The strategy pyramid is a conceptual framework for understanding the different functions of a business. The four elements it consists of are: product, distribution, marketing and sales. These aren’t mutually exclusive but they do have to work in harmony with one another if their goals are going to be met.
The “strategy pyramid examples” is a model that shows how to organize a business. The strategy pyramid has four levels: the company, the product, the market and the customer.
This is a basic framework to assist you in determining the next actions to take. The problem is figuring out how to go from plan to real, actionable actions. Back in the mid-’80s, I came up with this concept and called it the strategy pyramid. I was advising Apple Computer’s Latin American business, which was headed by Hector Saldana. After three years of managing the group’s annual business plan, Saldana issued a challenge: “This year, we want you to manage our annual plan again, but with a change.” This year, we want you to stay with us for the remainder of the year to ensure that we really put it into action.”
My consulting firm’s recurring business was wonderful news, but there was a catch. At the time, the Apple Latin America group consisted of a few dozen young, well-educated, and bright individuals. I was the only one over 30 years old, along with Saldana. It was difficult to keep the group on task. Implementing strategy requires tedious constancy. Desktop publishing was the plan, but we’d been working with it for so long that multimedia appealed to the management more than the market.
As a result, I devised the strategy pyramid, which allowed me to keep track of execution and work on strategic alignment. We utilized it to create a database of business activities, which we referred to as programs, and then monitor them via tactics and strategy. For example, one approach was to promote desktop publishing. Advertising, package pricing, and distribution channels were all utilized as tactics. Advertising insertions, seminar marketing, hardware and software bundling, and distributor pricing were all part of the comprehensive plans. A manager, a start date, an end date, and a budget were all given to each program. There were instances when the budget was completely depleted. The database had a spending amount for each activity, although none of the activities included money. It was permissible to leave a zero.
As a consequence, strategic alignment was achieved. We were able to classify and manage programs according to plans and tactics the next year. We might display a pie chart with each of our strategic objectives represented by a piece of the pie. We may also monitor implementation down to individual projects given to certain managers, as well as performance against start, completion, and budget deadlines. In several instances, we were able to trace sales back to the plan’s predictions. As a consequence, seminar programs that started with sales predictions had to live with the outcomes of those expectations.
You may use the strategy pyramid to help you design your own approach. Build a conceptual pyramid for each of the three or four main strategic priorities. Don’t get caught up in the nitty gritty of strategy and technique definitions; simply make it work for you, in your company, with your pyramid. When feasible, sweat the specifics, such as creating programs with defined roles, budgets, and anticipated outcomes.
It is not necessary to be a large corporation. In the mid-’80s, I thought Apple was a big business since it had over 1,000 workers, but the Latin American division had just a few dozen. We built the pyramid because we wanted it to function; we wanted to create strategy rather than simply fantastic parties.
Remember that effective company planning consists of nine parts strategy and one part execution.
Adapted from an Entrepreneur.com column
The “personal strategy pyramid analysis” is a tool that helps you to create a personal strategy. It will help you to find the right level of risk, and how much time you should spend on each level.
Frequently Asked Questions
What are the 5 stages of strategy development?
A: There are 5 main stages of strategy development. These include the introduction, exploration, exploitation, equilibrium and withdrawal.
What are the 3 types of strategy?
A: There are three types of strategy in the game, and they all have their own pros and cons. 1) Rush – This is a type where you try to bypass your opponents defenses by charging straight at them with speed. It also helps to make up for any weaknesses in defense because one mistake will result in immediate death. 2) Guarding- This is when you try to force your opponent out of an area while staying inside yourself so that if they do get past, it wont have much effect on you. You can use this strategy defensively or offensively depending on what situation arises, but keep some space between yourself and the person attacking! If someone gets too close however, then there isnt really anything stopping them from killing you unless maybe… 3) Standing back- This is just waiting until either your opponent over commits into something stupid or gives themselves away somehow before launching into action against them more decisively than before
Who invented the strategy pyramid?
A: The strategy pyramid was first invented by a man named Kalevi Oegema, who is thought to be from Sweden. He introduced the concept in his book called Strategies for Success
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