strategy. zthe alignment of your processes, resources, and organizational structure to maximize...
DESCRIPTION
Strategy zStakeholders ystockholders ycustomers yemployees ysuppliersTRANSCRIPT
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Strategy
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Strategy
The alignment of your processes, resources, and organizational structure to maximize benefits to various stakeholders
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StrategyStakeholders
stockholders customers employees suppliers
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StrategyProcesses
Identifying and reengineering work flows
TQM and just-in-time inventory systems
Building bridges through the use of cross-functional teams
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StrategyResources
CapitalLaborMaterialsMachinesInformationFacilities
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StrategyOrganizational Structure
Functional structure Product/brand management
structureMatrix structureEtc.
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Functional ApproachDepartments based on similar skills and resource use.
CEOCEO
VPVPFinanceFinance
VPVPProductionProduction
VPVPMarketingMarketing
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PRODUCT MANAGER ORGANIZATION
M ark e tin g R esearch S a les A d vertis in g
P rod u c t M an ag erP rod u c t A
P rod u c t M an ag erP rod u c t B
P rod u c t M an ag erP rod u c t C
G rou p P rod u c tM an ag ers
M ark e t in g vice -p res id en t/d irec tor
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EngineeringManager
ProductionManager
MarketingManager
QualityManager
757Project Mgr
767Project Mgr
737Project Mgr
747Project Mgr
Matrix Organization
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StrategyCorporate strategy
Business-unit strategy
Functional strategy (product-market entry) Marketing plans and strategies primarily
focus on this level
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Strategic business units Strategic business unit:
An entity that can be separated for planning purposes
Has its own set of customersHas its own set of competitorsHas a manager who is responsible
for the unit
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Corporate StrategyMission
Product-oriented vs. market-oriented
Functions to be performed
Social responsibility issues
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Corporate Strategy Corporate objectives
Profitability ROI Return on shareholder’s equity $ profit etc.
Discounted cash flowMarket share Etc.
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Corporate Development Strategy
Current Markets
New Markets
Current Products
New Products
Market
Penetration
Market Development
Product Development
Diversification
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Corporate StrategyCorporate development strategy
Market penetrationMarket developmentProduct developmentDiversification
forward integration backward integration related (concentric) diversification unrelated (conglomerate) diversification
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Corporate StrategyResource allocation
Boston Consulting Group model (Boyd, Walker & Larreche, pp. 41, 42)
Industry attractiveness -- business position matrix (General Electric model) (Boyd, Walker & Larreche, p. 44)
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BCG Matrix
Market Growth Rate
Relative Market Share
StarsQuestion Marks
Cash Cows
Dogs
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Industry Attractiveness—Business Position Matrix
Com
p etit
ive
posi
ti on
High
Medium
Low
Industry AttractivenessHigh Medium Low
1 1
1
2
2
2
3
3 3
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Strategic business units Strategy formulation
(Porter’s typology)Overall cost leadership
broad focus narrow focus
Differentiation broad focus narrow focus
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Porter’s Typology
Cost Leadership
Differentiation
Narrow Focus
Broad Focus
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Functional (product-market) strategy:The marketing mix (4Ps)Product Price Place Promotion
advertising personal selling sales promotion publicity
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Value creation & delivery
Choose the value
Provide the value
Communicate the value
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Value creation & deliveryChoose the value
Segmentation
Targeting
Positioning
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Value creation & deliveryProvide the value
Product & service developmentPricingSourcingManufacturingDistributingServicing
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Value creation & deliveryCommunicate the value
Sales forceSales promotionAdvertisingPublicity