Strategy formulation at the corporate level will defines the Growth, Stability and Retrenchment. This phase includes the Directional Strategies, Corporate Portfolio Analysis and Corporate Parenting
After working on dozens of brand portfolio optimization projects across the world; we've taken what we believe are the best practices of each and developed a proprietary brand portfolio planning process
Strategy formulation at the corporate level will defines the Growth, Stability and Retrenchment. This phase includes the Directional Strategies, Corporate Portfolio Analysis and Corporate Parenting
After working on dozens of brand portfolio optimization projects across the world; we've taken what we believe are the best practices of each and developed a proprietary brand portfolio planning process
Corporate level strategies are basically about the choice of direction that a firm adopts in order to achieve its objectives.
Corporate strategy is essentially a blueprint for the growth of the firm.
The corporate strategy sets the overall direction for the organization to follow.
It also spells out the extent, pace and timing of the firm’s growth.
Keep your audience glued to their seats with professionally designed PPT slides. This deck comprises of total of twenty five slides. It has PPT templates with creative visuals and well researched content. Not just this, our PowerPoint professionals have crafted this deck with appropriate diagrams, layouts, icons, graphs, charts and more. This content ready presentation deck is fully editable. Just click the DOWNLOAD button below. Change the colour, text and font size. You can also modify the content as per your need. Get access to this well crafted complete deck presentation and leave your audience stunned.
Business Level Strategy formulation is very crucial for the success of any corporation. Here the Organization will intend to figure-out who to make the business unit or the product lines are competitive and making sure their success
This is a preliminary approach presentation for developing a monolithic brand for EHC-Oman. It flags in the various factors that contributes towards the development of a mother brand, and as such should be taken more as a framework - rather than a recommendation.
Top-Sales Performer, Trainer, Employee Developer.
Specialist in cutting edge research based assessments, processes and systems for the effective selection, management and development of an organizations most valuable asset - their people.
Corporate level strategies are basically about the choice of direction that a firm adopts in order to achieve its objectives.
Corporate strategy is essentially a blueprint for the growth of the firm.
The corporate strategy sets the overall direction for the organization to follow.
It also spells out the extent, pace and timing of the firm’s growth.
Keep your audience glued to their seats with professionally designed PPT slides. This deck comprises of total of twenty five slides. It has PPT templates with creative visuals and well researched content. Not just this, our PowerPoint professionals have crafted this deck with appropriate diagrams, layouts, icons, graphs, charts and more. This content ready presentation deck is fully editable. Just click the DOWNLOAD button below. Change the colour, text and font size. You can also modify the content as per your need. Get access to this well crafted complete deck presentation and leave your audience stunned.
Business Level Strategy formulation is very crucial for the success of any corporation. Here the Organization will intend to figure-out who to make the business unit or the product lines are competitive and making sure their success
This is a preliminary approach presentation for developing a monolithic brand for EHC-Oman. It flags in the various factors that contributes towards the development of a mother brand, and as such should be taken more as a framework - rather than a recommendation.
Top-Sales Performer, Trainer, Employee Developer.
Specialist in cutting edge research based assessments, processes and systems for the effective selection, management and development of an organizations most valuable asset - their people.
CHAPTER 3EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT(c) 2016EstelaJeffery653
CHAPTER 3
EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
3–2
THIS CHAPTER WILL HELP YOU UNDERSTAND:
LO 1 How to recognize the factors in a company’s broad macro-environment that may have strategic significance.
LO 2 How to use analytic tools to diagnose the competitive conditions in a company’s industry.
LO 3 How to map the market positions of key groups of industry rivals.
LO 4 How to use multiple frameworks to determine whether an industry’s outlook presents a company with sufficiently attractive opportunities for growth and profitability.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
FIGURE 3.1
From Thinking Strategically about the Company’s Situation to Choosing a Strategy
Chapter 3
Chapter 4
3–3
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The macro-environment encompasses the broad environmental context in which a company’s industry is situated that includes strategically relevant components over which the firm has no direct control.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
3–4
CORE CONCEPT
4
PESTEL analysis focuses on the six principal components of strategic significance in the macro-environment:
Political
Economic
Social
Technological
Environmental
Legal
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3–5
CORE CONCEPT
5
THE STRATEGICALLY RELEVANT FACTORS IN THE COMPANY'S MACRO-ENVIRONMENT
PESTEL Analysis
Focuses on principal components of strategic significance in the macro-environment:
Political factors
Economic conditions (local to worldwide)
Sociocultural forces
Technological factors
Environmental factors (the natural environment)
Legal/regulatory conditions
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This do ...
The Team Member and Guest Experience - Lead and Take Care of your restaurant team. They are the people closest to and delivering Hospitality to your paying Guests!
Make the call, and we can assist you.
408-784-7371
Foodservice Consulting + Design
Employment PracticesRegulation and Multinational CorporationsRoopaTemkar
Employment PracticesRegulation and Multinational Corporations
Strategic decision making within MNCs constrained or determined by the implementation of laws and codes of practice and by pressure from political actors. Managers in MNCs have to make choices that are shaped by gvmt. intervention and the local economy.
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
Specific ServPoints should be tailored for restaurants in all food service segments. Your ServPoints should be the centerpiece of brand delivery training (guest service) and align with your brand position and marketing initiatives, especially in high-labor-cost conditions.
408-784-7371
Foodservice Consulting + Design
Enriching engagement with ethical review processesstrikingabalance
New ethics review processes at the University of Bath. Presented at the 8th World Conference on Research Integrity by Filipa Vance, Head of Research Governance and Compliance at the University of Bath. June 2024, Athens
Comparing Stability and Sustainability in Agile SystemsRob Healy
Copy of the presentation given at XP2024 based on a research paper.
In this paper we explain wat overwork is and the physical and mental health risks associated with it.
We then explore how overwork relates to system stability and inventory.
Finally there is a call to action for Team Leads / Scrum Masters / Managers to measure and monitor excess work for individual teams.
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
Public Speaking Tips to Help You Be A Strong Leader.pdfPinta Partners
In the realm of effective leadership, a multitude of skills come into play, but one stands out as both crucial and challenging: public speaking.
Public speaking transcends mere eloquence; it serves as the medium through which leaders articulate their vision, inspire action, and foster engagement. For leaders, refining public speaking skills is essential, elevating their ability to influence, persuade, and lead with resolute conviction. Here are some key tips to consider: https://joellandau.com/the-public-speaking-tips-to-help-you-be-a-stronger-leader/
Org Design is a core skill to be mastered by management for any successful org change.
Org Topologies™ in its essence is a two-dimensional space with 16 distinctive boxes - atomic organizational archetypes. That space helps you to plot your current operating model by positioning individuals, departments, and teams on the map. This will give a profound understanding of the performance of your value-creating organizational ecosystem.
2. 1–2
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
THIS CHAPTER WILL HELP YOU UNDERSTAND:
What we mean by a company’s strategy.
The concept of a sustainable competitive advantage.
The five most basic strategic approaches for setting a
company apart from rivals and winning a sustainable
competitive advantage.
That a company’s strategy tends to evolve because of
changing circumstances and ongoing efforts by
management to improve the strategy.
Why it is important for a company to have a viable business
model that outlines the company’s customer value
proposition and its profit formula.
The three tests of a winning strategy.
3. CORE CONCEPT
A company’s strategy is the set of
actions that its managers take to
outperform the company’s
competitors and achieve superior
profitability.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–3
4. WHAT DO WE MEAN BY STRATEGY ?
What is our present situation?
● Business environment and industry conditions
● Firm’s financial and competitive capabilities
Where do we want to go from here?
● Creating a vision for the firm’s future direction
How are we going to get there?
● Crafting an action plan for heading the firm in the
intended direction, staking out a market position,
attracting customers, achieving the targeted financial
and market performance, and getting the firm
where it wants to go is its strategy.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–4
5. WHAT IS STRATEGY ABOUT?
Strategy is all about How:
● How to attract and please customers.
● How to compete against rivals.
● How to position the firm in the marketplace to capitalize
on attractive opportunities for growth.
● How to respond to changing economic and market
conditions.
● How to manage each functional piece of the business.
● How to achieve the firm’s performance targets.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–5
6. STRATEGIC MANAGEMENT PRINCIPLE
♦ Strategy is about competing differently from
rivals—doing what competitors don’t do or,
even better, doing what they cannot do!
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–6
7. Importance of STRATEGY?
A firm needs a strategy to specify what actions
are going to be taken:
● To improve its financial performance.
● To strengthen its competitive position.
● To gain a sustainable competitive advantage over its
market rivals.
A creative, distinctive strategy:
● Helps produce above-average profits.
● Increases competitive pressures on rivals.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–7
8. STRATEGY AND COMPETITORS
Strategy is about competing differently
from rivals—
● Doing what they do not do or doing it better!
● Doing what they cannot do!
● Doing things in ways that attract customers
and set a firm apart from its rivals.
● Doing things in a manner calculated to
produce a competitive edge over rivals.
● Knowing what the firm must do and also
what it must not do.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–8
9. FIGURE 1.1 Identifying a Company’s Strategy–What to Look For
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1–9
10. ILLUSTRATION
CAPSULE 1.1
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1–10
♦ Key elements of Starbucks’s strategy:
● Train “baristas” to serve a wide variety of specialty coffee
drinks that allow customers to satisfy their individual
preferences in a customized way.
● Emphasize store ambience and elevation of the customer
experience at Starbucks stores.
● Purchase and roast only top-quality coffee beans.
● Foster commitment to corporate responsibility.
● Expand the number of Starbucks stores domestically and
internationally.
● Broaden and periodically refresh in-store product offerings.
● Fully exploit the growing power of the Starbucks name and
brand image with out-of-store sales.
Starbucks’s Strategy in
the Coffeehouse Market
11. What is a Competitive Advantage?
To be specific: “a firm’s ability to create value
in a way its rivals cannot”.
• Put it in another way: firms prefer to be
winner in their respective industries rather
than subpar or even average performers.
• Without a strategy that leads to competitive
advantage, companies risk to be
outcompeted by rivals or locked in mediocre
financial performance.
12. STRATEGY AND THE QUEST FOR
COMPETITIVE ADVANTAGE
Competitive Advantage
● Requires meeting customer needs either more
effectively (with products or services that customers
value more highly) or more efficiently (by providing
products or services at lower cost).
Sustainable Competitive Advantage
● Requires giving buyers lasting reasons to prefer a
firm’s products or services over those of its
competitors.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–12
13. BASIC STRATEGIC APPROACHES
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1–13
Low-cost
provider
Broad
differentiation
Focused
differentiationBest-cost
provider
Strategies for Building
Competitive Advantage
Focused
low-cost
14. STRATEGIC APPROACHES
Building a competitive advantage by:
● Striving to become the industry’s low-cost provider
(efficiency).
● Outcompeting rivals on differentiating features
(effectiveness).
● Offering the lowest (best) prices for differentiated
goods (best-cost provider).
● Focusing on better serving a niche market’s needs
(efficiency andor effectiveness).
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–14
15. CORE CONCEPT
♦ A firm achieves a competitive advantage
when it provides buyers with superior value
compared to rival sellers or offers the same
value at a lower cost to the firm.
♦ The firm achieves a sustainable competitive
advantage if its advantage persists despite
the best efforts of competitors to match or
surpass its advantage.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–15
16. GAINING SUSTAINABLE COMPETITIVE
ADVANTAGE
How to create a sustainable competitive advantage:
● Develop valuable expertise and competitive
capabilities over the long-term that rivals cannot
readily copy, match or best.
● Put the constant quest for sustainable competitive
advantage at center stage in crafting your strategy.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–16
17. A Powerful Strategy Leads to
Sustainable Competitive Advantage
A company achieves sustainable competitive
advantage when
● An attractive number of buyers prefer its
products/services over those of rivals and
● The basis for this preference is durable
Its nice when a strategy produces
● A temporary competitive edge but
● A sustainable edge over rivals greatly enhances a
company’s prospects for above-average profitability
What separates a powerful strategy from an ordinary
strategy is management’s ability to forge a series of
moves, both in the marketplace and internally, that
! produces sustainable competitive advantage
18. What Strategy is: Gaining and Sustaining
Competitive Advantage
What is Competitive Advantage?
● Superior performance relative to competitors
Examples: Google, Pfizer’s Lipitor (patent
protection to 2010)
What is Sustainable Competitive Advantage?
● Sustainable competitive advantage occurs when a firm
implements a value-creating strategy of which other
companies are unable to duplicate the benefits or find
it too costly to imitate.
An important basis for sustainable competitive advantage
is the development of resources and capabilities.
1–18
19. Strategic Approaches to Building
Sustainable Competitive Advantage
Be the industry’s low-cost provider
● Achieve a cost-based competitive advantage
Incorporate differentiating features
● Superior product/service keyed to higher quality, better
performance, wider selection, value-added services, or some
other attribute
Focus on a narrow market niche
● Win a competitive edge by doing a
better job than rivals of serving the
needs and preferences of buyers in the niche
Develop expertise and resource strengths
not easily imitated or matched by rivals
● Achieve a capabilities-based competitive
20. WHY A COMPANY’S STRATEGY
EVOLVES OVER TIME
Managers modify strategy in response to:
● Changing market conditions
● Advancing technology
● Fresh moves of competitors
● Shifting buyer needs
● Emerging market opportunities
● New ideas for improving the strategy
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–20
21. STRATEGIC MANAGEMENT PRINCIPLE
♦ Changing circumstances and ongoing
management efforts to improve the strategy
cause a company’s strategy to evolve over
time—a condition that makes the task of
crafting strategy a work in progress, not a
one-time event.
♦ A company’s strategy is shaped partly by
management analysis and choice and partly
by the necessity of adapting and learning by
doing.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–21
22. CH2
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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–22
23. THE EVOLVING NATURE OF A FIRM’S STRATEGY
Realized (current) strategy is a blend of:
● Proactive (deliberate) strategy elements that include
both continued and new initiatives.
● Reactive (emergent) strategy elements that are
required due to unanticipated competitive
developments and fresh market conditions.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–23
24. CORE CONCEPT
♦ A company’s deliberate strategy consists of
proactive strategy elements that are both
planned and realized as planned; its
emergent strategy consists of reactive
strategy elements that emerge as changing
conditions warrant.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–24
25. Figure 1.2: A Company’s Strategy Is a Blend of Proactive Initiatives and
Reactive Adjustments
1-25
26. A COMPANY’S STRATEGY
AND ITS BUSINESS MODEL
How the business will make money :
● By providing customers with value.
The firm’s customer value proposition
● By generating revenues sufficient to cover costs and
produce attractive profits.
The firm’s profit formula
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
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1–26
It takes a proven business model—one that
yields appealing profitability—to demonstrate
viability of a firm’s strategy.
27. CORE CONCEPT
♦ A company’s business model sets forth the
logic for how its strategy will create value for
customers, while at the same time generate
revenues sufficient to cover costs and realize a
profit.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
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1–27
28. Relationship Between
Strategy and Business Model
Strategy . . .
Deals with a company’s
competitive initiatives and
business approaches
Business Model . . .
Concerns whether revenues
and costs flowing from the
strategy demonstrate a
business can be profitable
and viable
1-28
$$$?
29. BUSINESS MODEL ELEMENTS
The Customer Value Proposition
● Satisfying buyer wants and needs at a price
customers will consider a good value.
The greater the value provided (V) and the lower
the price (P), the more attractive the value
proposition is to customers.
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–29
30. BUSINESS MODEL ELEMENTS (CONT’D)
The Profit Formula
● Creating a cost structure that allows for acceptable
profits, given that pricing is tied
to the customer value proposition.
V—the value provided to customers
P—the price charged to customers
C—the firm’s costs
● The lower the costs (C) for a given customer value
proposition (V–P), the greater the ability of the
business model to be a moneymaker.
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1–30
31. 1–31
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FIGURE 1.3 The Business Model and the Value-Price-Cost Framework
32. THINKING STRATEGICALLY
♦ Amazon's continuing lack of profitability has
begun to concern its long-term investors.
● What internal and external factors could be
contributing to the lack of profitability?
● How could the problem be explained in terms of
changes in the value, price, and cost factors
associated with Amazon's business model?
● What must Amazon do now to create a business
model that is sustainable over the long term?
(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1–32
33. The Strategy Diamond and the Five
Elements of Strategy
1. Arenas: where will we be active
Decisions about a firm’s arenas may encompass its
products, channels, market segments, geographic
areas, technologies, and even stages in the value
creation process.
2. Vehicles: how will we get there?
provide the means for participating in the targeted
arenas (acquisitions, internal development, joint
ventures, etc.)
Wal-Mart is an example of a firm that has used
different vehicles for expanding internationally
In some markets, they have chosen to grow
organically (such as Argentina), while in others they
have used acquisitions of existing retailers (such as in
England and Germany).
34. 3. Differentiators: how will we win in the marketplace?
are features and attributes of a company’s product or
services that help it beat its competitors in the marketplace.
Two critical factors in selecting differentiators are:
(1) Make decisions early
(2) Identifying and executing successful differentiators means
making tough choices – namely tradeoffs
The earlier and more consistent the firm is at defining and
driving these differentiators, the greater the likelihood that
customers will recognize them.
35. 4. Staging: what will be our speed and sequence of
moves?
These staging choices depend on available resources,
including cash, human capital, and knowledge
Staging decisions should be driven by several factors:
resources, urgency, credibility, and need for early wins.
Opportunities must be matched with available resources.
In addition, not all opportunities to enter new arenas are
permanent; some have only brief windows.
In these cases, early wins and the credibility of certain key
stakeholders may be necessary to implement a strategy.
36. 5. Economic logic: how will we obtain our returns?
This reflects the firm’s ability to generate positive returns
above the firm’s cost of capital.
Both costs and revenues are considered. Sometimes
economic logic resides primarily on the cost side of the
equation. (?)
Other times, economic logic may rest on the firm’s ability to
increase the customer’s willingness to pay premium prices
for products.
37. BUSINESS STRATEGY DIAMOND
37
Staging
Differentiators
Economic
logic
Vehicles
Arenas
• What will be our speed and
sequence of moves?
– Speed of expansion?
– Sequence of initiatives
Staging
• How will returns be obtained?
– Lowest costs through scale
advantages?
– Lowest costs through scope and
replication advantages
– Premium prices due to
unmatchable service?
– Premium prices due to proprietary
product features?
Economic logic
• How will we get there?
– Internal development?
– Joint ventures?
– Licensing/franchising?
– Experimentation?
– Acquisitions?
Vehicles
• How will we win?
– Image?
– Customization?
– Price?
– Styling?
– Product reliability?
– Speed to market?
Differentiators
• Where will we be active? ( and
with how much emphasis?)
– Which product categories?
– Which channels?
– Which market segments?
– Which geographic areas?
– Which core technologies
– Which value-creation
strategies?
Arenas
38. ILLUSTRATION
CAPSULE 1.2
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♦ Who listens to the radio anymore?
●Given the changes in how people listen to music,
are the business models of Pandora, Sirius XM
and over-the-air broadcasters viable over the
long term?
●Which competitor’s present strategy best passes
the three tests of a winning strategy?
●What internal and external factors will create
particular difficulties for each competitor in
changing its strategy or business model?
Pandora, Sirius XM, and Over-the-Air
Broadcast Radio: Three Contrasting
Business Models
39. IS OUR STRATEGY A WINNER?
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Winning
Strategy
The Strategic
Fit Test
The Competitive
Advantage Test
The Performance
Test
40. WHAT MAKES A STRATEGY A WINNER?
A winning strategy must pass three tests:
● The Fit Test
Does it exhibit dynamic fit with the external and
internal aspects of the firm’s overall situation?
● The Competitive Advantage Test
Can it help the firm achieve a significant and
sustainable competitive advantage?
● The Performance Test
Can it produce good performance as measured by
the firm’s profitability, financial and competitive
strengths, and market standing?
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41. CH3
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42. WHY CRAFTING AND EXECUTING STRATEGY
ARE IMPORTANT TASKS
Strategy provides:
● A prescription for doing business.
● A road map to competitive advantage.
● A game plan for pleasing customers.
● A formula for attaining long-term standout
marketplace performance.
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Good Strategy + Good Strategy Execution =
Good Management
43. STRATEGIC MANAGEMENT PRINCIPLE
♦ How well a company performs is directly
attributable to the caliber of its strategy and the
proficiency with which the strategy is executed.
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44. THINKING STRATEGICALLY
♦ Google’s web browser-based Chrome
operating system and its online applications
suite are now challenging Microsoft’s long-term
dominance of those marketplace sectors.
♦ What should be Microsoft’s first response to
this competitive challenge?
♦ How will Microsoft’s response to this
competitor’s actions affect its business model?
♦ Which competitor’s strategy will likely be the
eventual winner in the marketplace? Why?
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45. THE ROAD AHEAD
Strategy is about asking the right questions:
● What must managers do, and do well, to make
a firm a winner in the marketplace?
Strategy requires getting the right answers:
● Good strategic thinking and good management of
the strategy-making, strategy-executing process.
● First-rate capabilities and skills in crafting and
executing strategy are essential to managing
successfully.
Welcome and best wishes for your success!
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