exam one Flashcards
Michael Porter’s definition of strategy
a broad formula for how a business is going to compete, what it’s gold should be, and what policies will be needed to carry out those goals. Strategy is about the creation and capture of value.
Alan Lafley and Roger Martin definition of strategy
strategy is an integrated set of choices which position a business in its industry so as to create sustainable advantage and superior returns
Kenneth Arrowhead
a pattern of decisions in a company that determines and reveals its objectives
Richard Rumelt definition of strategy
a diagnosis, a guiding policy, a set of coherent actions
combined definition of strategy
strategy is a diagnosis that defines or explains a business challenge or opportunity, a decision or set of decisions for dealing with he challenge or opportunity, and a coherent set of actions to deliver on the decisions so as to create sustainable advantage and superior returns
diagnose
identifying and describing a challenge or opportunity confronting a business
decide
making a decision about what will be done to deal with and overcome the central challenge or capture the key opportunity
deliver
devising and implementing a coherent set of actions to deliver on key decisions
assessing and connecting external issues with internal issues
diagnose
diagnose outcome
distill the core issue into a statement or question
diagnose process
recognize potential challenges and opportunities, analyze the external environment, analyze internal context, identify toot causes and key insights
decide outcome
clear statement of policy which a business should purse
decide process
generate solution alternatives, perform an initial screen, validate your hypothesis, confirm your choice
deliver outcome
implementation of a new strategic initiative within the business
deliver process
design the recommended solution, gain buy in for your recommendation, plan the implementation, monitor the execution
corporate level
structure of the corporation - concerned with selection of business in which the company should compete, development of coordination of that portfolio of business
business level
competition in the market - developing and sustaining a competitive advantage for a business
managerial strategy
functions of the organization identifying and dealing with a diverse range of strategic challenges and opportunities confronting a business
corporate level - who, when, how, what
who - c level execs, when - cyclical (annual or quarterly), how - top down from mission and values, what - strategic plan
business level - who, when, how, what
who - business/division presidents, when - cyclical (annual or quarterly), how - mission, objectives, strategies, tactics; what - annual operating plan
managerial level - who, when, how, what
who - managers, when - continuous, how - bottom up, what - value proposition
STEEP
social, technical, economic, ecological, political/legal
what does steep do
capture and interpret what is happening and what likely to happen in the macroenvironment in which a business operates
steep social examples
demographics, societal values, lifestyle, preferences
steep technical examples
discoveries, product potential, communication tech, alternative means of providing good or service
steep economic examples
interest rates, inflation, consumer confidence, growth, unemployment, seasonality
steep ecological examples
sustainable preferences, regulation incentives, sustainable resources
steep political/legal examples
employment law, taxation, industry/trade regulation, copyright/ip law, monopoly and antitrust law
steep steps for each factor
research major trends, identify and collect data, examine and identify interconnections, forecast future directions and implications, derive implications for the strategy of the firm
steep risks and limitations
highly dependent on a managers interpretations, no way to assess which issues will have most significant impact, different managers may disagree on how to interpret factors, requires a long term orientation
purpose of competitor analysis
provide managers a complete picture of the competitive landscape confronting a firm
competitor profiling can
reveal competitors weaknesses, reveal likely competitor responses, and anticipate competitor future moves
five main components of competitors analysis
objectives, assumptions, strategy, capabilities and resources, response
competitor analysis process
identify current and future competitors, gather intelligence, consolidate information, summarize insights, derive strategic implications, continue to monitor
competitors analysis insight
clear picture of competitive landscape, identify under/over served areas of market, market opportunities and threats become more evident, create a competitor-conscious culture within an organization
competitor analysis risks and limitations
firms may become competitors obsesses, firms may acquire a copycat approach, firms may become blind to innovations not made by the firm or its competitors
strategy level order
inside - managerial (functional and operational)
middle - business (competitive)
outside - corporate
