1. Team 1: Andrew McDaniel Ryan Schafer Brad Schaefer Brandon Christian Rob Pace

2. 1. Goals: simple, consistent, and long term. Lady Gaga left college to pursue singing career. James Dyson persisted for more than 5 years and 5000 prototypes. Ferguson’s life was dominated by soccer.

3. 2. Good understanding of competitive environment. Lady Gaga understood her name was a brand. James Dyson realized the importance of tv advertising to sell his product. Alex Ferguson recognized the new realities of European soccer

4. 3. Objective appraisal of resources. Lady Gaga exploited her ability to develop and project her image. Dyson realized his product would likely be imitated. Ferguson is masterful in apprising the talents of both his teams and individual players.

5. 4. Effective implementation. Without effective implementation, the best laid strategies are of little use. Look at the ‘high achievers’ of any competitive area. Focusing on a certain goal can lead to success but also failure.

6.  Origins Strategic had its origin from the military and shares many similarities:  They are important.  They involve a significant commitment of resources.  They are not easily reversible.

7.  Evolution of business strategy Corporate planning(1960)-long term financial planning and investment appraisals for a 5 year period. Replaced with strategic management(1980)- Positioning the company in markets and in relation to competitors in order to maximize a potential for profit. Changed because they couldn’t plan for economic downfalls.

8. Resource-based view(1990)- strategy analysis shifted from the source of profit in the external environment, to how the firm could maximize profit internally. Continuous changes and tough competition in the market has led to more responsive and flexible strategies for temporary advantages.

9.  What is Strategy? Strategy- means by which organizations and individuals achieve their objectives. Corporate strategy- includes investment and diversification. Business Strategy- concerned with how the firm competes with other companies in industry.

10.  How do we describe a firms strategy? Static vs. Dynamic Static- competing in the present.  Where are we competing?  How are we competing? Dynamic- preparing for the future.  What do we want to become?  What do we want to achieve?  How will we get there?

11.  How we identify a firms strategy? Mission statement  Why we exist? Statement of principles  What we believe in?  How we will behave? Vision statement  What we want to be? Strategy statement  What our competitive game plan will be?

12.  Important info outside of financial statements. Where is the company investing its money? What technologies is the company developin? What new products have been released? Major investment projects initiated and/ or top management hires made?

13.  How is strategy made? Design vs. emergence Intended strategy- made by top management team. Realised strategy- actual strategy  ~10 – 30% of intended strategy actually realized. Emergent strategy- decisions that emerge from complex processes in which managers interpret the intended strategy and adapt to changing circumstances.

14.  What roles does strategy perform? Helps in simplifying and limiting alternatives for decision making. Statements of strategy are a powerful means in which the CEO can communicate goals to organizational members. Strategy helps to target what the firm will become in the future.

15.  In whose interest? Shareholders vs. Stakeholders “Organizations ate composed of man different individuals and groups, many of which may have different agendas”. Consumer surplus- firms create value for their customers to the extent that the satisfaction customers gain exceeds the price they pay. Stakeholder approach- organization is a coalition of interest groups and top level management balances their conflicts of interest.

16.  Profit and purpose “The worlds most consistently successful companies in terms of profits and shareholder value tend to be those that are motivated by factors other than profit” Blue ocean strategy:  Driving costs down while increasing value and price. Mission statement:  Not always to gain profit but to provide useful purpose to its users.

17. Henry Ford’s quote of “I will build a motor car for the great multitude… It will be so low in price that no man making good wages will be unable to own one and to enjoy with his family the blessing of hours of pleasure in God’s great open spaces… When I’m through, everyone will be able to afford one and everyone will have one.”

18.  Debate over corporate social responsibility.  Milton Friedman statement on CSR: “ There is one and only one social responsibility of business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud”.

19. The justification of why companies operate solely in the interests of their owners seeking to maximize profits: Competition-  as competition increases, the interests of different stakeholders converge around the goal of survival. The market for corporate control-  Companies that underperform financially suffer a declining share price.

20. Convergence of stakeholder interests-  Profitability over the long run requires employee loyalty and trusting relationships with suppliers and customers. Simplicity-  Key problem of stakeholder approach is multiple goals and specific tradeoffs between them vastly increases the complexity of decision making.

21.  The basic framework for strategy analysis “For a strategy to be successful, it must be consistent with the firms external environment and with its internal environment – its goals and values, resources and capabilities and structure and systems.”