Strat 2

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Strat 2
2013-07-14 13:10:17

Strat 2
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  1. Business
    • social technological entity founded to create user value in exchange for stakeholder value
    • -any factors contributing to creation and realization of value could be competitive advantage or disadvantage
  2. Core Competencies
    • -major competitive factors through which a business can develop the biggest competitive advantages over its competitors
    • -most reliable and endurable sources of competitive advantages that a business maintains
    • -Contribute most to value creation/profitability
    • **a sound strategy should be able to develop and manipulate core competencies**
  3. Determining Competitive Advantages
    determined by company itself, competitors, or customers
  4. Internal Determinants of Comp. Advantages
    • 1)Identify Strengths/weaknesses of firm
    • 2)Find an environment for firm to transform strengths into core competencies
    • 3)Select a strategy to explore external opportunities w/ core competencies
    • 4)Implement strategy to earn Long-term positive returns
  5. External Approach:locating fitting environment
    • 1)find attractive environment
    • 2)Develop core competencies that fit opportunities
    • 3)Develop strategy to explore external opportunities with core competencies
    • 4)Implement strategy to earn long-term return
  6. Integrating Core Competencies and External Environments
    • -Core competencies of firms are environment dependent
    • -Successful strategic planning is the manipulation of various competencies in appropriate environments
  7. Vision
    • Where a company wants to go and what it wants to achieve
    • Ex: every home will have a computer
  8. Mission
    • what a firm will do to realize the goal dictated by the vision
    • Ex:developing software
  9. Mgmt Process: 1)Shared Mission/Vision
    sense of purpose, direction of change, followed by a realistic representation of that vision
  10. 2)Realistic Objectives and Performance Targets:
    Financial and Marketing goals
  11. 3) Craft Explicit Strategy
    How to compete: market domains, competitive advantages, core competencies, positions, patterns of actions
  12. 4) Implement Strategy
    -Structure, system, leadership, resources, develop action plans
  13. 5) Evaluation and Adjustment
    Assess Results, identify new opportunities/constraints, change strategy as needed
  14. Autonomous Strategic Mgmt. Process
    • -Strategy in hindsight
    • -Evolutionary Changes
    • -Bottom up

    Strategic Moments: Key product choosing decision, operational decision, marketing decision, hiring, etc.