Pedro Díaz Ridao

Director, Real Madrid MBA in Sports Management

Madrid, November 2013

STRATEGY AND INNOVATION

1. Introduction a. Executive summary b. Problem definition. Background c. Objectives

2. Strategic Analysis a. Mission and vision b. Strategic objectives c. External Analysis d. Internal Analysis e. Value chain f. Legal form

3. Marketing Plan a. Market research b. Company analysis c. Marketing Mix (4p…) d. …

MBA FINAL PROJECT: INDEX

4. Operations and Human Resources Plan

a. …

5. Financial Plan a. P&L b. Cash flow projections c. Break-even d. Balanced scorecard e. Contingency Plan

6. Conclusion

How should our Final Project be

S i m p l e

– “simplicity is the ultimate sophistication”, Leonardo da Vinci

Good ideas look simple

S p e c i f i c

– Be different, narrow down your topic so that it becomes unique

S p e c i a l

– Think of it as a present. The interior matters, but the package matters too. Try

to surprise the audience.

2

Introduction

Strategic tools

Enhanced SWOT Analysis

Case study

Business Models: Business Model Canvas

• Introduction: Blue Ocean Strategy

• Activity: Business Model Canvas

• Innovation tools

Your MBA Business Plan

SCHEDULE

http://www.youtube.com/watch?v=0E0e6NqcT0M

“Strategy is not to do things better but to find a different place where the organization generates value” Michael Porter

¿What is strategy?

STRATEGY

It is to create a sustainable competitive advantage

The current trend

Before: focus on the strategic analysis

Now: focus on the execution and implementation

The strategy process (recap)

Misión y

objetivos

Análisis

Interno

Diseño de

estrategias

Evaluación

y selección

Puesta en

prácticaControl

Análisis

Externo

ANÁLISIS

ESTRATÉGICO

FORMULACIÓN

ESTRATÉGICA

IMPLANTACIÓN

DE ESTRATEGIAS

Control Operational

Aspects

Evaluation

& selection

Strategies

Design

Vission,

Mission,

Objectives

External

Analysis

Internal

Analysis

STRATEGICAL

ANALYSIS

STRATEGIES

DEFINITION

STRATEGIES

IMPLEMENTATION

The strategy process (recap)

Where are we? MISSION, OBJECTIVES

Where do we want to go? What do we want to become?

VISION

How are we going to achieve this?

WHAT WE NEED TO ACCOMPLISH IT

Our mission (recap)

It defines what we do and for whom we do it.

It is a declaration of principles.

It must reflect our values, our essence.

Everyone in the organization must know it.

It should remain over time, although it can be modified if necessary

It must be clear and reflect our main activity.

Our vision (recap)

Tells about our future, what we want to be, it must be

aspirational.

Must summarize the strategic focus of the organization

TACTICAL vs STRATEGIC

Must “seduce” our employees.

What are Real Madrid CF’s mission, vision and values?

MISSION: To feed and project Real Madrid brand across the globe. To build a

story of value based on our brand and content, but with universal values which

go far beyond the sports field.

VISION: To become also the best club of the 21st century

VALUES: spirit of self-improvement and respect for the rival.

What are Real Madrid CF’s mission, vision and values?

The process of strategy

Misión y

objetivos

Análisis

Interno

Diseño de

estrategias

Evaluación

y selección

Puesta en

prácticaControl

Análisis

Externo

ANÁLISIS

ESTRATÉGICO

FORMULACIÓN

ESTRATÉGICA

IMPLANTACIÓN

DE ESTRATEGIAS

Control Operational

Aspects

Evaluation

& selection

Strategies

Design

Vission,

Mission,

Objectives

External

Analysis

Internal

Analysis

STRATEGICAL

ANALYSIS

STRATEGIES

DEFINITION

STRATEGIES

IMPLEMENTATION

STRATEGY

Strategic Analysis tools:

– SWOT

Based on:

Value chain and 7S Mckinsey (internal)

PESTEL and Porter’s 5 forces (external)

Porter strategies

(differentiation, cost leadership and segmentation)

Dell, Ryanair

Ikea Rolls Royce

BMW, Geox

SWOT ANALYSIS

ENHANCED SWOT

Activity: Enhanced SWOT

• The managing board of Club Atlético de Madrid SAD requests you to help them with their strategic plan 2013-2018.

Modelos de negocio: BMC

23

Find your blue ocean

Red ocean vs blue ocean

Blue ocean strategy:

Any examples o f B lue Ocean St ra tegy?

Blue ocean strategy: some examples

Blue ocean strategy: Cirque du soleil

“reinventing the circus”

Four Actions Framework: Cirque du soleil

Four Actions Framework: Cirque du soleil

Blue ocean strategy: New sports center in Madrid

Day 2: Strategy and Innovation recap

Strategy: sustainable competitive advantage

Find a different place

where to generate

value

ERRC grid (four actions framework)

Mission, vision and objectives + values

Enhanced SWOT

Innovation

Blue Ocean Strategy

Differentiation vs low

price vs

focus/segmentation

Business Models: BMC

“We are in the real estate business. The

only reason we sell hamburgers is because

they are the greatest producer of revenue

from which our tenants can pay us rent.”

RAY KROC

What is their

business?

Business Models: BMC

What is your value

proposition?

“elevator pitch”

It describes how an organization creates, delivers and captures value

34 https://www.youtube.com/watch?feature=player_embedded&v=QoAOzMTLP5s

K e y : E l e v a t o r p i t c h

36

44 https://www.youtube.com/watch?feature=player_embedded&v=QoAOzMTLP5s

45 https://www.youtube.com/watch?feature=player_embedded&v=QoAOzMTLP5s

LEFT BRAIN

logic, efficiency…

emotion, value…

Case: Nespresso

47

BMC del Real Madrid CF Google Inc.

BMC del Real Madrid CF Real Madrid CF

And now

Business Model Canvas of a new sports organization

Recommended readings

http://www.forbes.com/sites/mikeozanian/2013/04/17/soccers-most-

valuable-teams-real-madrid-dethrones-manchester-united-from-top-spot-at-

3-3-billion/