Strategic ThinkingFailan saleem22nd April 2014

• Not a PESTEL and SWOT session

Plan

Strategic Thinking

Strategic Insight

Strategy Developmen

tApplied Strategy

Sales managers complain that the product he/she sells is a commodity, competing based on price, no differentiation ,which they need to sell in large quantities in order to recover their fixed cost. Industry losing money.

What would you do if you are in this position?

Question

Strategic planning vs Strategic thinking

Strategic thinking is defined as the generation and application of business insights on a continual basis to achieve competitive advantage

Strategic planning is the channeling of business insights into an action plan to achieve goals and objectives.

What do these companies have in common?

• Level of education• Experience• Data• Tools• Gurus

• Because they think they are good strategies

Why do smart Strategist choose bad strategies

• Apples revenue 2013?• Population of Brazil ?• How many seconds separated the

champion from second place at the Tour de France ?

Quiz

• Apples revenue 2013 : $ 171 Billion• Population of Brazil :199.321 million people• How many seconds separated the champion

from second place at the Tour de France : + 260"

Answers

What's wrong with this table? Sales growth 2.25%Price growth 1.00%

Estimates 2015Unit sales 1000Unit price $500 REVENUE $500,000

Purchases $144,627 Direct labour 97,665Indirect labour 55,257Distribution 26,236Depreciation 17,634Advertising 12,600Commssion 27,748Promotion 10,084Market Research 10,078R&D 15,073Other 32,546TOTAL EXPNCES $449,548

PROFIT $50,452

• Competition : market entry or new product

• Customer: assumed , effect of CRM, product recall

• How we calculate profit: TR-TC=TP• Cut spending? example advertising?

Cutting cost is not a good thing or bad thing, the tools forces us to do that

What's not in the spreadsheet

• The rise of the information age doesn’t mean we stop producing or selling. We still need products and services, but it does not mean that business and marketing strategies that made seller’s brands powerful yesterday won't necessarily keep them tomorrow. If it’s not win –win for both sides, one side or the other will see no reason to peruse the relationships

Alan Mitchell

Creating tomorrow while delivering today

• Insanity “ doing the same things over and over again and expecting different results”

• Business “ Doing the same things over and over again and expecting different results

Business insanity

Numbers don’t speak for themselves

Purchase Criteria

Importance Market ratings (0-10)

Us Them

Features 45% 8.2 7.8

Customer service 25% 7.1 7.1

Ease of Use 20% 5.4 7.2

Convenience 10% 9.2 6.6

Market Space

Case studies

Four types of Strategic thinkers

Beach Bums Snorkeler

Scuba Diver

Free Diver

Summary Great thinking

Great decision making

Great decisions

Great success

Positioning Totally or mostly true

Friendly 94.4%Experienced 92.9%Qualified 92.7%Professional 91.8%Good communication 91.4%Open 90.5%Enjoyable 90.3%Helpful 90.0%Welcoming 89.0%International 88.2%Approachable 87.6%Responsive 86.5%High standards 86.3%Fun 85.9%Accountable 84.0%Supportive 83.6%Understands me 83.2%Flexible 79.1%Cares about me 78.3%Inspirational 75.6%

Positioning statement

Total Community schools

Study Abroad

Confident 80.9% 80.6% 81.5%Focused 79.5% 79.8% 78.7%Determined 78.0% 76.8% 80.9%Independent 74.5% 72.2% 79.9%High achiever 72.0% 72.2% 71.5%Individual 66.8% 66.5% 67.7%

Expectation Vs Experience Before starting very or fairly important

The progress I will make in learning the language 95.8%High-quality teaching appropriate to my level 95.7%Experienced teaching staff 95.2%The results I could achieve 93.3%Safe and suitable learning environment 89.4%Fun, interactive lessons 87.2%Small class size 86.0%Individual help when required 85.6%Value for money 79.9%The qualifications I will attain 75.1%Regular assessments and reports 72.3%Active social and cultural programme 64.3%Well-resourced self-study centre for use outside class 60.5%To make friends 55.5%

Students of several different nationalities on the course (only answer if you are studying abroad) 72.7%Accommodation is clean and comfortable (only answer if you are studying abroad) 68.3%Accommodation is close to the language school (only answer if you are studying abroad) 66.1%

Expectations Vs Delivery

Thank you