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CRAFTING STRATIGIES

ARBAB MUHAMMAD ARIF KHALILMBA - G13-0139

1Crafting a strategy to achieve the desired outcomes Crafting Strategy

A company's strategy represents management's answers to such fundamental business questions as :whether to concentrate on a single business or build a diversified group of businesseswhether to cater to a broad range of customers or focus on a particular market nichewhether to develop a wide or narrow product linePursue a competitive advantage based on Low cost Product superiorityUnique organizational capabilitiesDifferentiated products Service advantage Terms or conditions of payment

2Determine relevance of internal and external factors Company opportunity and threatCompany strengths and weaknesses, competencies and capabilitiesPersonal ambitions and business philosophies of key executivesShared values and company cultureExternal FactorsInternal FactorsThe mix of considerations that determines a companys strategic situationIdentify and evaluate alternatives Craft the strategyFactors Shaping the Choice of Company Strategy

Competitive conditions and industry attractivenessEconomic, societal, political, and government regulations3Factors Shaping the Choice of Company Strategy

What an enterprise can and cannot do strategy wise is always constrained by what is legal, by what complies with government policies and regulatory requirements, by what is considered ethical, and by what is in accord with societal expectations and the standards of good social and community citizenship.

Economic, societal, political, and government regulations

4Factors Shaping the Choice of Company Strategy

An industry's competitive conditions and overall attractiveness are big strategy-determining factors. A company's strategy has to be tailored to the nature and mix of competitive factors in playprice, product quality, performance features, service, warranties, and so on

Competitive conditions and industry attractiveness

5Factors Shaping the Choice of Company Strategy

A company's strategy needs to be deliberately aimed at capturing its best growth opportunities, especially the ones that hold the most promise for building sustainable competitive advantage and enhancing profitability. Strategy should also provide a defense against external threats to the company's well-being and future performance.

Company opportunity and threat

6Factors Shaping the Choice of Company Strategy

One of the most pivotal strategy-shaping internal considerations is whether a company has or can acquire the resources, competencies, and capabilities needed to execute a strategy proficiently. The best path to competitive advantage is found where a firm has competitively valuable resources and competencies, where rivals can't develop comparable capabilities except at high cost or over an extended period of time.

7Factors Shaping the Choice of Strategy

Managers do not dispassionately assess what strategic course to steer. Their choices are typically influenced by their own vision of how to compete and how to position the enterprise and by what image and standing they want the company to have. Personal ambitions and business philosophies of key executives

8Factors Shaping the Choice of Company Strategy

An organization's policies, practices, traditions, philosophical beliefs, and ways of doing things combine to create a distinctive culture. The stronger a company's culture, the more that culture is likely to shape the company's strategic actions, sometimes even dominating the choice of strategic moves. Shared values and company culture

9Why Strategic Evolve

Shifting market conditions;Fresh moves of competitors;New technologies and innovations; Evolving customers prefrences;Political and regulatory changes;New windows of oppurtunities Crisis situations.10What should be done in Crafting Strategies

The Goodness of Fit TestThe Competitive Advantage TestThe Performance TestInitiate of functional areasAddressingStrategic issues

11What should be done in Crafting Strategies

A good strategy has to be well matched to industry and competitive conditions, market opportunities and threats, and other aspects of the enterprise's external environment. At the same time, it has to be tailored to the company's resource strengths and weaknesses, competencies, and competitive capabilities.

12What should be done in Crafting Strategies

A good strategy leads to sustainable competitive advantage. The bigger the competitive edge that a strategy helps build, the more powerful and effective it is.

13What should be done in Crafting Strategies

A good strategy boosts company performance. Two kinds of performance improvements are the most telling of a strategy's caliber: gains in profitability and gains in the company's competitive strength and long-term market position14What should be done in Crafting Strategies

Uniting strategic initiatives of Functional area; and Addressing strategic issues facing the company

15Characteristics of Strategy Making

Strategy is action-oriented Strategy evolves over time Strategy-making is never ending or ongoing concernMeaningful strategy is time and output-oriented Strategy requires the participation of all parties

16The HOWs in Crafting the Firms Strategy The HOWs in Crafting the Firms Strategy

Company strategies concern how: how to grow the businesshow to satisfy customershow to outcompete rivalshow to respond to changing market conditionshow to manage each functional piece of the business and develop needed organizational capabilitieshow to achieve strategic and financial objectives

17Timing in Crafting Strategies

Customer needs and competitive conditions change;New opportunities appear; technology advance; any number of other outsides developments occurs; One or more aspects of executing the strategy may not be going well;New mangers with ideas take over; and Organizational learning occurs.

18Proactive or reactive Strategy Proactive or Reactive Strategy

Strategy or developing strategy may be self driven among top management members or a reaction to a certain situation brought about by triggering points or other factors and considerations that necessitate such a strategy.

19Proactive or reactive Strategy

Proactive or Reactive Strategy

20Rule Breaking Strategies

Challenge fundamental conventions by reconceiving a product or service ( e.g. creating a single use of disposable camera );Redefining the marketplace (e.g. detouring retailer by selling online at the companys website); and Redrawing industry boundaries (e.g. getting credit cards from shell oil or general motors or AOL ).

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