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Chapter Outline
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Chapter Outline
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Thinking Strategically
Synergy Porters Generic Competitive Strategies Business Ecosystems: A New Strategic Perspective Strategy.com
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Forecasting
Types of Forecasts Forecasting Techniques
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Traditional Modes:
Command (Commanders and Soldiers) Symbolic (Coaches and Players) Rational (Bosses and Subordinates)
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Modern Modes:
Transactive (Facilitators and Participants) Generative (Sponsors and Entrepreneurs)
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STRATEGIC MANAGEMENT = STRATEGIC PLANNING + IMPLEMENTATION + CONTROL Strategic management: the ongoing process of
ensuring a competitively superior fit between an organization and its changing environment.
The 1 + 1 = 3 effect The whole is greater than the sum of its parts
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Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster, Inc. from The Competitive Advantage of Nations by Michael E. Porter. Copyright 1990, 1998 by Michael E. Porter.
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PORTERS GENERIC COMPETITIVE STRATEGIES (Thinking Strategically) Differentiation: the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service.
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Differentiation Strategy
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James F. Moore: the major factor today limiting the spread of realized innovation is not a lack of good ideas, technology, or capital. It is the inability to command cooperation across broad, diverse communities of players who must become intimate parts of a far-reaching process of coevolution.
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Individual or Team Exercise: Pick a well-known organization and identify members of its ecosystem. What organization is dominant in that ecosystem?
Copyright Houghton Mifflin Company. All rights reserved.
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E-Commerce Strategy Lessons: E-commerce sometimes requires a quick revolution, rather than slow evolution. (Start with a blank sheet of paper. Cannibalism may pay.) E-commerce customers increasingly want high ethical standards throughout the supply chain. Only the paranoid survive. (Everyone is a potential competitor in e-commerce.
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Organization:_____________________
Organization
Strengths
Weaknesses
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FORECASTING
Forecasts: predictions, projections, or estimates of future events or conditions in the environment in which the organization operates.
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FORECASTING
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Types of Forecasts
Event
outcome forecasts: used when strategists want to predict the outcome of highly probable future events. Event timing forecasts: predict when, if ever, given events will occur. Time series forecasts: seek to estimate future values in a sequence of periodically recorded statistics.
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FORECASTING
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Forecasting Techniques
Informed judgment Scenario analysis (Longitudinal and cross-sectional scenarios) Surveys Trend analysis
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