BUSINESS STRATEGY AND

PLANNING
Brief content
2. Introduction to strategy
3. Strategic analysis
4. Strategic evaluation and choice
5. Strategy into action – strategic
implementation
6. Managing strategic change
Business Strategies
MICHAEL PORTER’S GENERIC STRATEGY Cost leadership

Stuck in the middle

With no clear
strategy

Focus
Differentiation
 Ignor Ansoff Matrix
Exising New
8. Market development Market development Product development
Existing
9. Market Penetration
10. Product development
11. Diversification
New Market penetration Diversification

12.Promotion Strategy: ford credit, ford incentives, trade fairs & exhibitions.
13. Attach and defence strategies
14 Product life cycle strategies/Marketing mix strategies
15 BCG Matrix and how to apply it to Ford Motor Company

High
Stars Question marks

Business ?? ? ???
growth
Cash cows Dogs
Low $$$$$ Problem child

High Relative market share Low

Stars(high market share in a highly growth market

Cash cows (high market share in a low growth market. Sales is high but pro
Fit decline due to high competition.
QUESTION MARKS ( Low market share in low growth market. Low sales and low profit)
DOGS( low market share in a low growth market, profits and sales are low)

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Michael Porter’s 5 force analysis of the competitive
environment
Substitutes
Bargaining Bargaining

Suppliers Inter company

Buyers
rivalry
Power Power

New entrants

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Mckinsey 7S’s structure

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 Mckinsey 7S’s structure
Ford Motor Company:
• Shared Values:
2. The company’s values are expressed through anticipating consumer needs and
delivering outstanding products and services that improve people’s lives, driven by a
customer focus, creativity, resourcefulness and entrepreneurial spirit .
2. Other values comprise: respect and value of everyone’s contribution; health and safety of
employees; leadership in environmental responsibility; positive contribution to society and
superior returns to shareholders.
• Staff:
• Skills:
• Strategy: Cost reduction, market expansion through joint venture, strategic alliance,
take-over and acquisition, porter’s generic strategy and Ignor Ansoff Matrix.
• Systems:
• Structure:
• Style:
 The strategic management Model
The strategic management model is crucial in analyzing Ford’s strategy:

Culture and
stakeholder
expectation Resources
The And strategic
environ- capabilities
ment

Strate- Expectations
gic Objectives
&
analysis power
Planning
And
Identifying Strategi Strategy allocating
Strategic resources
options
c choice implemen
tation

Organisa-
tion
structure
Evaluating
and design
options Managing
Selecting Strategic
change
strategy