Global Advisors | Quantified Strategy Consulting

strategy

"The experience curve describes the empirical relationship in which a firm’s unit costs decline as cumulative output increases, due to learning-by-doing, process improvements, and increased operational efficiency over time." - Experience curve -

Term: Experience curve

The five pillars of industry structure

Strategy Tools – Porter’s Five Forces

"Economies of scope exist when it is less costly for a firm to produce two or more products jointly than to produce them separately in different firms. Economies of scope as arise from the shared use of inputs, assets, capabilities, or activities." - Economies of scope -

Term: Economies of scope

"Economies of scale exist when a firm’s average cost of production declines as output increases, because fixed costs are spread over a larger volume or because larger scale enables more efficient production processes. Scale advantages arise not merely from size itself." - Economies of Scale -

Term: Economies of Scale

“When I have my interview with God, our conversation will focus on the individuals whose self-esteem I was able to strengthen, whose faith I was able to reinforce, and whose discomfort I was able to assuage - a doer of good, regardless of what assignment I had. These are the metrics that matter in measuring my life.” - Clayton Christensen - Author

Quote: Clayton Christensen

"The 'Right to Win' (RTW) is a company's unique, sustainable ability to succeed in a specific market by leveraging superior capabilities, products, and a differentiated 'way to play' that outperform competitors, giving them a better-than-even chance of creating value and growth." - Right to Win -

Term: Right to Win

“What’s important is to get out there and try stuff until you learn where your talents, interests, and priorities begin to pay off. When you find out what really works for you, then it’s time to flip from an emergent strategy to a deliberate one.” - Clayton Christensen - Author

Quote: Clayton Christensen

"I don't feel that this concept of disruptive technology is the solution for everybody. But I think it's very important for innovators to understand what we've learned about established companies' motivation to target obvious profitable markets - and about their inability to find emerging ones." - Clayton M Christensen - Author, academic

Quote: Clayton M Christensen

"The question is whether you want to be valued as a company that optimised expenses [using AI], or as one that fundamentally changed its growth trajectory." - Joe Beutler - OpenAI

Quote: Joe Beutler – OpenAI

"The underlying principles of strategy are enduring, regardless of technology or the pace of change." - Michael E Porter - Harvard Professor

Quote: Michael E Porter

The McKinsey 7S Framework is one of the most enduring and widely recognized management models in strategic consulting and organizational design. It posits that organizational effectiveness depends not on structure alone, but on the alignment of seven interdependent elements — three "hard" elements (Strategy, Structure, Systems) and four "soft" elements (Shared Values, Skills, Style, Staff). The model's central insight — that organizations are complex systems where changing one element inevitably affects the others — was revolutionary when introduced in the late 1970s and remains relevant today.

Strategy Tools: The 7S Framework – A Comprehensive Guide

"Just imagine if your firm is not able to embed the tacit knowledge of the firm in a set of weights in a model that you control... you're leaking enterprise value to some model company somewhere." - Satya Nadella - CEO, Microsoft

Quote: Satya Nadella – CEO, Microsoft

While the headlines from Davos were dominated by geopolitical conflict and debates on AGI timelines and asset bubbles, a different signal emerged from the noise. It wasn't about if AI works, but how it is being ruthlessly integrated into the real economy.In our latest podcast, we break down the "Diffusion Strategy" defining 2026. 3 Key Takeaways: China and the "Global South" are trying to leapfrog: While the West debates regulation, emerging economies are treating AI as essential infrastructure.China has set a goal for 70% AI diffusion by 2027.The UAE has mandated AI literacy in public schools from K-12.Rwanda is using AI to quadruple its healthcare workforce. The Rise of the "Agentic Self": We aren't just using chatbots anymore; we are employing agents. Entrepreneur Steven Bartlett revealed he has established a "Head of Experimentation and Failure" to use AI to disrupt his own business before competitors do. Musician will.i.am argued that in an age of predictive machines, humans must cultivate their "agentic self" to handle the predictable, while remaining unpredictable themselves.Rewiring the Core: Uber's CEO Dara Khosrowshahi noted the difference between an "AI veneer" and a fundamental rewire. It's no longer about summarising meetings; it's about autonomous agents resolving customer issues without scripts. The Global Advisors Perspective: Don't wait for AGI. The current generation of models is sufficient to drive massive value today. The winners will be those who control their "sovereign capabilities" - embedding their tacit knowledge into models they own.Read our original perspective? here - https://with.ga/w1bd5? Listen to the full breakdown here #Davos2026 #WEF26 #WEF2026 #AI #GlobalAdvisors #Strategy #Diffusion #AgenticAI

Podcast – The Real AI Signal from Davos 2026

"Strategy is the art of radical selection, where you identify the "vital few" forces—the 20% of activities, products, or customers that generate 80% of your value—and anchor them in a unique and valuable position that is difficult for rivals to imitate." - Strategy -

Term: Strategy

"Market segmentation is the strategic process of dividing a broad consumer or business market into smaller, distinct groups (segments) of individuals or organisations that share similar characteristics, needs, and behaviours. It is a foundational element of business unit strategy." - Market segmentation -

Term: Market segmentation

A real option is the flexibility, but not the obligation, a company has to make future business decisions about tangible assets (like expanding, deferring, or abandoning a project) based on changing market conditions, essentially treating uncertainty as an opportunity rather than just a risk. - Real option -

Term: Real option

Arbitrage Pricing Theory (APT) explains asset returns through multiple systematic market factors (e.g., inflation, interest rates, GDP growth), not just market risk like CAPM. It assumes no arbitrage opportunities exist—mispriced assets are quickly corrected by investors—creating a stable risk-return relationship. This flexibility makes APT adaptable to complex, real-world market dynamics.

Term: Arbitrage Pricing Theory: A Comprehensive Framework for Multi-Factor Asset Pricing

Modern Portfolio Theory (MPT), introduced by Harry Markowitz in1952, is a mathematical framework for constructing portfolios that optimise the trade-off between risk and return. It posits that portfolio risk is not just the sum of individual asset risks but depends on their correlations and covariances. By using mean-variance analysis, MPT identifies the efficient frontier—a set of optimal portfolios offering the highest expected return for a given risk level or the lowest risk for a target return. Diversification, driven by low-correlation assets, is central to reducing unsystematic risk. MPT revolutionised finance by providing a systematic, quantitative approach to portfolio construction, earning Markowitz the1990 Nobel Prize and forming the foundation for modern asset allocation and risk management practices.

Term: Modern Portfolio Theory – Mean-Variance Analysis and the Efficient Frontier

The Capital Asset Pricing Model (CAPM) quantifies the link between an asset’s systematic risk and its expected return, proposing that investors require higher returns for taking on increased market risk.

Term: The Capital Asset Pricing Model (CAPM)

The weighted average cost of capital (WACC) is the average rate a company must pay to all its capital providers—including both equity investors and lenders—weighted by the proportion each source represents in the firm's capital structure, and is commonly used as the discount rate in valuing investments and determining a business’s required rate of return.

Term: Weighted Average Cost of Capital (WACC)

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