Notes from class Flashcards
Implications of strategic decisions
- Complexity
- Uncertainty
- Affect all business decisions
- Require integrated strategy
- Require relationships and networks
- lot of suppliers, lose quality - Require organizational changes
- change the position- uncomfortable but good (in class for example)
- changes are difficult
Pareto- the concept
- take fast decisions
- respond fast- miss a lot of things
- focus on what is important
- Which stakeholders are important?
- Investors- in general they are important
Client or supplier- who is more important?
Depends
Conflicts of expectations from different stakeholders
- short term, long term
- risks
- conflicts of interest
- family/cultural business
Stakeholder mapping
identifies stakeholder interest and power and helps in understanding political priorities
- level of interest
- level of power
PESTEL vs SCENARIO ANALYSIS
- both for macro environment
- scenario→ not a prediction
- scenario→ we can not predict, we create scenarios
- If you can´t forecast, make scenarios
- Pestel is for the presence, Scenario is for the future
- Can you forecast the scenario? No
Foresight vs forecast
prospective vs prediction
Systemic view
- more clear, use graphs
- makes the difference between being good and excellent
- seeing the whole thing
Substitutions examples
- high speed train to Barcelona instead of flights
- blabla car
- usually from different sectors
- mobiles over watches
- A different sector- who is attacking the wine industry in spain? Beer
- different sectors, but a substitute
- Coffee/tea
- videoconference/plane
- Mobile/watches
- Plane/train
Forward integration example
Backward integration example
HBO- used to be production and now they sell?
Netflix?? started making their own movies
Which integration is stronger?
Backward
Advantage of being in a cluster
- close to your competitors
- location
- no need for marketing , the area is for bars for example
- increase productivity
- stimulate innovation
- entering of new players (making it easier or not)
Sources of cost efficiency
- Economies of scale
- Experience
- Product/process design
- Supply costs
Game theory
encourages an organization to consider competitors´ likely moves and the implications of these moves for its own strategy
particularly important where competitors are interdependent
In these circumstances it is important to:
- get in the mind of the competitors
- think forwards and reason backwards
The macro-environment
- difference between PESTEL and scenario environment
- scenario is for the future, PESTEL is for the present
- the power of verticalizing your company backwards
- macro is external to the industry- can affect you
- industry/sector analysis- five forces
- all the factors have the same importance- NO
- We have had a better and more accurate PESTEL and SWOT analysis
- the factors have different importance
