Copyright 2011 Pearson Education, Inc.

, publishing as Prentice Hall

Art of the general!

What does strategy mean for a
corporate executive?

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

Mission
Goals
Objectives
Marketing oriented efforts

Strategies

Sales oriented efforts

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Tactics
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Business Unit
Strategy

Business Unit
Strategy

Product

Product

Product

Strategies

Strategies

Strategies

Functional Area
Strategies

Functional Area
Strategies

Functional Area
Strategies

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Set Goals and Objectives

Understand Environment of
Business Operations
Learn from Experience, Update
Experience
Critical Thinking

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1. Setting Goals and Objectives

2. Analysis of the current situation
3. SWOT Analysis: Strengths, Weaknesses,
Opportunities and Threats
4. Strategy design and choice of the best strategy
5. Implementation plan design
6. Strategy implementation
7. Monitoring of environment and performance
results
8. Analysis of variance from desired performance
levels
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Seek to establish a fit between the

business environment and the
strategy

Fit - Providing superior value

through differentiated pieces of
the total offering
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Drive change rather than adapting to

it
o
o

Quality and process improvement are

essential to superior value
Measuring and tracking results is
necessary for continuous
improvement

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

Change in customers, channels

and competitors cause
discontinuities in the evolution of
industries or markets
Companies seldom impact change
in market
Keep up with changes in the rules
of the market

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Includes infrastructure, personnel,

finances etc.

Are not limitless

Strategic Planning Process is a

resource allocation process

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Relative Market Share

High

Low

High

Market
Growth
Rate

Low

Stars

Cash Cows

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Question Marks

Dogs
11

High Growth, high Share

Needs heavy investment; builds
market share
Manage with market ownership
o

Eventually become Cash Cows

Stars

Question Marks

Dogs

Cash Cows
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Low growth, high Share

Established, successful, invest
enough to hold market
Cash generators
Harvest to increase short term
cash
Stars

Question Marks

Dogs

Cash Cows
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Low share, high growth

markets
Requires cash to hold share
What should be done?
Match with organizations
distinctive competencies?
Obtain the resources
needed?
Build these into stars or
phase out, sell

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

Stars

Question Marks

Dogs

Cash Cows

14

Low growth, low share

May be self-sustaining
One organizations dog could be
anothers cash cow
Discontinue, divest
Stars

Cash Cows
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Question Marks

Dogs
15

Maturity
Sales
Revenue/
period

Growth

Decline

Introduction
Time

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16

Define
Evolve
Collaborate

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Define

Define market niche

Work towards domination
Brand identified as standard
Competitors note equivalence to
such products

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18

Evolve

Continue to evolve offerings

Keep definitions of value current
with market
Present these values to
consumers

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19

Collaborate

Development of ancillary products

by other organizations help
owners build the market
Third parties define their products
as compatible with market owner

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20

Focus on forward-looking
measures in four core areas:
1.Financial Performance
Perspective
2.Customer Perspective
3.Stakeholder Perspective
4.Value Perspective

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21

Strategy Implications of Value

Networks and Integrated Supply Chain

Agility
Adaptability
Alignment of members interests

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22

Strategy Development and the Interne

Manage customer relationships

Streamline purchasing relationships
Reduce transaction, shipping and
inventory costs

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23

Volatility and Uncertainty Require Flexibi

Increased uncertainty and speed of

change makes future inexact

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24

Suppose you are involved in starting a

new business in a fast changing
environment. To what extent would the
strategic management process be
useful in planning strategy for such a
new business?

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