1 “operational effectiveness means you’re running the same race faster. but strategy is choosing...
TRANSCRIPT
1
“Operational effectiveness means you’re running the same race faster. But strategy is choosing to run a different race because it’s the one you’ve set yourself up to win”.
Michael Porter
Strategy
2
Remain true to your mission and be prepared to adjust your strategy?
Strategic Choices
3
Can you think outside the box?
Think differently…
5
Attractive
Unattractive
Strong Average Weak
AverageMARKET
PROSPECTS
Leader/Growth
Leader Try harderDouble or quit
Growth/custodial:
Proceed with care
DisinvestCash
generator
Phased withdrawal
Phased withdrawal
BUSINESS POSITION
Directional Policy Matrix
6
Boston Box
Rela
tive M
ark
et
Gro
wth
Rate
StarsStars
Cash CowsCash Cows
Question Question MarksMarks
DogsDogs
Relative Market Share
+
+
-
-
7
Cost|Focus|Differentiation
Focus
DifferentiationLow Cost
8
Ansoff’s Matrix
Current Markets
New Markets
Market Market PenetrationPenetration
Market Market DevelopmeDevelopme
ntnt
Product Product DevelopmentDevelopment
DiversificatioDiversificationn
Current Products
New Products
9
Scenarios
What if …?
A visioning-type exercise
Informed speculation … not prediction
Aim for four scenarios• Strategic issues• Key assumptions• Implications
Plan on one (or more) scenario
10
The “Seven-S” Model
STRUCTURESTRUCTURE
STRATEGYSTRATEGY SYSTEMSSYSTEMS
SHARED VISIONSHARED VISION
STAFFSTAFFSTYLESTYLE
SKILLSSKILLS