LEVELS OF STRATEGY

1
LEVELS OF STRATEGY

• CORPORATE
• BUSINESS (SBU)
• FUNCTIONAL (OPERATIONAL)

2
GENERIC STRATEGIES
COMPETITIVE ADVANTAGE
Low Cost Differentiation
Cost Leadership
Differentiation
Broad Target
MARKET SCOPE
Differentiation Focus
Cost Focus
Narrow Target
Michael E. Porter, Competitive Advantage
3
CORPORATE STRATEGY

• OVERALL, GRAND STRATEGY
• PORTFOLIO STRATEGY
• BCG MATRIX
• GE BUSINESS SCREEN

4
(No Transcript)
5
(No Transcript)
6
BENCHMARKING

• COMPARE TO BEST IN CLASS
• BASED ON KEY SUCCESS FACTORS

7
Multi-national Strategy
Global Strategy
Transnational Strategy
High
Need for global integration
Multi-domestic Strategy
Low
High
Low
Need for local responsiveness
8
TYPES OF PLANS

• STRATEGIC
• OPERATIONAL
• TACTICAL
• GOALS/OBJECTIVES
• POLICY
• PROCEDURE
• RULE

9
GOAL SETTING
10
SINGLE, SPECIFIC TOPIC

• Not a vague abstraction
• We will maximize profits.
• We will be the best.
• Better We will increase profits by 10.

11
FOCUS ON RESULT,Not on Activity

• Activity will not result in goal
• Example Goal is to increase advertising
  expenditure by 15 in 2000.
• Goal is result of activity
• Better Advertising will be increased by 15 in
  2000 in order to increase market share from 8 to
  10.

12
MEASURE WHEN FEASIBLE

• Must at least be verifiable

13
HAVE A DEADLINE
14
GOALS

• SETTING GOALS
• NETWORK OF GOALS
• MULTIPLE GOALS
• SET PRIORITIES

15
GOALS

• STATED GOALS
• REAL GOALS

16
MBO

• A PLANNING TOOL
• MOTIVATIONAL TOOL
• CONTROL TOOL

17
POLICY

• GUIDELINE TO AUTHORITY
• USE TO DELEGATE AUTHORITY

18
PROCEDURE

• GUIDE TO ACTION
• SERIES OF STEPS
• NO AUTHORITY
• USUALLY A STANDING PLAN

19
RULE

• A REQUIREMENT
• COMMAND TO DO/NOT DO SOMETHING
• NO AUTHORITY, NO DECISION TO MAKE

20
TYPES OF BUDGETS

• CASH
• EXPENSE
• SALES
• CAPITAL EXPENDITURE

21
BASE OF BUDGET

• INCREMENTAL
• ZERO BASE

22
FORECASTING

• QUANTITATAIVE METHODS
• TIME SERIES
• REGRESSION...
• QUALITATIVE METHODS
• JURY OF OPINION
• SALES FORCE COMPOSITION
• CUSTOMER

23
OTHER TYPES OF PLANS

• SINGLE USE
• STANDING
• CONTINGENCY (ALTERNATIVE)
• FLEXIBLE
• DIRECTIONAL
• SPECIFIC

24
SCHEDULING

• GANTT CHART
• LOAD CHART
• PERT

25
OTHER TOOLS

• BREAK EVEN ANALYSIS
• LINEAR PROGRAMMING
• QUEUING THEORY
• PROBABILITY THEORY
• SIMULATION

26
LENGTH OF PLAN

• SHORT TERM
• USUALLY ONE YEAR OR LESS
• LONG TERM
• USUALLY FIVE YEARS
• COMMITMENT CONCEPT
• SUNK COSTS

27
IMPLEMENTATION PLANS

• WHO
• WHAT
• WHEN
• WHERE
• HOW
• SUPPLIERS
• COORDINATION
• WHAT TO MEASURE/CONTROL

28
PLAN OF ACTION OUTLINE

• State Goal
• Way(s) to accomplish it
• Accomplishment interfere with another?
• Date(s) to be finished
• Problems I may encounter/create?
• Suppliers, sources of help
• Coordinate with???
• Things to monitor, measure

29
IMPLEMENT THE PLAN

• ACTION PLANS
• TIME MANAGEMENT
• IMPORTANT TASKS
• URGENT TASKS

30
LEVEL IN ORGANIZATION

• HIGHER LEVEL IN ORGANIZATION
• STRATEGIC
• LONGER TERM
• MORE DIRECTIONAL
• LOWER LEVEL IN ORGANIZATION
• OPERATIONAL, TACTICAL
• SHORTER TERM
• MORE SPECIFIC

31
ENVIRONMENTAL UNCERTAINTY

• MORE UNCERTAIN
• DIRECTIONAL
• SHORTER TERM
• MORE CERTAIN
• SPECIFIC
• LONGER TERM

32
COMPANY LIFE CYCLE

• FORMATION
• MORE DIRECTIONAL
• GROWTH
• SHORTER TERM
• MORE SPECIFIC
• MATURITY
• SPECIFIC
• LONGER TERM
• DECLINE
• SHORTER TERM
• MORE DIRECTIONAL