mgmt 466

Accumulation

acquisition of or gathering of a mass or quantity of something

assimilation

process of taking in and fully understanding the truth about the topics and subjects and their pragmatic impacts in your specific role in the professional world.

take in what youre being exposed to and utilize it for your professional expereince

Dont solve problems...

Create possibilities

Strategic thinkning

How you think. founded on how you see/your perspective

Mays Mission Statement

Developing leaders of character who make a positive difference in the communities where they live, work, and serve

A company's mission statement answers....

Who are we? Why are we here? Whats our purpose?

-Unique Identity

-Current purpose

-focus on business (not just making a profit)

Why do we need to communicate mission?

separate us from competition

Benefits of communicating mission

-Employee engagement (buy in culture)

-increased productivity

What questions does strategic vision answer?

Where are we going?

Where do we want to be in the future?

What is a strategic vision?

-Not an end goal but an aspiration

1) deliniates management's aspirations for the firm to its stakeholders

2) Sets out the compelling rationale (strategic soundness)

3) Uses distinctive and specific language to set apart from rivals

Boldness

7/8

Why do we need to communicate vision?

- stay on the same page/pull in the same direction

- If no set vision, everyone will create their own direction

Benefits of Communication

- Foster commitment

- Ensure Understanding

- Motivate and Inspire

- Demonstrate support

What are core values and why do we need them?

States what is important to you

A company's core values...

- Express importance

- Guide Behavior

- Integral to Culture

Communicating Values: The benefits

Can...

-Foster Engagement

- Ensure Understanding

- Motivate and Inspire

The Strategy Hierarchy

1. Corporate

- Where we compete

2. Business

- How we compete in industry

3. Functional

- Game plan for managing activities (finance, operating, marketing)

4. Operating

- game plan for managing specific operating activities (policies, procedures, processes)

Components of a Firm's macro environment

-Economic env

- political

- financial

- socio-cultural

- legal

- geographic and resource

- Technological

Five forces all firms face are:

1. competition from rival sellers

2. competition from potential new entrants

3. Competition from producers of substitute products

4. supplier bargaining power\

5. customer bargaining power

PESTEL Analysis

focuses on principal components of strategic significance in macro environment

PESTEL acronym

Political

Economic

Sociocultural

Technological

Environmental

Legal

Stress

7/9

Driving Forces

"forces" that drive change in a firm's macro-env

Driving forces steps

1. identify forces

2. determine if make industry more or less attractive

3. determine strategy changes necessary to prepare for impact

Strategic Groups and Mapping

consists of those industry members with similar competitive approaches and positions in the market

groups and mapping

- have comparable product lines

- employ some distribution channels

- depend on identical technological approaches

- compete in same geographic areas

- offer the same product attributes to buyers

- offer similar services and technical assistance

Competitive Analysis (Comp Intelligence)

Info about rivals that is useful in anticipating their next strategic moves

Danger of comp analysis

can get to a point where they are about their competitors more than their own stuff if not careful. becomes an obsession

Key Success Factors

- necessary for competitive success by any and all firms in a specific industry

- constantly change and highly subjective

Remaning in demand

7/10

Resources

a productive input or competitive asset that is onward or controlled by a firm (fleet of oil tankers)

Capabilities

capacity of a firm to perform some activity proficiently (superior skills in marketing)

Why do we care about resources and capabilities?

to discover one's competencies, core competence, and ultimately ones competitive advantage

Competency

an activity that a firm has learned to perform with proficiency and at an acceptable cost - a true capacity in other words

Core Competency

An activity that a firm performs proficiently and that is also central to its strategy and competitive success

How do firms analyze their internal environment?

- SWOT analysis

- Benchmarking

- Value chain

- Competitive Strength Analysis

SWOT Analysis

- Tool for identifying situational reasons underlying a firm's performance

- Strengths, Weaknesses, Opportunities, Threats

Compare Yourself/ Imposter Syndrome

7/14

Value Chain

-Identifies primary activities and related supported activities that create customer value

- reveals inner working s of firm's customer value propositions

- Enhance differentiation

Benchmarking

- improving internal activities based on learning from other companies' "best practices"

Purpose of benchmarking

assess whether the cost competitiveness and effectiveness of a company's value chain activities are in line with competitor's activites

Negative aspect of benchmarking

- spend too much time focusing on others and copying

Competitive Strength Analysis

- comparing strengths with others in the industry

- important factors that determine market success

- reveals if a firm has a net competitive advantage or disadvantage vs major competitors

Core competencies

things you are best at

Are core competencies a competitive advantage

No

Testing for competitive advantage

Analyze, evaluate, valildate

How to test for competitive advantage

VRIN Test

- Valuable, Rare, Inimitable, Non-sustainable

Why is it important to sustain competitive advantage?

To grow, excel, to be more financially and competitively successful in the years ahead

What's your pitch?

7/15