Strategy Management in Action By: Mary Coulter Sydne Collier Amanda Haines Jacob Johnson Eric Launer Katie Shaw Zach Slagle Mark Weyandt

Overview 2.1 Competitive advantage 2.2 Driving forces, implications, critical success factors 2.3 Organizational vision and mission, corporate social responsibility and ethics

Red Bull Founded in 1984 by Dietrich Mateschitz. Currently sold in 164 countries and have established subsidiaries in various sports.

Competitive Advantage Its what sets your organization apart from other companies Managing strategically There are 3 views that managers can use to help with being competitively advanced Industrial Organization View Resource-Based View Guerrilla View

I/O View Competitive Advantage Positioning in industry Determinants of Profitability Characteristics of industry, firm’s position within industry Focus of Analysis External Major Concern Competition Strategic Choices Choosing attractive industry; appropriate position

Resource-Based View Competitive Advantage Possessing unique organizational assets or capabilities Determinants of Profitability Type, amount, and nature of firm’s resources Focus of Analysis Internal Major Concern Resources-capabilities Strategic Choices Developing unique resources and distinctive capabilities

Guerrilla View Competitive Advantage Temporary Determinants of Profitability Ability to change and radically surprise competitors with strategic actions Focus of Analysis External and Internal Major Concern Continual, radical, and chaotic conditions Strategic Choices Rapidly and repeatedly disrupting current situation and surprising competitors

Driving Forces Information revolution Technology Globalization Global markets Global competitors

Implications Continual Change Reduced need for physical assets Vanishing distance and compressed time Vulnerability

Critical Success Factors Strong Customer Focus Continual Learning and Improvement Flexible Organization Structure Creative Human Resource Management Egalitarian Climate Significant Technological Support Ability to embrace change Change agents Creativity and innovation capabilities Being a world-class organization 6 major characteristics

Critical Success Factors-Red Bull Ability to embrace change Introduced Sugar Free and Total Zero Creativity and innovation capabilities Marketing and Advertising- Operating under Resource Based View Being a world-class organization Selling products and Team Sport events in over 160 countries

Organizational Vision and Mission Broad comprehensive picture of what a leader wants an organization to become A statement of what the organization stands for, what it believes in, and why it exists

Four Components of an Effective Organizational Vision The vision be built on a foundation of the organizations core values and beliefs The vision should elaborate a purpose for the organization The vision should include a brief summary of what the organization does The vision should specify broad goals

Corporate Social Responsibility The obligation of organizational decision makers to make decisions and act in ways that recognize interrelatedness of business and society Traditional approach-benefit only stockholders New age approach- benefit everybody involved within the corporation

Corporate Social Responsibility-Redbull Actively supports Wings For Life-Spinal Cord Research Foundation Aim to reduce their carbon footprint

Ethics Involves the principals that define right and wrong decisions and behavior Both a personal and an organizational issue and should be part of the strategic management process Avon Products Inc creating its Worldwide fund for Women's Health Both the right thing to do and boosting sales