Strategy basics competing through strategy
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Strategy involves responding to environmental challenges to compete successfully in the market. It includes a plan and long-term vision. An effective mission statement includes the permanent benefit to stakeholders, the means to achieve it, target audiences, and core values. It should define the company's expertise, promise, and competitive position. Building a strategy requires considering both the external environment including markets, competition, and technology, as well as internal strengths, weaknesses, and structure. A global strategy applies the same concepts on a larger scope.
Strategy basics competing through strategy
- 1. Competing Through Strategy: The BasicsSalvador Trevino-MartinezMarketing And Strategy ProfessorDirector, Institute for the Development of Business Education
- 2. What is StrategyMeans to Achieve an End…A response to environmental challengesA business position to compete successfully in the marketA thinking and decision paradigm to direct a business/organizations effort.2saltrevino@itesm.mx
- 3. Strategy DefinedTwo basic Connotations:Military: two basic purposesTo “defeat” competitionTo “conquer” marketsBusiness:Three elementsPlan (e.g., business plan, strategic planning report)The “management” of strategy: to plan, to organize, to implement/to direct, and to measure/controlLong term mission and vision statements.ToAchieveGoals (and objectives)3saltrevino@itesm.mx
- 4. Building a MissionStatementFourbasicelementsmake up a missionstatementPermanentBenefit PB (tostakeholders)Meanstoachieve PBPublics/Audiences/InterestGroupsPhilosophy and Values4saltrevino@itesm.mx
- 5. PermanentBenefit PBThe core expertise of your businessClear, attractive to your consumers; different (meaning superior) to your competitionThe basic “substance” of your business modelYour competitive/positioning/”niche” positionYour “moral standing” in society A promise you make to your constituencies (stakeholders)5saltrevino@itesm.mx
- 6. FedEx and PBPermanent Benefit: “The world on Time”Product/Solution Translation: “Overnight Delivery”Core Values:Speed, Reliability, and TeamworkSource: http://fedex.com/ie/about/enews/articles/1108article1.htmlHighlights:Business model based on it
- 10. Proving the point…Our Mission Statement We will become the world's most valued company to patients,customers, colleagues, investors, business partners, and the communities where we work and live. Our Purpose We dedicate ourselves to humanity's quest for longer, healthier, happier lives through innovation in pharmaceutical, consumer, and animal health products. To achieve this purpose and mission, Pfizer affirm the values of Integrity, Leadership, Innovation, Performance, Teamwork, Customer Focus, Respect for People and Community. From: http://wiki.answers.com/Q/What_is_Pfizer_mission_statement8saltrevino@itesm.mx
- 11. MissionStatementExamplesMcDonaldsCorporation"McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."PermanentBenefitMeansPhilosophy and Values9saltrevino@itesm.mx
- 12. Two Strategy InputsExternal Environment
- 13. Internal Assets and Liabilities (SWOT) and StructureLawCompetitionMarkets (culture)TechnologyInfrastructureExternal EnvironmentFinance
- 14. H.R
- 15. Marketing
- 17. GLOBAL StrategySame idea of “business response” what global entails is simply put, scopess11saltrevino@itesm.mx
- 18. JolliBeeCase:Wrap Up: Salvador´s Take on the Case…What “lessons can we derive from the Case”What works being small, may not work as large…Evolution of the business implies evolving the organization too… (reinvent ourselves…)professionalize management structure; look for sources of capital (IPO; go-public)bring outsiders (Samurai), Owners; reduce their operational role and become stockholders and members of the board…12saltrevino@itesm.mx
- 19. The tough nut to crack…IT DOES INVOLVE:ABANDON SMALL (PYME)/FAMILY BUSINESS MINDSETS AND ADOPT THOSE OF A CORPORATIONCOMMIT TO GROWING TO FULL POTENTIAL…LONG TERM PERSPECTIVE?13saltrevino@itesm.mx
- 20. THE ISSUES DO WE KEEP/MAINTAIN CORE VALUES AND BUSINESS MODEL? YES AND WHY; NO AND WHY…WHAT IS THE SITUATION IN LATINAMERICA AND OTHER “DEVELOPING/EMERGING” ECONOMIES?WHAT IS THE CORRECT/RIGHT MINDSET?14saltrevino@itesm.mx
- 21. LATINAMERICAN JOLLiBEESA real one…http://www.campero.com/A potential one…http://www.donatota.com/How many more do you know/think could become future LA´s Jollibees???15saltrevino@itesm.mx