Post on 16-Dec-2015
SM
472.42
2
Winter 2012
Syllabus
Questions?
Readings
Wheelen et. al • ch 1
what did you notice?
Working Through A Case An Approach to Case Analysis
So exactly what is strategy?
• How can profitable growth be achieved?
• How can the chances of survival be enhanced?
• How can competition be withstood?
How can we thrive?
Bombardier
“strategy” language “strategic investment in new markets” “big player in a small number of markets” “engage in the development of new
technologies to keep ahead of its rivals” “Six Sigma” “spin off the recreational products division”
• core business in planes and trains
How will Bombardier thrive?
Bombardier
“strategy” language “leader in all markets in which it operates” “exceed customer expectations with
innovative products & services” “expertise in developing and commercializing
innovative products”
pg 2-3
Preparing a Case
Case Questions
Case Notes What is an “alternative”?
• an action or cluster of actions that takes the firm in a distinct direction
» that could plausibly enable the firm to thrive
Indigo
company website Indigo Books
• http://www.chapters.indigo.ca/home/
stock market history Globe and Mail
• http://www.theglobeandmail.com/globe-investor/markets/stocks/
How will Indigo thrive?
Prep for Thu
reading Wheelen et al.
• ch 2
sim• Adrenaline Sports
group work meet decide main tasks for presentation
• Feb 9
• http://buller.prov.ca/BullerCentre/projects/biomass/PAMI_Biomass%20Research%20Presentation_10-11-04.pdf
See slide 18
Examples
ch 1 Bombardier 2 - 3 Indigo Books 21
ch 2 Choice Hotels 36 Clodhoppers 47
How will they thrive?
Situation of each
How do we get past “a contest of opinions”?
Strategic Planning Tools
“Generic” Product/Market Goals SWOT
• TOWS matrix
BCG matrix Environmental
scanning
Five Forces Benchmarking Diamond-E Scenario Planning Product Cycle Game theory
Generic Strategies
1. value proposition
2. productivity triangle
3. market options
4. company scope
Generic Strategies
1. value proposition options lowest-cost differentiation
• features
• execution pick 1
“What’s our value proposition?”
“Why will people prefer to buy what we’re selling?”
“Niche”“Our distinctives”
Value Proposition Options
PRICE FEATURES EXECUTION
Direct Tangible Availability
Price Quality Timing
Discount structure Performance Convenience
Rebates Proprietary properties Delivery
Credit rates Pre- & post- sales service Reliability
Indirect Options / choice Intensity
Financial assistance Guarantees Sales hustle
Capital vs. operating Intangible/Image Service hustle
Life cycle cost Design Friendliness
Cost absorption Fashions
Prestige
“Personality”
Value Proposition
& Competitive Advantage not the same thing make sure:
• you actually can beat competition at this
• you can live off that value proposition there are enough customers that care you can reach them they will pay you enough
Generic Strategies
1. value proposition options lowest-cost differentiation
• features
• execution
“What’s our value proposition?”
Why will people prefer to buy what we’re selling?
pg 21
Indigo Books
Generic Strategies
1. value proposition
2. productivity trianglepick any 2
fast
cheap good
What 3 product qualities do my sectors’ customersvalue most?
Generic Strategies
1. value proposition
2. productivity triangle
What 3 product qualities do my sectors’ customersvalue most?
accessibility
price quality
True North
Hideaway
Trails EndRoss’ Resort
Pipestone
Happy Landing
pg 47
ClodhoppersGeneric Strategies
1. value proposition
2. productivity triangle
Generic Strategies
1. value proposition
2. productivity triangle
3. market options concentration penetration expansion
pick 1
Choice Hotels
strategic growth• conversion opportunities Econo Lodge
• new construction Sleep Inn
operational services• preventative maintenance
sales marketing communication
pg 38
Generic Strategies
1. value proposition
2. productivity triangle
3. market options concentration penetration expansion
pg 38
Choice Hotels
Generic Strategies
4. company scope options core business vertical integration horizontal integration diversification
pick 1
Generic Strategies
1. value proposition
2. productivity triangle
3. market options
4. company scope options
raw m
aterials
“profit pools”
Generic Strategies
4. company scope optionsleasing
sales
servicing
distribution
assembly
parts manufacturing
processing
raw m
aterials
“profit pools”
revenuesprof
its
Strategic Planning Tools
“Generic” Product/Market Goals SWOT
• TOWS matrix
BCG matrix Environmental
scanning
Five Forces Benchmarking Diamond-E Scenario Planning Product Cycle Game theory
Adrenaline Air Sports
generic strategies1. value proposition
2. productivity triangle
3. market options
4. company scope
How can they thrive?
But In The Real World…
basic financial planning
forecast-based planning
externally-oriented planning
strategic management
day-to-day survival
Strategic Planning Approaches
“Generic” Product/Market Goals SWOT
• TOWS matrix
BCG matrix Environmental
scanning
Five Forces Benchmarking Diamond-E Scenario Planning Product Cycle Game theory