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Marketing Strategy
Implementation
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Organizational Issues
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I hope you ar en¶t using this str ategy
for your pr oject:
³This r epor t, by its ver y length,
defends itself against the r isk of being
r ead.´
- Winston Churchill
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³If I had to sum up in one wor d what
makes a good manager , I¶d saydecisiveness. You can use the fanciest
computer s to gather the number s, but
in the end you have to set a timetable
and act.´
- Lee Iacocca
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Implementation
� Recall: A strategy involves the product-marketinvestment decision, the value proposition, theselection of functional area strategies and the
identification of bases for SCA.� Must assess strategy in ter ms of organizational
risks and any organizational changes required.Costs? Feasibility?
� Strategy must successfully interact with the 4organizational components and organizational perfor mance.
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A Fr amewor k for Analyzing
Organizations
Figur e 16.1
People Str uctur e
Systems Cultur e
Exter nal Analysis
Str ategy
Inter nal Analysis
Per for mance
Per for mance
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Organizational Structure
� Defines lines of authority and communication and specifiesthe mechanism by which tasks and programs areaccomplished.
� Decentralization vs. Centralization± Advantages of Decentralization:
� Managers are close to market and understand customer needs so theycan provide superior value propositions.
� Managers understand and product technology.
� Managers are empowered to act quickly.
� Managers can be held accountable for results.� Fosters energy and vitality.
± Disadvantages of Decentralization:
� Does not create cross-business synergies.
� What is best for an SBU is not necessarily best for fir m.
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Organizational Structure
� Matrix Organization allows a person to
have two or more reporting links.
� Virtual Cor poration is a team of peopleand organizations specifically designed for
a client or job (e.g., communication fir ms).
� Alliance Networks with suppliers,
customers, distributors and even
competitors.
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Systems
� Systems can fundamentally inf luencestrategy:
± Accounting and Budgeting Systems
± Infor mation Systems (e.g., EDI)
± Measurement and Reward System� Must be sure rewarding desired behaviors.
� Must be sure not based so closely to SBU thatthey jeopardize cooperation, communication andsynergy across SBUs.
± Planning System
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People� Make, Buy or Convert� Culture involves 3 elements:
1. Set of shared values or dominant beliefs that define anorganization¶s priorities.
2. Set of nor m
s of behavior. Can vary on 2 dim
ensions:
1. Intensity or amount of approval/disapproval attached.
2. Degree of consensus or consistency.
3. Symbols and symbolic activities used to develop andnurture shared values and nor ms.
± Founder and Original Mission (e.g., Disney, Shaklee, P&G)
± Modern Role Models± Activities
± Questions Asked
± Rituals
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Shar ed
ValuesNor ms of Behavior
Symbols and
Symbolic Action
Organizational Cultur e
Figur e 16.2
Organizational
Cultur e
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Obtaining Strategic Congruence
� Do the systems fit the structure?
� Do the people fit the structure?
� Does the structure fit the culture?
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Hit Industry Topology(Figure 16.4)
� Hit Industry is one in which the goal is to
obtain, produce, and exploit a product that
will have a relatively short life cycle (e.g.,
movies, records, fashion, publishing, oil).
± Drillers (e.g., wildcatters, talent scouts, artists)
± Pumpers (e.g., well operators & refiners, DVD
pressers, movie directors, printers)
± Distributors (e.g., pipeline operators, retailers,
distributors)
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Organizing for Innovation
� Decentralization - Keeping Business Units Small
� Task Forces
� Skunk Works
� Kaizen ± Ongoing improvements
� Reengineering ± Breakthrough Results
� Seeking Radical, Disruptive Innovation
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Str ategy Development:
ADiscussion
Agenda
Customer Analysis
y Who are the major segments?y What are their motivations and unmet needs?
Figur e 16.5
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Str ategy Development:
A Discussion Agenda
Competitor Analysis
y Who are the existing and potential competitors?
y What strategic groups can be identified?
y What are their sales, share, and profits?
y What are the growth trends?
y What are their strengths, weaknesses, and strategies?
Figur e 16.5
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Market Analysisy How attractive is the market or industry and its submarkets?
y
What are the forces reducing profitability in the market,entry and exit barriers, growth projections,cost structures, and profitability prospects?
y What are the alternative distribution channels
and their relative strengths?
y What industry trends are significant to strategy?y What are the current and future key success factors?
Str ategy Development:
A Discussion Agenda
Figur e 16.5
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Str ategy Development:
A DiscussionAgenda
Environmental Analysisy What environmental threats, opportunities,
and trends exist?
y What are the major strategic uncertainties
and infor mation need areas?
y What scenarios can be conceived?
Figur e 16.5
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Str ategy Development:
A Discussion Agenda
Internal Analysis
y What are our costs, strategy, perfor mance, points of differentiation, strengths, weaknesses, strategic problems
and culture?
y What is our existing business portfolio?
y What has been our level of investment in our variousproduct markets?
Figur e 16.5
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Strategy Developmenty What strategic options should be considered - quality, value,
focus, innovation, global, product attributes, product design,product-line breadth, cor porate social responsibility, brand
familiarity, and customer intimacy.
y What assets and competencies will provide the basis for
an SCA?H
ow can they be developed and maintained?How can they be leveraged?
y What value proposition will be the core of the offering?
Str ategy Development:
ADiscussion
Agenda
Figur e 16.5
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Strategy Developmenty What are the alternative functional strategies?
y What strategies best fit our strengths, our objectives
and our organization?
y What alternative growth directions should be considered?
How should they be pursued? What investment level is
most appropriate for each product-market withdrawal,
milking, maintaining, or growing?
Str ategy Development:
ADiscussion
Agenda
Figur e 16.5