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Similar to Socrates vasiliades tax - business strategic planning
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Socrates vasiliades tax - business strategic planning
- 1. Socrates Vasiliades tax- Business Strategic Planning Understand Strategy and how it differs from plans, and tactics Look at models of strategy development Understand the process of strategy development Product Life Cycle and Generic Strategies
- 2. Functions of Planning 1) Identifying future opportunities 2) Identifying and avoiding future problems 3) Developing courses of action 4) Understanding the risks and uncertainties associated with various options
- 3. Strategy The major courses of action that an organization should take to achieve its goals Plans-deal more with actions that should be taken Tactics-specific moves
- 4. Intended and Realized Strategies Intended-Plans that managers develop Realized-What actions actually occur Unrealized-Plans that never occur Emergent Strategy-Unplanned actions that occur
- 6. SWOT Analysis Internal Strengths and Weaknesses External Opportunities and Threats in the business environment
- 7. Core Competencies Strengths that make an organization distinctive from competitors Groups of sustainable competitive advantages
- 8. External-O’s and T’s Porter’s Five Forces Model-P94 Threat of New Entrants Supplier Bargaining Power Customer Bargaining Power Substitute Goods or Services Rivalry of Existing Firms
- 9. Product Life Cycle Market phases that products usually go through during their lifetimes Introduction Growth Maturity Decline Termination
- 10. Basic Product Life Cycle Model Adapted from Figure 7.4 Introduction Growth Maturity Decline Termination Biogenetics Electric cars Cellular phones PCs Software Autos Airlines Breakfast cereals Black and white TV Cigarettes Slide rule Drive-ins High Low Sales Volume Time
- 11. Diversification The variety of goods or services provided by the firm Focused Strategy Dominant Business Related Diversification Unrelated Diversification
- 12. The Risks and Opportunities of Diversification Identifying the Risks and Opportunities of Diversification What can we do better than any of our competitors if we enter a new market? What strategic assets are needed to succeed in the new market? Are there synergies to be realized? Will we be simply a player in the new market or will we emerge a winner? What can we learn by diversifying, and are we sufficiently organized to learn it? 7.4
- 13. Level of Diversification and Planning Scopeofstrategicplanning Dick Clark Productions Southwest Airlines Cemex GE Dominant- business firm Single- business firm Related- business firm Unrelated- businesses firm Broad Narrow HighLow Level of diversification Adapted from Figure 7.1 7.5 ABB
- 14. Single-Business Strategy Serves one segment of a particular market with the intent of being the BEST Examples Southwest Airlines Intel
- 15. Dominant Business Serves various segments of a single market Examples GM Trucks, Cars, Semi’s
- 16. Related Diversification A variety of similar goods or services Concentric Growth Strategy Synergies are realized Examples GM Microsoft Honda
- 17. Unrelated Diversification Provide diverse products to different markets Conglomerate Growth Strategy Examples GE ABB Mitsubuishi
- 18. Corporate Level Strategy Guides the overall direction of the firm deciding what SBU’s to keep, develop, purchase, or sell
- 19. Strategic Business Unit SBU-a division or subsidiary of a firm that operates relatively independently Examples pizza hut, taco bell, kfc IBM computers, mainframes, financial other examples??
- 20. Growth Strategies Think of facing the ultimate customer Forward Integration-when a firm buys its customers Backward Integration-when a firm buys its suppliers Horizontal Integration-when a firm buys its competitors
- 21. Growth Strategies (cont) Market Penetration-development of current markets with current products Market Development-seeking new markets for current products Product Development-new or improved products for the current market
- 22. Business Level Strategies Strategies of SBU’s What is the market What are the customer needs to be filled How will they be satisfied
- 23. Generic Strategies Henry Mintzberg-P245 3 basic business strategies Differentiation Low-cost Focus/Niche Question- Can the 3 basic strategies be combined?
- 24. Generic Strategies Model Low Cost (price) Broad Narrow Uniqueness Source of Advantage Strategic Target Differentiation strategy Cost leadership strategy Focus strategy Source: Adapted with permission of The Free Press, a Division of Simon & Schuster, Inc. from Competitive Strategy: Techniques for Analyzing Industries and Competitors (p. 39) by Michael E. Porter, Copyright © 1980 by The Free Press.
- 25. Application of the Generic Strategies Model Feature Company ExamplesBusiness-Level Strategy Differentiation Premium Quality Brand image Technological leadership Customer service Lexus - autos Compaq - PCs Gillette - razors Maytag - appliances Nike - shoes
- 26. Application of the Generic Strategies Model (contd.) Feature Company Examples Business-Level Strategy Cost leadership Tight cost controls Efficient scale of facilities Efficient service, sales force, and advertising Competitive pricing Feature Discount Tires - tire replacement Motel 6 - travel accommodations Wal-Mart - retailing UPS - package delivery
- 27. Feature Company Examples Business-Level Strategy Focus Careful identification of target market (niche) Cost leadership emphasis or differentiation emphasis Constant review of customer demand in niche Nieman Marcus - elite retailing Dick Clark Productions Polo - clothing Rolex - watches Application of the Generic Strategies Model (contd.)
- 28. Where to from here???? We have touched on the areas of: Organizational Behavior Human Resource Management Strategic Management What careers are there in each area? What classes can I take in the areas? MGT410,MGT499,MGT320,MGT340,MGT491
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