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TMP 120November 29, 2017Dr. Karen Smith BogartTMP 120 Summary
Today•Round 6 Debrief•Summary & Review
Strategy: It’s About Winning•Creates a unique sustainable competitive advantage.•Common Elements of Strategy–Long-term and consistent goals. –Deep understanding of the competitive environment.–Objective assessment of resources and capabilities.–Effective execution to reach the goals.•Strategy Aim: Creating Value•Key questions:–Where to compete? –How to compete?
What is Strategy?: Porter•The choice of which unique activities a firm should pursue•Sustainable advantage requires trade-offs, can’t pursue everything•Operational effectiveness is not strategy. It’s important but not enough….•Advantage requires “fit” among the company activities in the Value Chain … a consistency toward winning objectives.Inbound logisticsOperationsMarketing and SalesServicesOutbound LogisticsCompany infrastructureHuman resource managementTechnology developmentProcurementProfProfititProfitProfit
Strategic Fundamentals: Collis & Rukstad•Vision Statement: What do we want to be. Aspiration.•Mission Statement: Why we exist. Our Purpose.•Values Statement: What we believe in, how we behave•Strategy•Objective – the ends•Scope – the domain of activities•Advantage – the means to obtain the “ends”•Balanced Scorecard: How we will measure•The Strategic Sweet Spot: Where the needs of the customers’ and the resources of the company intersect in a way that rivals can’t compete.
6OpportunityPlanDoTarget and size the opportunitDefine target marketCustomer benefitExpected valueDesired advantageBasis for our differenceCompetitionSkills and resourcesAction steps and measures: GoalsCommercialization and OperationsMarketing and Sales Service After-life support VerifyStrategy
“Strategy Happens”•Intended Strategy: Set by top leadership outlining what is to be done. •Emergent Strategy: –Results from the actions and decisions of organizational members as they deal with the “real” forces affecting efforts to implement the above. –Unplanned strategy that arises in response to unexpected challenges and opportunities.•Realized Strategy: The outcome of the intended and emergent strategies. What really is achieved.
Situation Analysis•PESTEL•Porter’s “5 Forces”•5C Analysis•SWOT•Environmental vs. Industry Analysis
Industry Attractiveness: Porter’s “5” ForcesSuppliersSuppliersExisting CompetitorsExisting CompetitorsBuyerBuyerNew EntrantsNew EntrantsSubstitutionsSubstitutionsThreat of new entrants•barriers to entry • economies of scale •brand equity Bargaining power of suppliers•supplier switching costs • degree of differentiation of inputs •substitute inputs •supplier concentration to firm concentration ratio •threat of forward integrationBargaining power of customers •buyer concentration to firm