ASHLEY BURNETTSHAWN BUCKWHITNEY HORTONKELLY RIESTERJENNIFER SHOTTSSAM SNELLINGMICKEA SMITH

OverviewStrategy: A View From The

Top

Strategy

Strategy is about positioning an organization for a competitive advantage

Good strategies: Reflect a company’s clear strategic intent Have a deep understanding of a company’s core

competencies Create the best value

Strategies are not all planned Many things can change as the plan is implemented. Important to be open-minded and realize that many

factors can influence and change intended strategy

Vision and Mission Statements

Vision Statement: a road map for upper management’s long run goals for their organization. Inspirational image that will be remembered and become synonymous with your establishment Frames a company’s strategic focus on the future Expresses core competencies used or needed to attain goals

Mission Statement: Purpose for an organization’s existence A guide for management to use to reach their goals Important values and ethics that are essential to the

company

The Importance of Stakeholders

Stakeholders include partners, suppliers, and even competitors

Internal stakeholders include employees, managers, top executives, and directors

Motivating these stakeholders is vital; companies greatly rely on them to supply their customers with value

A mistake with any stakeholder can affect a company for years

Stakeholders have different types of stakes held with a company Formal, Economic, or Political

Four Primary Practices

Product Life Cycle Model

Definition: Based on the theory of diffusion of innovations and its logical counterpart and the pattern of acceptance of new ideas

The model states that industry passes through stages: Introduction Growth Maturity Decline

These stages are defined by changes in the rate of growth of industry sales

Ratio Analysis

Financial Ratio Analysis Can provide a quick overview of a company’s or businesses

unit’s current or past profitability, liquidity, leverage, and activity

Profitability Ratios Measures how well a company is allocating its resources

Liquidity Ratios Focus on cash flow generation and a company’s ability to meet

its financial obligationsLeverage Ratios

May suggest potential improvements in the financing of operations

Activity Ratios Measure productivity and efficiency

Profit Impact of Market Strategy (PIMS)

Was developed with the intention of providing empirical evidence of which business strategies lead to success, within particular industries.

Seeks to answer three basic questions: What is the typical profit rate for each type of business? Given current strategies in a company, what are the future

operating results likely to be? What strategies are likely to help improve future operating

results?Six Major Findings:

characteristics of the business environment competitive position of the business structure of the production process how the budget is allocated strategic movement operating results. Source: Wikipedia

Value Disciplines

The different ways a company can create value for customers

Choosing a value discipline and focusing on it sharpens a company’s strategic focus

Three different value discipline strategies: Product leadership Operation excellence Customer intimacy

Business Models

Creating an effective model requires a clear understanding of how the firm will generate profits and the strategic actions it must make to succeed over the long term

Is a critical part of formulating a business unit strategy

The two most important productive questions asked of executives: What is our business model? How do we make a profit?

Business Unit Strategy

In order to identify a clear business unit strategy, a company must analyze the industry characteristics in which it will be competing First, we look at three contexts that relate to the various

evolutionary stages of an industry: Emerging Growth Mature Decline

Next, we discuss three industry environments that pose a unique strategic challenges: Fragmented Deregulating Hypercompetitive

Global Strategy Formulation

“Going Global” Gradual process Core competencies, mission, structure, culture, and

processes of international corporations evolve in the creation of global corporations

Truly global strategies are extremely rare To create a vision, a company must accurately define what

globalization means for its particular business Each company and industry will have very different

requirements for global successFour Types of Global Strategy Formulation:

Multinational International Global Transitional

“9 Laws” of Globalization

1. Size means scrutiny2. Cutting costs raises compliance risk3. Strategy must involve society4. Reducing risks means building trust5. Satisfying shareholders means satisfying

stakeholders6. Global growths requires global gains7. Productivity requires sustainability8. Differentiation relies on reputation9. Good governance needs good representation