Traditional Strategy Tools Analysis

Traditional Strategy Tools Analysis

Traditional Strategy Tools Analysis

The Business Model

A business model provides a story of how an enterprise will work by defining the customer of the business, what the customer wants and how the business will provide what the customer wants and make money doing it (Magretta, 2002). In addition, the story must tie into the numbers achieved by the company in terms of profit. Profits for a company are important simply for the fact of making money, but the profits of a company also indicate whether the business model is achieving results based on the number assumptions in the business modeling (Magretta, 2002). In this way, the business model allows a company to begin with a hypothesis and "test in action and revise when necessary" (Magretta, 2002, p. 90).

It is important for the employees of the business to understand the business model and to be able to express the model and the strategy of the company in a short, focused statement. This is also known as the "elevator pitch", aptly named because it is a statement that will explain the business in an elevator ride (Hess, 2007).

Stantec Elevator Pitch

Stantec provides environmentally sustainable architecture, design, and constructuion solutions for infrastructure and facilities projects. The world of Stantec is the water we drink, the routes we travel, the buildings we visit, the industries in which we work, and the neighborhoods we call home. (Stantec, 2009).

Business Model Description

Stantec delivers environmentally sustainable services through a three-dimensional business model that is based on geographic diversification via acquisition, specialized practices, and provision of services in all phases of the architecture project life cycle. The model diversifies the risks of the company by not being dependent on a specific geographic region, practice area or project life cycle (Stantec, 2009). Success is achieved with the company's ability to evolve and...