what is strategy
DESCRIPTION
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka CitaTRANSCRIPT
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Chapter 1:
What Is Strategy and Why Is It Important?
Strategic Management: Concept & cases
1. Understand why every company needs a sound strategy to
compete successfully, manage the conduct of its business, and
strengthen its prospects for long-term success.
2. Develop an awareness of the four most dependable strategic
approaches for setting a company apart from rivals and
winning a sustainable competitive advantage.
3. Understand that a company’s strategy tends to evolve over
time because of changing circumstances and ongoing
management efforts to improve the company’s strategy.
4. Learn why it is important for a company to have a viable
business model that outlines the company’s customer value
proposition and its profit formula.
5. Learn the three tests of a winning strategy.
Learning Objectives
WHAT DO WE MEAN BY STRATEGY ?
• What is our present situation?
Evaluate business environment and industry conditions
Current firm‟s financial and competitive capabilities
(strength & weakness)
• Where do we want to go from here?
Creating a vision for the firm‟s future direction
• How are we going to get there?
Crafting an action plan that will get us there
WHAT IS STRATEGY ABOUT?
• Strategy is goal-directed actions to gain and
sustain competitive advantage
• Strategy is all about How:
How to outcompete rivals.
How to respond to economic and market
conditions and growth opportunities.
How to manage functional pieces of the business.
How to improve the firm‟s financial and market
performance.
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What Is Strategy?
Definition: Strategy is the quest to gain and sustain
competitive advantage.
• It is the managers‟ theories about how to gain and
sustain competitive advantage.
• It is about being different from your rivals.
• It is about creating value while containing cost.
• It is about deciding what to do, and what not to do.
• It combines a set of activities to stake out a unique
position.
• It requires long-term commitments that are often not
easily reversible.
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WHY DO STRATEGY ?
• A firm does strategy:
To improve its financial performance.
To strengthen its competitive position.
To gain a sustainable competitive. advantage over
its market rivals.
• A creative, distinctive strategy:
Can yield above-average profits.
Makes competition difficult for rivals.
STRATEGY AND COMPETITORS
♦Strategy is about competing differently from
rivals—
● Doing what they don‟t do or doing it better!
● Doing what they can‟t do!
● Doing that which sets the firm apart and attracts
customers.
● Doing what we should or should not do to produce a
competitive edge.
Identifying a Company’s Strategy—What to Look For
The Quest for Competitive Advantage
• Competitive Advantage
Superior performance relative to competitors
Meeting customer needs more effectively, with products
or services that customers value more highly, or more
efficiently, at lower cost.
Examples: Google, Duke Basketball, Pfizer‟s Lipitor
• Sustainable Competitive Advantage (SCA)
Giving buyers lasting reasons to prefer a firm‟s products
or services over those of its competitors.
STRATEGIC APPROACH CHOICES
Low-cost
provider
Differentiation
on features Focus on
market niche
Best-cost
provider
Building Competitive Advantage
• Higher quality
• Wider product selection
• Added performance
• Value added services
• More attractive styling
• Technological superiority
Eg. Apple, Rolex,
Johnson & Johnson
Better job than rivals of
serving special needs
and tastes of buyers in
the niche.
Eg. eBay (online auction)
McAfee (virus protection)
A cost based competitive
Advantage over rivals
Eg. Walmart, Southwest
Airlines
Match features and
performance of higher-
priced rival brands.
Eg. Target
STRATEGIC APPROACHES
• Building a competitive advantage by:
1. Striving to become the industry‟s low-cost provider
(efficiency).
2. Outcompeting rivals on differentiating features
(effectiveness).
3. Focusing on better serving a niche market‟s needs
(efficiency and\or effectiveness).
4. Offering the lowest (best) prices for differentiated
goods (best-cost provider).
GAINING SUSTAINABLE COMPETITIVE ADVANTAGE
• How to create a sustainable competitive
advantage:
Develop valuable expertise and competitive
capabilities over the long-term that rivals cannot
readily copy, match or best.
Put the constant quest for sustainable competitive
advantage at center stage in crafting your strategy.
Why a Firm’s Strategy Evolves over Time
♦Managers modify strategy
in response to:
● Changing market conditions
● Advancing technology
● Fresh moves of competitors
● Shifting buyer needs
● Emerging market opportunities
● New ideas for improving the strategy
The Evolving Nature of a Firm’s Strategy
• Realized (current) strategy is a blend of:
Proactive (deliberate) strategy elements that include
both continued and new initiatives.
Reactive (emergent) strategy elements that are
required due to unanticipated competitive
developments and fresh market conditions.
1.2 A Company’s Strategy Is a Blend of Proactive Initiatives
and Reactive Adjustments
THE RELATIONSHIP BETWEEN A FIRM’S STRATEGY AND ITS BUSINESS MODEL
Realized
Strategy
Competitive
Initiatives
Business
Approaches
Business
Model
Value
Proposition
Profit Formula
$$$?
BUSINESS MODELS:
• PUTTING STRATEGY INTO ACTION
• How is the firm going to make money to
continue operations?
• What‟s happening now between Microsoft &
Google?
Business models in opposite directions
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Competing Business Models: Google vs. Microsoft
Microsoft
Software
Apps
Online
Search
Operating
Systems
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Small Group Exercise
Given the different business models of
Google & Microsoft
- Microsoft revenues in 2009 were $58.4 B
- (down 3% from „08)
- Google revenues in 2009 were $23.6 B
- (up 9% from „08)
• 1) Is Microsoft in trouble or is this sales downturn just a
result of the recession? Should they change any
strategies?
• 2) 97% of Google‟s revenues is from advertising. Is this
a problem? Should they change any strategies?
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Strategy Across the Levels
• Where to Compete?
Should GE move more
aggressively into the
health care industry?
• How to Compete?
Should GE jet engines
have better fuel efficiency
than Rolls Royce?
• How to Implement?
Should GE human
resources recruit more
science graduates?
• CORPORATE
STRATEGY
• BUSINESS
STRATEGY
• FUNCTIONAL
STRATEGY
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Strategy Formulation and Implementation Across Levels:
Corporate, Business, and Functional Strategy
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IS OUR STRATEGY A WINNER?
Winning
Strategy
The Strategic
Fit Test
The Competitive
Advantage Test
The Performance
Test
WHAT MAKES A STRATEGY A WINNER?
• A winning strategy must pass three tests:
The Fit Test
Does it exhibit dynamic fit with the external and
internal aspects of the firm‟s overall situation?
The Competitive Advantage Test
Can it help the firm achieve a significant and
sustainable competitive advantage?
The Performance Test
Can it produce good performance as measured by
the firm‟s profitability, financial and competitive
strengths, and market standing?
THE ROAD AHEAD
• Strategy is about asking the right questions:
What must managers do, and do well, to make a firm a
winner in the marketplace?
• Strategy requires getting the right answers:
Good strategic thinking and good management of the
strategy-making, strategy-executing process.
First-rate capabilities and skills in crafting and
executing strategy are essential to managing
successfully.
Welcome and best wishes for your success!
STRATEGY IN THE 21ST CENTURY
• Accelerating Technological Change
84 years for half of U.S. families to own a car
28 years for half to own a TV
6 years for an MP3 player
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EXHIBIT 1.5 Accelerating Speed of Technological Change
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STRATEGY IN THE 21ST CENTURY
• Accelerating Technological Change
Why are we seeing this increased rate of change?
What are the strategic implications here?
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Toko Bunga Surabaya
STRATEGY IN THE 21ST CENTURY
• A Truly Global World
BRIC countries have 40% of earth‟s population
IBM has less than 30% of employees in the U.S.
“Bottom of the pyramid” business opportunities
Thomas Friedman-Flat World
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Jual Karangan Bunga
EXHIBIT 1.6 Geographic Sources of IBM Revenues, 2010
Is IBM still a ―U.S. company‖ ?
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Jual Rangkaian Bunga Surabaya
STRATEGY IN THE 21ST CENTURY
• Future Industries
HEALTH CARE
In the U.S., over 16% of GDP and still growing
GREEN ECONOMY
Potentially large growth in energy efficiency and technologies
WEB 2.0
Interactivity and using collective intelligence on the Internet
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