2. Mission Goals Objectives Strategies Tactics Sales oriented efforts Marketing oriented efforts

3. Corporate Strategy Functional Area Strategies Product Strategies Business Unit Strategy Functional Area Strategies Product Strategies Functional Area Strategies Product Strategies

4.  Set Goals and Objectives  Understand Environment of Business Operations  Learn from Experience, Update Experience  Critical Thinking

5. 1.Setting Goals and Objectives 2.Analysis of the current situation 3.SWOT Analysis: Strengths, Weaknesses, Opportunities and Threats 4.Strategy design and choice of the best strategy 5.Implementation plan design 6.Strategy implementation 7.Monitoring of environment and performance results 8.Analysis of variance from desired performance levels 9.Adjustments based on analysis of variance

6.  Seek to establish a fit between the business environment and the strategy Fit—providing superior value through differentiated pieces of the total offering

7.  Drive Change rather than adapting to it o Quality and Process improvement are essential to superior value o Measuring and Tracking results necessary for continuous improvement

8.  Change in customers, Channels and Competitors cause discontinuities in the evolution of industries or markets  Companies seldom impact change in market  Keep up with changes in the rules of the market

9.  Includes Infrastructure, personnel, finances etc.  They are not limitless  Strategic Planning Process is a resource allocation process

10. Market Growth Rate High Low Stars Cash Cows Question Marks Dogs Relative Market Share LowHigh

11.  High Growth, High Share  Needs heavy investment, Builds market share  Manage with market ownership o Eventually become Cash Cows Stars Cash Cows Question Marks Dogs

12.  Low Growth, High Share  Established, Successful, invest enough to hold market  Cash Generators  Harvest to increase short term cash Stars Cash Cows Question Marks Dogs

13.  Low Share, High Growth Markets  Requires cash to hold share  What should be done?  Match with organization’s distinctive competences?  Obtain the resources needed? Build these into stars or phase out, sell Stars Cash Cows Question Marks Dogs

14.  Low Growth, Low Share  May be self-sustaining  One organization’s dog could be another’s cash cow  Discontinue, Divest Stars Cash Cows Question Marks Dogs

15. Decline Introduction Growth Maturity Time Sales Revenue/ period

16.  Define  Evolve  Collaborate

17.  Define Market Niche  Work towards domination  Brand identified as standard  Competitors note equivalence to such products Evolve Define Collaborate

18.  Continue to evolve offerings  Keep definitions of value current with market  Present these values to consumers Evolve Define Collaborate

19.  Development of ancillary products by other organizations help owners build the market  Third parties define their products as compatible with market owner  Market owner gains insight to other points of view within the market Evolve Define Collaborate

20. MARKET ATTRACTIVENESS BUSINESS STRENGTH High Weak Low Strong Medium Protect PositionInvest to Build Build Selectively Limited Expansion or Harvest Manage for Earnings Divest Build Selectively or Manage for Earnings Protect & Refocus Invest/Grow Selectively Earn Harvest/Divest Build Selectively

21. Focus on forward-looking measures in four core areas: 1.Financial Performance Perspective 2.Customer Perspective 3.Stakeholder Perspective a)Upper Management b)Partners c)Channels 4.Value Perspective

22.  Strategy Implications of Value Networks and Integrated Supply Chain  Strategy Development and the Internet  Volatility and Uncertainty Require Flexibility  Strategy Development in New Businesses

23.  Agility  Adaptability  Alignment of members’ interests o Strong supply chains lead to inflexibility o Value networks Strategy Implications of Value Networks and Integrated Supply Chain

24.  Manage customer relationships  Streamline purchasing relationships  Increase the speed with which the environment changes  Reduce transaction, shipping and inventory costs Strategy Development and the Internet

25.  Increased uncertainty and speed of change makes future inexact  A pursued task is short lived as definition and boundaries of a business become blurred  Resource allocations across businesses become more critical  Core competencies take on increased importance Volatility and Uncertainty Require Flexibility