Applied strategy

Inspired by Prof Perry FeganCompiled by ProfJorgeEntrep

What is strategy?

What is your company strategy?

Summarize in 30 words or less?

Is the company strategy? Or departmental strategy?

Or is the company vision or mission

What is typical answer:

To be the preferred supplier;

To be the company of choice..

To be the leading company…

To be well known…

To be the best….

How do you answer the question, “ How do you appear in the top l0 list?Most answer:

Benchmark the attributes of the best in the field;

Ape the best?

Is this the right choice?

Aping the rest, the best is not the best choiceWhy?1.You get crowded by the best; the more you become ignoreable;2.You do not have the weight of the resources of the leaders;3.It takes a time to catch up; by the time you catch, the leaders have done new thing4.Surely the leaders having noted you will fight back, retaliate

Just what is strategy?

Answers:

Game of the generals; Vision Mission Balanced Scorecard VMOKRAPI SPATRES Innovation Medium and long range plan?

Strategy is choice of resources and activities to reach a predetermined goal

Why do you go through strategy planning?

Answer: To be unique and differentiated. This is the only choice in a highly commoditized business world.

Relate this to:

Purple Cow by Seith Godin

Blue Ocean and its tools:

> ERRC

> Value curve

Strategy is thus linked to the Unique Selling Proposition of a Product

What are the USP of the following: McDonald; KFC Southwest Airlines Mercury Drug Sofitel South Drug Jollibee Amanpulo

KEY ELEMENTS OF USP

The PTM The PTM wants and needs Key Resources Key Processes (Activities) Interlink, configuration of the Key

Resources and Key Activities; Link with the PTM Bond with the PTM(Wait, isnt this Business Model Canvas by

Alex Osterwalder?)

Universal Contents of Strategy Objectives: single goal, time frame

Scope: geography, customers, degree of vertical integration , USP

Configuration: Link of various activities and resources to attain USP

Vs. backdrop of ROIC

Steps in Developing Strategy1. Confronting reality; how does the

product stand in the market vs competitor. What is the current emphasis on the product?

2. Determining the product USP: improved or

new;

3. Defining the strategy

What does strategy involve? Strategy is what you do; there is no

divide between planning and execution

Great deal of time must be devoted on strategy;

It is everybody’s task – not just the CEO or corporate planners;

The senior and middle managers must spend a great deal of time pounding the message in the entire oranization

C’s in Strategy:

It is the sweet spot in the middle of intersection of

Customer, Competitor, Company

In the middle of a Context (the Macro: PESTEL, STEER)

Useful references:

Purple Cow by Seith Godin The Mind of the Strategist by Kenichi

Ohmae Blue Ocean Strategy by Lim

Clearer understanding of Strategy

Complexity of textbook and current course on strategy drowns the student on the tools and concepts;

It is all about products, customers, and competition

It is USP, and positioning the product;

It involves understanding of the business model

Strategy is a choice of set of resources and activities to reach an objective, usually differentiation and uniqueness.