Strategic Alignment

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Session 7. Strategic Alignment
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We look at alignment several ways. Today we will
focus on identification of assumptions about the
environment that should influence our choice of
strategies. Then we look market growth and market
share issues that also should influence our
choice of strategies.
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Key assumption about the environment.
What areas should we consider? What assumptions
would be appropriate for us to make?
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Note we then (see q 1) ask you to reflect on
your organizations current ability to meet
this assumption. Are they aligned well or are
there some things that might hurt them or help
them better than others in this industry? (this
is col 3 of q 1)
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Next we, look at location on the BCG and PLC
PLC is the product (or in this case) industry
life cycle BCG is the Boston Consulting Group
Matrix.
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Next we develop strategies to direct the means to
reach the objectives, that is, how are we to
reach the objectives
To help people understand the types of strategies
that can be used to meet a particular goal, I
have set up a set of generic strategies
which appears on the session notes.
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The second set of generic strategies on the
web are based on the environmental conditions
that can influence the course we chart
for the organization
I can fly!
Titanic
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The following provides some samples of generic
strategies that might give direction to the
organization.....
But, the smart organization goes beyond these
considerations
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What sorts of environment conditions influence
goal /strategy choice?

• 3 concepts apply here
• PLC location
• BCG location
• Hostility/control issues

picking strategies from these lists would
make your justification of strategies easier.
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The Product Life Cycle (PLC)
Maturity
Replacement Market
Shakeout
Decline
Above 10
Product death
Inflection point
Intro
Growth
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Pg. 215 in text
BCG
?
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Market growth rate
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or cash trap
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75 market share of nearest rival
1000 1.0
.10
Market share
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Lets see how companies have an understanding of
the environment their own S W.
For Coke, what were the external opps
threats and what were their strategies to
meet those O T?
For Ford, what were the external opps
threats and what were their strategies to meet
those O T?
For Ben Jerrys same as well
Video
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In-Practice Lets try this out for an industry
or two Calculate your industrys growth rate for
some current years. Where is that on the PLC Now
for the BCG matrix.. Calculate the relative
market share for each company Now plot them on
the BCG matrix.