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

2.2.1.1. int

2.2.2. market attractiveness

2.2.2.1. ext

3. BM innovation= challenging orthodoxies

3.1. def

3.1.1. design orginal model

3.1.1.1. meet

3.1.1.1.1. 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

3.4.3.1. discovering

3.4.3.1.1. new

3.4.3.1.2. better

3.4.3.2. experiment

3.4.3.2.1. time consuming <-

3.4.3.2.2. crucial

3.5. cus perspective

3.5.1. org centric

3.5.1.1. <- ->

3.5.1.1.1. 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 <--

4.1.1.1. divisional <--

4.1.1.1.1. 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

5.1.1.1. rationale of how

5.1.1.1.1. create

5.1.1.1.2. deliver

5.1.1.1.3. capture

5.1.2. 4 main parts

5.1.2.1. infrastructure

5.1.2.2. offer

5.1.2.3. customer

5.1.2.4. financial

5.1.3. divide 4 ports into 9 blocks

5.1.3.1. customer segment

5.1.3.2. customer relationship

5.1.3.3. Channel

5.1.3.4. Value proposition

5.1.3.5. Key activities

5.1.3.6. Key resources

5.1.3.7. Key Partners

5.1.3.8. Cost structure

5.1.3.9. Revenue stream

5.2. BM design

5.2.1. 6 components of BM design (to explore)

5.2.1.1. 1. cus insights

5.2.1.2. 2. ideation

5.2.1.3. 3. visual thinking

5.2.1.4. 4. prototyping

5.2.1.4.1. for dev fresh, innovative BM

5.2.1.4.2. orgin in design & engineering

5.2.1.5. 5. storytelling

5.2.1.6. 6. scenarios

5.2.2. obj

5.2.2.1. satisfy markets

5.2.2.2. bring new P to market

5.2.2.3. improve market

5.2.2.4. create market

5.3. BM Pattern

5.3.1. def

5.3.1.1. BM with

5.3.1.1.1. similar

5.3.2. Patterns

5.3.2.1. Unbundling BM

5.3.2.1.1. Companies should

5.3.2.1.2. def

5.3.2.2. Longtail BM

5.3.2.2.1. large number of niche products

5.3.2.2.2. (traditional model)

5.3.2.2.3. eg: Amazon, netflix, ebay, youtube, facebook, lulu.com, lego factory

5.3.2.2.4. drivers

5.3.2.3. Multi-sided platforms (business catalyst)

5.3.2.3.1. def

5.3.2.3.2. Product value

5.3.2.3.3. Pipeline vs Platform

5.3.2.4. Free as a BM

5.3.2.4.1. free offer

5.3.2.4.2. pay offer

5.3.2.4.3. eg Model

5.3.2.5. Open BM

5.3.2.5.1. def

5.3.2.5.2. type

5.3.2.5.3. doctrine

5.4. Vision

5.4.1. David

5.4.1.1. what do we want to become?

5.4.2. other author

5.4.2.1. a view on

5.4.2.1.1. society (or)

5.4.2.1.2. market (or)

5.4.2.1.3. mankind (or)

5.4.2.1.4. tech (or)

5.4.2.1.5. competition

5.5. Mission

5.5.1. questions

5.5.1.1. what is our business?

5.5.1.1.1. sustainability, people, planet, profit

5.5.1.1.2. economic-technical part

5.5.1.1.3. other part: your role in society

5.5.1.2. what is our reason for being?

5.5.1.2.1. what is our dream/ what do we want to realize?

5.5.2. essential for

5.5.2.1. establish

5.5.2.1.1. objective

5.5.2.2. formulate

5.5.2.2.1. strategy

5.5.3. reveal

5.5.3.1. what org wants to be

5.5.3.2. whom it wants to serve

5.6. Value Discipline- Generic strategy

5.6.1. Operational Excellence (Efficiency)

5.6.1.1. consistency

5.6.1.2. lower cost structure than rivals

5.6.1.3. cost control

5.6.1.4. streamlined processes

5.6.1.5. lower price

5.6.1.6. SCM

5.6.1.7. No-frills

5.6.1.8. large volumes

5.6.1.9. reliability

5.6.1.10. speed

5.6.1.11. replicable at scale

5.6.1.12. centralization

5.6.2. Product Leadership (Innovation)

5.6.2.1. state of the art of P&S

5.6.2.2. high investment in R&D

5.6.2.3. create new categories

5.6.2.4. performance leadership

5.6.2.5. brand marketing

5.6.2.6. speed to market

5.6.2.7. high margins in short time-frame b4 followers can replicate

5.6.2.8. continual reinvention

5.6.3. Customer Intimacy (Effectiveness)

5.6.3.1. deep understanding of cus needs

5.6.3.2. develop customized P&S

5.6.3.3. unique solutions

5.6.3.4. higher prices

5.6.3.5. close relationship

5.6.3.6. responsiveness

5.6.3.7. high-touch cus service

5.6.3.8. decentralization

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

5.7.1. Vision and strategy

5.7.1.1. Financial

5.7.1.1.1. to succeed financially

5.7.1.1.2. how should we appear to our shareholders?

5.7.1.2. Internal Business

5.7.1.2.1. To satisfy your shareholders and customers

5.7.1.2.2. what business process should we excel at?

5.7.1.3. Learning & Growth (innovation)

5.7.1.3.1. To achieve our vision

5.7.1.3.2. how will we sustain our ability to

5.7.1.4. Customer (/Stakeholders)

5.7.1.4.1. To achieve our vision

5.7.1.4.2. 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. CONCLUSION

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

6.2.1.1. Stra M. process

6.2.1.2. BMC

6.2.1.2.1. SWOT ana (on BM)

6.2.1.2.2. + business environment

6.2.2. 2. SWOT ana: select 5 most * each

6.2.2.1. step 1

6.2.2.1.1. leave out SW not relative

6.2.2.2. step 2

6.2.2.2.1. cluster

6.2.2.3. step 3

6.2.2.3.1. prioritize

6.2.3. 3. Make IFE, EFE and CPM

6.2.4. 4. Make a confrontation matrix

6.2.4.1. how do SW and OT interrelate with each other?

6.2.5. 5. Come up w the issues

6.2.5.1. what are the strategic issues

6.2.6. 6. Define the core problem

6.2.6.1. (try to understand which level you have problem)

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

7.1. Level

7.1.1. corporate strategy

7.1.1.1. where

7.1.1.1.1. on which markets

7.1.1.2. how

7.1.1.2.1. choice how to add value as a firm

7.1.2. marketing strategy

7.1.2.1. where

7.1.2.1.1. which target groups

7.1.2.2. how

7.1.2.2.1. how we position ourselves

7.1.3. marketing instrument strategy (4Ps 7Ps)

7.1.3.1. how

7.1.3.1.1. 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?

7.2.2.1. nature of long term OBJ

7.2.2.1.1. provide direction

7.2.2.1.2. aid in evaluation

7.2.2.1.3. establish priorities

7.2.2.1.4. reduce uncertainty

7.2.2.1.5. minimize conflict

7.2.2.1.6. aid in

7.2.2.2. 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

7.3.1.1. WHERE to deliver value/ compete

7.3.1.1.1. 1. Integration stra

7.3.1.1.2. 2. Intensive stra

7.3.1.1.3. 3. Diversification stra

7.3.1.1.4. 4. Defensive stra

7.3.1.2. HOW to compete

7.3.1.2.1. 1. Porter´s generic strategies

7.3.1.2.2. 2. Value discipline

7.3.2. Suitable strategies

7.3.2.1. WHERE to deliver value/ compete

7.3.2.1.1. stage 1: input stage

7.3.2.1.2. stage 2: matching stage

7.3.2.1.3. stage 3: decision stage

7.3.2.2. HOW to compete

7.3.2.2.1. combine Value discipline & SWOT ana

7.4. Generating stra options

7.4.1. way

7.4.1.1. Stra M. Planning Process

7.4.1.2. via BMC

7.4.1.2.1. Blue Ocean strategy

7.4.1.2.2. what if

7.4.1.2.3. Epicentra

7.4.2. rule

7.4.2.1. 1. must be stra logical

7.4.2.1.1. stra position, portfolio-ana, PLC, VD

7.4.2.2. 2. have a culture fit

7.4.2.2.1. VD, shared values, 7-S model or Porter value chain ana

7.4.2.3. 3. has a solid basis

7.4.2.3.1. data, research, ana

7.4.2.4. 4. give answer to core problem (same level)

7.4.2.5. 5. exclude other options

7.4.2.6. 6. has answer to the WHERE & HOW question

7.5. how to make a choice

7.5.1. suitability

7.5.1.1. the option suits mis, vis?

7.5.1.2. take account of S,W,O,T, stra. issues, key problem?

7.5.1.3. obj achieve w this option?

7.5.2. feasibility

7.5.2.1. fin

7.5.2.1.1. enough fin resource?

7.5.2.2. org

7.5.2.2.1. fit company, culture, reality (realistic)?

7.5.2.3. economical

7.5.2.3.1. match ec ojb?

7.5.2.4. tech

7.5.2.4.1. execution is techly possible?

7.5.2.5. social

7.5.2.5.1. social acceptable?

7.5.2.6. juridical

7.5.2.6.1. no juridical problems to expect?

7.5.2.7. envi

7.5.2.7.1. envi acceptable? harmful? sustainable?

7.5.3. acceptability

7.5.3.1. costs, revenues, profit?

7.5.3.2. risks?

7.5.3.3. * stakeholders

7.5.3.3.1. shareholders

7.5.3.3.2. board of directors

7.5.3.3.3. employees

7.6. what you need

7.6.1. risk calculation

7.6.1.1. scenario ana

7.6.2. cash flow ana

7.6.2.1. fin feasibility

7.6.3. break even ana

7.6.3.1. ROI

7.6.4. org investigation

7.6.4.1. enough resources available?

7.7. conclusion HOW

7.7.1. suffient level/ competent?

7.7.1.1. OX, PL, CI

7.7.2. Excel (future)?

7.7.2.1. 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

10.2.2.1. essential for implementation

10.2.2.1.1. acquiring needed capital

10.2.2.1.2. dev projected fin statements

10.2.2.1.3. prepare fin budgets

10.2.2.1.4. eva worth of a biz

10.2.2.2. decision require fin

10.2.2.2.1. raise capital w stock

10.2.2.2.2. lease or buy fixed assets

10.2.2.2.3. determine an proper dividend payout ratio

10.2.2.2.4. debt vs equity decision

10.2.2.3. EPS/EBIT

10.2.2.3.1. use to determine the break-even point

10.2.2.3.2. too much debt can endanger stockholders´ return

10.2.3. R&D

10.2.3.1. new P

10.2.3.2. improved existing P

10.2.3.2.1. =>effective stra imp

10.2.3.3. 3 main appraches to imp stra

10.2.3.3.1. first firm to market new tech P

10.2.3.3.2. innovative imitator of successful P

10.2.3.3.3. low-cost producer of similar, less expensive P

10.2.4. MKT

10.2.4.1. MKT strategy (per market)

10.2.4.1.1. market segmentation

10.2.4.1.2. targeting

10.2.4.1.3. positioning

10.2.5. Production/Operations

10.2.5.1. log/SCM

10.2.5.2. HRM

10.2.6. MIS

10.2.6.1. 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

11.2.2.1. messy & unpredictable

11.2.2.2. design attitude

11.2.2.2.1. hard to design, easy to choose

11.2.2.3. decision attitude

11.2.2.3.1. easy to desgin, hard to decide which to choose

11.2.2.4. 5 phases

11.2.2.4.1. 1. mobilze (setting the scene)

11.2.2.4.2. 2. understand (immersion)

11.2.2.4.3. 3. design (inquiry)

11.2.2.4.4. 4. implement (execution)

11.2.2.4.5. 5. manage (evolution)

11.2.3. M. multiple BMs

11.2.3.1. integration

11.2.3.1.1. eg SMH (Swatch group)

11.2.3.2. autonomy

11.2.3.2.1. Car2go care rental startup from Daimler

11.2.3.3. seperation

11.2.3.3.1. 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

11.4.1.1. affect org from top-botoom

11.4.2. imple

11.4.2.1. varies

11.4.2.1.1. (among different types & sizes of org)

11.4.3. stra formulation >< stra imple

11.4.3.1. formulation focus: effectiveness

11.4.3.2. imple focus: efficiency

11.4.4. resource allocation

11.4.4.1. 4 types

11.4.4.1.1. fin resources

11.4.4.1.2. physical resoures

11.4.4.1.3. HR

11.4.4.1.4. tech resource

11.4.5. Matching Structure w Stra

11.4.5.1. struc dictate

11.4.5.1.1. how ojb & stra- establised

11.4.5.1.2. how resource- allocated

11.4.5.2. Chandler´s Stra-Struc rela

11.4.5.2.1. new stra is formulated

11.4.5.2.2. struc follows stra

11.4.6. Basic forms of struc (ad, disad for each)

11.4.6.1. functional struc

11.4.6.1.1. group tasks, activities by biz function

11.4.6.1.2. minimize career dev

11.4.6.1.3. leads to short term & narrow thinking

11.4.6.2. divisional struc

11.4.6.2.1. by geo area

11.4.6.2.2. by product

11.4.6.2.3. by cus

11.4.6.2.4. by process

11.4.6.3. Strategic Business Unit struc - SBU

11.4.6.3.1. often require an extra level of M

11.4.6.3.2. role of group vice president can be ambiguous

11.4.6.3.3. planning & control: easy

11.4.6.3.4. accountability: high

11.4.6.4. matrix struc

11.4.6.4.1. depends on both ver & hor flow of authority

11.4.6.4.2. difficult to manage

11.4.6.4.3. suit project culture

11.4.7. Restructuring

11.4.7.1. known as

11.4.7.1.1. downsizing

11.4.7.1.2. rightsizing

11.4.7.1.3. delayering

11.4.7.2. def

11.4.7.2.1. reduce firm size

11.4.7.3. implementation of a stra based on defensive stra position (most of the time)

11.4.8. Re-engineering

11.4.8.1. called

11.4.8.1.1. process M.

11.4.8.1.2. process innovation

11.4.8.1.3. process redesign

11.4.8.2. involve

11.4.8.2.1. reconfigure/ redesign

11.4.8.3. not consequence of defensive stra position

11.4.9. Managing resistance to change

11.4.9.1. greates threat to success of stra imple

11.4.9.2. 3 stra

11.4.9.2.1. force change stra

11.4.9.2.2. educative stra

11.4.9.2.3. self-interest change stra

11.4.9.3. fear of

11.4.9.3.1. economic loss

11.4.9.3.2. inconvenience

11.4.9.3.3. uncertainty

11.4.9.3.4. break in status-quo

11.4.9.4. create a Stra-supportive culture

11.4.9.4.1. 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.