Académique Documents
Professionnel Documents
Culture Documents
Acceptable
Flexible Measurable Motivating
Suitable
The Balanced Scorecard is a set of measures that are directly linked to the companys strategy. It directs a company to link its own long-term strategy with tangible goals and actions.
Generic Strategies
Low-cost Leadership
Differentiation
Focus
Sustained capital investment and access to capital Process engineering skills Intense supervision of labor Products designed for ease in manufacture Low-cost distribution system
Tight cost control Frequent, detailed control reports Structured organization and responsibilities Incentives based on meeting strict quantitative targets
(contd.)
Generic Strategy Differentiation Commonly Required Skills and resources
Product engineering Creative flare Strong capability in basic research Corporate reputation for quality or technological leadership Unique combination of skills Strong cooperation from channels Strong marketing abilities
Focus
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Product development
Involves substantial modification of existing products or creation of new but related products Based on penetrating existing market by
Incorporating product modifications into existing items or Developing new products connected to existing products
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2.
3.
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(contd.)
Market Development (Selling present products in new markets.) Opening additional geographic markets
a. b. c. Regional expansion National expansion International expansion
1.
2.
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contd.)
Product Development (Developing new products for present markets) Developing new product features
a. b. c. d. e. f. g. h. Adapt (to other ideas, developments) Modify (change color, motion, sound, odor, form, shape) Magnify (stronger, longer, thicker, extra value) Minify (smaller, shorter, lighter) Substitute (other ingredients, process, power) Rearrange (other patterns, layout, sequence, components) Reverse (inside out) Combine (blend, alloy, assortment, ensemble, combine units, etc.)
1.
2. 3.
Developing quality variations Developing additional models and sizes (product proliferation)
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Innovation Strategy
Involves creating a new product life cycle, thereby making similar existing products obsolete
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Textile producer
Textile producer
Shirt manufacturer
Shirt manufacturer
Clothing store
Clothing store
Acquisitions or mergers of suppliers or customer businesses are vertical integration Acquisitions or mergers of competing businesses are horizontal integrations
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Diversification Strategies
Concentric Diversification Involves acquisition of businesses related to acquiring firm in terms of technology, markets, or products Conglomerate Diversification Involves acquisition of a business because it represents a promising investment opportunity
Primary motivation is profit pattern of venture
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Turnaround Strategy
Involves a concerted effort over a period of time to fortify a firms distinctive competencies, returning it to profitability
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Turnaround Strategy
A turnaround strategy is done through
Cost reduction
Asset reduction
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Liquidation Strategy Involves selling parts of a firm, usually for its tangible asset value and not as a going concern
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