Dr. Laura Whitcomb BUS 4970 Fall 2016 Competitive Strategy Dr. Laura Whitcomb BUS 4970 Fall 2016

Strategic Management Definition = The process whereby managers establish an organization’s long-term direction. This involves: 1) Setting Mission & Goals 2) Strategy Formation --internal capabilities --external environment --selection of strategy 3) Strategy Implementation 4) Strategy Evaluation

How to Analyze a Case Mission/Vision & Objectives Current Strategy Industry Analysis S.W.O.T. Analysis Recommendations

MISSION Defined Answers the question “What business are we in?” or “Why do we exist?” --Customer Needs: What is being satisfied? --Customer Groups: Who is being satisfied? --Distinctive Competencies: How are customer needs being satisfied?

Pepsico vs. Coke? To Refresh the World...in body, mind, and spirit. To be the world's premier consumer products company focused on convenient foods and beverages.  To Refresh the World...in body, mind, and spirit. To Inspire Moments of Optimism... through our brands and our actions. To Create Value and Make a Difference... everywhere we engage.

Vision Statements Future-oriented; transformative Mission = what is; vision = what will be Companies may have mission or vision or both Mission and/or vision often accompanied by statement of company values

Vision Statements NASA: Reach for new heights & reveal the unknown for the benefit of humankind Star Trek: To boldly go where no one has gone before

GOALS = a desired future state that a company attempts to realize. Should be: - precise & measurable - addressing important issues - challenging but realistic - set for a specific time period - consistent with each other

Weighting Factors: What to Avoid

Types of Goals Financial Customer Internal Process Learning & growth Profitability Revenue growth Long-term shareholder value Customer Product/service attributes; relationship; image Internal Process Operations, customers, innovation Corporate social responsibility Learning & growth Human, information, & organization resources

Levels of Strategy & Organization Structure Corporate Strategy ------>Corporate Head Office Competitive (Business-level) Strategy ------>Business Divisions Functional Strategy ------>R&D, HR, Finance, Operations, Marketing/Sales

Porter’s Generic Competitive Strategies Purpose: achieve above-average long-run ROI for your industry. Competitive Advantage Cost Leadership Differentiation Competitive Scope Broad Target Narrow Target (Focus/Niche)

Porter’s Generic Competitive Strategies

Dolce & Gabbana

Company Situation Analysis INTERNAL: Strengths & Weaknesses financial position: relative & changes over time functional capabilities: sustainable? distinctive? EXTERNAL: Opportunities & Threats demographic & socio-cultural changes economic & political/legal changes industry & technological changes

RECOMMENDATIONS Shift from Analysis--->Synthesis Is a fundamental shift in strategy required or not? How do your recommendations line up with your SWOT analysis? Is this a feasible, creative solution that is supported by your analysis?