strategy formulation process identify core competencies and value-creating activities identify...
TRANSCRIPT
Strategy Formulation ProcessStrategy Formulation Process
Identify Core Competencies and Identify Core Competencies and Value-Creating ActivitiesValue-Creating Activities
Identify Company Mission and GoalsIdentify Company Mission and Goals
Formulate StrategiesFormulate Strategies
Production and Organizing Strategies
Define the Define the BusinessBusiness
Define Define MainMain
ObjectivesObjectives
Company Mission
and Goals
Company Mission
and Goals
Core Competencies andValue-Creating Activities
BusinessBusinessEnvironmentsEnvironments
Primary Primary ActivitiesActivities
SupportSupportActivitiesActivities
Unique Unique Abilities Abilities
InternationalStrategies
InternationalStrategies
GlobalStrategies
GlobalStrategies
MultinationalStrategies
MultinationalStrategies
CombinationStabilityStability
Corporate-LevelStrategies
Corporate-LevelStrategies
RetrenchmentRetrenchmentGrowthGrowth
Business-Level StrategiesStrategic Advantage
Str
ate
gic
Ta
rge
t
DifferentiationDifferentiationDifferentiationDifferentiation Overall CostOverall CostLeadershipLeadership
Overall CostOverall CostLeadershipLeadership
FocusFocusFocusFocus
Industrywide
ParticularSegment Only
Uniqueness Perceivedby the Customer Low Cost Position
Support Support
• Research & Development
• Human Resources
• Procurement
• Accounting & Finance
PrimaryPrimary
• Manufacturing
• Marketing and Sales
• Customer Service
• Efficient Logistics
Department-Level Department-Level StrategiesStrategies
Production Considerations
Production Considerations
Capacity PlanningCapacity PlanningFacilities Location Facilities Location
PlanningPlanning
Facilities LayoutFacilities LayoutPlanningPlanningProcess PlanningProcess Planning
Organizational Structure
• CoordinationCoordination
• FlexibilityFlexibility
International Division Structure
HeadquartersHeadquarters
PlanesPlanesDivisionDivision
(domestic)(domestic)
TrainsTrainsDivisionDivision
(domestic)(domestic)
InternationalInternationalDivisionDivision
AutomobilesAutomobilesDivisionDivision
(domestic)(domestic)
PlanesPlanesDivisionDivision(France)(France)
TrainsTrainsDivisionDivision
(United States)(United States)
PlanesPlanesDivisionDivision(Brazil)(Brazil)
International Area Structure
HeadquartersHeadquarters
AsiaAsiaDivisionDivision
AmericasAmericasDivisionDivision
Middle EastMiddle Eastand Africaand AfricaDivisionDivision
EuropeEuropeDivisionDivision
JapanJapan S. KoreaS. KoreaChinaChina
Global Product Structure
HeadquartersHeadquarters
TrainsTrainsDivisionDivision
(domestic)(domestic)
TrainsTrainsDivisionDivision
(Germany)(Germany)
TrainsTrainsDivisionDivision(Mexico)(Mexico)
TrainsTrainsDivisionDivision(India)(India)
PlanesPlanesDivisionDivision(global)(global)
AutomobilesAutomobilesDivisionDivision(global)(global)
TrainsTrainsDivisionDivision(global)(global)
Global Matrix Structure
HeadquartersHeadquarters
AsiaAsiaDivisionDivision
AmericasAmericasDivisionDivision
EuropeEuropeDivisionDivision
PlanesPlanesDivisionDivision
TrainsTrainsDivisionDivision
AutomobilesAutomobilesDivisionDivision
Sourcing of rawmaterials, parts,and components
Manufacture andassembly of
components andfinal products
Sale of productsStage ofproductionand sales
Homecountry
Abroad
Both
Homecountry
Abroad
Both
Homecountry
Abroad
Both
Location ofsourcing,production,and sales
Global Sourcing and Production Strategy
Quality standards—exist at three levels• General standard
– award for quality—Baldridge and Deming awards
– certification standard—accepted worldwide» ISO 9000
» ISO 9001
» ISO 9004-2• Industry-specific standards—typically pertain
to quality of suppliers• Individual companies—set standards for their
suppliers
Quality Control