management ex2

strategy

coherent set of guiding principles

strategy purpose

competitive advantage and long term successful

examples of sustainable advantage

cost leadership, differentiation, cost focus

strategy requires

commitment

a climate managers create that aligns effort

ownership that turns intent into action

examples of strategy in real life

samsungs quality

apples innovataion

walmarts cost leadership

components of business strategy

mission and vision

core values

strategie sobjectives

action plan

mission and vision

core purpose and long term goals

core values

guiding principles for decision making

strategic objectives

specific measurable outcomes that organizations aim to achieve

action plan

specifics of how to achieve objectives

mission statement vs vision statement

descriptive of what we do vs aspirational and less descriptive

strategic objective vs action plan

simple goal vs a description, timeline, responsible part, and resources needed

strategic planning process

analyze environment ( swot)

define strategic goals

formulate strategy

implement strategy

evaluate and control

analyze environment

internal and external analysis

define strategic goals

clear, achievable goals

formulate strategy

based on analysis and goals

implement strategy

align resources and operations

evaluate and control

measure performance, adjust as neccesary

competitive advantage

what makes a company better than its competitors

sources of competitive advantage

cost advantage : lower production costs

differentiation: unique product features

resource based: leveraging properietary resources

challenges of strategy implementation

lack of alignment with company

poor communication of goals

resistance to change

inadequate resources or capabilities

solution to challenges in strategy implementation

strong leadership, clear communication, adaptability

strategic planning is a —- process that involves implementation, monitoring, and adjusting

continous

triple bottom line

people

planet

profit

organizations resources

assets, capabilities, processes, employees, information, knowledge, natural resources

good will is

valuable

social capital

relationships as social capital for a competitive advantage ( service , quality, efficiency, reliabilitiy)

when doing swot, what are internal and external features

internal: strengths weaknesses

external: opportunities and threats

swot involves assessing a company’s distinctive

competencies and core capabilities

problems with swot

most are retrospective ( old data)

prevent strategic dissonane to your employees

saying one thing and doing the opposite

corporate level strategy

what business or businesses are we in or should we be in

3 steps of strategy making process

assess need for strategic change, conduct sitautional analysis, choose strategic alternatives

when assessing need for strategic change , look and avoid

look for strategic dissonance and avoid competitive intrtia

strategic alternatives can be 1 of 2 things

risk avoiding or risk seeking

strategic reference point theory

managers should choosee risk avoiding or risk seeking strategy but decision is based on whether company fals above or below strategic reference points

strategic reference points should be revised how often

frequently to better focus on new challenge and opportunities

if you are above strategic, you get what result

undesired

features for being above strategic reference

current situation: satisfied

perception of new isues: threats

response: risk averse and conservatives

if you are below reference point , you get what result

desired

features of being below reference points

current situation: dissatisfied

perception of new issues: opportunity

response: risk taking

portfolio strategy

minimizes risk by diversifying investment among various businesses or product lines

stat about acquistions

only 1/3 of mergers work out as expected

related and unrelated diversification

related lower risks

unrelated increases risk

grand strategy

helps org achieve its strategic goals and can incorpoate growth, stability, and retrenchent and recovery strategies

growth strategy

focuses on increasing profits or number of places company trades

stability strategy

focuses on improving way in which company sells same product or services to same customers

retrencment and recovery strategy

focuses on turning around very poor company performance and taking actions after tretrenchment to return to a growth strategy

boston consulting group matrix

star: large share fast market

question mark: small share, fast-moving market

cash cow: large share and slow market

dog: small share and slow market

porters 5 industry forces

threat of new entrants

bargaining power of buyers

threat of substitute products or services

bargaining power of suppliers

rivalry among exisiting competitors

porters 4 strategies

cost leadership, differentation, differentiation focus, cost focus

cost leadership

broad target lower cost

differentiation

differentiaton and broad target

cost focus

narrow taret and lower cost

differentation

differentiation and narrow target

broad target

companies that want to scale as much as possible and attract largest possible audience

example of broad target

ikea, pepsico, nissan

narrow target

reduce number of customers which they are ready to compete

indicators of narrow target

company suspends orders due to heavy load

examples of cost leadership strategy

walamrt papa murphys

what you need for cost leadership strategy

access to capital to invest in tech that will bring costs down

very efficient logistics

low cost vase

a way of sustainably cutting costs below those of competitors

kaizen: continous improvement

example of product differentiation

zappos

what you need for product differentiation

good r & d

ability to deliver high quality products

effective sales and marketing

better delivery or customer services

example of cost focus

ikea

example of differentiation ( focus)

lambo or ferrari

purpose of adaptive strategies at industry level

best suited to changes in orgs external environment

adaptive strategies

defenders, prospectors ,analyzers, reactors

defenders

seek moderate steady growth by offering limited range of products and services to well defined set of customers

prospectors

seek fast growth by searching for new market opportunities, encourage risk taking, being first to bring innovative new products to market

analyzers

seek moderate steady growth and limited opportunities for fast growth ( blend of defender and prospector)

reactors

react to changes in external environment after they occur ( do not follow a consistent adaptive strategy)

key factors in rivalry

market commonality

resource similarity

strategic moves of competition

attack

response

attack

competitive move designed to reduce a rivals market share or profits

reponse

competitive countermove , prompted by rivals attack, to defend or improve a companys market share or profit

execution

doing what was envisioned

consists of bringing weaknesses to light and rallying staff to correct them

central part of companys strategy

what product is example of resilience in execution

wd 40

core processes of effective business execution

people: who will benefit u

strategy: how sucess is implemented

operations: what path to follow

trade offs of good strategy

what not to do

what customers not to serve

what services not to offer

what needs not to bother with

• not making everyone happy

takeaways from jack bogle

he got fired but liked it

he got back at employer who fired him

he doenst spend too much money

ego says we are above average and will outperform everyone else but wisdom says that is statistically possible

jack bogle takeaway about index funds

buying one and holding it has outperformed most expert managemen without having to pay fees for management

motivation is

the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal.

employee engagement types: look at notes

honeymooners and hamsters

disengaged

crash and burn

almost/engaged

motivation is telling people

what they need to hear

pay employees enough so

they dont worry about money

money works well for routine and mechanical tasks but not

cognitive, critical thinking and creative work

main motivators

autonomy, mastery, and purpose

extrinsic rewards

tangible and could be visible to others and are given to employees contingent on performance of specific tasks

intrinsic rewards

natural rewards associated with performing a task or activity for its own sake

employees feelings about the meaning of their work

important and meaningful work matters more to them than what they are paid

how to motviate with basic model of motivation

effort and performance

need satisfaction

extrinsic and intrinsic rewards

job performance =

motivation* ability* situational constraints

all the motivation in the world wont help if employees dont have

skill or the equipment/software they operate is inadequate

need satisfaction

unmet needs create uncomfortable tension, people are motivated, once need is met it no longer motivates. people become satisifed

effort for need satisfaction is characterized by

initiation

direction

persistence

predictions of need theories

maslow

alderfer

mcclelland

Maslow

needs are arranged in hierarchy from low to high and people are motivated by lowest unsatisfied needs first

alderfer

people can be motivated by more than one need at a time

mcclelland

degree to which particular needs motivate varies by person

maslows needs in order

physiological- safety-belonging-esteem-self actualization