lecture 10 summary Flashcards
strategic formulation
is the process by which an organization chooses actions to achieve its defined goals. Formulating and selecting a strategy requires a comprehensive evaluation of the strategys suitability, accountability, and feasibility
Generic strategies
are called generic because they reflect basic approaches that can be applied by any type or size or organization across different industries
The product-market grid
provides a framework for elaborating on intensive growth opportunities within an existing business scope. Based on the product-market matrix we can formulate three intensive strategies for business growth. This is also called the ansoff matrix
Ansoff matrix explained
Current product and new market: Market development strategy
Current poducts and current markets: Market penetration strategy
New product current markets: Product development strategy
New market new product: diversification strategy
Market penetration strategy
The company penetrates a market with current products with greater marketing and sales efforts. Compared to other options, this has a relatively low degree of innovation and low levels of risks as it does not require the business to move into a new field
Market development strategy
a company tries to sell existing products in new market segments in new markets
Product development strategy
focuses on developing new or modified products for the same markets that the company is already serving
Diversification strategy
is used to expand firm operations by entering new markets with new products. The purpose of diversification is to allow the company to enter lines of business that are different from current operations
Only a small portion of effectively formulated strategies are executed successfully due to a variety of barriers
People barrier: only 25% of managers have incentives linked to strategy
Resource barrier: 60% of organizations do not link budgets to strategy
Skill barrier: Only 40% of organizations do not have a formal strategy execution process in place
Leadership barrier: only 85%of executive teams spend less than 1 hour per month discussing strategies
Vision barrier: only 5% of the workforce understands the strategy
effective strategy execution in an organization requires an appropriate match of three interrelated components
strategy, structure, and culture
The ideal typical process of a successful presentation takes four steps
1) preparation
2) structure
3)presentation
4)result analysis
A presentation should be started with a good first impression. Attention and interest should be caught, content and the purpose of the presentation should be explained, and the tone needs to be set. We recognize the following methods to start a presentation:
Bring factual or emotional arguments
start with a personal anecdote or a story
emphasize on similarities with the audience
Use humour/tell a joke
Ask a rhetorical or provocative question
Bring visuals and other media
give compliments to the listener
