1. Strategy

2. zThe alignment of your processes, resources, and organizational structure to maximize benefits to various stakeholders

3. Strategy zStakeholders ystockholders ycustomers yemployees ysuppliers

4. Strategy zProcesses zIdentifying and reengineering work flows zTQM and just-in-time inventory systems zBuilding bridges through the use of cross- functional teams

5. Strategy zResources zCapital zLabor zMaterials zMachines zInformation zFacilities

6. Strategy zOrganizational Structure zFunctional structure zProduct/brand management structure zMatrix structure zEtc.

7. Functional Approach Departments based on similar skills and resource use. Vice President Marketing Production Control Vice President Manufacturing Vice President Fiancnce President CEO VPFinanceVPProductionVPMarketing

8. PRODUCT MANAGER ORGANIZATION

9. Engineering Manager Production Manager Marketing Manager Quality Manager 757 Project Mgr 767 Project Mgr 737 Project Mgr 747 Project Mgr Matrix Organization

10. Strategy zCorporate strategy zBusiness-unit strategy zFunctional strategy (product-market entry) yMarketing plans and strategies primarily focus on this level

11. Strategic business units zStrategic business unit: zAn entity that can be separated for planning purposes zHas its own set of customers zHas its own set of competitors zHas a manager who is responsible for the unit

12. Corporate Strategy zMission zProduct-oriented vs. market-oriented zFunctions to be performed zSocial responsibility issues

13. Corporate Strategy zCorporate objectives zProfitability yROI yReturn on shareholder’s equity y$ profit yetc. zDiscounted cash flow zMarket share zEtc.

14. Corporate Development Strategy Current Markets New Markets Current Products New Products Market Penetration Market Development Product Development Diversification

15. Corporate Strategy zCorporate development strategy zMarket penetration zMarket development zProduct development zDiversification yforward integration ybackward integration yrelated (concentric) diversification yunrelated (conglomerate) diversification

16. Corporate Strategy zResource allocation zBoston Consulting Group model (Boyd, Walker & Larreche, pp. 41, 42) zIndustry attractiveness -- business position matrix (General Electric model) (Boyd, Walker & Larreche, p. 44)

17. BCG Matrix Market Growth Rate Relative Market Share Stars Question Marks Cash Cows Dogs

18. Industry Attractiveness— Business Position Matrix Competitive position High Medium Low Industry Attractiveness HighMediumLow 11 1 2 2 2 3 3 3

19. Strategic business units zStrategy formulation (Porter’s typology) zOverall cost leadership ybroad focus ynarrow focus zDifferentiation ybroad focus ynarrow focus

20. Porter’s Typology Cost Leadership Differentiation Narrow Focus Broad Focus

21. Functional (product-market) strategy: The marketing mix (4Ps) zProduct zPrice zPlace zPromotion yadvertising ypersonal selling ysales promotion ypublicity

22. Value creation & delivery zChoose the value zProvide the value zCommunicate the value

23. Value creation & delivery zChoose the value zSegmentation zTargeting zPositioning

24. Value creation & delivery zProvide the value zProduct & service development zPricing zSourcing zManufacturing zDistributing zServicing

25. Value creation & delivery zCommunicate the value zSales force zSales promotion zAdvertising zPublicity