Business and Competitive Analysis: Effective Application of New and Classic Methods, Second Edition

5. Applying the FAROUT Method

Choosing from an increasing array of techniques can be one of the most difficult tasks facing an analyst. Research of the use of conceptual tools and techniques suggests that executives heavily support the idea that executives who use the right tools will succeed, while simultaneously recognizing that most tools over-promise and under-deliver results.¹ We think one of the reasons this is believed is that the methods selected and used by analysts are frequently incorrect and inappropriate to their needs.

Hundreds of analytical methods, tools and techniques are identified in the literature.² Some techniques are briefly referred to, whereas others are treated through book length treatises. Many more are applied in unique ...