MT460 Mgmt Policy & Strategy Welcome to Class MT460 Mgmt Policy & Strategy Wednesdays, 7-8pm CDT Online Seminar Professor Tammy Madsen

Agenda Unit 6 Business & Multi-Business Strategy Unit 6 Case Study Assignment The Apollo Group (UOP) Unit 7 Team Discussion Unit 9 Final Project Questions??

Learning Objectives Determine why a business would choose a low-cost, differentiation, or speed-based strategy. Explain the nature and value of a market focus strategy. Why should a business diversify? What is the portfolio approach to multi-business strategies? Identify the limitations and weaknesses of the various portfolio approaches.

Unit 6 Business & Multi-Business Strategy Determine why a business would choose a low-cost, differentiation, or speed-based strategy. Low-cost strategy: Provide product/service below competitors Limits competition, higher margins, flexibility with external environment Easily duplicated, cost differences decline over time Differentiation strategy: Sustainable advantages that provide buyers with something uniquely valuable to them Benchmarking & Five Forces Model Strong cooperation between and among channels Speed-based strategy Rapid response to customer, market, and technological changes Competitive global economy Considerable attention to training, reorganization, and/or reengineering

Unit 6 Business & Multi-Business Strategy Explain the nature and value of a market focus strategy. Defined: The extent to which a business concentrates on a narrowly defined market (Pearce & Robinson, 2011) Small businesses thrive on serving niche markets Competitive strategies: low-cost, differentiation, & rapid response Risks: Attract major competitors as market leader Takeover target Which strategy contributes to business success?

Unit 6 Business & Multi-Business Strategy Why should a business diversify? Survival: Seasonal sales / manufacturing Regulate revenue streams Extend brand recognition in new markets Growth: Natural progression Complementary products / services New markets Supply chain opportunities Create your raw materials Develop your infrastructure Synergy: Leveraging core competencies

Unit 6 Business & Multi-Business Strategy What is the portfolio approach to multi-business strategies? Defined: Historical starting point for strategic analysis and choice in multibusiness firms (Pearce & Robinson, 2011) Boston Consulting Group (BCG) Portfolio techniques: “balance” the flow of cash resources while identifying basic strategic purpose Growth-Share Matrix Industry Attractiveness-Business Strengths Matrix Strategic Environments Matrix

Unit 6 Business & Multi-Business Strategy The BCG Growth – Share Matrix (p 244)

Unit 6 Business & Multi-Business Strategy The Industry Attractiveness – Business Strengths Matrix

Unit 6 Business & Multi-Business Strategy BCG’s Strategic Environments Matrix

Unit 6 Business & Multi-Business Strategy Identify the limitations and weaknesses of the various portfolio approaches. Does not address how value is being created across business units Truly accurate measurement for matrix classification not as easy as the matrices portrayed Underlying assumption about the relationship between market share and profitability varied across industries and market segments Ignored capital raised in capital markets Failed to compare the competitive advantage a business received from being owned by a particular company

Unit 6 Assignment Assignment Checklist The Apollo Group Case Study in Doc Sharing Conduct a SWOT analysis on the case study company’s multi-business strategy. Create a PowerPoint Presentation using template provided in Doc Sharing.

Unit 6 Assignment (cont) Address Assignment Checklist Requirements Use the PowerPoint template in Doc Sharing 10 slides Bulleted points Notes section Cite your sources Reference page 6. Submit in Dropbox before Tues 11pm CDT

Unit 7 Team Discussion Team Assignments Team A – Brandon, Kathy, & Corey Team B – Debbie, Marianne, Ashley, & April Appoint a Team Captain Agree on a Fortune 1000 company Collaborate in the corresponding Team discussion of Unit 7 on answering the outsourcing questions Team Captain to post agreed on Team response to General Discussion area for Unit 7 by Saturday Respond individually to initial Team postings Have fun with the collaborative learning process!!

Unit 9 Final Project: Strategic Plan Assignment Checklist Determine the elements of strategic control. Evaluate the balanced scorecard approach and how it integrates strategic and operational control. Determine what is meant by continuous improvement and how it contributes to incremental innovation.

Unit 9 Final Project: Strategic Plan Address Assignment Checklist Requirements Use the Case Study template in Doc Sharing PowerPoint Presentation At least 10-12 slides Use the Notes Section for your talking points Cite your sources In-text citations Reference page 6. Submit in Dropbox Unit 9 Assignment before Tuesday, September 4 at 11pm CDT

Unit 9 Final Project: Strategic Plan What should I be working on now? Identify your company Fortune 1000 Local company **you must be able to find research and information on this company either via the Internet or a local newspaper / magazine publication** Begin conducting your research Background on products, services, customers Mission and vision statements What is the current organizational strategy?

To Do this Week! Read Chapters 8, 9, & Case Study Initial post to Unit 6 Discussion by Sat. Respond to 2 classmates by Tuesday Submit Unit 6 Assignment Reward: Give back!