Business Problem-Solving and Strategy

TAKAYUKI KITO is a graduate of Tokyo University Law School and a former Roland Berger employee with extensive experience in business strategy planning and execution assistance. Kito has published and lectured on brand and global strategies. KEISUKE YAMABE is a graduate of Hitotsubashi University Business School and a former Roland Berger employee with extensive experience in planning and execution of company-wide strategies in industries such as restaurant and service, automobile, aviation, consumer goods, and construction.

• Preface 10Prologue…I Can’tI Can’t Just Abandon Everyone When MAT- SUI-YA is in Trouble!What Is a Business Strategy?Story 1 Help Me, Senpai! 141 What Is a “Strategy”? 26Strategies Are Everywhere 26Strategy Is a Road Map to Success 26Resource Allocation: Decide Where to Focus Your Organizational Resources 27Strategy Is Nothing without Execution 31The Correct Way to Create a Strategy 31Business Strategy Is a Blueprint for Your Business Success 332 The Many Pitfalls of a Business Strategy 34Building Strategy the Right Way Is Tough 34Framework and Concepts: Make or Break the Strategy 34Can Looking at the Task at Hand from the Opposite Angle Constitute a “Strategy”? 35A Strategy Cannot Ignore the Front Line 36A Fake Strategy in Purple Prose 37Failing to Grasp the Current Situation May Lead to Mistakes 37The Risk of Homogenized Strategies 383 Preparations to Build the Correct Strategy 39Take the Right Steps to Analyze 39Use Frameworks and Concepts Wisely 40Have a Unique Point of View, Think Outside of the Box 40Support the Front Line 41Emphasis on Essence and Mechanism 43Bring in a Key Person 444 Create a Dynamic Strategy! 45Four Steps in Building a Strategy 45Step 1 - Analyze the Situation 45Step 2 - Formulate Strategic Options 47Step 3 - Review and Select Options 47Step 4 - Translate Strategic Options into Plans of Action 48Step 1 Analyze the SituationStory 2 Knowing Your Enemy Is Knowing Yourself 501 The Essentials of Situation Analysis 74Analyzing the Situation Is The First Step in Building a Strategy 74Only a Handful of Corporations Truly Understand the Current Situation 74Methodology and Frameworks: A False Sense of Completing the Situation Analysis 76Three Keys in Understanding the True Situation 76The Basics of Situation Analysis: SWOT Analysis 78A Business Strategy That Cannot Be Executed Is Nothing But a Pie in The Sky2 OT Analysis 83OT Analysis: Three Core Elements 83The Five Forces Analysis 85Analyzing the Five Points 87Positioning Analysis and Competition Analysis 89Client Analysis 93Key Sucess Factor (KSF) Analysis 953 SW Analysis 99Deciding Pros and Cons Based on Relativity 99Achievements and Performance Analysis 100Positioning Analysis 104Business Model Analysis 106Marketing, Value Chain, and Organizational Analysis 108Tangible and Intangible Asset Analysis 109Understanding the Structures of the Issue at Hand 1104 Organizing SWOT 113Keeping the Impact on Your Business in Mind 113I’ve Gotten A Lot of Positive Feedback On Our Red-bean PasteBusiness Partners and Clients Alike, They All Com- Pliment AnnIt’s a Very Valu- Able AssetFirst, We Ana- Lyze the Situa- Tion And Remember to Always Share The Result of The Situation AnalysisStep 2 Forming Strategic OptionsStory 3 How to Save a Company in Trouble? 1181 What Are Strategic Options? 140Options Mean Choices 140Considering a Variety of Options 1402 Make Objectives and Issues Clear 142What Is the Objective of Strategy Building? 142What Are the Issues in Building a Strategy? 144Decipher Objectives and Issues from the Result of SWOT Analysis 146Organizing the Structure of an Issue 1503 Lay Out the Options 1: Growing Potentials for the Preestablished Company 154Aim to Grow Preestablished Business Models and Positioning 154Consider Strategic Options for the Long Run 156Change the Positioning 156Coming Up with Growth Options by Changing the Positioning 158Changing the Business Model 160Pairing the Positioning and the Business Model 162That’s Easy For You to Say… You Just Give Out Or- DersWe Are The Ones Who Come Face-to-face With the Clients. It’s Not Always About Ratio- NalityComing Up with Growth Options by Changing the Business Options 1654 Lay Out the Strategic Options 2: Options for the Newly Established Businesses 167Analyze from the Market Point of View 167Analyze from the Value Chain Point of View 171Analyze from the Asset Point of View 172Analyze from the Business Model Point of View 174Change the Rules of Competition, Think Outside of the Box 1755 Lay Out the Strategic Options 3: Improve Profit 177Options to Lower Cost and Improve Gross Profit Margin 177Options to Lower Managing Cost 179Options to Improve Efficiency 179Improve Ways to Manage and Improve Profit Structures 1806 Summarizing Strategic Options 181Organizing All Available Options 181Coming Up with Growth Options and Scenarios by Organizing Strategic Options 181…I Will Have a Word withThe CEO Myself Regarding ThisStep 3 Review and Select OptionsStory 4 All for One, One for All 1861 Reviewing Options 206How to Review Options 206Three Perspectives in Reviewing Options 2062 Reviewing with Both a Cool Head and Burning Passion 208Reviewing and Selecting Options 1: Rationality 209The Main Points in Reviewing Rationally 209How to Review Each Point 2133 Reviewing and Selecting Options 2: Feasibility 215The Main Points in Reviewing the Feasibility 215How to Review Each Point 2234 Reviewing and Selecting Options 3: The Intents and Expectations of the Parties Involved 225Fostering Agreement and Understanding with “Face to-face Discussions” 225The Groundwork Discussions: Situation Analysis and Strategic Options 226Which Reviewed Points to Prioritize 227How to Understand and Decide on the Results 229How to Expand Options 229Making Decisions Based on What You Want to Do 230Always Have a Plan B Ready 230But… Time Has ChangedIf Every- One AGREES, Then I’d Like To Ask for Your Coop- Eration!Step 4 How to Translate Options into Plans and ActionsStory 5 What Becomes of a Strategy 232We Are On The Homestretch NowIn Regards to The Future Loan, Inaho Bank Is Demanding You Resign From Your Posi- TionLet’s Come Up With Specific Executions And Actions Based on These Principles1 How to Translate Strategic Options into a Plan 252The Necessary Process in Executing the Strategy 2522 How to Apply Strategy to Execution 254How to Apply Strategy to Execution 254Setting Priorities 2573 How to Carry Out Strategic Options 258Beyond the Possibility: Feeling and Determining 258The First Step in Strategic Execution 2604 Create a Plan of Action 263The Master Plan: The Plan of Action for Strategic Execution 263Coming Up with a Realistically Applicable Plan 2655 How to Execute with Certainty 268Build a Promotion System 268Implement a Thorough PDCA 269Postscript 276