Bus475.Nov09.4

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Business 475 - INTEGRATED BUSINESS TOPICS

Class 4: STRATEGY IMPLEMENTATION

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  • Bus475.Nov09.4

    1. 1. Welcome
    2. 2. Agenda
    3. 3. Agenda Walmart case study / video
    4. 4. Agenda Walmart case study / video Exercise: using the 5 forces
    5. 5. Agenda Walmart case study / video Exercise: using the 5 forces Short term objectives
    6. 6. Agenda Walmart case study / video Exercise: using the 5 forces Short term objectives Executive compensation
    7. 7. Agenda Walmart case study / video Exercise: using the 5 forces Short term objectives Executive compensation Test prep - part I
    8. 8. Agenda Walmart case study / video Exercise: using the 5 forces Short term objectives Executive compensation Test prep - part I Organizational structure
    9. 9. Agenda Walmart case study / video Exercise: using the 5 forces Short term objectives Executive compensation Test prep - part I Organizational structure Presentation hints
    10. 10. Questions before we begin?
    11. 11. Concept Review
    12. 12. 1 Introduction to Strategic Management
    13. 13. 2 Internal and External Environment
    14. 14. 3 Strategy development
    15. 15. 4 Strategy Implementation
    16. 16. External environment
    17. 17. 5 Forces framewor k
    18. 18. What are entry barriers?
    19. 19. 5 Forces framewor k capital requirements patents & trademarks branding distribution long term contracts switching costs
    20. 20. example: Univer sity of Phoenix Take 10 minutes Analyze 5 forces Select spokesman
    21. 21. Social Economic Technology Ecological Political
    22. 22. TECHNOLOGICAL OBSOLESCENCE
    23. 23. TECHNOLOGICAL OBSOLESCENCE
    24. 24. RE GU LATORY FORCES
    25. 25. RE GU LATORY FORCES
    26. 26. RE GU LATORY FORCES
    27. 27. Social Economic Technology Ecological Political
    28. 28. Long term objectives
    29. 29. Profitability
    30. 30. Profitability Productivity
    31. 31. Profitability Productivity Competitive position
    32. 32. Profitability Productivity Competitive position Employee development
    33. 33. Profitability Productivity Competitive position Employee development Employee relations
    34. 34. Profitability Productivity Competitive position Employee development Employee relations Technological leadership
    35. 35. Profitability Productivity Competitive position Employee development Employee relations Technological leadership Public responsibility
    36. 36. Qualities of Long-Term Objectives Acceptable Achievable Profitability Productivity Competitive position Employee development Flexible Understandable Employee relations Technological leadership Public responsibility Measurable Suitable Motivating
    37. 37. The Balanced Scorecard
    38. 38. The Balanced Scorecard Tangible goals linked to long term objectives
    39. 39. The Balanced Scorecard Tangible goals linked to long term objectives
    40. 40. Generic Strategies
    41. 41. michael porter
    42. 42. michael porter
    43. 43. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus
    44. 44. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus
    45. 45. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus
    46. 46. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus FOOD
    47. 47. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus FOOD
    48. 48. So how do we decide? Differentiation Cost Advantage Overall ROI Advantage High High 35% Low High 26% High Low 22% Low Low 9.5%
    49. 49. michael treacy
    50. 50. michael treacy
    51. 51. michael treacy
    52. 52. Another view: value disciplines Operational Customer intimacy Product leadership excellence
    53. 53. Another view: value disciplines Operational Customer intimacy Product leadership excellence
    54. 54. Another view: value disciplines Operational Customer intimacy Product leadership excellence
    55. 55. Another view: value disciplines Operational Customer intimacy Product leadership excellence
    56. 56. Source of Competitive Advantage Cost Differentiation Operational intimacy Broad Cost Customer Leadership Product leadership Differentiation excellence Scope Narrow Differentiation Cost Focus Focus
    57. 57. “Our mission is to develop the most innovative products at the lowest cost through operational excellence and intimate knowledge of our customers”
    58. 58. “Our mission is to develop the most innovative products at the lowest cost through operational excellence and intimate knowledge of our customers” You can’t do it all
    59. 59. Grand strategies
    60. 60. A B Concentrated growth Liquidation Market development Bankruptcy Product development Joint ventures Innovation Strategic alliances Horizontal integration Consortia Vertical integration C Concentric diversification Conglomerate diversification Turnaround Divestiture
    61. 61. Core competencies, mergers & the synergy myth
    62. 62. Why do companies merge?
    63. 63. Control Costs Increase Revenue
    64. 64. What is synergy?
    65. 65. What is synergy?
    66. 66. Costs savings work, revenue synergy doesn’t
    67. 67. +
    68. 68. 5 Forces framewor k
    69. 69. 5 Forces framewor k
    70. 70. Business school 101: If you don’t know the answer, guess
    71. 71. Business school 101: If you don’t know the answer, guess
    72. 72. Walmart, Part I
    73. 73. Questions • How could rubbermaid have reacted faster? • Could they survive in the U.S.? • Which stakeholders love Walmart, which hate it?
    74. 74. Short term objectives
    75. 75. “You can’t manage what you don’t measure”
    76. 76. Characteristics of good short term objectives
    77. 77. Characteristics of good short term objectives Specific
    78. 78. Characteristics of good short term objectives Specific Achievable
    79. 79. Characteristics of good short term objectives Specific Achievable Measurable
    80. 80. Specific Achievable Measurable
    81. 81. “Increase profits 500% in Q3” Specific Achievable Measurable
    82. 82. “Increase profits 500% in Q3” “Create a safer working environment” Specific Achievable Measurable
    83. 83. “Increase profits 500% in Q3” “Create a safer working environment” “Increase customer satisfaction” Specific Achievable Measurable
    84. 84. Deficient Objectives Good Objectives
    85. 85. Deficient Objectives Good Objectives To reduce turnover (absenteeism, number of rejects, etc.) among sales managers by 10 percent by January 1, 2004 To improve morale Assumption: Morale is related to measurable outcomes (i.e., high and low morale are associated with different results)
    86. 86. Deficient Objectives Good Objectives To reduce turnover (absenteeism, number of rejects, etc.) among sales managers by 10 percent by January 1, 2004 To improve morale Assumption: Morale is related to measurable outcomes (i.e., high and low morale are associated with different results) To reduce the time lapse between order date and Improve support of sales delivery by 8 percent (2 days) by June 1, 2004
    87. 87. Deficient Objectives Good Objectives To reduce turnover (absenteeism, number of rejects, etc.) among sales managers by 10 percent by January 1, 2004 To improve morale Assumption: Morale is related to measurable outcomes (i.e., high and low morale are associated with different results) To reduce the time lapse between order date and Improve support of sales delivery by 8 percent (2 days) by June 1, 2004 To conduct a public opinion poll using random samples in the five largest U.S. metropolitan markets to determine average scores on 10 dimensions of Improve the firm’s image corporate responsibility by May 15, 2004. To increase our score on those dimensions by an average of 7.5 percent by May 1, 2005
    88. 88. Conflicting objectives
    89. 89. Walmart, Part II - Globalization
    90. 90. Questions • What drove Walmart’s globalization? • “Walmart and China are a joint venture” • good, bad or indifferent?
    91. 91. Executive compensation
    92. 92. Executive Compensation
    93. 93. Organizational structure
    94. 94. 59 Conclusions of Research on Organizational Structure  A single-product firm or single dominant business firm should employ a functional structure  A firm in several lines of business that are somehow related should employ a multidivisional structure  A firm in several unrelated lines of business should be organized into strategic business units  Early achievement of a strategy-structure fit can be a competitive advantage McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
    95. 95. 60 Restructuring to Support Strategically Critical Activities • Concept – Some activities within a business’s value chain are more critical to the success of the strategy than others • Considerations in restructuring • Strategically critical activities must be the central building blocks for designing the organization structure • Organizational structure must be designed to help coordinate and integrate support activities to • Maximize their support of strategy-critical primary activities • Minimize their costs and time spent on internal coordination McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
    96. 96. 61 Reengineering Strategic Business Processes (BPR) • Concept – Involves placing the decision making authority that is most relevant to the customer closer to the customer, in order to make the firm more responsive to the needs of the customer. • Potential outcomes of BPR • Reduces fragmentation by crossing traditional department lines • Reduces overhead by compressing formerly separate tasks that are strategically intertwined in the process of focusing on the customer McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
    97. 97. 62 Steps Involved in BPR • Develop a flow chart of the total business process • Try to simplify the process first, eliminating unnecessary tasks and streamlining remaining tasks • Determine which parts of the process can be automated • Benchmark strategy-critical activities • Consider outsourcing non-critical activities • Design a structure for performing remaining activities and reorganize personnel accordingly McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
    98. 98. 63 Downsizing, Self-Management, and Outsourcing • Downsizing – Eliminating employees, particularly middle managers, in a company • Self-management – Delegating work to lower, operating levels of an organization • Outsourcing – Obtaining work previously done by employees inside a company from sources outside the company McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
    99. 99. 64 Virtual Organization A temporary network of independent companies – suppliers, customers, subcontractors, even competitors – linked primarily by information technology to share skills, access to markets, and costs McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
    100. 100. Walmart, Part III
    101. 101. Assignments
    102. 102. Discuss scorecard ideas with learning team (5 threads, 5 responses, 5 summaries) Develop balanced scorecard and 300-word discussion of what you learned Start work on week 5 strategic plan presentation
    103. 103. Week 4 Individual Assignment: Balanced Scorecard 10 Discuss scorecard ideas with learning team (5 threads, 5 responses, 5 summaries) Develop balanced scorecard and 300-word discussion of what you learned Start work on week 5 strategic plan presentation
    104. 104. Week 4 Individual Assignment: Balanced Scorecard 10 Learning Team Assignment: Strategic Direction Evaluation 2 Discuss scorecard ideas with learning team (5 threads, 5 responses, 5 summaries) Develop balanced scorecard and 300-word discussion of what you learned Start work on week 5 strategic plan presentation
    105. 105. Next Week
    106. 106. Implementation strategies Exam prep
    107. 107. Testing tips
    108. 108. • Thefinal exam will have three questions for each course objective • No 2 tests / questions the same •3 hours, open book/PC, one sitting • Call tech support if you lose internet access (877-832-4867)
    109. 109. • You have time to search for answers • build your info sources index with the practice test • Answer easy questions first • you can skip questions with forward/back • guess & write down questions to return to
    110. 110. • Come up with the answer in your head before looking at the possible answers, this way the choices given on the test won't throw you off or trick you. • Eliminate answers you know aren't right. • Read all the choices before choosing your answer. • Always take an educated guess and select an answer. • Don't Do keep on changing your answer, usually your first choice is the right one. • In "All of the above" and "None of the above" choices, if you are certain one of the statements is true don't choose "None of the above" or one of the statements are false don't choose "All of the above". • In a question with an "All of the above" choice, if you see that at least two correct statements, then "All of the above" is probably the answer. • A positive choice is more likely to be true than a negative one. • Usually the correct answer is the choice with the most information.
    111. 111. Don’t get discouraged
    112. 112. Schedule short breaks even a scheduled 30-second break each half hour can help
    113. 113. Use search wisely http://desktop.google.com/ search through pdf ’s of texts
    114. 114. Use search wisely

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