business strategy- part 1 and 2

7/30/2019 Business Strategy- Part 1 and 2

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BUSINESS STRATEGY

Lecturer: PHD. PHM QUC KHNH


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Business today:

Dynamic

Turbulence Uncertainty

Complexity

Yesterday

Inside strate develo ment

Today

Consideration of environment in

Structured market

Calculating area

strategy development.

Reactors in market.

Stable forecasts uture not oresee.

Trends are surprising.


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Developing the ability toplan and implement

strategyfor general business organisations.

Strate Stratera eg c

formulationra eg c

planning

evaluationandselection

implementation


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Strategic formulation:

considered in strategy development.

MissionandVision

ObjectivesExternal

environmentInternal

AssessmentStrategicositionin

ana ys s

What is ourbusiness?

Where arewe going?

Possibleinfluences; Resources;

Standing

analysis:S&W; P&T;

want to

become?

mission beachieved?

futurecompetition.

Competence

improve toget the

objectives?


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Strategic formulation:

What is our business?

What do we want to become?


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Business goals and objectivesBusiness goals and objectives

Primaryandsecondaryobjectives

Financialobjectives

Multiplesobjectives

Technologicalobjectives

Product

marketobjectives


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ett ng o ect ves processett ng o ect ves process

at owewanttoarc vegree eo ec ves

Howimportantarethey?Prioritisetheob ectives

Whathastobedonetoarchivetheobjective?Definetheact.andtask

Howwillwebeabletotellthatthetaskshavebeen

completed

to

a

satisfactory

standards?

Agreestandardsof

performance

Whoshouldperformtherequiredtasks?Allocateroles

Atwhatstageswillwebeabletoidentify thatthings

arebeing

done

to

standard

and

to

plan?

etan t meta e

performancecriteria


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ett ng o ect vesett ng o ect ves

Specific

MeasuTimeta

SMART

Agree

c


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StakeholdersStakeholders

Communities

groupsNGOs

Strategic

partners

Press/med

ProvidersResource

owners

Donor

Managers

Regulators

Localauthorities


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Political

EconomiLegal

PES TheenvironmentisaTEL

Socio

Environ

mental

uncertainty!!!

culturalecological

ogical


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Potent ial ent ry of new

competitors

Rivalry amongcom et in f irms

Bargaining pow er Bargaining pow er

Potent ial developmentof subst it ut e product s


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Assets

Products,brands,

Financialresources

Position/Resource

Operatings stems

Operatingresults

Organisatio


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Human Resource Management

Firm Infrastructure

Activities Technological Development

stics

gistics

Sales

ou

ndLogi

erations

tboundLo

rketingan

vi

ce

Inb

Op

Ou

Ma

Se

Primary Activities


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Mutualadjustment

Standardizationbyskills

andknowledge

Directsupervision

an ar zaonof

outputs

Standardizationofworkprocesses


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Operating core: The basic work ofpro uc ng e organ za on s

products and services gets done.

Strategic apex: The home of top

Middle line: Managers who stand ina direct line relationship between thestrate ic a ex and the o eratincore.

Techostructure: The staff analysts

who design the systems by whichwork processes and outputs arestandardized in the organization.

Support staff: The specialists whoprov e suppor o e organ za on

outside of its operating workflow.


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STRATEGY

SKI LLS STRUCTURE

VALUES/

SUPERORDI NATEGOALS

SYSTEMS

STYLE


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tep Prepare current product-market pro ile.

Step 2en y sources o compe ve

advantage and disadvantage inthe main product-market segments.

Step 3Describe all the organizationalcapabilities and competencies.

Ste 4

Sort the core capabilities and

competencies according tos ra eg c mpor ance.

Identify and agree onStep 5 the key capabilities

and competencies.


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CorporateAppraisal

GapAnalysis

MonitoringCompetitors

ValueChaininCompetitiveStrategy

ScenarioPlanning

Direction

of

growth

Methodofgrowth

Benchmarking


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Strengths S Weaknesses W

List Strengths List Weaknesses

Opportunities O SOStrategies WOStrategies

List Opportunities

advantage of

opportunities

weaknesses by taking

advantage of

Threats T STStrategies WTStrategies

List Threats Use strengths toavoid threats Minimize weaknessesand avoid threats


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Targetfor

achievementover F0Forecastp ann ngper o

Forecastcanneverbe

completelyaccurate!!!


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CostCost

LeadershipLeadership DifferentiationDifferentiation FocusFocusProductProductDifferentiationDifferentiation

LowLow

(principally(principally

HighHigh

(principally by(principally by

Low to highLow to high

(price or(price or

by price)by price) uniqueness)uniqueness) uniqueness)uniqueness)

SegmentationSegmentation (mass market)(mass market) (many market(many market

segments)segments)

(one or a few(one or a few

segments)segments)

DistinctiveDistinctiveCom etencCom etenc

ManufacturingManufacturing

and materialsand materials

Research andResearch and

develo ment salesdevelo ment sales

Any kind ofAny kind of

distinctivedistinctive

managementmanagement and marketingand marketing competencycompetency


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INCREASING RISKExistin

I

PENETRATION

PRODUCTDEVELOPMENT

C

REAS

Sell more in existingMarkets

Sell new products inexisting markets

INGR

IS

MARKETS MARKET

EXTENSION

DIVERSIFICATIONK

Achieve higher

sales/market shareSell new products in new

markets

New of existing products

in new markets


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Key

performancemeasures

Setobjectivesandareas

Selectdepartment/

branch/organisation

Monitor

improvement

Benchmarking

Measureownandothers

performanceImprove

Compare

performance


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Key

performancemeasures

Setobjectivesandareas

Selectdepartment/

branch/organisation

Monitor

improvement

Benchmarking

Measureownandothers

performanceImprove

Compare

performance


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Apply the process of strategic plannin .

Planningframework

ApproachesStrategicthinkin

Prepareastrate ic lan


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Planning is the process of deciding:

What should be done.

How should be done.

.

Who should do it.


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2.Plan

Strategies

1.Set

Objectives

3.DecideTactics

Reviewprogress

Implementstrategies


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Levelsofstrategy PlanningandDecisions

Corporate strategy Missionand visionStrategicdecisions

Business strategies Particularareasofcorporate

Functional/ operational Differentdepartments(Marketing,

s ra eg es ,

,

, ,

.


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Emergent and deliberate strategies .

PlansDeliberate

strategies

Unrealised

strategies

strategies

Patternsof

behaviour

Emergent

strategies


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Crafting emergent strategies.

Emergent strategies may: Be inappropriatefor long-term direction.

Create implications for resources use, different part of the.

Devotemore resources. Strate ist must be able to reco nise atternsand to

manage the processby which emergent strategies

are created.

Manage Detect Knowthe ManageReconcilingchangeandcontinuity


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Creating sustainable strategic position

Operational

effectiveness onunique Trade offs

combiningStrategyis

aboutchoices

business strategy- part 1 and 2

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