dhv '04 dhv 2004 corporate strategy professor larry matteson

of 23/23
DHV '04 DHV 2004 Corporate Strategy Professor Larry Matteson

Post on 02-Jan-2016




2 download

Embed Size (px)


  • DHV 2004

    Corporate Strategy

    Professor Larry Matteson

    DHV '04

  • This Morning Course overview Course agenda Strategic alignmentFormulating strategyStrategy and the organization

    DHV '04

  • Objectives of the CourseIntroduce a framework for creating and analyzing strategyApply leading contemporary thought on strategy analysis and formation in class discussion and case studiesPractice in synthesis of developing strategic alternatives

    DHV '04

  • Course OverviewFrameworkfor analysisCompetitive StrategyCorporate StrategyFunctional StrategyImplementationOrganization

    DHV '04

  • Agenda For The Week

    DateMorningLecture & Discussion TopicAfternoonLecture & Discussion TopicAssignmentMon 4/19/04IntroCorporate organization, values and strategyStrategic alignmentFormulating a strategyFrameworks for Strategic Analysis Porters Competitive ForcesMarket Focused viewResource based viewPrepare for class discussion of the caseTues 4/20/04Class discussion Marketing Strategy Operations strategyCompetitive advantageOrganizational learning Experience effects Change management Class discussionDHV applications prepare for class presentationsWed 4/21/04Strategic implementationAchieving results DHV applications break out sessions Team presentationsSOCIAL EVENTThru 4/22/04Organizational transformation and strategy implementation DHV structure for the futureStrategic collaborationAlliances and acquisitionsCourse Summary DHV wrap-upCLOSING EVENT

    DHV '04

  • DeliberateEmergentPluralisticProfit-MaximizingPROCESSESOUTCOMESGeneric Perspectives On Strategy

    DHV '04

  • Getting Off The TreadmillCreate And Dominate Emerging OpportunitiesQuest For CompetitivenessRestructuring-smallerReengineering -BetterReinventing-differentOrganizational Transformation Required

    DHV '04

  • Three Interplays, Three TestsStrategy

    Capabilities& ResourcesLandscapeInternal consistencyFit among strategicchoices and policiesExternal consistencyFit between the strategyand the outside worldDynamic consistencyFit between the strategy and thefirms capabilities and resources

  • Strategic Alignment

    DHV '04

  • Objectives Which Are Long Term

    Simple and Agreed to

    Reflect a Profound Understanding of The Competitive Environment

    Objective Appraisal of ResourcesCharacteristics of Strategy

    DHV '04

  • Strategy:(The ship is going generally west) Current resourcesRequiredresourcesThe Strategic Plan:adjusting the resource map to meet future requirements

    DHV '04

  • Strategy Formulation ProcessEnvironmental ScanningInternal AssessmentStrategic AlternativesValuation and ChoiceImplementation

    DHV '04


    DHV '04




    STRUCTUREDEMOGRAPHICSEnvironmental Scanning

    DHV '04

  • Business Units and Product- Markets Core CompetenciesStrategic ArchitectureStrategic IntentBasic Values and BeliefsGovernance StructureOrganizational CapabilitiesAdministrative Processes and Formal StructureOperations Strategy and ImplementationOrganizational Alignment

    DHV '04

  • Stakeholders of the FirmCustomersEmployeesSuppliersLendersCommunitiesShareholders

    DHV '04

  • If the price mechanism is an efficient means of allocating resources why do firms exist? Why arent all transactions arms length market transactions?If organizing within a hierarchy of a firm reduce market costs why arent all transactions done within the hierarchy? Why isnt there just one large firm?Is there an optimal size of a firm? What are the controlling factors?

    DHV '04

  • CostMinimum Efficient ScaleSizeLong RunAverage CostEconomies of Scale

    DHV '04

  • CostSizeFirm Size

    DHV '04

  • Four Basic Strategic ChoicesValue of Local Responsiveness Value of ConsolidationInternationalGlobalTransnationalMultidomestic

    DHV '04

  • Characteristics of Four strategies

    DHV '04





    Configuration of assets and capabilities

    Decentralized and nationally self-sufficient

    Centralized and globally scaled

    Sources of core competencies centralized, others decentralized

    Dispersed, interdependent, and specialized

    Role of overseas operations

    Sensing and exploiting local opportunities

    Implementing parent company strategies

    Adapting and leveraging parent companys core competencies

    Differentiated contributions by national units to integrated worldwide operations

    Development and diffusion of knowledge

    Knowledge developed and retained within each unit

    Knowledge developed and retained at the center

    Knowledge developed at the center and transferred to overseas units

    Knowledge development jointly and shared worldwide

  • Sustaining Competitive AdvantageConsumer SurplusValue Chain SurplusFirms portion of surplusFactor cost for the value chainFirms ProfitabilityIndustry long term profitabilityTimeProfitability

    DHV '04

  • TakeawayThe course will analyze and develop strategies in a variety of contemporary business situations. Strategies built on resources, markets and organization Impact of technology and globalization will be coveredMature and declining firms will be consideredFrameworks and models will be introduced and used in analysis and synthesis of strategyCorporate strategic analysis will includeCompetitive strategic analysisImpact of government policy on corporate strategyImpact of corporate governance on strategy

    DHV '04



    DHV'04DHV'04DHV'04DHV'04DHV'04DHV'04DHV'04DHV'04DHV'04DHV'04DHV'04DHV'04DHV'04Some differencepersists for a long time.DHV'04