strategicanalysis497 winter 2015 class

8/9/2019 StrategicAnalysis497 Winter 2015 Class

1/31

THE STRATEGICTHE STRATEGIC

MANAGEMENT PROCESSMANAGEMENT PROCESS[or How to Analyze a[or How to Analyze a

Case]Case]

Dr. Laura !"t#o$%Dr. Laura !"t#o$%

M&$t '()M&$t '()


2/31

Strate&"# Mana&e$entStrate&"# Mana&e$ent

De*n"t"onDe*n"t"on+ T!e ,ro#ess w!ere%y $ana&ers esta%l"s! an+ T!e ,ro#ess w!ere%y $ana&ers esta%l"s! an

or&an"zat"on-s lon&ter$ /"re#t"on. T!"s "n0ol0es1or&an"zat"on-s lon&ter$ /"re#t"on. T!"s "n0ol0es1

23 Sett"n& M"ss"on 4 Goals23 Sett"n& M"ss"on 4 Goals53 Strate&y 6or$at"on53 Strate&y 6or$at"on

"nternal #a,a%"l"t"es"nternal #a,a%"l"t"es

e7ternal en0"ron$ente7ternal en0"ron$ent

sele#t"on o8 strate&ysele#t"on o8 strate&y

93 Strate&y I$,le$entat"on93 Strate&y I$,le$entat"on

'3 Strate&y E0aluat"on'3 Strate&y E0aluat"on


3/31


4/31

MISSION Defined

Answers the question What business arewe in? or Why do we exist?

--Customer Needs: What is bein satisfied?--Customer Groups: Who is beinsatisfied?

--Distinctive Competencies: !ow are"usto#er needs bein satisfied?


5/31

$e%si"o &s' (o)e?

* To be the world'spremier consumer

products company

focused on convenient

foods and beverages.

* To Refresh theWorld'''in body+ #ind+and s%irit'

* To nspire !omentsof "ptimism'''throuh our brandsand our a"tions'

* To Create #alue and!a$e a Difference'''e&erywhere weenae'


6/31

,ision State#ents

* uture-oriented. transfor#ati&e

* Mission / what is. &ision / what wi00 be

* (o#%anies #ay ha&e #ission or &ision orboth

* Mission and1or &ision often a""o#%anied

by state#ent of "o#%any &a0ues


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GOALSGOALS

+ a /es"re/ 8uture state t!at a+ a /es"re/ 8uture state t!at a

#o$,any atte$,ts to real"ze.#o$,any atte$,ts to real"ze.

S!oul/ %e1S!oul/ %e1 ,re#"se 4 $easura%le ,re#"se 4 $easura%le

a//ress"n& "$,ortant "ssues a//ress"n& "$,ortant "ssues

#!allen&"n& %ut real"st"# #!allen&"n& %ut real"st"#

set 8or a s,e#"*# t"$e ,er"o/ set 8or a s,e#"*# t"$e ,er"o/

#ons"stent w"t! ea#! ot!er #ons"stent w"t! ea#! ot!er


8/31

e"&!t"n& 6a#tors1 !at to A0o"/e"&!t"n& 6a#tors1 !at to A0o"/


9/31

Ty,es o8 GoalsTy,es o8 Goals

6"nan#"al6"nan#"al Pro*ta%"l"tyPro*ta%"l"ty Re0enue &rowt!Re0enue &rowt! Lon&ter$ s!are!ol/er 0alueLon&ter$ s!are!ol/er 0alue

Custo$erCusto$er Pro/u#t:ser0"#e attr"%utes= relat"ons!",= "$a&ePro/u#t:ser0"#e attr"%utes= relat"ons!",= "$a&e

Internal Pro#essInternal Pro#ess O,erat"ons> #usto$ers> "nno0at"onO,erat"ons> #usto$ers> "nno0at"on

Cor,orate so#"al res,ons"%"l"tyCor,orate so#"al res,ons"%"l"ty Learn"n& 4 &rowt!Learn"n& 4 &rowt!

Hu$an> "n8or$at"on> 4 or&an"zat"on resour#esHu$an> "n8or$at"on> 4 or&an"zat"on resour#es


10/31


11/31

2e&e0s of Stratey 3Orani4ation Stru"ture

* (or%orate Stratey

------5(or%orate !ead Offi"e

*6usiness Stratey------56usiness Di&isions

* un"tiona0 Stratey

------573D+ !7+ inan"e+ O%erations+Mar)etin1Sa0es


12/31


13/31

9x%ansion17etren"h#ent8eneri" (hoi"es

* !ow?

Interna0

9xterna0

A00ian"es

* What?

,erti"a0 interation

!ori4onta0 interation

Di&ersifi"ation: re0ated1unre0ated


14/31

Nest0e;s (or%orate Stratey

* A"quired $urina %et food

*


15/31

Porter-s Gener"#Porter-s Gener"#

Co$,et"t"0e Strate&"esCo$,et"t"0e Strate&"esPur,osePur,ose1 a#!"e0e a%o0ea0era&e lon&1 a#!"e0e a%o0ea0era&e lon&

run ROI 8or your "n/ustry.run ROI 8or your "n/ustry.

Competitive AdvantageCompetitive Advantage Cost Lea/ers!",Cost Lea/ers!",

D"?erent"at"onD"?erent"at"on

Competitive ScopeCompetitive Scope @roa/ Tar&et@roa/ Tar&et

Narrow Tar&et 6o#us:N"#!e3Narrow Tar&et 6o#us:N"#!e3


16/31

Porter-s Gener"#Porter-s Gener"#

Co$,et"t"0e Strate&"esCo$,et"t"0e Strate&"esCompetitive

Advantage/

Scope

Lower Cost Differentiation

Broad Target Cost

Leadership

Differentiation

Narrow Target Cost Focus FocusedDifferentiation


17/31

Tesla Motors !tt,1::www.tesla$otors.#o$:Tesla Motors !tt,1::www.tesla$otors.#o$:


18/31


19/31

Tesla #!1

--O&er


20/31


21/31


22/31

un"tions of (or%orate (u0tureun"tions of (or%orate (u0ture

Con0eys a sense o8 "/ent"tyCon0eys a sense o8 "/ent"ty

Generates e$,loyee #o$$"t$entGenerates e$,loyee #o$$"t$ent

A//s to or&an"zat"onal sta%"l"tyA//s to or&an"zat"onal sta%"l"ty Ser0es as a 8ra$e o8 re8eren#eSer0es as a 8ra$e o8 re8eren#e


23/31

In/ustry Analys"s1In/ustry Analys"s1

Porter-s B Co$,et"t"0e 6or#esPorter-s B Co$,et"t"0e 6or#es

Pur,osePur,ose11 un/erstan/ w!y so$e "n/ustr"esun/erstan/ w!y so$e "n/ustr"es!a0e !"&!er ,ro*t $ar&"ns 4 w!at 8a#tors!a0e !"&!er ,ro*t $ar&"ns 4 w!at 8a#tors

#an #!an&e lon&run "n/ustry ,ro*ta%"l"ty.#an #!an&e lon&run "n/ustry ,ro*ta%"l"ty.

JR"s o8 New EntryR"s o8 New EntryJR"0alry A$on& Esta%l"s!e/ 6"r$sR"0alry A$on& Esta%l"s!e/ 6"r$s

J@ar&a"n"n& Power o8 @uyers@ar&a"n"n& Power o8 @uyers

J@ar&a"n"n& Power o8 Su,,l"ers@ar&a"n"n& Power o8 Su,,l"ers

JT!reat o8 Su%st"tute Pro/u#tsT!reat o8 Su%st"tute Pro/u#ts


24/31

ENTRENTR

@arr"ers@arr"ersJ@ran/ Loyalty@ran/ Loyalty

JA%solute Cost A/0anta&esA%solute Cost A/0anta&es

,atents,atents

a##ess to raw $ater"alsa##ess to raw $ater"als

su,er"or ,ro/u#t"on te#!n"uessu,er"or ,ro/u#t"on te#!n"ues

J

E#ono$"es o8 S#aleE#ono$"es o8 S#aleJGo0ern$ent Re&ulat"onGo0ern$ent Re&ulat"on


25/31

6a#tors A?e#t"n& Intens"ty o86a#tors A?e#t"n& Intens"ty o8

RI;ALRRI;ALRJCo$,et"t"0e Stru#tureCo$,et"t"0e Stru#ture

nu$%er o8 *r$snu$%er o8 *r$s

relat"0e $aret s!arerelat"0e $aret s!are

JDe$an/ #on/"t"onsDe$an/ #on/"t"ons

&rowt!&rowt!

/e#l"ne/e#l"ne

JE7"t %arr"ersE7"t %arr"ers


26/31

6a#tors A?e#t"n&6a#tors A?e#t"n&

@ARGAINING POER@ARGAINING POERJNu$%er o8 *r$s "n %uyer 0s. su,,l"erNu$%er o8 *r$s "n %uyer 0s. su,,l"er

"n/ustr"es"n/ustr"es

JFuant"ty or o8 total or/ersFuant"ty or o8 total or/ers

JSw"t#!"n& #ostsSw"t#!"n& #osts

JStan/ar/"zat"on 0s. s,e#"al"zat"on o8Stan/ar/"zat"on 0s. s,e#"al"zat"on o8

"n,ut"n,utJT!reat o8 0ert"#al "nte&rat"onT!reat o8 0ert"#al "nte&rat"on


27/31

T!e Plast"# @a& Para/o7T!e Plast"# @a& Para/o7S (::29S (::29

2ow(ostSha0e

8as

$o0yethy0ene

#a)ers:9xxon+Dow

(he#i"a0

$0asti"ba#a)ers


28/31

SJ@STITJTESSJ@STITJTES

+ ,ro/u#ts 8ro$ OTHER "n/ustr"es t!at+ ,ro/u#ts 8ro$ OTHER "n/ustr"es t!at

ser0e #onsu$ers- nee/s "n a way t!at "sser0e #onsu$ers- nee/s "n a way t!at "s

s"$"lar to t!ose %e"n& ser0e/ %y yours"$"lar to t!ose %e"n& ser0e/ %y your

"n/ustry."n/ustry.E7a$,le1 #o?ee 0s. tea 0s. so8t /r"nsE7a$,le1 #o?ee 0s. tea 0s. so8t /r"ns

NOTE1 Su%st"tutes are 0ery /"K#ult toNOTE1 Su%st"tutes are 0ery /"K#ult to

$on"tor> %e#ause t!ey #an "n0ol0e$on"tor> %e#ause t!ey #an "n0ol0ete#!nolo&"#al #!an&este#!nolo&"#al #!an&es"n "n/ustr"es t!at"n "n/ustr"es t!at

/"/ not ,ose any t!reat "n t!e ,ast./"/ not ,ose any t!reat "n t!e ,ast.


29/31

T!reat o8 Su%st"tutesT!reat o8 Su%st"tutes


30/31

Co$,any S"tuat"on Analys"sCo$,any S"tuat"on Analys"s

INTERNAL1 Stren&t!s 4 eanessesINTERNAL1 Stren&t!s 4 eanesses *nan#"al ,os"t"on1 relat"0e 4 #!an&es o0er*nan#"al ,os"t"on1 relat"0e 4 #!an&es o0er

t"$et"$e 8un#t"onal #a,a%"l"t"es1 susta"na%le8un#t"onal #a,a%"l"t"es1 susta"na%le

/"st"n#t"0e/"st"n#t"0e

ETERNAL1 O,,ortun"t"es 4 T!reatsETERNAL1 O,,ortun"t"es 4 T!reats /e$o&ra,!"# 4 so#"o#ultural #!an&es/e$o&ra,!"# 4 so#"o#ultural #!an&es e#ono$"# 4 ,ol"t"#al:le&al #!an&ese#ono$"# 4 ,ol"t"#al:le&al #!an&es

"n/ustry 4 te#!nolo&"#al #!an&es"n/ustry 4 te#!nolo&"#al #!an&es


31/31

RECOMMENDATIONSRECOMMENDATIONS

S!"8t 8ro$ Analys"sSynt!es"sS!"8t 8ro$ Analys"sSynt!es"s

Is a 8un/a$ental s!"8t "n strate&yIs a 8un/a$ental s!"8t "n strate&y

reu"re/ or notreu"re/ or not How /o your re#o$$en/at"ons l"neHow /o your re#o$$en/at"ons l"ne

u, w"t! your SOT analys"su, w"t! your SOT analys"s

Is t!"s a 8eas"%le> #reat"0e solut"onIs t!"s a 8eas"%le> #reat"0e solut"on

t!at "s su,,orte/ %y your analys"st!at "s su,,orte/ %y your analys"s

strategicanalysis497 winter 2015 class

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