a taste of strategy at vlerick: from business to corporate…/media/corporate/pdf... ·...

A TASTE OF STRATEGY AT VLERICK:FROM BUSINESS TO CORPORATE, FROM LOCAL TO GLOBAL

CARINE PEETERS

© Vlerick Business School

CONTENT

What is strategy?

Zoom 1: Business strategy formulation

Zoom 2: Corporate value creation

Zoom 3: Competing across borders

2 #experiencevlerick

http://blogs-images.forbes.com/work-in-progress/files/2012/09/Strategy.jpg

http://blogs-images.forbes.com/work-in-progress/files/2012/09/Strategy.jpg

1WHAT IS STRATEGY?


Strategy is the means by which firms achieve

and sustain superior performance

Method Execution

Adaptation to changing

context

/ Competitors+

Continuous improvement

VALUE CREATION & CAPTURE

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CORPORATE PARENT

A GENERAL FRAMEWORK FOR STRATEGY

Analysis

FormulationExecution

STRATEGY

PERFORMANCE

FIRM /BU• Mission & values • Vision &

objectives• Resources &

Capabilities

INDUSTRY• Competitors• Customers• Suppliers

MACRO ENVIRONMENT• Technological evolution• Global economy• Socio/politico/legal forces

Zoom 3

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http://blog.optiontiger.com/wp-content/uploads/2012/07/Stock-Chart-Details.jpg


2ZOOM 1:

BUSINESS STRATEGY FORMULATION


DEFINING YOUR WINNING FORMULA

7Verweire (2014)

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8

FOCUS

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwi7-cL8y4vLAhWHqQ4KHSh0DegQjRwIBw&url=http://www.platformlearning.com/things-to-avoid-when-writing-a-conclusion-for-your-essay/&psig=AFQjCNHdsarP8oPs40C6N6V0Lgqzs4qfkg&ust=1456238145839930

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwi7-cL8y4vLAhWHqQ4KHSh0DegQjRwIBw&url=http://www.platformlearning.com/things-to-avoid-when-writing-a-conclusion-for-your-essay/&psig=AFQjCNHdsarP8oPs40C6N6V0Lgqzs4qfkg&ust=1456238145839930

9

UNIQUE

10

COHERENT

11

FIT


SUCCESSFUL STRATEGY

ANSWERS 4 QUESTIONS:

1. Whom do you serve?

2. What do you provide?

3. With which value

proposition?

4. How do you realize it?

CHARACTERISTICS

STRATEGY

FIT

FOCUS

UNIQUE

COHERENT

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DO YOU HAVE A WINNING VALUE PROPOSITION?

Let’s play cards…

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VALUE ATTRIBUTES OF BUSINESS TRANSACTIONS

Product: Quality and features of goods or services purchased

Price: Cost of goods or services

Access: How easily consumers obtain and usegoods

Service: What is done extra before, during, andafter the sale

Connectivity: How consumers feel aboutthemselves as a result of goods and/or services

14

Source: Crawford & Mathews (2001)

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A FOCUSED VALUE PROPOSITION

15Source: Crawford & Mathews (2001)

5-4-3-3-3 is an optimal profile

Customer acceptance

Customer preference

Customer favourite

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CORPORATE PARENT


Analysis


STRATEGY

PERFORMANCE



Capabilities






3ZOOM 2:

CORPORATE VALUE CREATION

http://4.bp.blogspot.com/_HSP2-HO7RrI/Swnajx95oQI/AAAAAAAAAiI/w2hc2ERc0sE/s1600/1+1=3.jpg

http://4.bp.blogspot.com/_HSP2-HO7RrI/Swnajx95oQI/AAAAAAAAAiI/w2hc2ERc0sE/s1600/1+1=3.jpg


DOES YOUR PARENT COMPANY CREATE VALUE?

BRAND SUPERIOR SYSTEMS, TOOLS, PRACTICES

SYNERGIESRESTRUCTURING


http://www.google.be/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=0CAgQjRw&url=http://commons.wikimedia.org/wiki/File:General_Electric_logo.svg&ei=O2QaVdK0O4S07gaSxYHoDA&psig=AFQjCNFK8XJrKa71w7ORaOftoVZzycPUQw&ust=1427879356139100

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http://www.google.be/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=0CAgQjRw&url=http://goodlogo.com/extended.info/virgin-logo-2387&ei=rmQaVZqACZON7Aau9oCQBA&psig=AFQjCNHevxJnyWgEe5-3QT5qhA31a3eYaQ&ust=1427879470243121

http://www.google.be/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=0CAgQjRw&url=http://goodlogo.com/extended.info/virgin-logo-2387&ei=rmQaVZqACZON7Aau9oCQBA&psig=AFQjCNHevxJnyWgEe5-3QT5qhA31a3eYaQ&ust=1427879470243121

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Newell_Rubbermaid_Logo.svg&ei=okEuVamIJoOwPbPtgNAK&bvm=bv.90790515,d.d2s&psig=AFQjCNFPepOGAeGuE4vOtSukXFWgUIww0Q&ust=1429181209445194

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Newell_Rubbermaid_Logo.svg&ei=okEuVamIJoOwPbPtgNAK&bvm=bv.90790515,d.d2s&psig=AFQjCNFPepOGAeGuE4vOtSukXFWgUIww0Q&ust=1429181209445194


A PROBLEM OF NET VALUE CREATION

19

Additional corporate

costs

Net value creation

Gross corporate

value creation

Positive corporate value added

Direct and indirect costs

Based on Meyer (2009)

Gross corporate

value creation

Net value destruction

Additional corporate

costs

Negative corporate value added

Direct and indirect costs

• Bureaucracy

• Inefficient corporate services

• Poor decisions

• Interferences

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GROWING FROM YOUR STRENGTHS

20Strategy+Business (2014)

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CORPORATE PARENT


Analysis


STRATEGY

PERFORMANCE



Capabilities



Zoom 3




4ZOOM 3:

COMPETING ACROSS BORDERS

Hoium (2014)


VALUE CREATION ACROSS BORDERS

24

Structure

EmbraceAvoid

Overcome

Differentiated by geography and/or

product line

Serve the global

segment in every country

Localize your parent’s strengths

Target similar

countries

ExploitPlay the

differences

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http://www.google.be/url?sa=i&source=imgres&cd=&cad=rja&uact=8&ved=0CAkQjRwwAGoVChMIkteWtoHqxwIVQ4HbCh1Z1gm8&url=http://www.ab-inbev.be/&psig=AFQjCNGb3-gCtlPf5fasQjoNJ0Jo_4feVQ&ust=1441890123560321

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http://mobi-wall.brothersoft.com/files/320240/r/12822250366671.jpg

http://mobi-wall.brothersoft.com/files/320240/r/12822250366671.jpg

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http://www.google.be/url?sa=i&source=imgres&cd=&cad=rja&uact=8&ved=0CAkQjRwwAGoVChMI07qip4XqxwIVUijbCh2iJwTa&url=http://lucindagosling.com/kids-industries/&psig=AFQjCNFEYtp1EOiS3eYxVeuGFcP0PHehEw&ust=1441891166052738

© Vlerick Business School25

Understanddifferences

Choose a response profile

International strategic choices

3-STEPS PROCESS

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5WRAP UP

26

http://internet-marketing-muscle.com/wp-content/uploads/Weekend-Wrapup.jpeg

http://internet-marketing-muscle.com/wp-content/uploads/Weekend-Wrapup.jpeg

BIGGER IS NOT ALWAYS BETTER

Strategy is the means to maximize firm performance

http://www.google.be/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=0CAgQjRw&url=http://www.itpro.co.uk/641047/should-you-be-a-strategic-or-operational-cio&ei=HmwuVcKNDcvePdaIgfgJ&psig=AFQjCNF8vVK8Th1IM9EEDG-RMYC9qxXyMw&ust=1429192094283874

http://www.google.be/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=0CAgQjRw&url=http://www.itpro.co.uk/641047/should-you-be-a-strategic-or-operational-cio&ei=HmwuVcKNDcvePdaIgfgJ&psig=AFQjCNF8vVK8Th1IM9EEDG-RMYC9qxXyMw&ust=1429192094283874

http://emilysutherland.wordpress.com/2009/12/18/im-stuck-but-maybe-you-can-help/

http://emilysutherland.wordpress.com/2009/12/18/im-stuck-but-maybe-you-can-help/

http://www.google.be/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=0CAgQjRw&url=http://disinfo.com/2011/06/why-the-world-isnt-as-flat-as-thomas-friedman-says/&ei=YG0uVerQEcjdO8DNgNgE&psig=AFQjCNFDuC5vYSGftTyUi_IGfW5117fc2g&ust=1429192416352275

http://www.google.be/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=0CAgQjRw&url=http://disinfo.com/2011/06/why-the-world-isnt-as-flat-as-thomas-friedman-says/&ei=YG0uVerQEcjdO8DNgNgE&psig=AFQjCNFDuC5vYSGftTyUi_IGfW5117fc2g&ust=1429192416352275

THANK YOU

[email protected]#experiencevlerick


FEEL LIKE SOME MORE?

Essentials in Strategy (start 3 December)

Successful Strategy Execution (start 23 November)

Advanced Management programme (18 November)

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a taste of strategy at vlerick: from business to corporate…/media/corporate/pdf... ·...

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