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Strategizing
1. Intro
a. What the organization does to operationalize its mission and vision and achieve specific goals
b. It is a process: the formulation and implementation of strategy
i. The best strategies are numbers driven
ii. It is about choices
c. The pyramid slide
d. The business slide
e. Ike: the plan is nothing, planning is everything
f. Plans break down quickly; UNCERTAINTY
i. June 5; June 6;
ii. Pvt Ryan – land on the wrong beach
iii. Need to consider execution as part of strategy
g. Open systems model of strategizing
h. Inputs; process; output; feedback
i. Input: mission/vision
ii. Process: swot, strategy choice, method of execution
iii. Output Goals and objectives, the plan
iv. Feedback: corporate performance to the plan
i. Hofstra
j. Environment
i. PESTEL
ii. Political: govt support for business; defense; subsidized;
iii. Inactivity; sequestration
iv. Economic: state of the economy – recession, Europe, availability of funds
v. Social: views of product or service, labor force availability and mobility
vi. Technology: rate of change in the industry; lead times; Moore’s Law: number of transistors on a chip doubles every 2 year); what is the state of the art (and can your people support it)
vii. Environmental:
viii. Legal: permitting; global restrictions; tariffs;
k. Inputs:
l. Mission: Vision; Corporate requirements
i. The mission statement provides the true north
m. Process
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i. Understanding what business we are in – the education business; what you are good at and what your sustainable competitive advantage is
ii. And where the opportunities lie/where the threats are
n. Strategy is all about choices
i. What business are we in (corporate)
ii. How should we compete (business)
iii. Deliberate v. emergent strategy
2. SWOT analysis
a. SW: internal focus
i. What are you good at/what business are you in
ii. Core competencies; technology
iii. Resources; capital, p and e, intellectual cap, tangible and intangible
iv. Capabilities; how are the resources deployed; processes; human capital – double loop learning
b. Competitive Advantage
i. What makes your product/service unique
ii. What makes your company unique
iii. Mfg; service delivery; distribution network, people, culture
iv. Market reputation,
3. Opportunities and Threats: Environmental Scanning; industrial analysis
4. Success is the result of leveraging your strengths to take advantage of opportunities – if possible
5. Orneed to overcome weaknesses to take advantage of an opportunity or overcome a threat via a strength
6. Strategies
a. Cost leadership: requires an efficient organization with lower costs than the competition
i. Walmart supply chain e.g. (gamakatsgu hooks); volume buys
1. Price wars
2. Capital investments
b. Differentiation: what makes your product/service different – iphone v android v Samsung
i. About superior products and services – real and perceived
ii. Selling the sizzle
c. Niche focus: very entrepreneurial
d. Hybrid
i. Can it work: depends on the market
e. How to get there: the value disciplines
i. Opex: lean 6 sigma systems; efficiencies; works best with low product mixes; seeks to deliver extremely high quality
ii. Customer intimacy
1. Otd and high quality service
a. Have an intimate understanding of customers requirements
iii. Product leadership
1. Innovation and branding
2. Flexible cultures
f. Need to consider the execution as part of the strategy: how do we do what we want to do
Strategic Risk
g. Key consideration
h. Need to understand and find ways to mitigate
i. Allows to pick up high risk/reward ventures
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