Business Strategy
Strategy is not a concept that originated in the business and management concept, but
in the military concept.
Strategic decisions
- Has long term, significant, multi-dimensional and non-reversible effects on the final goal of
the organization.
- It requires large amount of resources
- It requires top management involvement.
Tactical decisions
- Short-term, operational decision that are performed on a daily basis to pursue and
implement a broader strategy.
- How you implement your strategy by means of actions performed on a daily basis.
- It will help in the short term in order to reach your final goal which will be in the long term.
Strategy is:
- Long-term plan
- Identifies a scope and a direction for the company
- Aims at achieving and sustaining performance superior to the competitors.
Strategy reflects on how to formulate a plan made of strategic decisions to establish and
maintain a competitive advantage.
Strategy is fundamental related to the notion of advantage and performance.
Success Creating and sustaining performance
Competitive advantages Creating and sustaining a superior performance compared
to your competitors.
A strategic plan must create economic (BS, P&L) and financial value (Cash Flow).
Value proposition: Selected bundle of services targeting a group of customer and
satisfying their needs.
3 levels of strategy:
1- Corporate strategy: defines in which industries and markets the company is going to
compete.
2- Business (Unit) strategy (Different strategic business units) is concerned with how
the company competes within a particular industry or market Create and sustain
competitive advantage.
3- Functional / operational strategies are the elaboration and implementation of
business strategies through individual functions.
The company’s strategy results from the interaction among those 3 strategic levels.
, A Strategic Business Unit (SBU) is part of a company that covers and operates in a given
Business area.
Business Strategy:
1- Orientation:
- Vision: Long-term view on the best possible evolution of the business area the
company operates in. (Industry specific)
I.E Microsoft: “A computer in every house”
- Mission: The strategic role a given company wishes to play within the path set by
the vision. (Firm specific)
I.E Microsoft: “To become the leader in the personal computers business area.”
- Strategic objectives:
S: Specific
M: Measurable
A: Appropriate
R: Realistic
T: Timely
The strategic objectives translate the mission into a set of measurable and
quantifiable milestones.
2- Analysis or Diagnosis:
SWOT Analysis Matrix:
Internal:
- Strength & Weaknesses
The goal of internal analysis is to detect competitive differential in terms of cost and
value compared to the competitors and also to identify the strengths and weaknesses.
The internal factors could be supported by
A. Value Chain Model:
It is not possible to analyze the SBU’s competitive advantage considering the SBU or the
company as a “black box” We have to break up the company into single activities or
sub-activities contributing to the process of transformation inputs (row materials) into
outputs (product / services).
Primary activities:
Strategy is not a concept that originated in the business and management concept, but
in the military concept.
Strategic decisions
- Has long term, significant, multi-dimensional and non-reversible effects on the final goal of
the organization.
- It requires large amount of resources
- It requires top management involvement.
Tactical decisions
- Short-term, operational decision that are performed on a daily basis to pursue and
implement a broader strategy.
- How you implement your strategy by means of actions performed on a daily basis.
- It will help in the short term in order to reach your final goal which will be in the long term.
Strategy is:
- Long-term plan
- Identifies a scope and a direction for the company
- Aims at achieving and sustaining performance superior to the competitors.
Strategy reflects on how to formulate a plan made of strategic decisions to establish and
maintain a competitive advantage.
Strategy is fundamental related to the notion of advantage and performance.
Success Creating and sustaining performance
Competitive advantages Creating and sustaining a superior performance compared
to your competitors.
A strategic plan must create economic (BS, P&L) and financial value (Cash Flow).
Value proposition: Selected bundle of services targeting a group of customer and
satisfying their needs.
3 levels of strategy:
1- Corporate strategy: defines in which industries and markets the company is going to
compete.
2- Business (Unit) strategy (Different strategic business units) is concerned with how
the company competes within a particular industry or market Create and sustain
competitive advantage.
3- Functional / operational strategies are the elaboration and implementation of
business strategies through individual functions.
The company’s strategy results from the interaction among those 3 strategic levels.
, A Strategic Business Unit (SBU) is part of a company that covers and operates in a given
Business area.
Business Strategy:
1- Orientation:
- Vision: Long-term view on the best possible evolution of the business area the
company operates in. (Industry specific)
I.E Microsoft: “A computer in every house”
- Mission: The strategic role a given company wishes to play within the path set by
the vision. (Firm specific)
I.E Microsoft: “To become the leader in the personal computers business area.”
- Strategic objectives:
S: Specific
M: Measurable
A: Appropriate
R: Realistic
T: Timely
The strategic objectives translate the mission into a set of measurable and
quantifiable milestones.
2- Analysis or Diagnosis:
SWOT Analysis Matrix:
Internal:
- Strength & Weaknesses
The goal of internal analysis is to detect competitive differential in terms of cost and
value compared to the competitors and also to identify the strengths and weaknesses.
The internal factors could be supported by
A. Value Chain Model:
It is not possible to analyze the SBU’s competitive advantage considering the SBU or the
company as a “black box” We have to break up the company into single activities or
sub-activities contributing to the process of transformation inputs (row materials) into
outputs (product / services).
Primary activities:
