applied strategy
DESCRIPTION
This was inspired by lecture of Prof Perry Fagan of Harvard business school and a consultant of many busineeses in the Philippines. This gives a clearer and practical understanding of strategy. It is focussed on the the product and customers. It is about the 6 cs of business. (sweet spot, context, customer, company and competitionTRANSCRIPT
What is strategy?
What is your company strategy?
Summarize in 30 words or less?
Is the company strategy? Or departmental strategy?
Or is the company vision or mission
What is typical answer:
To be the preferred supplier;
To be the company of choice..
To be the leading company…
To be well known…
To be the best….
How do you answer the question, “ How do you appear in the top l0 list?Most answer:
Benchmark the attributes of the best in the field;
Ape the best?
Is this the right choice?
Aping the rest, the best is not the best choiceWhy?1.You get crowded by the best; the more you become ignoreable;2.You do not have the weight of the resources of the leaders;3.It takes a time to catch up; by the time you catch, the leaders have done new thing4.Surely the leaders having noted you will fight back, retaliate
Answers:
Game of the generals; Vision Mission Balanced Scorecard VMOKRAPI SPATRES Innovation Medium and long range plan?
Answer: To be unique and differentiated. This is the only choice in a highly commoditized business world.
What are the USP of the following: McDonald; KFC Southwest Airlines Mercury Drug Sofitel South Drug Jollibee Amanpulo
KEY ELEMENTS OF USP
The PTM The PTM wants and needs Key Resources Key Processes (Activities) Interlink, configuration of the Key
Resources and Key Activities; Link with the PTM Bond with the PTM(Wait, isnt this Business Model Canvas by
Alex Osterwalder?)
Universal Contents of Strategy Objectives: single goal, time frame
Scope: geography, customers, degree of vertical integration , USP
Configuration: Link of various activities and resources to attain USP
Vs. backdrop of ROIC
Steps in Developing Strategy1. Confronting reality; how does the
product stand in the market vs competitor. What is the current emphasis on the product?
2. Determining the product USP: improved or
new;
3. Defining the strategy
What does strategy involve? Strategy is what you do; there is no
divide between planning and execution
Great deal of time must be devoted on strategy;
It is everybody’s task – not just the CEO or corporate planners;
The senior and middle managers must spend a great deal of time pounding the message in the entire oranization
C’s in Strategy:
It is the sweet spot in the middle of intersection of
Customer, Competitor, Company
In the middle of a Context (the Macro: PESTEL, STEER)
Useful references:
Purple Cow by Seith Godin The Mind of the Strategist by Kenichi
Ohmae Blue Ocean Strategy by Lim
Clearer understanding of Strategy
Complexity of textbook and current course on strategy drowns the student on the tools and concepts;
It is all about products, customers, and competition
It is USP, and positioning the product;
It involves understanding of the business model