Pyramid Principles’ applications

Pyramid Principles

Logics behind our writing, presentations and interviews

Introduction

One principle to pay attention: remind rather than inform

Why:

1. Easier to attract reader’s attention
2. Easier to build connection with reader

The structure of introduction

1. Background/ Situation
2. The problem:

The value/ contribution of the work: Build connection between the author and the reader

• Why does the author write the article?
• Why does the reader have better read the article?

Give answers/ solutions

3.  Show the plan: present the “agenda” of the article (Most used in presentations)

Create an introduction with SIX steps:

1. Draw a box and write down subject. (To figure out the main sentence: topic)
2. Decide the question the reader wants answered. (Narrow down the topic & seek out the problematic issue)
3. Write down the answer. (To illustrate the author’s idea: main idea of the article)
4. Describe the situation without controversy.
5. Develop the complication–Answer “so what”.
6. Recheck the question and the answer.

Body

Body is the main part of the article for developing, supporting, and proving Topic Sentence.

Two principles to group ideas

1. Inductive
2. Deductive

Three principles when develop “sub-Topic”

1. Ideas at any level must be summaries of ideas grouped below them
2. Ideas in each grouping must always be of the same kind
3. Ideas in each grouping must be logically ordered

When Grouping and Ordering “sub-sub-Topics”, Four approaches can be used:

• Deductive reasoning
• Chronology
• Structure
• Comparison/classification/ranking

Summary/ Conclusions:

One Principle: Summary needs to show implication of the article.

Each type of grouping has a clear method of summarizing:

• Summarize action ideas by stating effect of carrying out actions
• Summarize situation ideas by stating what is implied by their similarity
• Summarize deductive arguments by leaning on the deduction

Sources:

1. Pyramid Principles, Barbara Minto;
2. http://weatherhead.cwru.edu/degree/Pyramid; http://intergon.freeyellow.com
3. http://colelearning.net/rw_wb/module4/page11.html

Strategic analysis: Layers of business environment

Layers of business environment categorizes the complex business world into four basic levels:

1. The macro-environment.
2. The industry (or sector).
3. Competitors.
4. The organisation.

The macro-enviroment ranks the highest level, consisting of the general and global (or national) factors which might influence the lower layers in the economic activities. PESTEL framework is favored in this condition to grasp a whole picture of the market.

PESTEL framework is composed of the following ingredients:

1. Politics. The role of state and political forces.
2. Economics. Macro-economic factors such as exchange rates, business cycles and differential evonomic growth rate, GDP etc..
3. Social factors. Cultures, demographics, religions etc.
4. Technology. Internet revolutionizes series of industries, for instance, the retailing and financial services sectors.
5. Ecological concerns. Pollution, waste, climate changes and certain environmental issues are calling for more and stricter regulations, in a way that promote and/or limite the investment and development of industries.
6. Legal factor. Policies, regulations or regulatory guidances that could influence the rescture of the market.

The industry (or sectors) with a group of companies producting the same products and services can be analyzed based on Porter’s Five Forces Framework.

1. Threat of entry.
2. Threat of substitues.
3. Power of buyers.
4. Power of suppliers.
5. Extent of rivalry between competitors.

Through the Five Forces analysis, it is likely to generate an overview of the competitors, the industry’s growth rate, the competitive advantages, the level of entry and exit barriers and react in response to the market flucturations and conduct differentiation strategies or business decisions.

Competitors and markets take into consideration of the two major issues: the strategic groups and market segment. Strategic groups are defined as organizations within an industry or sector with similar strategic characteristics, following similar strategies or competing on similar bases (Exploring Strategy, Gerry J. Richard W. etc., Pearson). The understanding of strategic groups can help better under stand the competition and then figure out strategic opportunities.

Market segment focuses on the customers’ side, referring to groups of consumers who share similar needs that are different than needs in other parts of the market. Specifically, consumer profils can be constructed based on certain indicators, for instance, demographic information (age, gender, ethnicity), consumption power (disposable income), lifestyle etc.

Competitors analysis starts from the comparison of performance among the strategic groups and within the market segment. The evaluation of performance can be attributed to selected indicators or indeces. Under this analysis, Blue Oceans Strategy derives to innovate, differentiate and out-perform others in the competive “red ocean” market. The success of Blue Oceans relies greatly on the selection of critical success factors and the innovative ideas to identify potential spaces–the niche, with little competition.

The organisation-oriented outlook is largely interanl analysis of the business activities. SWOT analysis or approaches aiming to be self-diagnosed could help to bear the awareness of the ressources and advantages of the company and seek out opprotunities based on such core values.