1. Strategy “A plan or method for achieving a specific goal.” – Noah Webster

2. Corporate Strategy The process of determining the organization’s mission, monitoring and adjusting to changes in the external environment, and exploiting core competencies

3. Corporate Mission / Vision  The statement is the constitution for an organization  Reflects the character of a business  Pella Windows – Viewed to be the best. Pella Windows Pella Windows  Osco Drug Stores versus Walgreens Osco Drug StoresWalgreens Osco Drug StoresWalgreens

4. Customer-driven strategy Provides a clear understanding of the long- term goals of the organization 1. Market analysis 2. Competitive priorities – based on core competencies 3. Functional strategies

5. Core Competencies  Essential capabilities that create a firm’s sustainable competitive advantage  Based on experience, knowledge, and know-how  Built up over time and not easily imitated  Competitive priorities are based on core competencies

6. Competitive Priorities Cost – low cost operations Quality – high performance design Time – fast delivery time - on-time delivery - on-time delivery - development speed - development speed Flexibility – customization - volume flexibility

7. Question: Why shouldn’t a company try to excel in all areas of competitive priorities? What determines the choice of competitive priorities that a company should emphasize?

8. Functional Strategies Based on the corporation strategies and involves the goals and long term plans for each functional area: CapacityLocation Supply chain management Staffing plans SchedulingTechnologyQuality Process flow / layout