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Business Strategy Session 2
POSITIONING BASED VIEW (PBV) WHERE AND HOW SHALL WE COMPETE? RESOURCE BASED VIEW (RBV) WHAT SORT OF ORGANISATION SHOULD WE BE? IN ORDER TO ACHIEVE  SUSTAINABLE COMPETITIVE ADVANTAGE
Stick to the knitting Exploit what you know Meet current customer needs Plan Demand accountability Process and Structure Systems Dream of opportunity spaces Explore what you don’t know (you don’t know) Anticipate future needs Learning and Emergence Freedom and Flexibility Unstructured Interaction EFFICIENCY CREATIVITY
SWOT BOX OPPORTUNITIES THREATS STRENGTHS WEAKNESSES
OPPORTUNITIES AND THREATS STRENGTHS AND WEAKNESSES ARE INTERNAL EXTERNAL
OPPORTUNITIES AND THREATS ARE EXTERNAL TO THE COMPANY AND COME FROM ….. CHANGES IN THE PEST FACTORS
PEST(EL) P OLITICAL E CONOMIC S OCIAL T ECHNOLOGICAL ENVIRONMENTAL  LEGAL
THE ONLY USE OF THE WORD SUSTAINABLE IN MANAGEMENT IS WHEN IT GOES IN FRONT OF THE WORDS ‘COMPETITIVE ADVANTAGE’ TODAY BUSINESS SUSTAINABILITY IS THE  OPPORTUNITY  FOR BUSINESS TO IMPROVE ITS PROFITABILITY, COMPETITIVENESS, AND MARKET SHARE WITHOUT COMPROMISING RESOURCES FOR FUTURE GENERATIONS.  YESTERDAY
POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL ECOLOGICAL
POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL ECOLOGICAL PETE’S PEST
 
FROM THE ENDGAME BACKWARDS
TIME HORIZON EXTERNAL FOCUS INTERNAL FOCUS PAST LONG-TERM FUTURE CURRENT PRACTICE CHAMPIONS PRACTICE
FROM ‘FIT’  WITH OUR EXISTING RESOURCES WHAT OPPORTUNITIES ARE THERE? STRENGTHS OPPORTUNITIES
TO ‘STRETCH’ OPPORTUNITIES STRENGTHS GIVEN THE OPPORTUNITIES HOW COULD WE  S T R E T C H  OUR RESOURCES TO PROFIT FROM THEM?
INNOVATION GLOBALISATION
Visionary AND Practical
100 YEARS AGO NO… AUTOMOBILE  AVIATION MUSIC RECORDING PETROCHEMICALS PHARMACEUTICALS INDUSTRIES
30 YEARS AGO NO… MOBILE PHONES EXPRESS PACKAGE DELIVERY HOME COMPUTERS MUTUAL FUNDS
5 YEARS AGO NO… WIRELESS HOTSPOTS CAMERAPHONES RFID TAGS DECODED GENOMES
WHAT INDUSTRIES WILL BE IMPORTANT BY THE END OF YOUR WORKING LIVES THAT DON’T/ (HARDLY) EXIST? NANOTECHNOLOGY NEUROTECHNOLOGY SOLAR PHOTOVOLTAICS NON INVASIVE DIAGNOSTICS HUMAN/ANIMAL HYBRIDISATION
PROBABLY NOT… TELEPORTATION FASTER THAN LIGHT TRAVEL INTERDIMENSIONAL WORMHOLES TO PARALLEL UNIVERSES ALIEN/HUMAN HYBRIDS
DEVELOP A NEW PRODUCT/SERVICE HELP START A NEW INDUSTRY START A NEW COMPANY IN AN EXISTING INDUSTRY
‘ The point is not only to understand the world, but to change it’ Karl Marx
The bottom of the Pyramid Web 2.0/3.0 Eco-entrepreneurship
Per Capita Income >$30000 296 million >$10000 723 million >$4000 2,397 million 2,692 million
THE ISLAND OF CONSUMERS THE SEA OF NON-CONSUMERS
Deforestation
Topsoil erosion
Water shortage Sana’a (capital of Yemen) waterless by 2010 Quetta (capital of Baluchistan) dry by 2020 Beijing fresh water now 1 mile underground
Depleted fisheries
DEEP ERRORS OF CLASSICAL ECONOMICS (Number 1) Price goes up
Message to trawler owners Invest in bigger trawlers, larger nets, deeper sea technologies.
Markets don’t tell the ecological truth Deep mistakes of classical economics (number 2)
Desertification Within 1 hour’s drive of Teheran 88 villages have been lost to the desert
Deteriorating rangelands
Vanishing coral reefs
1903 2007 Melting glaciers
Flooding
Reducing biodiversity
Waste mountains
 
 
 
Designtex Rohner Textile Gmbh
 
This leading U.S. commercial fabric firm teamed up with a textile mill in Switzerland and McDonough-Braungart to design and produce an upholstery fabric so toxin free that the local garden club uses factory trimmings as mulch. When Swiss inspectors tested the mill's effluent, they thought their instruments were broken-the water leaving the factory was as clean as when it entered.   All waste that isn’t food represents a serious design failure
‘ Our vision for the future is zero-emissions driving’ Norbert Reithofer CEO BMW 27 th  Sept 2007 Boring.  Yawn ‘ FIT’ STRATEGY
Our vision for the future is positive emissions driving……… The nutri-car ‘ STRETCH’ STRATEGY
CAPTURES WATER VAPOUR STORES NITROUS OXIDE FOR USE AS FERTILISER STORES CARBON AS CARBON BLACK TIRES ATTRACT AND CAPTURE HARMFUL AIRBORN PARTICLES
Nutrishoes
Nutri……..?? Paint Cans
Before opening it checks my blood sugar/alcohol level and DNA for warning signs. Plays short movie with sound (and advert) after opening Absorbs toxic particulates and renders them harmless Solar powered heat exchanger cools can in sunlight Dissolves when empty Printed RFID tag
Nutri-Missiles
CREATING A GLOBAL ECONOMY THAT IS  ECOLOGICALLY SUSTAINABLE REPRESENTS THE GREATEST INVESTMENT OPPORTUNITY…….PERHAPS EVER. Much too important to be left to either the Treehuggers  or  ‘Suits’
Per Capita Income >$30000 296 million >$10000 723 million >$4000 2,397 million 2,692 million + eco-entrepreneurship
3 billion people cook indoors with biomass fuels – wood, dung etc. 1.6 million premature deaths per annum Destroys trees and other ground cover promoting erosion and flooding
SOLAR COOKERS
Deforestation
Accsys plc Softwoods with the properties of Hardwoods
Water shortage Amiad Filtration plc Hydro International plc
Family of 5 produce 250 litres of body wastes per annum Which takes 150,000 litres of clean water to get rid of…
Composting toilets
 
McDonough and Braungart Major soap manufacturer trying to penetrate the Indian market ‘ You’ve been asking for many years about what your potential customers and consumers want – we want to ask the question: What does the river want?’
THE OLD PARADIGM:  CRADLE TO GRAVE THE NEW PARADIGM: CRADLE TO CRADLE
 
Powerfilm GERMANY CREATED 250,000 JOBS LAST YEAR IN RENEWABLE ENERGY
Vestas – world’s largest wind turbine manufacturer
 
RESOURCE FULNESS NOT  RESOURCES
PORTER’S 5 FORCES BARRIERS TO ENTRY INTENSITY OF COMPETITIVE RIVALRY AVAILABILITY OF SUBSTITUTES POWER OF SUPPLIERS POWER OF BUYERS
BARRIERS TO ENTRY CAPITAL REQUIREMENTS ACCESS TO DISTRIBUTION CHANNELS BRAND STRENGTH TECHNICAL KNOWLEDGE INNOVATIVENESS MANAGEMENT COMPETENCE
EXISTING NEW MARKETS PRODUCTS EXISTING NEW THE ANSOFF MATRIX MARKET PENETRATION MARKET DEVELOPMENT PRODUCT DEVELOPMENT DIVERSIFICATION

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Strategy07 Session2