...Confirming Pages PART 1 SA M PL E C H AP TE R Concepts and Techniques for Crafting and Executing Strategy tho29503_ch01_001-017.indd 1 12/10/12 4:52 PM Confirming Pages WHAT IS STRATEGY AND WHY IS IT IMPORTANT? AP Learning Objectives TE R CHAPTER 1 Learn what we mean by a company’s strategy. LO 2 Grasp the concept of a sustainable competitive advantage. LO 3 Develop an awareness of the four most basic strategic approaches for winning a sustainable competitive advantage. LO 4 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. LO 5 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. LO 6 Learn the three tests of a winning strategy. M PL E C H LO 1 SA Strategy means making clear-cut choices about how to compete. Jack Welch – Former CEO of General Electric If your firm’s strategy can be applied to any other firm, you don’t have a very good one. David J. Collis and Michael G. Rukstad – Consultants and professors One must have strategies to execute dreams. Azim Premji – CEO Wipro Technologies and one of the world’s richest people tho29503_ch01_001-017.indd 2 12/10/12 4:52 PM AP Many factors enter into a full explanation of a company’s performance, of course. Some come from the external environment; others are internal to the firm...
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...Executing IP Strategy with ICM Process Implementation By Bruce Story, Senior Advisor, ipCapital Group Introduction: Background from Dow While leading Intellectual Capital Management (ICM) in the Plastics Business at The Dow Chemical Company, I witnessed the value of having a business-aligned IP strategy, implemented early in the development of a new technology platform. The difference between leaving IP development to the ad hoc process dependent on the initiative of the inventor and using IP strategy to guide R&D and new business development can be immense. The high performance elastomers business platform developed at Dow in the last decade is worth over a billion dollars. With the increasingly global competitive environment, this never would have been sustained without the implementation of an IP strategy that took into account the business strategy, competitors’ patenting strategies, the product value chain, and providing a closecoupling of actionable IP strategy to the R&D staff. Previously, as is common in many companies, the IP strategy was basically a legal strategy for obtaining patents. Dow’s attorneys were very good at getting patents granted. However, the disclosing of inventions was left to the initiative of the inventors who were often too busy with their projects to document their inventions. The “Inventor-of-the–Year” Award went to the inventor who received the most U.S. patents in the previous year. Quantity was being rewarded rather than IP...
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...IT Strategies? A Study on how organizations describe their IT Strategies. Masters Thesis in Business Administration (FED 006) Author Stephen Rupia Lyabandi Executive Summary Title: Do organizations have IT Strategies? A Study on how organizations describe their IT Strategies. Author: Stephen Rupia Lyabandi Tutor: Anders Hederstierna Problem: The research problem of this study is lack of insight on how organizations describe their IT strategies in relation to other strategies. IT strategy continues to be a major challenge for Information Technology intensive organizations and managers. Over the last two decades, the way researchers on information systems have viewed and analyzed IT strategy in organizational systems has not significantly been modified. Recent studies show that one of the main problems is that the concept of IT strategy has been around for nearly two decades and although many organizations have been using it, the meaning and reference of the idea remains elusive. Those who have attempted to define it have not reached an agreement. Purpose: The purpose of this study is to define the problem and explore whether organizations have IT strategies, and how these are describe in relation to other strategies. This research study also investigates how these organizations incorporate IT components into their strategies. Alternatively...
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...Conclusion 8 Introduction To establish strategy is an indispensible part of any organisation. It plays an important role in directing and helping organisation to achieve the objectives. In this context, the strategy is considered as the way which organisations communicate with the competitive landscape to obtain the above average return. Therefore, to build an effective strategy, there is a need for profoundly understanding the competitive environment and estimating correctly the resource of organisation. This essay will examine the role of strategy as a “bridge” in order to assist firms to reach their targets in the competitive landscape. Definition There are many ways to definite strategy, however, it can be found that almost of them accept that ‘Strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage’. (Hitt, Ireland and Hoskinsson 2009). Organisational resources include skills of employees, finances, capital equipments, patents and talented managers (Hit, Ireland and Hoskinsson 2009). Organisation resource is defined as ‘an asset, competency, process, skill, or knowledge controlled by the corporation’ (Wheelen and Hunger 2002). Competitive landscape is more complex in the context of globalisation; however, the fundamental constituents of landscape are customers, suppliers and competitors. Method To prove the ‘bridge’ characteristic of strategy between organisation and competitive landscape...
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...excitement, expostulating about a thick book he held in his hands. “Here it is,” he exclaimed, “it cost $2 million. The best strategy ever! Now the question is, ‘is it implementable?’” We then watch his face fall as, one by one, his executives consider the question and reply “No.” Numerous studies have noted the very weak relationship of strategy formulation to strategy execution. Fortune Magazine stated that “Less than 10% of strategies effectively formulated are effectively executed.” Companies large and small worldwide spend billions of dollars each year on strategy formulation. A search of the World Wide Web using Google™ took less than 1/3 of a second to return more than 1.3 million hits on strategy consulting, ranging from the “Big 6” firms to boutique firms specializing in strategy. Interestingly, a similar search for strategy implementation consulting returned less than 500,000 hits. Even allowing for overlap this is a significant disconnect. If Fortune is correct, only one of ten companies that do an effective job of formulating strategy are doing equally effective jobs of implementing it. For the rest, presumably, the well-crafted strategy is lost in the press of day-to-day tactical concerns or is left to languish in a report on the CEO’s bookshelf. Yet very few people would deny that, in today’s fast-moving fast-changing business world, strategy, with its long-range perspective, is critical. By analogy, if the guidance system on an airplane or ocean liner is not programmed...
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...organizational strategy and shows how competition develops in a new industry. It points out that a distinctive competence (e.g., marketing and distribution) leads to competitive advantage. It demonstrates the importance of using distinctive competences to manage the organizational environment and allows for an evaluation of Bartles & Jaymes’s strategy. The case considers how Gallo Company manages its environment and strategy as the leading wine company in the United States. Teaching Objectives * 1. To analyze the organizational environment. * 2. To show how new industries through new products and how environmental competition changes. * 3. To illustrate the importance of developing a distinctive competence to compete in an industry * .4. To demonstrate how strategy develops from a distinctive competence and how firms use their strengths to manage the industry environment. * 5. To show how vertical integration helps defend competitive advantage and manage the environment. This case offers insights into many organization-environment issues It shows how a strategy evolved into a new industry. Gallo Brothers introduced a new product—a wine cooler—through a new subsidiary, Bartles & Jaymes, which became the market leader. The parent company’s strategy helped the new subsidiary’s strategy, increasing its competitive advantage. The case clarifies competition issues in the industry environment Pop Quiz Questions1. What corporate-level strategy contributes...
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...of theories in strategy Corporate strategy; where to compete, portfolio, parent level Competitive strategy; how to compete, SBU, competitive advantage Three layers of theory: management – strategic management – economies Paradox: how is it possible to have a general statement about uniqueness? We try to have general statements about uniqueness. Theory=general statement about cause and effect Stoelhorst, J.W. (2008), Thinking about Strategy Stoelhorst: 5 Schools of thought about strategy • Prescriptive schools: ○ 1960s: Design school (strategy formulation) ○ 1970s: Planning school (strategy formulation) ○ 1980s: Positioning school (strategic analysis) ○ 1990s: Resource-based school (strategic analysis) • Descriptive school: ○ 1980s onwards: Process school Design school: Strategy formulation is a process of conception The CEO formulates a clear, simple, and unique strategy (business policy) through a deliberate process of conscious thought. There should be a fit between a firm’s strengths and weaknesses and external opportunities and threats (SWOT analysis). Strategy formulation and implementation are clearly separate activities. Planning school: Strategy formulation is a formal process Strategy formulation takes...
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...STRATEGY 1 The planning process 1 Position analysis 2 Product Life Cycle 4 Internet strategy 6 Pricing 9 Mergers and acquisitions -- Strategic aspects 16 Strategy THE PLANNING PROCESS There are 2 theories about where the planning process should start: Accountancy led Where objectives are set independently of the environment - i.e. road works need to be done on the M5 at some stage, therefore we will do them even if it is the August Bank Holiday. This is often production rather than market led. Marketing led Where the starting point is reached only after the environment is well known. By knowing the market, planning ^ have a better basis. Prior to doing any planning we need to know: • Who we are: the Mission Statement and defining SBUs may help here • Where we are: where all the various position analysis tools can be used Alternatively, The Chaos Theory advocates assume that all planning is nonsense: no matter how much planning is done. something will go wrong. The Mission Statement To give direction during the planning process, an underlying mission statement is often used The mission statement, in simple terms, tells the world who we are and what we are striving to do. It can, therefore, be a motivational statement for the benefit of employees or a marketing...
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...business’ growth, profitability and competitiveness. Since intangible assets usually created by a company that use it. In other words, it is usually based on a company’s products, long-term goals, management and culture. And hard for competitors to imitate, which makes them a powerful source of sustainable competitive advantage1 . Before we get in field of how to use intangible assets, we need to know how to measure intangible assets, and embed it in the context of the strategy the company is pursuing. Most identifications do coverage on the “immaterial” aspect of these assets, they have neither physical substance nor specific monetary value, yet they significantly contribute to value creation for a business. Furthermore, three components are generally recognized: Human Capital, Information Capital and Organization Capital. Only when the intangible assets closely related to a company’s strategy, then these will create value for the company. Here is a importance questions: how to know whether these assets and your strategy is perfect fit? Having all of the best skills, talent, and knowledge employees will make sure that they will formed a high efficiency team? Will using the most advanced information systems, networks, databases and networks guarantee that they provide the best data you need? As not everyone is suitable for driving the fastest car, when you lack the necessary training , the car may be out of control and you get hurt. It reminds me of a game experience when i was a...
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...1. Explain the terms of organizational strategy and strategic management? Ans; Strategic management is a way in which strategists set the objectives and proceed about attaining them .It deals with making implementing decision about future direction of in an organization. It helps us to identify the direction in which an organization is moving. It is continuous process that evaluates control the business and industries in which organization is involved. 2. Organization strategy is the strategy that concerned with your business creating a good value in eyes of your customers and making a strong position in the market. It describes the long term outlook for business and defining new technology and economic conditions. It can also be defined as knowledge of the goals, the uncertainty of event and need to take into consideration or actual behavior of others. 2. Describe the types of strategy in terms of organizational planning and development? Ans: : The types of strategy in terms of organizational planning development are following: * Corporate strategy: Corporate strategy is term which is used to combine or acquire with some other company. * Operational strategy: It is the term used by the area manager’s to give some instructions to the managers to sort out the problems within the organization. * Business strategy: it is the term used to enlarge our business ion the market by introducing new products and by god management skills. * Price...
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...The Grand Strategy of the United States by R.D. Hooker, Jr. INSS Strategic Monograph Institute for National Strategic Studies National Defense University The Grand Strategy of the United States R.D. Hooker, Jr. INSS Strategic Monograph National Defense University Press Washington, D.C. October 2014 Opinions, conclusions, and recommendations expressed or implied within are solely those of the contributors and do not necessarily represent the views of the Defense Department or any other agency of the Federal Government. Cleared for public release; distribution unlimited. Portions of this work may be quoted or reprinted without permission, provided that a standard source credit line is included. NDU Press would appreciate a courtesy copy of reprints or reviews. Cover: President Barack Obama and Vice President Joe Biden meet with members of the National Security Council in the Situation Room of the White House hours before his national address, September 10, 2014 (The White House/Pete Souza) First printing, October 2014 Contents The Roots of American Grand Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A Century Like No Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The Ends of Grand Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 The Means of Grand Strategy. . . . . . . . . . . . . . . . . . . . . . . . . ...
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...Thompson−Strickland−Gamble: Crafting and Executing Strategy: Concepts and Cases, 16th Edition I. Concepts and Techniques for Crafting and Executing Strategy 1. What Is Strategy and Why Is It Important? chapter one © The McGraw−Hill Companies, 2008 1 What Is Strategy and Why Is It Important? Strategy means making clear-cut choices about how to compete. —Jack Welch Former CEO, General Electric A strategy is a commitment to undertake one set of actions rather than another. —Sharon Oster Professor, Yale University The process of developing superior strategies is part planning, part trial and error, until you hit upon something that works. —Costas Markides Professor, London Business School Without a strategy the organization is like a ship without a rudder. —Joel Ross and Michael Kami Authors and Consultants Thompson−Strickland−Gamble: Crafting and Executing Strategy: Concepts and Cases, 16th Edition M I. Concepts and Techniques for Crafting and Executing Strategy 1. What Is Strategy and Why Is It Important? © The McGraw−Hill Companies, 2008 anagers face three central questions in evaluating their company’s business prospects: What’s the company’s present situation? Where does the company need to go from here? How should it get there? Arriving at a probing answer to the question “What’s the company’s present situation?” prompts managers to evaluate industry conditions and competitive pressures, the company’s current performance and market standing, its resource strengths...
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...India Introduction Fast Food Industry Overview India is blessed with one of the fastest growing fast food market of the world. It is estimated to be nearly worth of 41.3 billion USD and it is a healthy growing industry at a compound annual growth rate (CAGR) of 11%. The Organized Food Service Industry is worth $13.79 bn (approx. 33% of total Indian Food Service Industry), which is growing towards at 17%. (Industry report 2014) By year 2017 this bench marks will reach by other category, like as follows: (Ref) Category | Current Market Share | Compound Annual Growth Rate (CAGR) | Expected Market Share by 2017 | Organized | 30% | 12-14% | 45% | Unorganized | 70% | 8-10% | 55% | In present situation Indian GDP is around 6 % for last couple of years. As a result there is a significant numbers of monthly disposable Income are growing gradually. Now a day people of India spend on eating outside almost Rs.33, 000 Crore according to the size of the market. Some recent research study is expected this growth will reach US$68 billion by 2018. (Ref) On the other side delivery segment is an integral part of the Indian Food Service segment. The size of Organized Indian QSR delivery market is US$0.62 billion, growing at a healthy CAGR of 20% and is expected to reach US$1.1 billion by 2017-18. (Ref) In major cities comprise of large workplace clusters and high density residential areas people and young Indian consumers are highly price sensitive, through online they compare the...
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...integration of resources to implement successful strategy and how our division contribute to achieve overall company’s goal. Since, our company is leading Project Services/Consulting provider and one of reputed name in its market segment, so obviously it has long term prospect, Appendix – 2 provide our vision, mission and core value/differentiator About Strategy: To achieve desire prospect/goal (Appendix - 4), Company need to set a course of action plans at each level and throughout till successfully execution of decided plan - Strategy. In other word, Company start this process by thinking about Strategy one side and do analysis its internal and external environment (Appendix – 3) another side, after analysing it focus on core competencies which gives competitive advantage (differentiator) to support strategy to be formulate. Strategy formulation then turns into communication, implementation and monitoring phase, where management set performance based goals (see Appendix - 4) for each business units, departments and employee. Continuous monitoring of internal resources and external environment is extremely required, as todays globalization has ability to change thing very quickly, moreover monitoring is major part of establishing and successfully executing the strategy. (Appendix – 1) Example: To achieve company’s overall goal, our department – project accounting plays a key role to support it. As per above strategy formulation and management process, departments...
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...Knowledge Objectives * central concepts in competitive strategy * strategy frameworks for internal and external analysis * key issues in competitive strategy formation and implementation Skill objectives * ability to apply the concepts and theoretical frameworks to real-life business cases * ability to analyse the sources of firm's competitive advantage * ability to understand how to sustain the competitive advantage over time * ability to analyse the industry structure and evolution, and appraise its influence on profitability * ability to understand how to develop firm's resources and capabilities LEARNING OUTCOMES By the end of this course, students will have developed a more complex and nuanced view of competitive strategy. In particular students will be able to: * decode the complexity of firms' internal and external environments in terms of the strategic concepts and frameworks * analyse and appraise firm's strategic positioning, resources and industry structure * recognise key challenges in strategic analysis, strategy formation and implementation * critically evaluate the implications of strategic decisions on firm boundaries, future opportunities, and competition The group presentations are available for anyone to watch. The link is: * www2.warwick.ac.uk/fac/soc/wbs/central/elearning/projects/strategy_analysis_and_practice * The password is: SAP What is Strategy? The choice of a future for the company and of a way...
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