Strategy Class MBA

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Strategy Class MBA
2012-03-05 01:01:51
Strategy Class MBA

Strategy Class MBA
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  1. Porter's Five Forces
    • Threat of new entrants
    • Threat of substitutes
    • Supplier power
    • Buyer power
    • Competition
  2. Strategically Valuable Resource Tests
    • Inimitability
    • Durability
    • Appropriability
    • Substitutability
    • Competitive Superiority
  3. Total Value =
    WTP - SOC (Supplier Opportunity Cost)
  4. Steps to reinventing your business model
    • 1) Find an opportunity to satisfy a need
    • 2) Create business model
    • 3) Compare model to existing models
  5. Steps to creating your business model
    • Customer value proposition
    • Profit formula
    • Key resources
    • Key processes
  6. Circumstances that require a new business model
    • Opportunity to address new customers (cheap cars)
    • Opportunity to capitalize on new technology
    • Need to fend off low-end distributers
    • Need to respond to shifting competition
    • Opportunity to refocus current model
  7. Characteristics of a winning business model
    • Aligned with company goals
    • Self-reinforcing: virtuous cycles
    • Robust: addresses imitability, holdup, slack, substitutability
  8. Steps to succeeding in competing on business models
    • Create virtuous cycles
    • Weaken competitor cycles
    • Turn competitors into complements
  9. Car analogy
    • Strategy is building and designing the car
    • Business model is the car
    • Tactics are driving the car
  10. Steps to analyzing relative costs
    • Focus on particular product
    • Construct own cost structure for the product
    • Use cost drivers to estimate competition's costs
    • Conduct what-if experiments
  11. Ways to calculate WTP
    • TCO: total cost ownership, best for B2B
    • Attribution valuation: consumer goods or intangible features
  12. TCO calculation
    TCO from competitor's product - TCO from your product
  13. How to estimate demand
    Work backwards from what you need, then see if market is sufficient to support that need
  14. CA and CSR
    A corporate social responsibility activity should also create value for the company
  15. Attributes of a level five leader
    • Humility
    • Professional will
  16. Key jobs of strategic leaders
    • Spot opportunities
    • Act on opportunities
    • Legitimize opportunities to employees and stakeholders
  17. Scale effects vs Network effects
    • Scale effects lower RC
    • Network effects raise WTP
  18. Justifications for CSR
    • Moral obligation
    • Sustainability
    • License to operate
    • Reputation
  19. Cross diagram of Resource Allocation Decisions