The document discusses strategy formulation and related concepts. It covers types of strategies like corporate and business unit strategies. It also discusses Porter's five forces model and how it can be applied to analyze threats from new entrants, substitutes, bargaining power of suppliers and buyers, and rivalry among existing competitors. The document provides examples analyzing the soft drink industry and Coca Cola's strategies. It also discusses formulating smart goals and the role of business intelligence in strategic decision making.
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
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
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
this presentation is on Strategic management.
It covers following topics in detail -
Introduction of strategic management
Definition of strategic management
Mintzberg’s Views of Strategy
Features of strategic management
Role of strategic management
Process of strategic management
Need of Strategic management
Benefits of Strategic management
Limitations of strategic management
Mission & Vision
STRATEGIC ANALYSIS, ISSUES, APPROACH AND TOOLSTANKO AHMED fwc
Strategy analysis is usually obscured at the footnotes of plans or policies, often termed as recommendations and implementation strategies. This common practice tends to ignore and undermine the unique and crucial role of strategy as driver for policy and decision implementation. This paper explicates the critical place and importance of strategic analysis as it discerns issues and approaches with specialised tools of analytic mode. The paper selects, presents and discusses four major tools and techniques of strategic exploration including VMOST, SWOT, PEST, and SOAR analyses that are more relevant to its discourse. These tools are constructed in a matrix of analytic modes for ease of understanding and application by the NIPSS-PSLC 32 Participants who are organisational leaders of their respective agencies. An exercise is also presented for the Participant to try out the knowledge and skills in strategic analysis acquired from the paper.
Business Strategies: Levels and Range of business strategies, Culture: Functions and analysis of culture, Impact of corporate Culture on Business Strategy and 12 Reasons Why Culture Eats Strategy for Lunch
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
this presentation is on Strategic management.
It covers following topics in detail -
Introduction of strategic management
Definition of strategic management
Mintzberg’s Views of Strategy
Features of strategic management
Role of strategic management
Process of strategic management
Need of Strategic management
Benefits of Strategic management
Limitations of strategic management
Mission & Vision
STRATEGIC ANALYSIS, ISSUES, APPROACH AND TOOLSTANKO AHMED fwc
Strategy analysis is usually obscured at the footnotes of plans or policies, often termed as recommendations and implementation strategies. This common practice tends to ignore and undermine the unique and crucial role of strategy as driver for policy and decision implementation. This paper explicates the critical place and importance of strategic analysis as it discerns issues and approaches with specialised tools of analytic mode. The paper selects, presents and discusses four major tools and techniques of strategic exploration including VMOST, SWOT, PEST, and SOAR analyses that are more relevant to its discourse. These tools are constructed in a matrix of analytic modes for ease of understanding and application by the NIPSS-PSLC 32 Participants who are organisational leaders of their respective agencies. An exercise is also presented for the Participant to try out the knowledge and skills in strategic analysis acquired from the paper.
Business Strategies: Levels and Range of business strategies, Culture: Functions and analysis of culture, Impact of corporate Culture on Business Strategy and 12 Reasons Why Culture Eats Strategy for Lunch
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1. A(n) ________ market share of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company is gaining on its leading competitor.
• potential
• relative
• served
• overall
2. The typical risks of a cost leadership strategy include___________.
• loss of customer loyalty
• excessive differentiation to the point where the customer base is too small
• the inability to balance high differentiation and low price
• production and distribution processes becoming obsolete
Strategic Planning
Unrestricted
“the managerial process of creating and
maintaining a fit between the organization’s
objectives and resources and the evolving
market opportunities”
What is strategic planning?
• Goal:
• Long-term growth and profitability
• Addresses two questions:
• What is the organization’s main activity
(currently)?
• How will it reach its goals?
Strategic planning
• A subgroup of a single business or a collection of
related businesses within the larger organization
Strategic business units
• Each SBU has:
• A unique target market
• Control over its resources
• Its own unique competitors
• A unique strategic plan
• May have its own accounting, R&D,
manufacturing, marketing
Strategic business units
Strategic alternatives - tools
Ansoff’s strategic opportunity matrix
The innovation matrix
• Yellow:
• Core Innovation
• Uses existing assets
• Ex: Tide Pods
• Orange:
• Adjacent Innovation
• Uses existing abilities in new ways
• Ex: Crest Whitestrips
• Red:
• Transformational Innovation
• New markets, new products, new businesses
• Ex: Uber/Lyft
The innovation matrix
Core Innovation
Next year’s car
Adjacent Innovation
Electric car
Transformational
Innovation
App-based taxi service
The innovation matrix
• Portfolios: SBUs will have a range of performance
in terms of growth and profitability
• This matrix organizes each SBU by their present or
future growth and market share
• Relative market share:
• The ratio between the company’s market share and the
share of the largest competitor
Boston Consulting Group’s Portfolio Matrix
Boston Consulting Group’s Portfolio Matrix
Boston Consulting Group’s Portfolio Matrix
Build Build or Harvest
Hold or Harvest Divest
Boston Consulting Group’s Portfolio Matrix
The General Electric Model
• Ansoff’s Matrix:
• Helps you choose between current options (the
present market and what you can currently offer)
and new options (a new market and/or new
products)
• Innovation Matrix:
• Illustrates how opportunities change as you move
away from core capabilities
• Boston Consulting Matrix:
• Helps you analyze the performance of a portfolio of
SBUs
• General Electric:
• Adds more nuance to the Boston Consulting matrix
When to use what?
• Based on the company or SBU’s strategy,
managers can now create a marketing plan
• Process of anticipating future events and determining
strategies to achieve organizational objectives in the
future
Planning
• Designing activities relating to marketing objectives and
the changing marketing environment
Marketing planning
• Written document that acts as a guidebook of
marketing activities for the marketing manager
Marketing plan
The Marketing Plan
• To provide clearly stated activities that help
employees and managers understand and work
toward common goals
• To allow the examination of the marketing
environment in conjunction with the inner
workings of the businesses
• To help marketing ma.
Data is the lifeblood of just about every organization and functional area today. As businesses struggle to come to grips with the data flood, it is even more critical to focus on data as an asset that directly supports business imperatives as other organizational assets do. Organizations across most industries attempt to address data opportunities (e.g. Big Data) and data challenges (e.g. data quality) to enhance business unit performance. Unfortunately however, the results of these efforts frequently fall far below expectations due to haphazard approaches. Overall, poor organizational data management capabilities are the root cause of many of these failures. This webinar covers three lessons (illustrated by examples), which will help you to establish realistic OM plans and expectations, and help demonstrate the value of such actions to both internal and external decision makers.
Takeaways:
- Organizational thinking must change: Value-added data management practices must be considered and included as a vital part of your business strategy.
- Walk before you run with data focused initiatives: Understand and implement necessary data management prerequisites as a foundation, then build upon that foundation.
- There are no silver bullets: Tools alone are not the answer. Specifying business requirements, business practices and data governance are almost always more important.
Data is the lifeblood of just about every organization and functional area today. As businesses struggle to come to grips with the data flood, it is even more critical to focus on data as an asset that directly supports business imperatives as other organizational assets do. Organizations across most industries attempt to address data opportunities (e.g. Big Data) and data challenges (e.g. data quality) to enhance business unit performance. Unfortunately however, the results of these efforts frequently fall far below expectations due to haphazard approaches. Overall, poor organizational data management capabilities are the root cause of many of these failures. This webinar covers three lessons (illustrated by examples), which will help you to establish realistic OM plans and expectations, and help demonstrate the value of such actions to both internal and external decision makers.
Check out more of our webinars here: http://www.datablueprint.com/resource-center/webinar-schedule/
The ROI Dilemma: Aligning Marketing Priorities with Measurable PerformanceAllocadia Software
Despite steady advances in marketing execution and measurement technologies, B2B marketing leaders still struggle to measure marketing’s impact on the business. In this webinar, SiriusDecisions Research Director Ross Graber & Allocadia CMO James Thomas look at the current state of B2B marketing measurement and share guidance on how successful organizations align their business objectives with measurable marketing impact.
Join us to hear SiriusDecisions' research-based recommendations for how to:
- Establish a meaningful view of marketing’s contribution to revenue
- Develop measurement priorities, and align those priorities with marketing investments
- Structure a system of measurement that effectively demonstrates results.
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1. A(n) ________ market share of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company is gaining on its leading competitor.
• potential
• relative
• served
• overall
2. The typical risks of a cost leadership strategy include___________.
• loss of customer loyalty
• excessive differentiation to the point where the customer base is too small
Voice of the customer - delivering customer centricityTransformUK
Andy Wilkins at Transform was asked to deliver a keynote presentation at 2014 International Customer Experience Summit run by KP Morgan, to discuss the urgent need for a more ambitious and transformational approach to CX if maturing industries are to escape from the clutches of commoditisation and high customer churn.
European executives from the retail banking and telecoms sectors came together to share their experiences, reflect on the CX journey so far and discuss future challenges and opportunities.
Tactical to Transformational: The Evolution of Marketing OperationsAllocadia Software
How the Marketing Operations function can lead transformational change across the organization.
While some Marketing Operations teams are operating at a tactical level, often disconnected from marketing leadership, best-in-class organizations are empowering their marketing operations teams to drive transformational change in the way marketing aligns with the product and sales.
With the increasingly essential role of planning, measuring and reporting marketing’s contribution to the corporate bottom line, marketing operations is uniquely positioned to enable better alignment, efficiency and transformation across marketing, sales and product organizations.
What you'll learn:
1. The evolving role of marketing operations in strategy, infrastructure, enablement and accountability
2. How to align marketing strategy and investments to business goals and revenue performance
3. An overview of key financial planning perspectives that provide the basis for aligned measurement and performance
GlaxoSmithKline (GSK) is one of the world’s largest research based pharmaceutical corporation that discover, develops, manufactures and markets branded health care products. GSK mission is to improve the quality of human life by enabling people to do more, feel better and live longer
This introduces the materials, technologies and recycling of packaging system for milk and butter as it is an important link in the entire chain of production, storage, transportation and distribution.
Ricoh Belgium –Supplier of office copier machines established in 1985.
Customers –Hardware (18,300) and Software (1,116)
2 legal entities –
Ricoh Belgium NV (Net Sales -€150 million in 2011)
Ricoh Luxembourg Sàrl(Net Sales -€13 million in 2011
One of the popular bone graft substitute, especially in spine surgery is calcium phosphate cements (CPCs). This article presents a comparative analysis of the characteristics of different bone grafts substitute and talks about the widespread products used in spine surgery concerning experience of their use.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
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2. • Strategy & Types
• Strategy Formulation
• Porters five force model
• Functions and Attributes of Strategy
• How to formulate a strategy
• Business Intelligence
• Smart Goals
03.12.2014 Strategy Formulation 2
3. + =
Strategy is a plan of action to achieve the organizational goal
efficiently and effectively .
03.12.2014 Strategy Formulation 3
4. Corporate Strategy Business Unit Strategy
“What business are we in?”
• Acquisition of new business
• Addition of business unit, plants
or product lines
• Joint venture with another
company in new areas
“How do we compete?”
• New product development
• Advertisement
• Equipment and facilities
• Research and development
03.12.2014 Strategy Formulation 4
5. • Development of firm’s goal and a
specific strategic plan
• Analysing external environment
and internal problems
• Integrating the results into goals
and strategy
03.12.2014 Strategy Formulation 5
6. It refers to how a company competes in a
particular business which requires
• Selection of an attractive environment or
market
• Leveraging all available resources to create
maximum competitive advantage
03.12.2014 Strategy Formulation 6
8. Threat of new Entrants Example: Coca Cola
•Product differentiation
•Capital requirements
•Switching costs
•Access to distribution channels
•Government Policy
•Low threat in soft drink industry
•High Capital requirement
•High fixed costs
•Heavy advertising
•Strong brand name
•Loyal customers
03.12.2014 Strategy Formulation 8
9. Bargaining power of buyers Example: Coca Cola
• Moderate threat in soft drink
industry
• Buyers: large grocers,
convenience stores, super
markets, restaurants
• Buy large volumes, bargain a
lower price
• Buying volume
• Buyers Profit
• Differentiation
• Buyers information
• Number of customers
03.12.2014 Strategy Formulation 9
10. Threat of substitute product Example: Coca Cola
•Strong threat in soft drink industry
•Many substitutes appear (sports
drink, energy drink, coffee etc.)
•Trend to healthier drink
•New innovation product
• Substitute performance
• Switching cost
• Buyer willingness
03.12.2014 Strategy Formulation 10
11. Bargaining power of Suppliers Example: Coca Cola
• Low threat in soft drink industry
• Better control distribution
• Quicker to market with products
• Integrated Coca Cola Enterprises
in earlier 2010 for bottling
• Number of suppliers
• Switching cost
• Unique service/product
• Cost related to purchase
• Industry dominated by few
03.12.2014 Strategy Formulation 11
12. Rivalry among existing firms Example: Coca Cola
• Strong threat in soft drink industry
• Competitive pressure from rival
sellers, example : Pepsi
• High sales in Global market
• Owns the four among top five
drinks in the industry : Coca Cola,
Fanta, Sprite, Diet coke
• Number of competitors
• Brand identity
• Market share
• Switching cost
• Exit barriers
03.12.2014 Strategy Formulation 12
13. Management should define a strategy for outstanding
performance in long
03.12.2014 Strategy Formulation 13
run.
15. Not only the tangible Resources But the intangible Assets
Financial statements and
key performance indicators like
revenue, profit etc because they
reflect only past performance
Employees knowledge and
experience,
Customer satisfaction, brand value
because they lead to new product
and the associated benefits
03.12.2014 Strategy Formulation 15
16. • Consumers wants value for money
• Value is what buyers are ready to
pay for
• When a product or brand offer a
bundle of benefits from which
customer derive a greater value we
say that brand has created value for
the customer
Source:
http://news.cnet.com/8301-1001_3-20003629-92.html
03.12.2014 Strategy Formulation 16
18. • Inimitability: Own resources which are hard to copy. Eg. Airbus A380
• Durability: Degree by which a resource depreciates in value.
• Appropriability: The unique resources are shared between shareholders,
employees, distributors and other groups.
• Substitutablity : Can the unique resource be replaced by a different
resource? Eg. Typewriters by Computers
• Competitive superiority : The resource should be superior to competitors.
03.12.2014 Strategy Formulation 18
19. 1. Strategy sets Direction
Advantage: A goal which the organization can follow
Disadvantage: It can limit the perspective and the
preparedness for threats surfacing
and opportunities passing by
03.12.2014 Strategy Formulation 19
20. 2. Strategy focuses efforts
Advantage: Promotes coordination and avoid chaos
Disadvantage: Nobody will volunteer to articulate
their concerns because of “Groupthink”
03.12.2014 Strategy Formulation 20
21. 3. Strategy defines the organization
Advantage: Provides identity to the organization
and allows to distinguish it from others
Disadvantage: It may take away the richness and
versatility, sometimes to the point of
stereotyping
03.12.2014 Strategy Formulation 21
22. 4. Strategy provides consistency
Advantage: It is needed to reduce ambiguity and
provide order. It facilitates action
Disadvantage: Innovation and creativity thrives on
inconsistency. Because strategy is not
an object of reality, misrepresentations
and misunderstanding can have
distorting effects.
03.12.2014 Strategy Formulation 22
23. • Always keep monitoring the environment to
remain flexible when needed
• Appreciate the articulation of disruptive and
innovative ideas
• Communicate the strategy and maintain constant
dialog on how to achieve the objectives
03.12.2014 Strategy Formulation 23
24. • Lack of knowledge
• Uncertainty whether the strategy is perfectly
suited to reach defined goals
• Lack of information
03.12.2014 Strategy Formulation 24
25. • A Process of predicting future events
• Underlying basis for all business decisions
Examples:
• Rental car agencies predict demand for vehicles
• Consulting organizations predict demand for
specific set of skills to recruit and develop right talent
03.12.2014 Strategy Formulation 25
26. •Extracting useful information or patterns from
a large database
• Leveraging statistical models to gain insights
for predictive analysis
Example: Market analysis – target market,
segmentation , CRM
03.12.2014 Strategy Formulation 26
28. Case : Database Marketing Program
• In 1998, Gary Loveman was appointed as
COO of Harrah’s
• He had limited experience in Casino operations
and therefore wanted to predict what kind of
promotion will be most effective to increase
the revenue
03.12.2014 Strategy Formulation 28
29. Test Conducted on two promotions Test Findings
• A package including a free room worth
$100 including two dinners and $30 free
gambling
• $60 free gambling
• $ 60 offer led to higher revenue
• Most profitable customers were
the locals, and had no use of rooms
• Less expensive promotions like direct
mail campaigns were used to attract
more cilents
03.12.2014 Strategy Formulation 29
30. Use statistics to predict behaviour and optimize business
• Harrah’s acquired Ceasars entertainment
• Both used Loyalty programs
• Harrah’s database = 25 million card members
•Ceasars database = 15 million card members
•Harrah’s invested $130 million to combine these
sources in a single database of 40 million customers
• This helped in developing customers profiles and
understand there preferences
03.12.2014 Strategy Formulation 30
31. Conclusion
• Harrah’s spent $863 million on casino promotion
• Leveraging customer database lead to effective marketing
as well as increased profit
The further we get ahead the more test we run..the more we learn..
the more we understand our customers.
03.12.2014 Strategy Formulation 31
33. • Define target: Where the organization wants to be
• Define vision: Detailed strategy including means to
reach the goal
• Motivation: Provide confidence that these goals
can be achieved
Anyone can craft a strategy, but it takes real managerial skills to implement them.
03.12.2014 Strategy Formulation 33
35. Spanish Involvement
• Columbus wanted to find a quicker route to India and was
convinced that if he sailed west he would reach faster than
travelling around Africa
• He asked Queen Isabella of Spain to fund his trip
• In 1492, several years after his appeal, he received money for the trip
• There was a deal that Columbus would keep only 10% of the wealth he brought back
• Interestingly he failed to reach India.
03.12.2014 Strategy Formulation 35
36. Learning's from Columbus
• Strategy motivates individuals to risk there life and for investors to fund
projects often based on wrong assumptions
Despite failing to reach he gained admiral’s rank, governship and shares of
profit.
• Strategy formulation is not once a year but a permanent activity which
evolves based on new insights
Instead of trying to find India on their next trip, he repeated his trips to
America three more times.
03.12.2014 Strategy Formulation 36
The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're considering moving into. The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value...) of an industry structure.
It captures the key elements of industry competition.
the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well known names.
http://news.cnet.com/8301-1001_3-20003629-92.html
the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well known names.