Chapter 5 Flashcards
business strategy: marketing oriented efforts
mission goals objectives strategies tactics
business strategy: sales oriented efforts
tactics
business strategy hierarchy
corporate strategy broken.
3 business unit strategies.
each have product and strategies
critical elements of strategy development
- set goals and objectives
- understand environment of business operations
- learn from experience
- think critically
strategic management process
- set goals and objectives
- analyze current situation
- SWOT
- strategy design & choose strategy
- implement design
- implement strategy
- monitor results
- analyze performance
- adjust
key strategy concept 1
fit
providing superior value through differentiated pieces of the total offering
key strategy concept 2
drive change rather than adapt to it
- quality and process are essential to superior value
- measuring and tracking are necessary to continuous improvement
summary strategy concept
change in customers channels and competitors cause discontinuities in the evolution of industries or markets
- companies seldom impact change in market
- keep up with changes in the rules of the market
resources allocation
- infrastructure, personnel, finances, etc.
- are not limitless
- strategic planning process is a resource allocation process
Boston consulting group: growth share matrix
stars, question marks, cash cows, dogs
star
- high growth, high share
- needs heavy investment; builds market share
- manage with market ownership (eventually becomes cash cows)
cash cow
- low growth, high share
- established, successful, invest enough to hold market
- cash generators
- harvest to increase short term cash
question marks
- low share, high growth markets
- requires cash to hold share
- what should be done?
- match with organizations distinctive competencies?
- obtain the resources needed?
- *Build these into stars or phase out
dogs
- low growth, low share
- may be self-sustaining
- one organization’s dog could be another’s cash cow
- discontinue, divest
growth share matrix and PLC
growth - star
maturity - cash cow
decline - dog
strategies of market ownership
define
evolve
collaborate
strategy of market ownership: define
- define market niche
- work towards domination
- brand identified as standard
- competitors note equivalence to such products
strategy of market ownership: evolve
- continue to evolve offerings
- keep definitions of value current with market
- present these values to consumers
strategy of market ownership: collaborate
- development of ancillary products by other organizations help owners build the market
- third parties define their products as compatible with market owner
- market owner gains insight to other points of view within the market
GE multi factor attractiveness/strength matrix
?
the balanced scorecard focused on forward looking measures in
- financial performance perspective
- customer perspective
- stakeholder perspective
- value perspective
3 parts of stakeholder perspective
- upper management
- partners
- channels
strategy implications of value networks and integrated supply chain
agility
adaptability
alignment of members’ interests
* strong supply chains lead to inflexibility *
strategy development and the internet
- manage customer relationships
- streamline purchasing relationships
- increase speed with which the environment changes
- reduce transaction, shipping and inventory costs
volatility and uncertainty require flexibility
- increased uncertainty and speed of change makes future inexact
- a pursued task is short lived as definition and boundaries of business become blurred
- resource allocation is critical
- core competencies are important
