1. Concepts & Context of Business Strategy

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

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

4. Critical Elements of Strategy Development  Set Goals and Objectives  Understand Environment of Business Operations  Learn from Experience, Update Experience  Critical Thinking

5. Key Strategy Concepts  Seek to establish a fit between business environment and strategy Fit - Providing superior value through differentiated pieces of total offering

6. Key Strategy Concepts  Drive change rather than adapting to it o Quality and process improvement are essential to superior value o Measuring and tracking results is necessary for continuous improvement

7. Summary Strategy Concepts  Change in customers, channels or competitors cause discontinuities in evolution of industries or markets  Companies seldom impact change in market  Keep up with changes in rules of the market

8. Resource Allocation  Includes infrastructure, personnel, finances etc.  Are not limitless  Strategic Planning Process is a resource allocation process

9. Boston Consulting Group: Growth Share Matrix Market Growth Rate High Low Stars Cash Cows Question Marks Dogs Relative Market Share LowHigh

10. Growth Share Matrix: Star High Growth, high Share Needs heavy investment; builds market share Manage with market ownership Eventually become Cash Cows Stars Cash Cows Question Marks Dogs

11. Growth Share Matrix: Cash Cows  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

12. Growth Share Matrix: Question Marks Low share, high growth markets Requires cash to hold share What should be done? Match with organization’s distinctive competencies Obtain resources needed Build these into stars or phase out, sell Stars Cash Cows Question Marks Dogs

13. Growth Share Matrix: Dogs  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

14. Decline Introduction Growth Maturity Time Sales Revenue/ period Growth Share Matrix and Product Life Cycle

15. Strategy of Market Ownership  Define  Evolve  Collaborate

16. Strategy of Market Ownership  Define market niche  Work towards domination  Brand identified as standard  Competitors note equivalence to such products Evolve Define Collaborate

17. Strategy of Market Ownership  Continue to evolve offerings  Keep definitions of value current with market  Present these values to consumers Evolve Define Collaborate

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

19. GE Multi-Factor Attractiveness/Strength Matrix 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