9. DEVELOPMENT STRATEGIES What basis? Which Direction? How? ALTERNATIVE DIRECTIONS Withdrawal Consolidation Market penetration Product development Market Development Diversification Related Unrelated ALTERNATIVE METHODS Internal Development Acquisition Joint Development / Alliances GENERIC STRATEGIES Price based Differentiation Focus
10. Elements of Strategic Management STRATEGIC CHOICE STRATEGIC IMPLEMENTATION STRATEGIC ANALYSIS
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15. Michael Porter’s Five Competitive Forces Competitors in the industry Competition among existing companies Bargaining power Customers Substitutes Suppliers Threat from substitutes Potential New Entrants Bargaining power Threat from substitutes
16. GROWTH STRATEGY NEW EXISTING PRODUCTS EXISTING NEW M A R K E T S Product Development Market Development Market Penetration Diversification excluded strategy
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18. COW DOG STAR M A R K E T G R O W T H R A T E 10% 0 10X 1.0X 0.1X 20% RELATIVE MARKET SHARE
19. Re Write The Rules! The paradigm Development of Strategy Implementation Company Performance Step 1 Tighter Controls Step 2 Reconstruct or Develop New Strategy Step 3 Abandon Paradigm and Adopt New One
28. The Organisation People Hardware Software Manager’s Task: to deliver the best possible performance from the available resources
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30. The EFQM Excellence Model Leadership People Policy and Strategy Partnerships and Resources Processes People Results Customer Results Society Results Key Performance Results Enablers Results
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32. The DMP Achieving Results Personal Effectiveness Managing People Managing Communications Continuous Improvement Activity: In groups, pick out key factors from each of the 3 modules which ‘enabled’ the achievement of results Managing Change
36. Aims and Objectives Activity: In groups, you are going to plan redecorating a room in your house. This includes some electrical rewiring and a new carpet. For now, we need your aim, objectives (specifications), and milestones.
46. The Fishbone Diagram 20% of service calls are more than one hour late P eople absenteeism overloaded staff untrained staff P lant business location E nvironment traffic roadwork weather E quipment unreliable equipment poor phones M ethods poor scheduling over-ambitious rotas region too big poor admin and filing unavailable spares M aterials
47. The Ask Why 5 Times Method Change policy Staff judged on activity not results Too busy – why? Include as agenda item Poor communications – why? Fix obvious. Locate less obvious Poor working conditions – why? Low moral – why? Record reasons High abenteeism – why? Consequent Improvement Level of Problem
48. 3. Generating Potential Solutions: the Creative Process Green Light Thinking Red Light Thinking Einstein: ‘Imagination is more important than knowledge’
49. 3. Generating Potential Solutions: the Creative Process
Mission to provide a high quality patient care that is known to be excellent Initiatives To improve responsible dog ownership To reduce the number of dog fouling complaints
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