Vaughan Evans is an independent strategy consultant (www.managingstrategicrisk.com) with a background in industry economics. He worked at management and technology consultants Arthur D. Little and at investment bank Bankers Trust. Vaughan graduated from Cambridge and has a Sloan Fellowship with distinction from London Business School. He is the author of four previous books, including the best-selling  Financial Times Essential Guide to Writing a Business Plan.

'Vaughan Evans not only demystifies strategy, he provides a useful and enjoyable step-by-step guide to constructing effective business strategies.'

Jeff van der Eems, Chief Operating Officer, United Biscuits

'A wonderfully practical and highly readable guide to strategy development.'

Marcus Alexander, Professor of Strategy and Entrepreneurship,

London Business School

'This is an uncomplicated DIY strategy manual for the SME manager. It works perfectly.'

David Williamson, Managing Director, Nova Capital Management

YOUR ESSENTIAL GUIDE TO BUSINESS STRATEGY

Whether you're an entrepreneur or a manager, The Financial Times Essential Guide to Developing a Business Strategy gives you the tools you need to build a powerful strategy and take your business to the next level.

By using its simple framework, you can achieve success without having to rely on external advisors or consultants. The innovative nine-step strategy process will help you turn your business goals into reality, whilst the lively anecdotes provide illuminating examples of strategy in action.

Follow this guidance to create a roadmap for enduring business success. This book complements and is a companion to the best-selling FT Essential Guide to Writing a Business Plan.

FINANCIAL TIMES ESSENTIAL GUIDES THE KNOW-HOW YOU NEED TO GET THE RESULTS YOU WANT

"This is the most succinct and most practical handbook on business strategy on the market."

Jules Goddard, Fellow, London Business School and co-author of Uncommon Sense, Common Nonsense.

Introduction

Why strategy?

What is strategy?

What is the output?

What is the outcome?

What is a strategic plan?

What is strategic planning?

The Strategy Pyramid

Business vs corporate strategy

Part One: Strategy Development

1. Knowing Your Business  

Identifying key segments

   Essential example: Apple’s saviour segments

Segmentation in a start-up

   Essential case study: Extramural Ltd - the business

2. Setting Goals and Objectives

Setting long-term goals

Essential example: Life at Mars

Setting SMART objectives

   Essential case study: Extramural Ltd – goals and objectives

3. Forecasting Market Demand  

Sizing the market

Forecasting market demand

   Essential tool: Moving averages

   Essential example: No wrap for the cinema

Forecasting demand for a start-up

Market demand risks and opportunities

   Essential case study: Extramural Ltd – market demand

4. Gauging Industry Competition  

Assessing competitive intensity

Assigning customer purchasing criteria

Deriving key success factors

Essential tool: Economies of scale

Essential example: Jessops is shuttered

Gauging competition in a start-up

Industry competition risks and opportunities

   Essential case study: Extramural Ltd – industry competition

5. Tracking Competitive Advantage

Rating competitive position

   Essential tool: Product/market risk

Reviewing resources and capabilities

   Essential tool: The value chain

Essential example: The everlasting Monsoon

Creating competitive advantage in a start-up

   Essential example: Of diet, dance and detectives

Essential case study: Extramural Ltd – competitive advantage

6. Targeting the Strategic Gap

Targeting the portfolio gap

Targeting the capability gap

Profiling the ideal player

Specifying the target gap

Essential example: Could Liverpool FC be champions again?

Targeting the gap in a start-up

   Essential case study: Extramural Ltd – strategic gap

7. Bridging the Gap: Business Strategy  

Opting for a generic strategy

Essential tool: The experience curve

Strategic repositioning and shaping profit growth options

Essential tool: Uncontested market space

Making the strategic investment decision

   Essential example: Sainsbury’s fights back

Bridging the gap for a start-up

Business strategic risks and opportunities

   Essential case study: Extramural Ltd – business strategy

8. Bridging the Gap: Corporate Strategy

Optimising the corporate portfolio

Essential tool: The growth/share matrix

Creating value from mergers, acquisitions and alliances

Essential tool: Parenting value

Building strategically valuable resources

Essential tool: Core competences

Essential example: UU U-turn

Corporate strategic risks and opportunities

   Essential case study: Extramural Ltd – corporate strategy

9. Addressing Risk and Opportunity

Reviewing plan in a market context

Appraising opportunity versus risk

Essential tool: Expected value and sensitivity analysis

Essential example: Britney does it again

   Essential case study: Extramural Ltd – risk and opportunity

Part Two: Strategic Planning