Académique Documents
Professionnel Documents
Culture Documents
Strategy Analysis
Strategy Formulation
Strategy Implementation
Environmenta l scanning
Strategy Formulation
Strategy Implementati on
Strategies
Plan to achieve the mission & objectives Policies Bread guidelines for decision making
Programs
Activities needed to accompolish a plan
Procedures
Political
Power of Buyers
Substitute Social
Products/Services
Technological
Suppliers
Substitutes
SERVICE
PRIMARY ACTIVITIES
Tangible resources
-physical resources, financial resources, and human resources
Intangible resources
- intellectual/technological resources and reputation
Reputation
- important in those markets where consumers can only ascertain the quality of a product from their long term experience
Innovation
- an organization may develop innovative processes which are imbedded within the routines of the organization and therefore difficult for competitors to copy
Possessing a distinctive characteristic is a necessary but not sufficient criteria for success
It must also be sustainable and appropriable - For a distinctive capability to be sustainable it needs to persist over time - For a distinctive capability to be appropriable it needs to benefit the organization
1. 2. 3. 4.
5.
Identify and classify the organizations resources Identify the organizations capabilities Appraise the rent generating potential of resources and capabilities Select a strategy which best exploits the organizations resources and capabilities Identify whether any resource gaps exist
5
Capabilities
Resources
Figure 5.1
Competitive Advantage
Embedding Knowledge in Fundamental Processes
Royal Dutch Shell scenario planning, BP-Amoco Project management Toyota TQM, production management, Sophisticated production system Unileverproduct development and brand management General Electric operational planning Xeroxworkplace design Buckman Laboratories new product development World Bank story telling Wal-Mart Strive to be the industrys low-cost provider Johnson & Johnson Reliability in baby products Harley Davidson King of the road styling
Competitive Advantage
Embedding Knowledge in Fundamental Processes
Rolex Top of the line prestige Mercedes Benz Engineering design and performance Amazon.com Wide selection and convenience Jiffy Lube International Quick oil changes McAfee Virus protection auctions Starbucks Premium coffees and coffee drinks FedEx Next day delivery of small packages Walt Disney Theme park management and family
Business Strategy
BUSINESS STRATEGY --It is a plan of action to use the firms resources/capabilities and distinctive competencies to gain competitive advantage --Focuses on improving competitive position of companys products or services within the specific industry or market segment
Prentice Hall, Inc. 2006 6-27
Business Strategy
Focuses on improving competitive position of companys products or services within the specific industry or market segment A Resource-based strategy uses a companys valuable and rare resources and competitive capabilities to deliver value to customers in ways rivals find it difficult to match A competence is an activity that a company performs well A core competence is a competitively important activity that a company performs better than other internal activities A distictive competence is a competitively important activity that a company performs better than its rivals therefore offering the pottential for competitive advantage
6-28
The basic dimensions associated with the choice of Business-level strategy comes from the process of deciding what products to offer, what market to serve, and what distinctive-competency to pursue In other words managers must answer questions to determine their competencies:
WHAT is being satisfied ? The customer needs (Product Differentiation) WHO is being satisfied ? The customer group (Market Segmentation) HOW customers needs are being satisfied ? The competitive actions (Distinctive Competencies)
Prentice Hall, Inc. 2006 6-29
Hierarchy of Strategy
Corporate Strategy : Overall Direction of Company and Management of Its Businesses Business Strategy:
Competitive and Cooperative Strategies
Functional Strategy:
Capabilities: Integrated Resources / Skills in effectively coordinating and managing resources for productive use
Normally Intangible (i.e. Customer Service Capability & R&D Capability)
Core competency: Are unique resources and capabilities (STRENGTHS) combined into specific activities a firm can perform extremely well Distinctive competency: These are Core Competencies that are superior of those of competitors. What you do better then your competitors?
Prentice Hall, Inc. 2006 5-31
Distinctive competencies:
When core competencies or core capabilities are superior to those of the competition.
Prentice Hall, Inc. 2006 8-32
Business Strategies
Distinctive Competencies. Management must decide how to organize and combine its distinctive competencies to satisfy the customer needs of its customer group in order to gain competitive advantage. Basically there are 4 ways to obtain competitive advantage: superior efficiency, quality, innovation, and customer responsiveness.
Prentice Hall, Inc. 2006 6-34
5-35
Menemukan Competitve Advantage Melalui VRIO Analysis Melakukan Analisa ( VRIO Analysis)
VRIO ANALYSIS
V = VALUABLE
R = RARE I = Difficult to IMITATE
O= Supported by ORGANIZATION
Valuable? No
Rare? ...
Yes
No
...
Yes
Yes
No
Above Normal
Yes
Yes
Yes
Yes
Above Normal
Process
Lean production is an assemblyline methodology developed originally for Toyota and the manufacturing of automobiles. It is also known as the Toyota Production System or just-in-time production.
Engineer Taiichi Ohno is credited with developing the principles of lean production after World War II. His philosophy, which focused on eliminating waste and empowering workers, reduced inventory and improved productivity. Instead of maintaining resources in anticipation of what might be required for future manufacturing, as Henry Ford did with his production line, the management team at Toyota built partnerships with suppliers. In effect, under the direction of Engineer Ohno, Toyota automobiles became made-toorder. By maximizing the use of multi-skilled employees, the company was able to flatten their management structure and focus resources in a flexible manner. Because the company was able make changes quickly, they were often able to respond faster to market demands than their competitors could.
Many industries, including software development, have adopted the principles of lean production. The ten rules of lean production can be summarized: 1. Eliminate waste 2. Minimize inventory 3. Maximize flow 4. Pull production from customer demand 5. Meet customer requirements 6. Do it right the first time 7. Empower workers 8. Design for rapid changeover 9. Partner with suppliers 10. Create a culture of continuous improvement (Kaizen)
an organizational model that strategically applies the key ideas behind lean production. A lean enterprise is viewed as a group of separate individuals, functions, or organizations that operate as one entity. The goal is to apply lean techniques that create individual breakthroughs in companies and to link these up and down the supply chain to form a continuous value stream to raise the whole chain to a higher level.
Predictive Biosciences
(HBS Case #9-811-015)
A small cancer diagnostics start-up is deciding whether to acquire a laboratory to make and sell its bladder cancer test or build its own manufacturing and sales team.