BCG Matrix

The choice of each definite model depends on company’s age, success, product and other specifications. Ashridge Portfolio Display, which help identify fit between the business unit critical success factors and the parent's skills and resources and fit between business unit parenting opportunities and the parent's skills and resources. Businesses are classified as 'heartland businesses' where the parent can add value easily, 'ballast businesses' are those well understood by the parent but the parent is unable to exploit, 'value trap businesses' are those which afford opportunities to add value but the strategic fit may not be perfect. The final category is 'alien businesses' which afford little opportunity to add value and should be divested. This classification is not dissimilar to that used in the BCG matrix. However, the selection uses more criteria than the BCG matrix.

Organisations that are choosing to adopt an expansion strategy may use the Ansoff Matrix to clarify possible directions for expansion. The potential of an organisation is fulfilled by the combination of new and current products within new and current mark. It provides a linkage between products and markets. The greatest risk is the opening of car dealerships or the acquisition of a pharmacy chain. Car dealer ships would require new investment in suitable sites which mayor may not be present within the property portfolio. The acquisition of a pharmacy chain would add to the property portfolio with significantly different premises than those currently owned. There is no evidence to suggest that there is any expertise in these businesses within the management team.

It is useful to help identify the level and power of stakeholders because they can influence the outcome of certain strategies. By locating stakeholders on the map their relative power can be assessed and decisions can be made whether to keep them informed. The model uses a quadrant which plots level of interest against the power that the stakeholders wield. Stakeholders falling in the quadrant for high interest and high power, such as shareholders or lending bankers are clearly key players whereas minimal effort is only necessary for stakeholders with low level of interest.

The models discussed above do not comprise an exhaustive list of strategic planning tools. Other tools that may be used include the Seven S model which analyses and explores the interrelatedness of an organisation's shared values (culture), style, staff, skills, strategy, structure and systems. The PIMs database contains information on some 2,000 companies about 87 variables identified as economic success factors. The database can be accessed and the enquirer can enter data on 30 variables. The information is compared to the historical data of the 2,000 companies and an invest/divest recommendation is issued.