Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Business Management & Operations
  • Strategy, Entrepreneurship, & Innovation

Central Driving Forces Model - Explained

What is the Central Driving Forces Model?

Written by Jason Gordon

Updated at April 14th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is the Central Driving Forces Model?Assessing the Elements: Founders, Opportunities, and ResourcesOpportunities Resources 

What is the Central Driving Forces Model?

The central driving forces model is an approach to analyzing the strategic position of an entrepreneurial venture. The model assesses founders, opportunities, and resources. It assesses whether there are consistent elements (fits) or inconsistent or incongruous element (gaps) in the company's strategic position. Necessarily, these elements are evaluated in the context of the current competitive market or industry.

Back to: STRATEGY, ENTREPRENEURSHIP, & INNOVATION

Assessing the Elements: 

  • Founders, 
  • Opportunities, and 
  • Resources

Founders 

Assessing the founders means looking at the skills, experience, and connections of each. Ultimately, you are looking for for scenarios where founders have unique skills that potentially add value to the venture. Further, you are looking for complimentary (rather than duplicative) skills. Prior experience in the given field or industry is a positive in terms of understanding the market, customers, value proposition, and operational model. Connections allow the founders to add value through external channels. 

Opportunities

This broad field assesses the existing market for the company's value proposition. Who are the customers/clients/end users? What do they need or want the company's value proposition? What is the strength of demand? Who are the competitors in the field? What is the opportunity or competitive position of the business venture that allows it to compete in this market. The source or genesis of the company's opportunities can be broad and varied based upon the unique conditions of the market and the nature of the value proposition. 

Resources

What resources are need to fully commercialize the value proposition to its potential? What resources does the business bring to bear when entering the market? This can be an assessment of actual or potential resources, including cash, influence, manpower, knowledge, intellectual property, equipment, brand recognition, etc. Taken together, these elements will provide a holistic view of the business venture and its potential to achieve its objectives. There is no hard-and fast metric for whether the venture should be successful or no. This model simply provides a vantage point from which to appropriately evaluate the business opportunity or potential.

central driving forces model forces model driving force

Was this article helpful?

Yes
No

Related Articles

  • PESTEL Factors - External Analysis
  • Barriers to Entry - Explained
  • Investor Pitch - Slide 8: Competition
  • Elevator Pitch - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand