Strategy Analysis and organization design Martina Dal Molin mdalmolin@liuc.it AY 2018/2019

Topics of the course (1/2) Strategy analysis Organization design Presentation of students’ assignements AY 2018/2019

Composition of the final mark 1° semester part, 70% 2° semester part, 30% Bonus assignment 0-2 on the final mark May, 29 oral exam AY 2018/2019

Topics of the course (2/2) Strategy formulation Introduction Mission, vision and goals Porter’s Five Forces Framework Competitor Intelligence Resources and capabilities Strategy analysis Internal context Business model BCG Matrix External context A case study AY 2018/2019

INTRODUCTION

A true story of success Which are, in your opinion the common success factors of Madonna and Williams sisters?

Factors leading to success (1/2) SUCCESSFULL STRATEGY EFFECTIVE IMPLEMENTATION Long-term, simple and agreed objectives Understanding of the competitive environment Objective appraisal of resources

Factors leading to success (2/2) Long-term, simple and consistent goals: they had a single-minded commitment to a clearly recognized goal, pursued over a long period of time Clear understanding of the competitive environment: their strategies were designed based on a deep analysis and understanding of the arena in which they are competing Appraisal of own resources: all the strategies were focused on exploiting personal strengths Effective implementation: ability to act as a leader (e.g. to take decisions, to enhance commitment and achieving consensus, ability to quickly respond to external changes) This framework can be revised and applied to strategy making in business environment

A basic framework for strategy analysis THE ENVIRONMENT Competitors Customers Supplier THE COMPANY Goals and values Resources and capabilities Structure and systems STRATEGY

STRATEGY AY 2018/2019

What is your definition of strategy? What is the meaning of strategy?

Strategy is about………….. ………… being DIFFERENT COMPETITION COMPETITIVE ADVANTAGE PRODUCT or MARKET LEADERSHIP COMPETENCIES LEADER

Meaning (2/2) Strategy is primarily concerned with planning how an organization will achieve its goals, i.e. to ensure the survival and the propensity of the organization itself The nature of the strategy will depend on: The type of arena Stability and predicatbility of the external environment Several different definitons of strategy, but one common element: strategy deals with choice Two fundamental choices: Where to compete? How to compete? Two level of firm’s strategy: CORPORATE STRATEGY BUSINESS STRATEGY

Corporate and business strategy “How can the firm make money?” “What business should be in?” – CORPORATE STRATEGY “How should we compete?” – BUSINESS STRATEGY CORPORATE STRATEGY defines the scope of the firm in term of market in which it operates – “what business should be in?” BUSINESS STRATEGY is related with how a firm competes in a particular market and it is focused on acquiring a competitive advantage to its rivals – “how should we compete?”

EXERCISE