1. Business Strategy: what is it, who's it for and how to create one Chris Eaton LLB (Hons) C Dir CEO, The ILS Group Limited

2. Strategy “We must plan for the future because those who stay in the present will remain in the past.” Abraham Lincoln

3. Evaluating Strategy A well formulated strategy helps to marshal and allocate an organisation's capability into a unique competitive position based on its relative internal strengths, weaknesses, anticipated changes in the environment, stakeholders’ expectations and likely moves by present and potential competitors. Source J B Quinn - Adapted

4. Mission Statement To have each guest leave the hotel completely satisfied -Marriott Hotel Dubai Shareholder is King - Hanson Industries No 1 goal is to provide outstanding customer service - Nordstrom Kill Caterpillar - Komatsu

5. Getting Started Start Big – Start Wide P – Political E – Economic S – Social T – Technological L – Legal E - Environmental

6. Understanding the Competitive Situation – Porter’s Five Forces Potential Entrants Substitutes Supplier Power Buyer Power Current Competition

7. SWOT Analysis Should provide a clear statement of strategic position Involve all Do regularly Perception or Objective Analysis? Prioritise and discuss impact Compare against competitors

8. Product Market Matrix Original idea by Ansoff Product Development Market Development Diversification Penetration New product Current product Current marketNew market

9. Strategic Options Two Core Strategies :  Differentiation  What don’t we do?  Cost Leadership  Cost not Price

10. Implementation Identification of sub-strategies:  Growth  Turnaround  Defender/Reactor

11. Reasons for Failure Cost Leadership Basis of leadership duplicated – “Me Too” (N.B. Organisational and management skills most difficult to copy) Differentiation Price differential becomes too great to hold brand loyalty Buyer’s need for differentiating factor fails Imitation narrows perceived differentiation

12. Key Elements to Remember Start Big - Start Wide (PESTLE) Analyse the Competition (including new entrants and possible substitutes) Assess internal strengths and weaknesses Decide whether to cost lead or differentiate Decide what you don’t do And remember… Strategy is a process, not an activity