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7/25/2019 Matusik - Strategy Frameworks
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Sharon F. Matusik, Ph. D.
Rice University
Strategic Management
Review of the Basics
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What isStrategy?
The creation of a unique and
valuable position involving a
differentset of activities from
those of your competitors.
choosing what to do and whatnot to do.
Adapted from Michael Porters, !hat is Strate"y#$ %&&'.
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Strategy !ramewor"s from #ault
$uide
%ndustry level analysis&orter's ( !orces
&%) application
!irm level analysisSW*T+ore competencies#alue +hain
Seven S Model*ther forms of analysisB+$ ,-, Matri-Benchmar"ing best practices
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&orter's ( !orces
T/) %012STR3Rivalry 4mong
)stablished !irms(competitive structure(demand conditions
(e-it barriers
Bargaining &ower of Suppliers
/igh if5( product has few substitutes and
is important few suppliers( supplier has many other outlets
for product( high switching costs
( threat of vertical integrationforward
Bargaining &ower of Buyers
/igh if5
( few large buyers
( product unimportant to output( buyers purchase in large
quantities and purchase large
percentage of industry output
( low switching costs littledifferentiation
( threat of vertical integration
bac"ward
Ris" of )ntry
6Barriers to )ntry7(brand loyalty(absolute cost advantages(econ of scale cap req't(government regulations(distribution access
Threat of Substitute &roducts
( e-istence of different products
that serve consumers' needs in
a similar way
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!irm level analysis
!irst consider units of
analysis+orporate level
Business level
$lobal level
%mplementation of strategy
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2nits of Strategic 4nalysis
+orporate level strategy8evel and type of diversification
Business level strategy8ow cost differentiation niche
#ariety needs access based
$lobal level strategy$lobal international
transnational multi9domestic
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!irm level analysis
SW*T!irm level strengths and
wea"nesses matched toopportunities and threats from
competitive environment
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Mission, )oals
*nternal Analysis
+stren"ths, eaknesses-
Strate"ic hoice
+S!/0-12ternal Analysis
+opportunities, threats-
Strategies599+orporate 8evel
undiversified, diversified
99$lobal
transnational, "lo3al, intl, multidomestic
99Business 8evel
lo cost, differentiate, niche4focus /R variety, needs, and access 3ased
Strate"y *mplementation5
Match Strate"y, Structure, ontrols
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&ursuing +ompetitive 4dvantage5
+ore +ompetencies
AssetsAssets
apa3ilitiesapa3ilities
oreore
ompetenciesompetencies
66ore Productsore Products
ompetitiveompetitive
Advanta"e5Advanta"e5
Super7Super7
normalnormal
profitsprofits
imita3ilityimita3ility
0an"i3le *ntan"i3le
778alua3le9market access
9contri3utes to perceived customer value
77Rare
77Difficult to *mitate
77:onsu3stituta3le
leading
to
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#alue +hainhain of activities to transform inputs into outputs that customers value.
ompany infrastructure
;uman resourcesMaterials mana"ement
Support
Activities
Primary
Activities R
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Seven S Model5
*rgani:ational 4lignment
EnvironmentEnvironment
Strate"yStrate"y SkillsSkills Formal StructureFormal Structure
SystemsSystems
StaffStaff StyleStyle Shared 8aluesShared 8alues
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*ther Tools;Models
#ault 4nalysesB+$ ,
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$ame Theory
4ssumes interdependence
among players
4llocentrism vs. egocentrism
+onsider how you can shape
the game don't =ust play thegame you find
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)lements of the game
&layers
4dded value capturing vs. creating value
Rules
Tactics
Scope
$ame Theory
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S0A=1;/>D1R A:A>?S*S
Potential to 0hreaten
STAKEHOLDER TYPE
M*@1D >1S*:)
STRATE!Y"/>>A/RA01
STAKEHOLDER TYPE #
SUPP/R0*81
STRATE!Y"*:8/>81
STAKEHOLDER TYPE $
:/:SUPP/R0*81
STRATE!Y"
D1F1:D
STAKEHOLDER TYPE %
MAR)*:A>
STRATE!Y"
M/:*0/R
;i"h
;i"h
>o
>o
?
From Sava"e, :i2, !hitehead < lair, %&&%
Poten
tialto.oo
perate
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The Resource +ontinuum
generalgeneral nature of resourcesnature of resources specializedspecialized
widewide scope of businessesscope of businesses narrownarrow
transferringtransferring coordinationcoordinationmechanismsmechanisms sharingsharing
(continued)(continued)
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The Resource +ontinuum
generalgeneral nature of resourcesnature of resources specializedspecialized
financialfinancial control systemscontrol systems operatingoperating
smallsmall corporate office sizecorporate office size largelarge