Strategic Management

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Strategic Management by Mind Map: Strategic Management

1. remark BCG

1.1. 1. Focus only on market leader 2. Knowledge market (shares) 3. Relation market share and profitability? 4. Are cash flow decisions. Sometimes strategic choices to maintain a dog. 5. Relation market share and sales can be different.

2. why need to know?

2.1. insight in your stra position

2.2. based on

2.2.1. competitive strength int

2.2.2. market attractiveness ext

3. BM innovation= challenging orthodoxies

3.1. def

3.1.1. design orginal model meet unsatisfied / new/ hidden cus needs

3.2. epicenter

3.2.1. resource driven

3.2.2. offer driven

3.2.3. cus driven

3.2.4. finance driven

3.2.5. multi epicenter

3.3. Team approach *

3.3.1. 1. team composition

3.3.2. 2. immersion

3.3.3. 3. expanding

3.3.4. 4. criteria selection

3.3.5. 5. prototyping

3.4. Tool to help

3.4.1. visual thinking

3.4.2. storytelling

3.4.3. prototyping discovering new better experiment time consuming <- crucial

3.5. cus perspective

3.5.1. org centric <- -> cus centric

3.5.2. -> value proposition

3.5.3. -> distribution channels

3.5.4. -> cus rela

3.5.5. -> revenue stream

4. strategic choice

4.1. operational

4.1.1. functional <-- divisional <-- corporate <--

4.2. (longterm orientation)

5. Current strategy/ Strategic framework (22p)- Vis Mis, Values, Obj, Biz Scope

5.1. Business Model

5.1.1. definition rationale of how create deliver capture

5.1.2. 4 main parts infrastructure offer customer financial

5.1.3. divide 4 ports into 9 blocks customer segment customer relationship Channel Value proposition Key activities Key resources Key Partners Cost structure Revenue stream

5.2. BM design

5.2.1. 6 components of BM design (to explore) 1. cus insights 2. ideation 3. visual thinking 4. prototyping for dev fresh, innovative BM orgin in design & engineering 5. storytelling 6. scenarios

5.2.2. obj satisfy markets bring new P to market improve market create market

5.3. BM Pattern

5.3.1. def BM with similar

5.3.2. Patterns Unbundling BM Companies should def Longtail BM large number of niche products (traditional model) eg: Amazon, netflix, ebay, youtube, facebook,, lego factory drivers Multi-sided platforms (business catalyst) def Product value Pipeline vs Platform Free as a BM free offer pay offer eg Model Open BM def type doctrine

5.4. Vision

5.4.1. David what do we want to become?

5.4.2. other author a view on society (or) market (or) mankind (or) tech (or) competition

5.5. Mission

5.5.1. questions what is our business? sustainability, people, planet, profit economic-technical part other part: your role in society what is our reason for being? what is our dream/ what do we want to realize?

5.5.2. essential for establish objective formulate strategy

5.5.3. reveal what org wants to be whom it wants to serve

5.6. Value Discipline- Generic strategy

5.6.1. Operational Excellence (Efficiency) consistency lower cost structure than rivals cost control streamlined processes lower price SCM No-frills large volumes reliability speed replicable at scale centralization

5.6.2. Product Leadership (Innovation) state of the art of P&S high investment in R&D create new categories performance leadership brand marketing speed to market high margins in short time-frame b4 followers can replicate continual reinvention

5.6.3. Customer Intimacy (Effectiveness) deep understanding of cus needs develop customized P&S unique solutions higher prices close relationship responsiveness high-touch cus service decentralization

5.7. Business Balanced Scorecard Framework (has an economic perspective)

5.7.1. Vision and strategy Financial to succeed financially how should we appear to our shareholders? Internal Business To satisfy your shareholders and customers what business process should we excel at? Learning & Growth (innovation) To achieve our vision how will we sustain our ability to Customer (/Stakeholders) To achieve our vision how should we appear to our customers?

5.7.2. stating obj

5.7.3. tool to see if the company is on track with objectives

5.7.4. use together with vision and strategy

5.7.5. integrate CSR (social, environmental in 4 dimensions)


6.1. drawing conclusions out of situation ana

6.2. 6 steps

6.2.1. 1. List all S,W,O,T out of situation ana Stra M. process BMC SWOT ana (on BM) + business environment

6.2.2. 2. SWOT ana: select 5 most * each step 1 leave out SW not relative step 2 cluster step 3 prioritize

6.2.3. 3. Make IFE, EFE and CPM

6.2.4. 4. Make a confrontation matrix how do SW and OT interrelate with each other?

6.2.5. 5. Come up w the issues what are the strategic issues

6.2.6. 6. Define the core problem (try to understand which level you have problem)

7. generating Strategic options and choice (18) (12)

7.1. Level

7.1.1. corporate strategy where on which markets how choice how to add value as a firm

7.1.2. marketing strategy where which target groups how how we position ourselves

7.1.3. marketing instrument strategy (4Ps 7Ps) how how do we reach this position with instruments 4Ps

7.2. what is a strategy

7.2.1. (A) where are we now?

7.2.2. (B) what is our goal/ objective? nature of long term OBJ provide direction aid in evaluation establish priorities reduce uncertainty minimize conflict aid in SMART

7.2.3. what is the best way to come from A to B?

7.3. Preparations for stra. options

7.3.1. Possible strategies WHERE to deliver value/ compete 1. Integration stra 2. Intensive stra 3. Diversification stra 4. Defensive stra HOW to compete 1. Porter´s generic strategies 2. Value discipline

7.3.2. Suitable strategies WHERE to deliver value/ compete stage 1: input stage stage 2: matching stage stage 3: decision stage HOW to compete combine Value discipline & SWOT ana

7.4. Generating stra options

7.4.1. way Stra M. Planning Process via BMC Blue Ocean strategy what if Epicentra

7.4.2. rule 1. must be stra logical stra position, portfolio-ana, PLC, VD 2. have a culture fit VD, shared values, 7-S model or Porter value chain ana 3. has a solid basis data, research, ana 4. give answer to core problem (same level) 5. exclude other options 6. has answer to the WHERE & HOW question

7.5. how to make a choice

7.5.1. suitability the option suits mis, vis? take account of S,W,O,T, stra. issues, key problem? obj achieve w this option?

7.5.2. feasibility fin enough fin resource? org fit company, culture, reality (realistic)? economical match ec ojb? tech execution is techly possible? social social acceptable? juridical no juridical problems to expect? envi envi acceptable? harmful? sustainable?

7.5.3. acceptability costs, revenues, profit? risks? * stakeholders shareholders board of directors employees

7.6. what you need

7.6.1. risk calculation scenario ana

7.6.2. cash flow ana fin feasibility

7.6.3. break even ana ROI

7.6.4. org investigation enough resources available?

7.7. conclusion HOW

7.7.1. suffient level/ competent? OX, PL, CI

7.7.2. Excel (future)? 1 discipline

8. ability

8.1. formulate and implement

8.1.1. decisions about an organisation’s future direction

8.1.2. on a strategic and operational level

8.1.3. involving a wide scope of business processes.

9. A structured SWOT assessment of your business model yields two results. It provides a snapshot of where you are now (strengths and weaknesses) and it suggests some future trajectories (opportunities and threats). This is valuable input that can help you design new business model options toward which your enterprise can evolve. SWOT analysis is thus a signifi cant part of the process of designing both business model prototypes (p160) and, with luck, a new business model that you will eventually implement.

10. Operationalize the strategy

10.1. achieve through integration cross functional decisions

10.2. issues (has different disciplines)

10.2.1. M.

10.2.2. Fin/Accounting essential for implementation acquiring needed capital dev projected fin statements prepare fin budgets eva worth of a biz decision require fin raise capital w stock lease or buy fixed assets determine an proper dividend payout ratio debt vs equity decision EPS/EBIT use to determine the break-even point too much debt can endanger stockholders´ return

10.2.3. R&D new P improved existing P =>effective stra imp 3 main appraches to imp stra first firm to market new tech P innovative imitator of successful P low-cost producer of similar, less expensive P

10.2.4. MKT MKT strategy (per market) market segmentation targeting positioning

10.2.5. Production/Operations log/SCM HRM

10.2.6. MIS info is the basis

11. Implement the strategies

11.1. David

11.1.1. M. & Operation issues

11.2. Osterwalder

11.2.1. M. multiple BM

11.2.2. BM design process messy & unpredictable design attitude hard to design, easy to choose decision attitude easy to desgin, hard to decide which to choose 5 phases 1. mobilze (setting the scene) 2. understand (immersion) 3. design (inquiry) 4. implement (execution) 5. manage (evolution)

11.2.3. M. multiple BMs integration eg SMH (Swatch group) autonomy Car2go care rental startup from Daimler seperation complete independence of Nespresso SA from Nescafe

11.3. Nature of Stra. Imple

11.3.1. stra imple means ¨change¨

11.4. M. issues

11.4.1. imple stra affect org from top-botoom

11.4.2. imple varies (among different types & sizes of org)

11.4.3. stra formulation >< stra imple formulation focus: effectiveness imple focus: efficiency

11.4.4. resource allocation 4 types fin resources physical resoures HR tech resource

11.4.5. Matching Structure w Stra struc dictate how ojb & stra- establised how resource- allocated Chandler´s Stra-Struc rela new stra is formulated struc follows stra

11.4.6. Basic forms of struc (ad, disad for each) functional struc group tasks, activities by biz function minimize career dev leads to short term & narrow thinking divisional struc by geo area by product by cus by process Strategic Business Unit struc - SBU often require an extra level of M role of group vice president can be ambiguous planning & control: easy accountability: high matrix struc depends on both ver & hor flow of authority difficult to manage suit project culture

11.4.7. Restructuring known as downsizing rightsizing delayering def reduce firm size implementation of a stra based on defensive stra position (most of the time)

11.4.8. Re-engineering called process M. process innovation process redesign involve reconfigure/ redesign not consequence of defensive stra position

11.4.9. Managing resistance to change greates threat to success of stra imple 3 stra force change stra educative stra self-interest change stra fear of economic loss inconvenience uncertainty break in status-quo create a Stra-supportive culture 1. Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection, and socialization 2. Designing of physical spaces, facades, buildings 3. Deliberate role modeling, teaching, and coaching by leaders 4. Explicit reward and status system, promotion criteria 5. Stories, legends, myths, and parables about key people and events

12. Being effective is about doing the right things, while being efficient is about doing things right.