Business Strategy Frameworks

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Business Strategy Frameworks

Ansoff Matrix and Hoshin planning are frameworks for developing department-level strategies. The former is applicable to the insurance industry through the market penetration strategy. OGSM and 7S model are frameworks for a comprehensive business transformation. Through the 7S model, insurance firms can implement their proposed strategies.

Frameworks for Developing Department-Level Strategies

Ansoff Matrix

  • Ansof Matrix is a strategic tool used by organizations to plan and organize their growth strategies. The matrix shows four strategies namely market penetration, product development, market development, and diversification.
  • At the functional or departmental level, market penetration strategy entails trying to increase market share by, for example, increasing distribution and promotion efforts or decreasing prices.
  • Product development strategy involves aggressive research and development aimed at expanding an organization’s product portfolio. Implementing this strategy may take the form of acquiring competitor’s products or forming strategic partnerships.
  • Market development strategy entails entering into new markets with the current products.
  • Lastly, a firm undertaking diversification strategy develops a new product targeted at a new market.
  • In the insurance industry, market penetration strategy is perfectly applicable. An insurance company may revamp its promotion efforts or lower the price of its products to attract customers.
  • Ansoff Matrix is best leveraged when used together with a more robust strategic planning framework because it does not consider internal and external factors that need to be altered to ensure growth. However, the matrix helps to identify risks associated with probable growth strategies. It also identifies the value of the foregone growth strategies.

Hoshin Planning

  • Hoshin is a planning and implementation process that provides direction to a firm. The strategic framework was developed in the 60s and 70s based on Japanese traditions.
  • Hoshin aims to eliminate inefficiencies emanating from lack of communication and direction among departments in an organization. The strategy framework is popular in manufacturing organizations.
  • The strategic framework strives to ensure that every individual in the organization is involved and aggressively moving towards the same direction, commonly referred to as true north.
  • Hoshin planning is best leveraged in organizations that have strong departmental and individual contributor abilities seeking to repair process challenges or attain departmental goals better. The framework is also appropriate for organizations with poor alignment between the daily operational activities and the upper managerial vision.
  • Hoshin planning nurtures cooperation between departments and ensures continuous improvement.

Frameworks for Comprehensive Business Transformation.

7S Model

  • The McKinsey 7S model helps in a comprehensive business transformation. The framework is premised on the importance of change for business growth.
  • 7S model helps organizations to assess key elements that need to be aligned or changed to achieve success. These are structure, systems, staff, skills, style, strategy, and shared values.
  • The elements are grouped in two categories: hard and soft categories. The hard categories are structure, strategy, and systems. The soft elements are skills, shared values, style, and staff.
  • The 7S model is applicable to the insurance industry because it can help insurance companies to put proposed strategy into practice. The framework can also help insurance firms to boost performance and productivity.
  • The 7S model is best leveraged when an organization is going through change or implementing a specific strategy. The framework also works well in organizations assessing their current state for comparison against the desired state.
  • Although the framework does not help organizations communicate or execute, it assists in comprehending the organizational implications and resources needed to execute a strategic plan.


  • OGSM is an acronym for objectives, goals, strategies, and measures. The framework helps organizations to implement their corporate strategy or vision.
  • OGSM helps firms to connect their long-term visions and strategies to short and medium-term goal, measures and actions. The framework can help organizations to assess progress towards the objectives and maintain focus.
  • OGSM framework links the big picture strategic elements such as vision, mission, and values to operational elements such as strategies goals, measures, and initiatives. The output is an inclusive, vigorous, and executable strategic plan.
  • OGSM can be best leveraged among firms that have no formal strategic framework. The framework is also appropriate for organizations currently undergoing acquisitions or mergers. Firms that have experienced rapid growth or decline can also best leverage this strategic framework.
  • Overall, OGSM has the power to change how organizations think and implement strategy. Thus, firms can use the OGSM framework to attain a comprehensive business transformation.

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