m
 


Y ?

 Is doing more with less resources.

Y By
M dreating strategic alliances
M Building customer bases
M Transporting skills across business units.

Leveraging implies spreading the unique set of

capabilities of a business ( driving force and areas
of excellence) across business units, products and
markets.
p

relates to aspiration. ?

 relates to the
use of capabilities and resources to achieve these
aspirations
« doing more or adding more value with what you
have«
   m
 
Y dompany with more resources: I have more
resources than my competitors and therefore, I am
more powerful is the mindset of larger companies.
Y dompany with less resources: I have less
resources and therefore, I must innovate more,
offer the best products and compete better. I
should outmaneuver rather than outpower.
› 


 
 Y Ôxploit opportunities ± a
Y ppend much on
technology, R&D, etc.
Y But, they do not match
with employee training,
technology-absorption, or
new product introductions.
Y Resources wasted
niche market (Dell,
Amazon)
Y Focus more on core-
competencies and doing
more with less.
Y Find alternative ways of
doing things, leaner
manufacturing

› 
 p


 Five basic items to focus:
1. On concentrating resources on key strategic
goals
2. By accumulating resources efficiently,
3. On efficient use by complementing one resource
with another;
4. On conserving resources where possible; and,
5. Ôarn resources back by spread between outflows
and inflows.
Y At inception could not have matched IBM or
dompaq
Y Leveraged available resources by:
M Direct pales Model
M Lean Manufacturing
M Ôxpertise in Logistics and supply chain management
M Industry standard technology
M dustomers configure their own computers
Y dhanged rules of engagement through
competitive innovation.
The extent to which the activities of a single organization
or of organizations working in partnership complement
each other in such a way as to contribute to competitive
advantage.

Y The benefits of good strategic fit include cost reduction,

due to economies of scale, and the transfer of
knowledge and skills.

The success of a merger, joint venture, or strategic

alliance may be affected by the degree of strategic fit
between the organizations involved.
 Operating Fit

Market Management
related Fit Fit
Y èestlé is the world¶s biggest food and beverage
company and produces a wide range of products.
Many of its best known brands are household
names.

Y In 2001, èestlé¶s dhief Ôxecutive set out the

company¶s vision when he stated: µWe want to
grow from the respected and trustworthy food
company that we are known as now, into a
respected and trustworthy food, nutrition and
Wellness company¶.
 Ô

  

Fit
›
  
Y Ô   
  

Ô

 in
which the business operates. In this case, it is a social
environment, in which consumers are seeking nutritional
products to complement a healthy lifestyle.
Y Ô
 
    

    One key principle is that of
meeting consumers¶ needs for nutrition, enjoyment and
quality they can trust.
Y ›Ô
      
› 


the strategy. With its science and technology
base, èestlé is well equipped to develop the required
science-based improvements to existing products. It can
also handle the development of new products that
contribute to Wellness.
 Im r ve existi g
r ts

Devel
r e
et i lre
i v tive
e lt r ts
r ts t t meet
well ess riteri

èestle
Y rsing this approach, over the next five years èestlé
developed or reformulated over 700 products so that
they have a lower fat, sugar and salt content.
Y In addition, the dompany looks to educate consumers
about healthy lifestyles and proper nutrition.
Y èestlé is one of the world¶s leading food companies
and intends to remain so.

The company¶s Wellness strategy is carefully geared to

delivering to customers what they now clearly want in
relation to the foods they eat; a high nutritional value
and a positive contribution to their general Wellness