Ashley Burnett

1
OverviewStrategy A View From The Top

• Ashley Burnett
• Shawn Buck
• Whitney Horton
• Kelly Riester
• Jennifer Shotts
• Sam Snelling
• Mickea Smith

2
Strategy

• Strategy is about positioning an organization for
  a competitive advantage
• Good strategies
• Reflect a companys clear strategic intent
• Have a deep understanding of a companys core
  competencies
• Create the best value
• Strategies are not all planned
• Many things can change as the plan is
  implemented.
• Important to be open-minded and realize that many
  factors can influence and change intended strategy

3
Vision and Mission Statements

• Vision Statement a road map for upper
  managements long run goals for their
  organization. Inspirational image that will be
  remembered and become synonymous with your
  establishment
• Frames a companys strategic focus on the future
• Expresses core competencies used or needed to
  attain goals
• Mission Statement Purpose for an organizations
  existence
• A guide for management to use to reach their
  goals
• Important values and ethics that are essential to
  the company

4
The Importance of Stakeholders

• Stakeholders include partners, suppliers, and
  even competitors
• Internal stakeholders include employees,
  managers, top executives, and directors
• Motivating these stakeholders is vital companies
  greatly rely on them to supply their customers
  with value
• A mistake with any stakeholder can affect a
  company for years
• Stakeholders have different types of stakes held
  with a company
• Formal, Economic, or Political

5
Four Primary Practices

• Strategy
• Must be clear
• Focus on growth
• Focused value proposition
• Execution
• Exceed customer expectations
• Increase productivity
• Identify most important processes to customer
  needs
• Culture
• Encourage outstanding contributions
• Look outside the industry for competitors
• Structure
• Too great a focus on protocols and procedures can
  impede progress
• Successful companies try to eliminate unnecessary
  bureaucracy

6
Product Life Cycle Model

• Definition Based on the theory of diffusion of
  innovations and its logical counterpart and the
  pattern of acceptance of new ideas
• The model states that industry passes through
  stages
• Introduction
• Growth
• Maturity
• Decline
• These stages are defined by changes in the rate
  of growth of industry sales

7
Ratio Analysis

• Financial Ratio Analysis
• Can provide a quick overview of a companys or
  businesses units current or past profitability,
  liquidity, leverage, and activity
• Profitability Ratios
• Measures how well a company is allocating its
  resources
• Liquidity Ratios
• Focus on cash flow generation and a companys
  ability to meet its financial obligations
• Leverage Ratios
• May suggest potential improvements in the
  financing of operations
• Activity Ratios
• Measure productivity and efficiency

8
Profit Impact of Market Strategy (PIMS)

• Was developed with the intention of providing
  empirical evidence of which business strategies
  lead to success, within particular industries.
• Seeks to answer three basic questions
• What is the typical profit rate for each type of
  business?
• Given current strategies in a company, what are
  the future operating results likely to be?
• What strategies are likely to help improve future
  operating results?
• Six Major Findings
• characteristics of the business environment
• competitive position of the business
• structure of the production process
• how the budget is allocated
• strategic movement
• operating results.

Source Wikipedia
9
Value Disciplines

• The different ways a company can create value for
  customers
• Choosing a value discipline and focusing on it
  sharpens a companys strategic focus
• Three different value discipline strategies
• Product leadership
• Operation excellence
• Customer intimacy

10
Business Models

• Creating an effective model requires a clear
  understanding of how the firm will generate
  profits and the strategic actions it must make to
  succeed over the long term
• Is a critical part of formulating a business unit
  strategy
• The two most important productive questions asked
  of executives
• What is our business model?
• How do we make a profit?

11
Business Unit Strategy

• In order to identify a clear business unit
  strategy, a company must analyze the industry
  characteristics in which it will be competing
• First, we look at three contexts that relate to
  the various evolutionary stages of an industry
• Emerging
• Growth
• Mature
• Decline
• Next, we discuss three industry environments that
  pose a unique strategic challenges
• Fragmented
• Deregulating
• Hypercompetitive

12
Global Strategy Formulation

• Going Global
• Gradual process
• Core competencies, mission, structure, culture,
  and processes of international corporations
  evolve in the creation of global corporations
• Truly global strategies are extremely rare
• To create a vision, a company must accurately
  define what globalization means for its
  particular business
• Each company and industry will have very
  different requirements for global success
• Four Types of Global Strategy Formulation
• Multinational
• International
• Global
• Transitional

13
9 Laws of Globalization

• Size means scrutiny
• Cutting costs raises compliance risk
• Strategy must involve society
• Reducing risks means building trust
• Satisfying shareholders means satisfying
  stakeholders
• Global growths requires global gains
• Productivity requires sustainability
• Differentiation relies on reputation
• Good governance needs good representation