Strategy

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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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Strategy

• Stakeholders
• stockholders
• customers
• employees
• suppliers

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Strategy

• Processes
• 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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Strategy

• Resources
• Capital
• Labor
• Materials
• Machines
• Information
• Facilities

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Strategy

• Organizational Structure
• Functional structure
• Product/brand management structure
• Matrix structure
• Etc.

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Functional Approach

• Departments based on similar skills and resource
  use.

President
Vice President
Vice President
Vice President
CEO
Marketing
Manufacturing
Fiancnce
Production
Control
VP Finance
VP Production
VP Marketing
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PRODUCT MANAGER ORGANIZATION
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Matrix Organization
Engineering Manager
Production Manager
Marketing Manager
Quality Manager
737 Project Mgr
747 Project Mgr
757 Project Mgr
767 Project Mgr
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Strategy

• Corporate 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 customers
• Has its own set of competitors
• Has a manager who is responsible for the unit

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Corporate Strategy

• Mission
• Product-oriented vs. market-oriented
• Functions to be performed
• Social responsibility issues

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Corporate Strategy

• Corporate objectives
• Profitability
• ROI
• Return on shareholders equity
• profit
• etc.
• Discounted cash flow
• Market share
• Etc.

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Corporate Development Strategy
Market Penetration
Product Development
Current Markets
Market Development
New Markets
Diversification
New Products
Current Products
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Corporate Strategy

• Corporate development strategy
• Market penetration
• Market development
• Product development
• Diversification
• forward integration
• backward integration
• related (concentric) diversification
• unrelated (conglomerate) diversification

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Corporate Strategy

• Resource 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
Question Marks
Market Growth Rate
Stars
Cash Cows
Dogs
Relative Market Share
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Industry AttractivenessBusiness Position Matrix
High
1
1
2
Competitive position
1
2
3
Medium
3
Low
2
3
High
Medium
Low
Industry Attractiveness
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Strategic business units

• Strategy formulation (Porters
  typology)
• Overall cost leadership
• broad focus
• narrow focus
• Differentiation
• broad focus
• narrow focus

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Porters Typology
Cost Leadership
Differentiation
Narrow Focus
Broad Focus
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Functional (product-market) strategyThe
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 delivery

• Choose the value
• Segmentation
• Targeting
• Positioning

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Value creation delivery

• Provide the value
• Product service development
• Pricing
• Sourcing
• Manufacturing
• Distributing
• Servicing

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Value creation delivery

• Communicate the value
• Sales force
• Sales promotion
• Advertising
• Publicity