Succeeding at new businesses: a matrix to measure flexibility

Abstract

Purpose – This purpose of this paper is to suggest and develop an alternative model, the Opportunity Assessment Matrix, to address some of the primary strategic issues in the business environment of today. Changes in the business environment are increasing the need for strategic planning, but it has also diminished the value of some of the classic tools used in strategy formation in the past, such as portfolio models. Design/methodology/approach – The shortcomings in applying portfolio models from the past to today’s business environment are discussed, providing a basis for the developing the Opportunity Assessment Matrix. Findings – The Opportunity Assessment Matrix is introduced as a means to evaluate the ability of an organization to successfully undertake and exploit new business opportunities. The proposed model is based on two dimensions – operational flexibility and market potential. Originality/value – The Opportunity Assessment Matrix facilitates an assessment of new business and product opportunities. With today’s ever-changing customer needs, the identification and exploitation of new product and business opportunities have become critical for the ongoing success of many firms. Most attempts by business firms to exploit new opportunities, however, are not successful, often due to a lack of an understanding of the market potential realization or an inadequate consideration of possible internal constraints. The Opportunity Assessment Matrix addresses both of these issues by examining the match between potential market opportunities and a firm’s ability to exploit them.

Another failed M&A: misaligned business models as culprit

“…Practical and management-oriented works have studied how business models experiment with strategic business units or the firm as a whole (McGrath, 2010). These experiments can be disruptive during mergers and acquisitions, obliging the acquirer to reinvent or re-examine its previous model and implement new tools to monitor the changes (Burns, 2014;Chesbrough, 2007;Christensen et al, 2011). Baden-Fuller and Mangematin (2013) undertook converting academic concepts into easy-to-use, clear components linking customers, organizations and money.…”