W. Christian Buss

Our GPS

(one division, industry or market)

Step 1 - SUMMARIZING A COMPANY’S CURRENT STRATEGY

Frameworks …

General Environment

Industry Environment – Porter’s Five Forces

Value Price Cost – VPC

Generic Strategies – Cost Leadership, Differentiation, Broad, Focused

Value Chain Analysis

Stakeholder Analysis

Internal Analysis – Resource Based View

Organizational Structure – Simple, Functional, Multi-divisional

Objective/Control Process – Balanced Score Card (Financial, Customer, Process Improvement, Learning/Growth

Implications/Recommendation Development – Plannning Process

Strategy Development:

Step 2 – Draw Implications and Objectives

Step 3 – Develop Recommendations

1) Explain how the company harvests financial benefits from the value it delivers to the customer (VPC Framework)?

WTP = Customer Willingness-to-Pay (Value or Highest amount the customer would pay for the product); p = price actually paid; c- Total cost of product to company; = profit generated from the product.

2) Analyze the main forces in the environment that affect the company’s ability to deliver and harvest a portion of customer value.

3) Describe the core BUSINESS-LEVEL strategy of the company. Does it focus on reducing costs, differentiating its products from competitors, or both? Does it do so in a broad or focused target market?

4) Identify the key activities the company performs using Porter’s Value Chain categories which allow it to deliver customer value. Which of those activities are crucial to the strategic success of the company?

Evaluate the activities and capabilities you have identified so far and list the ones those that are strategically critical. Be able to explain how they are Valuable, Rare, costly to Imitate, and embedded in the Organization. Define the competitive advantage each gives.

Rs and Cs / V / R / I / O / Comp Adv?
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6) Consider the organization structure and communication/control processes. Is the organization structure and management processes appropriate for the emerging strategy implied by your analysis so far?

7) Check/Derive Implications using 10-cell SWOT

8) Summarize the Key Strategic Implications you derived from you analyses.

9) Prepare Recommendations by listing programs necessary to achieve implication objectives.

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