Strategy._barakonyi II_ppt (1) (1)

8/18/2019 Strategy._barakonyi II_ppt (1) (1)

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International Business International Business Strategy (IBS) Strategy (IBS) - b- b

Corporate strategy

Business strategyFunctional strategy


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1b-Strategy (18) 2

Corporate strategyCorporate strategy (CS)(CS)

Overall scope of activitiesOverall scope of activities – Competition: geographic location of activities

– currency: balance worldwide activities

– country: recognise individual factorsCorporate parenting Corporate parenting

– in head officehead office how to manage various businesses

– add parenting value parenting value - add a business to aportfolio - divest in the portfolio

– different styles: planning, performance control

=> match to the business


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1b-Strategy (18) 3

Corporate value added

Corporate advantage

Corporate strategy

usiness strategy

!ar"ets#roducts

Corporate scope Corporate parenting


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1b-Strategy (18) 4

SM styles-I Strategic Planning Strategic Planning

„Orchestrator” „Orchestrator”

CharacteristicsCharacteristics

! $%: deeply involved at business level

! &ormally planning strategies

! #lanning lever clear directions

Performance Performance

! 'onger-term view: short term financial suffering

! #lanning: time consuming centre losingobectivity

! usiness unit: may be frustrated


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1b-Strategy (18) "

SM styles-II Strategic Control Strategic Control

„Coach” „Coach”

CharacteristicsCharacteristics! Strategic development: left to units

! o directions are set, no coordination

! Capitol proets: business initiates! usiness units: detailed reports

Performances Performances

! alance long term - short term financial goals

! *t is difficult

! o e+ploiting synergies


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1b-Strategy (18) #

SM styles-III inancial Control inancial Control

„Controller” „Controller” CharacteristicsCharacteristics

! Strong delegation of responsibility

! udget process and aggreeing budget critical! udget: contract

! Strong emphasis on short-term paybac"

! &inancial performance monitored in detail

Performance Performance! !a+imise short-term financial performance

! &ailure: organic growth

! 'in"ages not developed

! Strong incentives


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1b-Strategy (18) $


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1b-Strategy (18) 8

Business strategy Business strategy (BS)(BS)

– $ow a business see"s to compete in its$ow a business see"s to compete in its

product-mar"etproduct-mar"et

– create competitive strategy – large range of businesses

– evelope sustainable competitiveevelope sustainable competitive

advantegeadvantege – emulate e+isting rivals: same game

– inventing new ways: ne! game


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1b-Strategy (18) %

"amaha piano"amaha piano

– ovearall demand started decline./01year

– same game &ig't 'arer *ore e&&icti+ely

– new gamenew game &res' eye &or opportunities, superb acustic pianosuperb acustic piano (co*bination o&

igital a* optical tec'nology)

, 4 *illion piano ./ refittingrefitting 0it' C

is

, aitional igital value-creatingvalue-creating

possibilities


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1b-Strategy (18) 11

e0 5a*e

e0 strategic recipe

$e! vision an% capabilities

*mproving performance*mproving performance


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1b-Strategy (18) 12

S&' &' S&' &' $* &' $* &'


*dentify mar"et segments#ositioning in a segment

Serve more effectively


Strategic innovation&irst mover advantage

2voidance head-to head

competition

Strategic intentStrategic intent

3utcompeting rivals

Similar strategic approach

oing the same thing better

Strategic intentStrategic intent

Strategic intent investing in new

strategic recipes

*nnovation, vision

#otential outcome#otential outcome#arity at the best

ew strategy: incremental

approach

#otential outcome#otential outcomeCompetitive superiority

istinct advantage

4fundamental5 approach


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1b-Strategy (18) 13

Competition for

industry foresightand intellectual

leadership

Core

comptencies

Competition for

mar"et position

and share

S+,C S+,C

Competing for the utureCompeting for the utureC367C367

C3!#787C*7SC3!#787C*7S$ave$ave $ave not$ave not

7ssential #evelop ro!th. ac/uire

on-essential arvest0%ivest Buy in


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1b-Strategy (18) 14

BS BS

Corporate strategy:

forward integration: closer to the customer

Corporate strategy:

bac"ward integration: closer to the source of inputs

Corporate strategy:

unrelated diversification

Corporate strategy:

related diversification

rouct e+elop*ent 5eograp'ical e6pansion

rouct e6pansionMaret penetration


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1b-Strategy (18) 1"

Functional strategy (FS)

– $ow the different activity areas of a business

contribute to the overall business

– Changes in S changes in &S

– ew &S changes in S

1ey re/uirements 1ey re/uirements to fit and match


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1b-Strategy (18) 1#

B2SI$SS S+,&+IS

2$C+IO$&3

S+,&+IS

$uman resources&inance

'ogistics

3perations

!ar"eting

Bi-%irectional


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1b-Strategy (18) 1$


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1b-Strategy (18) 18

Business per&or*ance correcti+e

a7ust*ents

Corporate Str9

usiness Str9

&unctional Str9usiness

performance

Corrective

adustment

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Strategy._barakonyi II_ppt (1) (1)