assures the design will be trasformed into actions, and the ideas will be implemented with the right resources.
Remember that what assures the result in the bottom line is the IMPLEMENTATION of a GOOD STRATEGY.