A TASTE OF STRATEGY AT VLERICK: FROM BUSINESS TO CORPORATE…/media/Corporate/Pdf... · 2016-06-03 · A TASTE OF STRATEGY AT VLERICK: FROM BUSINESS TO CORPORATE, FROM LOCAL TO GLOBAL
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A TASTE OF STRATEGY AT VLERICK:FROM BUSINESS TO CORPORATE, FROM LOCAL TO GLOBAL
CARINE PEETERS
© Vlerick Business School
CONTENT
What is strategy?
Zoom 1: Business strategy formulation
Zoom 2: Corporate value creation
Zoom 3: Competing across borders
2 #experiencevlerick
1WHAT IS STRATEGY?
© Vlerick Business School
Strategy is the means by which firms achieve
and sustain superior performance
Method Execution
Adaptation to changing
context
/ Competitors+
Continuous improvement
VALUE CREATION & CAPTURE
#experiencevlerick
© Vlerick Business School
CORPORATE PARENT
A GENERAL FRAMEWORK FOR STRATEGY
Analysis
FormulationExecution
STRATEGY
PERFORMANCE
FIRM /BU• Mission & values • Vision &
objectives• Resources &
Capabilities
INDUSTRY• Competitors• Customers• Suppliers
MACRO ENVIRONMENT• Technological evolution• Global economy• Socio/politico/legal forces
Zoom 3
#experiencevlerick5
2ZOOM 1:
BUSINESS STRATEGY FORMULATION
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DEFINING YOUR WINNING FORMULA
7Verweire (2014)
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8
FOCUS
9
UNIQUE
10
COHERENT
11
FIT
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SUCCESSFUL STRATEGY
ANSWERS 4 QUESTIONS:
1. Whom do you serve?
2. What do you provide?
3. With which value
proposition?
4. How do you realize it?
CHARACTERISTICS
STRATEGY
FIT
FOCUS
UNIQUE
COHERENT
#experiencevlerick
© Vlerick Business School
DO YOU HAVE A WINNING VALUE PROPOSITION?
Let’s play cards…
#experiencevlerick13
© Vlerick Business School
VALUE ATTRIBUTES OF BUSINESS TRANSACTIONS
Product: Quality and features of goods or services purchased
Price: Cost of goods or services
Access: How easily consumers obtain and usegoods
Service: What is done extra before, during, andafter the sale
Connectivity: How consumers feel aboutthemselves as a result of goods and/or services
14
Source: Crawford & Mathews (2001)
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A FOCUSED VALUE PROPOSITION
15Source: Crawford & Mathews (2001)
5-4-3-3-3 is an optimal profile
Customer acceptance
Customer preference
Customer favourite
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© Vlerick Business School
CORPORATE PARENT
A GENERAL FRAMEWORK FOR STRATEGY
Analysis
FormulationExecution
STRATEGY
PERFORMANCE
FIRM /BU• Mission & values • Vision &
objectives• Resources &
Capabilities
INDUSTRY• Competitors• Customers• Suppliers
MACRO ENVIRONMENT• Technological evolution• Global economy• Socio/politico/legal forces
#experiencevlerick16
3ZOOM 2:
CORPORATE VALUE CREATION
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DOES YOUR PARENT COMPANY CREATE VALUE?
BRAND SUPERIOR SYSTEMS, TOOLS, PRACTICES
SYNERGIESRESTRUCTURING
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© Vlerick Business School
A PROBLEM OF NET VALUE CREATION
19
Additional corporate
costs
Net value creation
Gross corporate
value creation
Positive corporate value added
Direct and indirect costs
Based on Meyer (2009)
Gross corporate
value creation
Net value destruction
Additional corporate
costs
Negative corporate value added
Direct and indirect costs
• Bureaucracy
• Inefficient corporate services
• Poor decisions
• Interferences
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© Vlerick Business School
GROWING FROM YOUR STRENGTHS
20Strategy+Business (2014)
#experiencevlerick
© Vlerick Business School
CORPORATE PARENT
A GENERAL FRAMEWORK FOR STRATEGY
Analysis
FormulationExecution
STRATEGY
PERFORMANCE
FIRM /BU• Mission & values • Vision &
objectives• Resources &
Capabilities
INDUSTRY• Competitors• Customers• Suppliers
MACRO ENVIRONMENT• Technological evolution• Global economy• Socio/politico/legal forces
Zoom 3
#experiencevlerick21
4ZOOM 3:
COMPETING ACROSS BORDERS
Hoium (2014)
© Vlerick Business School
VALUE CREATION ACROSS BORDERS
24
Structure
EmbraceAvoid
Overcome
Differentiated by geography and/or
product line
Serve the global
segment in every country
Localize your parent’s strengths
Target similar
countries
ExploitPlay the
differences
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© Vlerick Business School25
Understanddifferences
Choose a response profile
International strategic choices
3-STEPS PROCESS
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5WRAP UP
26
BIGGER IS NOT ALWAYS BETTER
Strategy is the means to maximize firm performance
THANK YOU
CARINE.PEETERS@VLERICK.COM#experiencevlerick
© Vlerick Business School
FEEL LIKE SOME MORE?
Essentials in Strategy (start 3 December)
Successful Strategy Execution (start 23 November)
Advanced Management programme (18 November)
#experiencevlerick
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