Industry Studies

Topic: Planning for the Future in CGI

Topic Number: 10

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Overview

With the marketplace rapidly evolving, firms operating in the CGI need to constantly re-invent themselves to stay ahead of their competitors.

In this final lecture, we will explore a number of strategic questions firms need to constantly ask and act upon to ensure they maintain a competitive advantage. We will also look at a number of the challenges and issues they may face in conducting operations globally.

We will also look at a number of major consumer trends taking shape that firms operating in the CGI should be aware off.

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Learning Outcomes

• Be able to characterise the key challenges facing the CGI industry

• Determine the key strategic questions firms should consider to plan for the future

• Identify the key consumer trends the CGI should be mindful of

• Assess potential routes these firms can adopt to maximise their competitive advantage

Developing and implementing strategy

Management is all about managing in the short term,

while developing the plans for the long term

Jack Welsh

Your life will be no better than the plans you make and the action you take. You are the architect and builder of

your own life, fortune, destiny.

Alfred Montapert

Key questions for CGI firms

• What products and services to sell?

• Where and how to make them?

• Where and how to sell them?

• Where and how to get resources?

• How to outperform the competition?

Let’s determine a number of megatrends that impact the CGI

Source: http://www.pwc.co.uk/issues/megatrends/index.jhtml

Let’s get an overview of the key trends

Source: http://www.pwc.co.uk/en_UK/uk/issues/megatrends/issues/megatrends-overview.jhtml

Let’s get an overview of the key trends

Source: http://www.pwc.co.uk/issues/megatrends/index.jhtml

Let’s get an overview of the key trends

Source: http://www.pwc.co.uk/issues/megatrends/index.jhtml

• Go through each of the key trends above

Impacts for Unilever

https://www.youtube.com/watch?v=ZobiigxgCzg

Impact on the CGI?

Who What

How When

How are the target audiences for

companies in the CGI changing?

Consider the way products are

changing in order to meet consumer and environment needs.

How is the way we deliver products and services to

people changing?

How are the target audiences for

companies in the CGI changing?

Steps in future strategy formulation

1. Develop Mission Statement

2. Perform SWOT Analysis

3. Set Strategic Goals

4. Develop Tactical Goals and Plans

5. Develop Control Framework

Chapter 11 - 13

•Purpose•Values •Directions

Mission Statement

Strengths

Opportunities

Weaknesses

Threats

SWOT Analysis

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Primary Activities

R&D andDesign

Manufacture Marketing DistributionAfter-Sales

Service

Organizational Structure and Culture

Management of Information Systems

Human Resource Management

Supply Chain Management

Supp

ort A

ctivi

ties

Porter’s Value Chain

•Measurable•Feasible•Time-Limited

Strategic Goals

Strategic Goals

Daily Activities

Develop tactics

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Strategic Goals

Managerial Processes

Organizational Processes

Control Framework

What does all this mean for the Coca-Cola company?

Single Business

Related Diversification

Unrelated Diversification

Corporate Strategy

Related Diversification

Unrelated Diversification

Strategic Business Unit (SBU)

DifferentiationOverall Cost Leadership

Focus

Business Strategy

• Differentiation

• Cost Leadership

• Focus Strategy

Three Strategic Options

What does Apple do?

Core CompetencyResources

and Supplies

Industry RivalsNew Markets

Finances

Research and Development

Operations

Human Resources

Functional Strategies

Organisation of the future?

Source: http://www.economist.com/node/21542432

End of presentation

© Pearson College 2013