1. Chapter 1 Santiago Ibarreche © S. Ibarreche 2015 1

2.  Survive 2 years of operation  Pass Preliminary exams  Annihilate competition in a specific market  Have a successful donation campaign and proselytize  Diminish or eliminate dropout of all programs  Go out to the final round and then win the championship  Graduate  Be re-elected to his or her post  Have no work to do because crime has stopped or minimized  Discover the origin of a disease and a way to prevent or cure it  See how his/her students become successful in their own endeavors © S. Ibarreche 2015 2

3. 1. You must know where you want to go 2. You must have a strategy or several strategies to get there 3. Most importantly, you must have the discipline to follow these strategies or to modify them and persist until you achieve the goal © S. Ibarreche 2015 3

4. 4 SubprocessElementsToolsOutcome Strategic Planning Revision of vision, mission, and purpose Basic questions for elements of a mission statement Reaffirmation or change of mission statement Environmental scanning Questionnaires for external and internal factor evaluation (IFE and EFE) matrices Determination of external threats and opportunities and internal strengths and weaknesses Summary SWOT* matrix environmental summary Summary of strategic options and possible strategies Strategy Formation Idea generation Creativity tools Alternatives for strategies Nurturing of strategiesIdea harvesting Definition of options Models for strategic options (BCG*, IE*, etc.) Strategy Implementation Analysis of options and selection of strategies Scenario analysis Financial analysis Main strategies Competitive strategies Market analysisFunctional strategies Changes to the organizationOrganization theoryPlans of actionPlans of action Business process re-engineeringPolicies and procedures Training and resource development Development of aptitudes and attitudes Capacity for action Organization chart and responsibilities Instrumentation, implantation, and leadership Plans of actionPlans of action Measuring systems and processesQualityQuality Teamwork and empowermentActions and results Outcome measures Strategy Evaluation Organization for learning Measuring systems and information technology Feedback information and control systems Continuous improvementFlexibility by design

5.  Anheuser Busch InBev Dream, People and Culture  Dream:  1. Our shared dream energizes everyone to work in the same direction: to be The Best Beer Company in a Better World  People:  2. Great people, allowed to grow at the pace of their talent and compensated accordingly, are the most valuable assets of our company.  3. We must select people who, with the right development, challenges and encouragement, can be better than ourselves. We will be judged by the quality of our teams.  Culture:  4. We are never completely satisfied with our results, which are the fuel of our company. Focus and zero complacency guarantee lasting competitive advantage.  5. The consumer is the Boss. We connect with our consumers through meaningful brand experiences, balancing heritage and innovation, and always in a responsible way.  6. We are a company of Owners. Owners take results personally.  7. Common sense and simplicity are usually better guidelines than unnecessary sophistication and complexity  8. We manage our costs tightly to free up resources that will support top-line growth.  9. Leadership by personal example is the best guide to our culture. We do what we say.  10. We don’t take shortcuts. Integrity, hard work, quality and consistency are keys to building our company. © S. Ibarreche 2015 5

6.  Macro:  Economy  Technology  Social and Cultural  Demographic and Cultural © S. Ibarreche 2015 6

7.  Business or Competitive  Industry Structure  Bargaining Power of Suppliers  Bargaining Power of Customers  Substitutes  New Entrants  Degree of Rivalry  External Connections to the Macro environment © S. Ibarreche 2015 7

8.  Task or Functional Environment  From the plate to the mouth the soup may fall  Importance of implementation and planning for implementation  IFE Matrix  EFE Matrix  Other evaluation tools  SUMMARY OF ENVIRONMENTAL ANALYSIS  TOWS (SWOT)  Other tools © S. Ibarreche 2015 8

9.  Sources of Strategy  Idea Generation and Creativity tools  Harvesting of Ideas  Nurturing of Ideas  Definition of Option © S. Ibarreche 2015 9

10.  Analysis of Options and Selection of Strategies  Change of Structures  Training and Creating Capacity to Act  Implementation of Strategies  Organization for Learning  Continuous Improvement © S. Ibarreche 2015 10

11.  Identify what is Relevant  Define Parameters  Examine Expectations  Analyze Trends  Synthesize of Internal and External Environment © S. Ibarreche 2015 11

12.  Identify Ideas for Strategies  Nurture Strategies with Creativity and Innovation © S. Ibarreche 2015 12

13.  Analysis of Options and Strategies selection  Changes to Structures  Training and Creation of Capacity  Implementation of Strategies  Organization for Learning and Feedback  Nothing is as Permanent as Change © S. Ibarreche 2015 13

14. 1. There isn’t any such thing as a free lunch. 2. Everything is a function of everything else. 3. You must know who has the skillet by the handle. 4. Opportunity is bald, and you must grab it by the hair. 5. In this betraying world, nothing is lie or is true. It all depends on the color, of the glass you’re looking through. 6. Even the best Ideas are worthless without Actions. © S. Ibarreche 2015 14