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Bus475.Nov09.3

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Business 475 - INTEGRATED BUSINESS TOPICS

Class 3: STRATEGY DEVELOPMENT

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Bus475.Nov09.3

  1. 1. Welcome
  2. 2. Agenda
  3. 3. Agenda SWOT Presentations
  4. 4. Agenda SWOT Presentations Review of class 1I
  5. 5. Agenda SWOT Presentations Review of class 1I External analysis (Porter 5 forces)
  6. 6. Agenda SWOT Presentations Review of class 1I External analysis (Porter 5 forces) Walmart case study / video
  7. 7. Agenda SWOT Presentations Review of class 1I External analysis (Porter 5 forces) Walmart case study / video Exercise: using the 5 forces
  8. 8. Agenda SWOT Presentations Review of class 1I External analysis (Porter 5 forces) Walmart case study / video Exercise: using the 5 forces Generic strategies
  9. 9. Agenda SWOT Presentations Review of class 1I External analysis (Porter 5 forces) Walmart case study / video Exercise: using the 5 forces Generic strategies Balanced scorecards
  10. 10. Agenda SWOT Presentations Review of class 1I External analysis (Porter 5 forces) Walmart case study / video Exercise: using the 5 forces Generic strategies Balanced scorecards Mergers & acquisitions
  11. 11. Agenda SWOT Presentations Review of class 1I External analysis (Porter 5 forces) Walmart case study / video Exercise: using the 5 forces Generic strategies Balanced scorecards Mergers & acquisitions Comcast / NBC case study
  12. 12. Agenda SWOT Presentations Review of class 1I External analysis (Porter 5 forces) Walmart case study / video Exercise: using the 5 forces Generic strategies Balanced scorecards Mergers & acquisitions Comcast / NBC case study Next week
  13. 13. Questions before we begin?
  14. 14. Concept Review
  15. 15. 1 Introduction to Strategic Management
  16. 16. 2 Internal and External Environment
  17. 17. Internal Analyses
  18. 18. Resource based view of the firm
  19. 19. Firms differ in fundamental ways because each firm possesses a unique “bundle” of resources – tangible and intangible assets and organizational capabilities to make use of those assets
  20. 20. Tangible Assets Intangible Assets Organizational Capabilities Hampton Inn’s Budweiser’s brand Dell Computer’s reservation system name customer service Ford Motor’s cash Dell Computer’s Wal-mart’s purchasing reserves reputation and inbound logistics 3M’s patents Nike’s advertising with Sony’s product LeBron James development process Georgia Pacific’s land Katie Couric as NBC’s Coke’s global holdings “Today” host distribution coordination
  21. 21. Value Chain Analysis
  22. 22. SWOT(T) Analysis
  23. 23. SWOT Strengths Weaknesses Opportunities Threats
  24. 24. SWOT Analysis Numerous environmental opportunities Cell 3: Cell 1: Supports a Supports an turnaround-oriented aggressive Critical strategy strategy Substantial Internal Internal Strengths Weaknesses Cell 4: Cell 2: Supports a defensive Supports a strategy diversification strategy Major environmental threats
  25. 25. External environment
  26. 26. 5 Forces framewor k
  27. 27. What are entry barriers?
  28. 28. 5 Forces framewor k capital requirements patents & trademarks branding distribution long term contracts switching costs
  29. 29. example: Univer sity of Phoenix Take 10 minutes Analyze 5 forces Select spokesman
  30. 30. Social Economic Technology Ecological Political
  31. 31. TECHNOLOGICAL OBSOLESCENCE
  32. 32. TECHNOLOGICAL OBSOLESCENCE
  33. 33. RE GU LATORY FORCES
  34. 34. RE GU LATORY FORCES
  35. 35. RE GU LATORY FORCES
  36. 36. Social Economic Technology Ecological Political
  37. 37. 3 Strategy development
  38. 38. Long term objectives
  39. 39. Profitability
  40. 40. Profitability Productivity
  41. 41. Profitability Productivity Competitive position
  42. 42. Profitability Productivity Competitive position Employee development
  43. 43. Profitability Productivity Competitive position Employee development Employee relations
  44. 44. Profitability Productivity Competitive position Employee development Employee relations Technological leadership
  45. 45. Profitability Productivity Competitive position Employee development Employee relations Technological leadership Public responsibility
  46. 46. Qualities of Long-Term Objectives Acceptable Achievable Profitability Productivity Competitive position Employee development Flexible Understandable Employee relations Technological leadership Public responsibility Measurable Suitable Motivating
  47. 47. The Balanced Scorecard
  48. 48. The Balanced Scorecard Tangible goals linked to long term objectives
  49. 49. The Balanced Scorecard Tangible goals linked to long term objectives
  50. 50. Generic Strategies
  51. 51. michael porter
  52. 52. michael porter
  53. 53. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus
  54. 54. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus
  55. 55. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus
  56. 56. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus FOOD
  57. 57. Source of Competitive Advantage Cost Differentiation Broad Cost Leadership Differentiation Scope Narrow Differentiation Cost Focus Focus FOOD
  58. 58. So how do we decide? Differentiation Cost Advantage Overall ROI Advantage High High 35% Low High 26% High Low 22% Low Low 9.5%
  59. 59. michael treacy
  60. 60. michael treacy
  61. 61. michael treacy
  62. 62. Another view: value disciplines Operational Customer intimacy Product leadership excellence
  63. 63. Another view: value disciplines Operational Customer intimacy Product leadership excellence
  64. 64. Another view: value disciplines Operational Customer intimacy Product leadership excellence
  65. 65. Another view: value disciplines Operational Customer intimacy Product leadership excellence
  66. 66. Source of Competitive Advantage Cost Differentiation Operational intimacy Broad Cost Customer Leadership Product leadership Differentiation excellence Scope Narrow Differentiation Cost Focus Focus
  67. 67. “Our mission is to develop the most innovative products at the lowest cost through operational excellence and intimate knowledge of our customers”
  68. 68. “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
  69. 69. Walmart, Part I
  70. 70. Questions • How could rubbermaid have reacted faster? • Could they survive in the U.S.? • Which stakeholders love Walmart, which hate it?
  71. 71. Grand strategies
  72. 72. 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
  73. 73. Core competencies, mergers & the synergy myth
  74. 74. Why do companies merge?
  75. 75. Control Costs Increase Revenue
  76. 76. What is synergy?
  77. 77. What is synergy?
  78. 78. Costs savings work, revenue synergy doesn’t
  79. 79. +
  80. 80. 5 Forces framewor k
  81. 81. 5 Forces framewor k
  82. 82. Business school 101: If you don’t know the answer, guess
  83. 83. Business school 101: If you don’t know the answer, guess
  84. 84. Walmart, Part II - Globalization
  85. 85. Questions • What drove Walmart’s globalization? • “Walmart and China are a joint venture” • good, bad or indifferent?
  86. 86. Walmart, Part III
  87. 87. Assignments
  88. 88. 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
  89. 89. 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
  90. 90. 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
  91. 91. Next Week
  92. 92. Implementation strategies Exam prep

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