Support presentation to the SPIN-UP Training Programme on Entrepreneurial Skills for University Spin-Offs.
SPIN-UP is a cooperation project supported by the European Commission that aims to create an Entrepreneurship Training and Coaching Programme that contributes to the development of Key Entrepreneurial Skills, both technical and behavioural, essential to enable and leverage University Spin-Offs growth.
Download and have access to other training materials in www.spin-up.eu
Support presentation to the SPIN-UP Training Programme on Entrepreneurial Skills for University Spin-Offs.
SPIN-UP is a cooperation project supported by the European Commission that aims to create an Entrepreneurship Training and Coaching Programme that contributes to the development of Key Entrepreneurial Skills, both technical and behavioural, essential to enable and leverage University Spin-Offs growth.
Download and have access to other training materials in www.spin-up.eu
Support presentation to the SPIN-UP Training Programme on Entrepreneurial Skills for University Spin-Offs.
SPIN-UP is a cooperation project supported by the European Commission that aims to create an Entrepreneurship Training and Coaching Programme that contributes to the development of Key Entrepreneurial Skills, both technical and behavioural, essential to enable and leverage University Spin-Offs growth.
Download and have access to other training materials in www.spin-up.eu
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
What is Strategy? An Introduction to Strategic Positioning and FitTim R. Holcomb, Ph.D.
"What is Strategy?" provides an overview of strategy, introducing important concepts such as strategic positioning, strategic fit, and competitive advantage.
STRATEGY, STRATEGIC PLANNING, STRATEGIC DECISION, STRATEGIC CAPABILITY, OPERATIONS MANAGEMENT, ROLE OF OPERATIONS IN AN ORGANIZATION, SCOPE OF OPERATIONS MANAGEMENT, OPERATIONS STRATEGY, DIFFERENCES BETWEEN STRATEGIC, ADMINISTRATIVE AND OPERATIONAL DECISIONS, BUSINESS ADMINISTRATION, MANAGEMENT SCIENCE, EDUCATION AND LEARNING,
Strategy Implementation, Strategic Analysis, Strategic analysis process, Strategic Choice, Steps in strategic choice, Factors affecting Strategic Choice, objective factors, subjective factors, Tools and Techniques of Strategic Analysis, The Boston Consulting Group (BCG) Matrix, GE Planning Grid, GE 9 Cell, Strategic Decisions, Invest, Protect, Harvest, Market Attractiveness , Competitive Strength, Industry Structure Analysis – The Life-Cycle MODEL, Porters 5 Force Model, Competitive advantage, PESTLE and Porter’s Five Forces Analysis, The McKinsey 7 – S Framework, VRIO Analysis, VRIO of H&M, Value Chain, Benchmarking, Mergers and acquisitions (M&A)
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
What is Strategy? An Introduction to Strategic Positioning and FitTim R. Holcomb, Ph.D.
"What is Strategy?" provides an overview of strategy, introducing important concepts such as strategic positioning, strategic fit, and competitive advantage.
STRATEGY, STRATEGIC PLANNING, STRATEGIC DECISION, STRATEGIC CAPABILITY, OPERATIONS MANAGEMENT, ROLE OF OPERATIONS IN AN ORGANIZATION, SCOPE OF OPERATIONS MANAGEMENT, OPERATIONS STRATEGY, DIFFERENCES BETWEEN STRATEGIC, ADMINISTRATIVE AND OPERATIONAL DECISIONS, BUSINESS ADMINISTRATION, MANAGEMENT SCIENCE, EDUCATION AND LEARNING,
Strategy Implementation, Strategic Analysis, Strategic analysis process, Strategic Choice, Steps in strategic choice, Factors affecting Strategic Choice, objective factors, subjective factors, Tools and Techniques of Strategic Analysis, The Boston Consulting Group (BCG) Matrix, GE Planning Grid, GE 9 Cell, Strategic Decisions, Invest, Protect, Harvest, Market Attractiveness , Competitive Strength, Industry Structure Analysis – The Life-Cycle MODEL, Porters 5 Force Model, Competitive advantage, PESTLE and Porter’s Five Forces Analysis, The McKinsey 7 – S Framework, VRIO Analysis, VRIO of H&M, Value Chain, Benchmarking, Mergers and acquisitions (M&A)
this is a presentation i prepared for my submission in the subject management 2 . The chapter is strategic management . hope you guys find this useful !!!
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
2. TRAINING OBJECTIVES AND CONTENTS
| 2
The SPIN-UP training in
Strategy for Growth will help
University Spin-Off’s managers
to improve their abilities to
plan for the business growth.
Understanding
the
fundamentals of
strategic
management
Identify strategic
possibilities from
business environment
Manage the
firm’s growth
3. TRAINING OBJECTIVES AND CONTENTS
| 3
Understand the central strategy terminology and their
implications
Understand what strategy is and what it is not
Recognize the importance of strategic management
Understand different perspectives to firm’s competitiveness
Understanding the fundamentals of strategic management
4. TRAINING OBJECTIVES AND CONTENTS
| 4
Understand different perspectives to firm’s competitiveness
Be able to analyze and select between different strategic options
available for firm
Identify strategic possibilities from business environment
Know how generally manage firm’s growth process
Understand the principles of discovery driven growth
Manage the firm’s growth
5. TRAINING OBJECTIVES AND CONTENTS
| 5
This module is not intended to prepare trainees
to be experts in financial matters.
Instead, it appeals to the trainee common sense
and experience to deliver the basics of strategy
planning for growth
6. TRAINING OBJECTIVES AND CONTENTS
| 6
Defining Strategy
Different
perspectives to
being competitive
Growth and
Competitiveness
Learning Objectives Learning Contents
Understanding
the
fundamentals of
strategic
management
Identify strategic
possibilities from
business environment
Manage the
firm’s growth
7. Goals of this module
• Understand the fundamentals of strategic management
– Understand the central strategy terminology and their implications
– Understand what strategy is and what it is not
– Recognize the importance of strategic management
– Understand different perspectives to firm’s competitiveness
• Identify strategic possibilities from business environment
– Understand different perspectives to firm’s competitiveness
– Be able to analyze and select between different strategic options
• Manage the firm’s growth
– Know how generally manage firm’s growth process
– Understand the principles of discovery driven growth
1. STRATEGY FOR GROWTH
8. What is strategy after all?
• Possible definitions…
– ”Strategy is the direction and scope of an organisation over the long
term, which achieves advantage for the organisation through its
configuration of resources within a changing environment and to fulfil
stakeholder expectations.” (Johnson and Scholes, 2002)
– “..strategy is concerned with planning how an organization or an
individual will achieve its goals.” (Grant, 2006)
– “What business strategy is all about is, in a word, competitive
advantage…” (Ohmae, 1983)
1. STRATEGY FOR GROWTH
9. Dimensions of Strategy
1. STRATEGY FOR GROWTH
Organizational
purpose
Impetus for
strategy activities
(input)
Strategy content
Result of strategy
activities
(output)
Strategy process
Flow of strategy activities
(throughput)
Strategy Context
Conditions surrounding strategy
activities
11. The 5 Ps of Strategy (Mintzberg)
1. STRATEGY FOR GROWTH
5PS DESCRIPTION EXAMPLE
Plan Strategy as a plan defines what the firm will do next. As
such, when strategy is seen a plan, the definition follows
a relatively traditional approach to strategy making,
which highlights the importance of deliberate strategy
design and implementation.
This is probably the most common way to perceive
strategy and is the common approach taken e.g. at
large firm’s websites. E.g. IBM strategy in the future
is to strengthen its service offering to widen its
product portfolio.
Pattern Strategy as a pattern defines what the firm has done
before – or the pattern the firm has taken. When
comparing to plan, the accuracy of pattern is better
than plan as it is the realized strategy.
Some people might find it easiest to describe firm’s
strategy as a story of firm’s past behaviour. E.g. IBM
strategy has been to move from pure manufacturing
to limited manufacturing and services by doing a
significant realignment of its organization.
Position Strategy as position answers to question what the
company does. As such it describes the products or
markets the firm operates on – defines the firm’s
position.
Firm’s products and markets are relatively easy to
identify, thus position is easy way to perceive firm’s
strategy. E.g. IBM offers B2B IT hardware and
services.
Perspective Strategy as a perspective answers to questions how and
why the company does what it does. As such it does not
describe what the company does, but how it operates
on the markets it operates on.
Many firms have ‘the company way of doing
something’ which reflects the firm’s strategic
perspective. This perspective can be tied to e.g.
speed of services or quality. E.g. IBM offers reliable
high quality services and products for its customers.
Ploy Strategy as a ploy implies for a deliberate
misinformation that the company can give to confuse or
distract its competitors.
A practical move that is not so clearly visible for
outsiders.
12. Distinctions in terms of time horizon
1. STRATEGY FOR GROWTH
• Wide high level views of the goals
of the companyStrategy
• Short term plans how to
react to rapid changes in
firm's business
environment
Tactical
• The aim is to
achieve targets
efficiently on daily
basis
Operational
13. Strategy Terminology
1. STRATEGY FOR GROWTH
TERM DEFINITION EXAMPLE
Mission The central goal of the organization, which is also in line with the
expectation of the owners
Be healthy and fit
Vision,
Strategic intent
The commonly shared desired future state. To run the London Marathon
Goal More common target for the company Lose weight and gain muscles
Objective Preferably a numeric clear target that can be used to practical
management.
Lose X kg by January 31st
Unique resource, Core
competence
A resource or a skill that provides the company competitiveness Gym nearby
Support of the family
Strategy Long term direction Practice regularly
Join sporting club
Control Operations management to ensure:
- that they go to right direction
- corrections if needed
Weight and sporting activity
measurement
14. Questions
• Do you have a deliberate strategy in your company?
• How much of it gets actually executed?
• Do you use any of this strategy termionology in your
company?
1. STRATEGY FOR GROWTH
15. • Objectives usually flow top-down and the measures bottom-up
• Three main challenges for measures
– Selecting the right measures
– Defining objectives
– Implementing the measurement
1. STRATEGY FOR GROWTH
Delivery Cycle time
Market
Customer
satisfaction
Quality
Financial
Productivity
Waste
Flexibility
Strategic visio
External efficiency Internal efficiency
Objectives Measures
The Performance Pyamid = objectives and measures
16. Questions
• Which measures do you use to evaluate strategy
execution in your company?
• Which challenges do you face in measuring
performance?
1. STRATEGY FOR GROWTH
18. Three main approaches towards competitive advantage
• Market approach (Market Based View, MBV)
• Resource approach (Resource Based View, RBV)
– Static (traditional, RBV)
– Dynamic (”modern”, DRBV)
• Network-based approach (Relational view)
1. STRATEGY FOR GROWTH
19. MBV: Market approach
• Based on the argument that the company's output can
be explained best by the industry and the competition
• Assumes that firm’s internal capabilities are similar and
market position defines the performance differences
between firms
• The company's strategy sets out two main aspects:
– Market choice
– Actions to “manipulate” the market favorably
1. STRATEGY FOR GROWTH
20. MBV: Understanding the internal market forces (5-Forces framework)
1. STRATEGY FOR GROWTH
Suppliers
Look at customers
Competition
Number of competitors
Diversity of competitors
Diversity of products
Amount of excess capacity and
cost of market exit
Cost structure of products
Substitutes
Customer lock-in to
current solution
The relative performance
and price of substitute
products
New Entrants
Mass-production
efficiencies
Financial intensity
Product differentiation
Access to distribution
channels
Legal and governance
The likely reaction from
current competitors
Customers
Product price vs. total costs
Product differentiation
Competition among buyers
The relative size of customers
The concentration of customers
Lock-in effect for customers
Buyers quality of information
21. MBV: The Value Chain model
1. STRATEGY FOR GROWTH
Firm infrastructure
Human resource management
Technology development
Procurement
Inbound
logistics
Operations Outbound
logistics
Marketing &
sales
Service
M
arginM
argin
Supporting
activities
Primary activities
22. MBV: Market based approach strategies
• Gives general strategy options
• Investment decision-making is
broadly based on the company's
markets and market manipulation
1. STRATEGY FOR GROWTH
Suppliers
Look at customers
Competition
Number of competitors
Diversity of competitors
Diversity of products
Amount of excess capacity and
cost of market exit
Cost structure of products
Substitutes
Customer lock-in to
current solution
The relative performance
and price of substitute
products
New Entrants
Mass-production
efficiencies
Financial intensity
Product differentiation
Access to distribution
channels
Legal and governance
The likely reaction from
current competitors
Customers
Product price vs. total costs
Product differentiation
Competition among buyers
The relative size of customers
The concentration of customers
Lock-in effect for customers
Buyers quality of information
Firm infrastructure
Human resource management
Technology development
Procurement
Inbound
logistics
Operations Outbound
logistics
Marketing &
sales
Service
M
arginM
argin
Supporting
activities
Primary activities
Cost
leadership
Cost
focus
Differentation
Differentation
focus
Cost Differentation
Source of competitive
advantage
NarrowBroad
Scope
23. RBV: Basic assumptions
• Companies are internally heterogeneous: different
resources, processes, know-how, etc.
• These internal factors determine the competitiveness of
the company
• Resources must be used "correctly" and protected
against unauthorized copying
1. STRATEGY FOR GROWTH
24. RBV: VRIN resources
1. STRATEGY FOR GROWTH
Value Rareness
Inimitability Non-substitutability
Sustained competitive advantage
25. RBV: Expansion of the core capabilities/competencies of the firm
1. STRATEGY FOR GROWTH
1 32 4 65 7 98 10 1211
Business
1
Business
2
Business
3
Business
4
Core product 2
Core product 2
Competence
1
Competence
2
Competence
3
Competence
4
26. RBV: Linking resources to markets
• The resource does
not work in itself…
products will
generate revenue
• The links should be
explicitly
recognized, so that
resources can be
derived correctly
1. STRATEGY FOR GROWTH
R1
Firm’s
resources
Firm’s
products
P1 PnP2
C1 C2
Firm’s
capabilities
Customers’
requirements
CuR1
CuR2 CuRn
R2
R3
R4
Rn
C3 Cn
27. RBV: construction of strategy
• Identification of critical resources (VRIN criteria)
• Optimization of the use of critical resources
• Protection of critical resources
1. STRATEGY FOR GROWTH
28. DRBV: starting point
• Resource protection in the long run is almost impossible
to ensure… current industry trends are to shorten
protection periods even further
• Is protecting a key factor, or the ability to produce new
resources?
• DRBV captures the idea of corporate internal dynamics…
RBV is built in because protecting resources remains
important
1. STRATEGY FOR GROWTH
29. DRBV: The basic of idea can be summarized in a bathtub
1. STRATEGY FOR GROWTH
Tap
(Accumulation of resources)
Bathtub
(Resource stock)
Drain
(Resource erosion)
30. DRBV and the extended enterprise
1. STRATEGY FOR GROWTH
Resource accumulation
Asset erosion
Outdated competences
Capability accumulation
Changing customer requirements
Creating
New markets Old customer
requirements
New product development
Obsolete products
R1
Firm’s
resources
Firm’s
products
P1 PnP2
C1 C2
Firm’s
capabilities
Customers’
requirements
CuR1
CuR2 CuRn
R2
R3
R4
Rn
C3 Cn
31. DRBV: Stock-flow business phenomena
1. STRATEGY FOR GROWTH
PHENOMENA DESCRIPTION
Changing resource stock is
slow
The stocks are hard or impossible to change rapidly due to inertia. Flows can usually
be changed rapidly. E.g. it is hard to change the water from a full bathtub in a second,
but tap can be opened or closed easily within second. The water needs to be changed
by letting current water flow out and then replace water from the tap.
Time compression
diseconomies
Some processes take and require time to implement. By using extra resources you
might be able to increase the implementation speed, but the cost can grow
exponentially or even have no effect on the implementation speed. E.g. it is hard to
speed up the draining of a full bathtub without breaking it.
Asset mass efficiencies Sometimes the current level of a stock can be connected to the ease of resource
accumulation. In such cases ‘success breeds success’. The bathtub example is too
simple to cover these phenomena, but it is covered in the knowledge management
literature as ‘absorptive capacity’, which states that an entities ability to learn new is
dependent on its current level of knowledge. If the level is too low, learning will not
occur.
Accumulation process is
stochastic
In reality the inflow of resources is not stable, but can be highly stochastic. In such
situations the connection between flow output, firm’s stock, and performance can be
hard to see implying for causal ambiguity. Causal ambiguity is a more common.
32. DRBV: construction of strategy
• Identification of key processes
– Process evaluation as a source of competitiveness
– For example, R&D does not play a key role in all industries
• Change Process development activities
– Maximize efficiency and effectiveness
– Total use of resources in the most efficient way
– Effectiveness does not mean necessarily cheap, but refers to the
balance between proceeds and costs
• Balancing between the different processes
– If a company focuses too much on a single process it may impair the
operation of other processes
1. STRATEGY FOR GROWTH
33. Relational view: basics
• Companies today operate as part of business networks
• Do I need to own a resource… or is it sufficient to use
the resource?
• External resources accelerate the company's adaptability
• Do I have the skills to use external resources?
• Transaction costs are an important factor… Should I buy
or make myself?
1. STRATEGY FOR GROWTH
35. Relational view: Establishing a strategy
• Identify the resource needs of the company (the RBV way)
• Further questions from a relational point of view…
– Will you do it yourself or buy externally?
– Who can buy?
– Who is the best supplier?
– What is the right price?
• Strategy into practice
– Contract negotiations
– Monitoring of activities / repair / quality control
– Re-evaluation of decisions
• Related risks
– External is always more uncertain than internal
– Perceived quality
– Dependency of suppliers
1. STRATEGY FOR GROWTH
36. Summary
• Four different/complementary views of competitiveness
• They give a different explanation for competitiveness
and thus different starting points for strategy formation
• In practice, they allow expanding the company's
direction and number of strategic opportunities
• You should think about your own challenges from these
different angles
1. STRATEGY FOR GROWTH
39. Conventional vs Discovery Driven Growth (DDG)... Sensemaking
Training TU Delft
1. STRATEGY FOR GROWTH
CONVENTIONAL DISCOVERY-DRIVEN
Success Means making tour numbers and
hitting projections
Means learning as much as you can
for the least possible cost
Management focus Day-to-day and operational Top of agenda; top of mind
Timing Dictated by the budget or planning
cycle
Dictated by key learning checkpoints
Revision Indicates a mistake Indicates learning
Project redirection Seen as negative; seldom done Seen as necessary; can be frequent
Funding Often allocated all at once or not
linked to milestone accomplishment
Limited to the amount needed to
achieve next milestone; no guarantee
of continuation
Assumptions Sometimes listed; seldom checked;
checking seldom integrated to whole
plan
Often listed; checked frequently as
part of planning process; forced
integration to whole plan
Downside Seldom explicitly managed Acknowledged and managed before
you even start
Termination decision Delayed, avoided, and reluctantly
pursued
Occurs as part of the planning
process; disciplined dis-engagement
40. Components of a successful growth strategy
• Strategy must be clear: clear growth targets
• A company has to address lucrative markets, where it
has a strong know-how: combine both internal and
external views (RBV and MBV)
• Top management must be committed to growth
1. STRATEGY FOR GROWTH
41. The framework for growth
1. STRATEGY FOR GROWTH
Create the corporate
growth framework
Establish the growth
strategy
Drive an opportunity
portfolio
Scope specific initiatives
Implement discovery-
driven growth
Lead sustained growth
Create the business model
architecture
Benchmarking and key
metrics analysis
Develop reverse financials
Develop deliverables
specification
Develop assumption
checklist
Identify key checkpoints
Develop checkpoint/
assumption links
Lead checkpoint reviews
Assess continuing viability
of project
Evaluate redirection/
disengagement
Create a disengagement
plan in needed
Constructively manage
disengagement
Corporate leadership Planning initiatives Leading initiatives
42. Corporate leadership is to a great extent Risk Management
• Portfolio approach can be used to manage risks
1. STRATEGY FOR GROWTH
Low Medium High
Low
Medium
High
Core-
enhancement
launches
Platform launches
Positioning options
Stepping-
stones
Scouting-
options
Market and organizational
uncertainty
Technicalandexecution
uncertainty
43. Planning initiatives... general aspects:
• Define clear goals
• Specify and critically evaluate assumptions
• Identify key checkpoints (to re-evaluate goals and
assumptions)
1. STRATEGY FOR GROWTH
44. Planning initiatives
• Business Model Design: the story of how the company
creates value for the customer and how / why it is able
to capture value for itself
• Benchmark competitors: products, business plans, etc.
• Reverse financials: Look into future targets and reverse
them into the necessary prices and costs to sustain them
(think critically about your initial assumptions)
1. STRATEGY FOR GROWTH
45. Leading initiatives…. do not fall in love with your projects
• Management must be prepared to suspend projects
• Plan a change of direction… have a plan B
• If the project is suspended, it is important to prepare for
stakeholder reactions
• Implement the project's end in a constructive way:
minimize damage and stimulate learning
1. STRATEGY FOR GROWTH
46. The critical factors for sustainable DDG
1. STRATEGY FOR GROWTH
Agree on appropriate
fundamental approach to
innovation
There are several different approaches to innovation:
- ‘Marketplace’ for ideas, where all levels of organization try to make innovations and the
management is more in supporting role
- ‘Visionary leader’, where the firm relies on superb individual visionary skill
- ‘Systematic innovation’, where few employees are encouraged to undertake discrete venturing
tasks and management focuses on resource allocation.
- ‘Collaborative innovation’, where the firm tries to leverage from its connections to external player,
partners, and ecosystem members to innovate.
Decide on corporate growth
objectives
It is important to establish clear growth objectives among the senior management team. The objectives
should be measurable and set differently between different growth categories (connection to Figure 15.)
Specify the growth framework Defining where the firm seeks and where the firm does not seek growth is important so that the strategic
logic is clear for the whole firm. The clearer the logic the better the execution will likely be.
Make appropriate resource
allocations
Senior management is ultimately responsible for resource allocation between different projects and
balancing resources to different kinds of development projects makes sustained growth possible.
Appoint, authorize, and set
expectations for those executing
Senior management will have to select and authorize personnel who are responsible for each
development project. One significant part of this is the definition of objectives and responsibilities.
Navigate the program Although CEO is not necessary always who executes each development project, the CEO is responsible
for creating the right kind of mind set to the company that supports growth.
47. Exercise 1
• Analyze the strategy of a publicly traded firm (SME)
• Consider the following questions:
– What is the Mission and/or Vision of the company?
– What goals has the company set for itself?
– How will the company try to achieve its goals?
– What are the main strategic approaches that you observe?
• Check companies at alternext:
https://europeanequities.nyx.com/en/markets/nyse-
alternext/product-directory
EXERCISES
48. Exercise 2
• In this group discussion we will discuss the growth
strategies of your companies.
• Please use 5 minutes to think independently of strategic
growth challenges that your firm has faced/ is facing/ or
is likely to face in the future.
• After independent thinking, we will list the challenges
on the whiteboard and select a topic for discussion.
EXERCISES