__ Strategy as developing and sustaining a niche or a competitive/distinctive advantage:
__ Strategy as a number of Ps: _ Plan _ Process _ Pattern (as a stream of decisions) _ Ploy
__ Strategy as redefinition of an organization or an aspect of its operation
__ Strategy as a bridge between organization and environment
__ Strategy as a major decision: Strategy vs. Policy
Generic Strategies _ Porter’s 5 Generic Strategies of: a) Cost Leadership b) Product/Service Differentiation c) Focused Cost Leadership d) Focused Differentiation e) Integrated Cost Leadership & Differentiation
(all implemented via Value Chain)
_ Product and Market Strategies of: a) Product Development b) Market Development c) Market Penetration
_ Retrenchment and Defensive Strategies of: a)Divestiture/Spin off b)Liquidation c)Lay off/down sizing d)Restructuring
_ Prospective/Offensive Strategies of: a)Innovation and R&D b)First Mover (Second Mover)
_ Strategic Alliances of: a)Merger and Acquisition b)Joint Venture c)Strategic Cooperation
_ Integration/Outsourcing Strategies of: a)Vertical (forward and backward) strategies
_ Diversification Strategies of: a) Conglomerate Diversification
d) Concentric Diversification
Internal Analysis of Organization Organizational Goals/Mission Statement Organizational Culture Internal Resources via Functional Areas Analysis
_ Production/Operations Management
_ Human Resources
_ R&D Political Realities ________________________________________ Sum of Internal Analysis: Identifying the Critical Resources of the Firm and Recognizing the Strengths and Weaknesses of the Firm.
Elements of Mission Statement
Profitability, Growth and Survival
Philosophy and Values
Self Concept (factual)
Desired Public Image
Example of a Mission Statement:
A set of values, beliefs a practices that are shared over an extended period of time by organizational members.
Culture vs. Cultures vs. Sub-Cultures vs. Counter-Cultures
Sources/Generators of Organizational Culture:
* Values, Beliefs and Visions of Founders and/or Leaders of an Organization. * Organization’s History * Organization’s Design and Structure (Centralization, Formalization and Complexity): How much participation does it produce and sustain? * REWARDS – “You Reap What You Sow”, On the Folly of Rewarding A while Hoping for B! * Verbal Practices: Talks and their Subject(s), Titles, References, Lingo, Emphasis, Stories, Legends, Rationale. Listen and Learn. The talk culture. * Non-Verbal Practices: Events, Ceremonies, Colors, Physical Conditions, Rituals, etc.
Sum-Up Culture: e.g., work hard, play hard. Business vs. Artistic culture, etc.
Functional Resouces/Capabilities Functional Resources/Capabilities: Financial: Essential Tools: Financial Statements, Budgets and Ratios. Where to Borrow From? -- Owners (e.g., via retained earnings, common stocks) -- Long Term Creditors (e.g., Long Term Notes) -- Short Term Creditors (e.g., Commercial Banks) Investment in Fixed Assets: