How to develop corporate strategy in organisational set up

1. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.1
CHAPTER 8
Aligning Supply with
Corporate Strategy

2. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.2
Agenda
• What is strategy ?
• What is strategic alignment ?
• Aligning purchasing and corporate strategies
• Developing corporate strategy
• Setting competitive priorities
• Key points
• Further readings
• Questions
Aligning Supply with
Corporate Strategy

3. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.3
Aligning Supply with
Corporate Strategy
Figure 8.1 The Strategic Supply Wheel
Performance
measures
Organisational
structure
Portfolio of
relationships
Total cost/
benefit analysis
Skills and
competencies
Corporate
and
supply
strategy

4. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.4
Aligning Supply with
Corporate Strategy
Figure 8.2 The Process of Strategic Alignment
Corporation
Notebook Unit Desktop Unit Handheld Unit
Finance Operations
Marketing
Human
Resources
Supply Chain
Corporate-level Strategy
Business-level
Strategy
Functional-level Strategy

5. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.5
Aligning Supply with
Corporate Strategy
Figure 8.4 The Process of Aligning Supply and Corporate Strategies
Organisational capabilities External environment
Corporate/business Strategy
Determine supply chain practices
Determine supply function objectives
Rank competitive priorities

6. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.6
Aligning Supply with
Corporate Strategy
Alignment between corporate strategy and supply strategy
Strategic alignment
Central hub of the supply wheel
Key Points

7. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.7
Further Readings
Aligning Supply with
Corporate Strategy
 Cousins, P. D. (2005) ‘The Alignment of Appropriate Firm and
Supply Strategies for Competitive Advantage’, International
Journal of Operations and Production Management, Vol. 25 (5),
pp. 403–28.
 Porter, M. E. (1996) ‘What is strategy?’, Harvard Business Review,
Vol. 74 (6), pp. 61–78.

8. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.8
Aligning Supply with
Corporate Strategy
Describe the development of strategy within
a business (showing the difference between
corporate, business and functional levels).
Question 1

9. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.9
Aligning Supply with
Corporate Strategy
Discuss the importance of strategic alignment.
Question 2

10. Cousins, Lamming, Lawson and Squire, Strategic Supply Management, 1st
Edition © Paul Cousins, Richard Lamming, Benn Lawson and Brian Squire 2008
Slide 8.10
Aligning Supply with
Corporate Strategy
Apply strategic alignment within a supply
chain context.
Question 3