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

2. 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??

3. 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.

4. 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

5. 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?

6. 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

7. 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

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

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

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

11. 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

12. 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.

13. 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

14. 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!!

15. 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.

16. Unit 9 Final Project: Strategic Plan
Address Assignment Checklist Requirements
Use the Case Study template in Doc Sharing
PowerPoint Presentation
At least 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

17. 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?

18. 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!