Sebastian Perrier

Error I – Organizational Chart changes masquerading as Strategic Change

• How has this changed the SWOT – changed strengths or removed weaknesses
• How does the customer benefit from this change
• Who benefits other than consultants

Error II – Buying rather than beating the competition (M&A but must add value)

M&A needs

a) Strategic  purpose

• Enter the right market don’t just go for geographical expansion
• Find the right company in that market, although it is usually not for sale

b) Implementation and Integration

• Identify and evaluate the synergies
• Honestly and candidly access the obstacles and risks

c) Quality of information

• Where do you get better information

Error III – Ill considered “Strategic” Alliances

• Don’t let your partner steal your customers
• Ham and Eggs – Chicken is involved but the pig is committed
• Consider as precursor or courtship to M&A

Error IV – Diversification Craziness

• Not classic portfolio diversification – the conglomerate model
• See Ansoff Opportunity Model
• Good conglomerates are only financial conglomerates (Hanson)

Error V – Imitation rather than Innovation

• Imitation can work to get into a market , e.g. Sony, China but must have exit strategy in place

Error VI – Unwarranted Global Presence

• Expansion for ego or to burn cash

Error VII – Absence of Implementation Capabilities

• Must have the following in place
• Management Structures
• Management processes
• HR
• Culture

Error VIII – Strategic Planning Traps (for further info see this post)

Error IX – Absence of Core Competencies

• CC means world class. “Nobody does it better.”