Business Strategy chapter 2 Crafting a Strategy

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Slide 1: Crafting a Strategy

                Phase  3  of  the  Strategy-Making  Process

—                  Strategy-making involves entrepreneurship

—  Actively searching for opportunities to do new things
or

—  Actively searching for opportunities to do
existing things in new or better ways

—  Strategizing involves

—  Developing timely responses to happenings
in the external environment
and

—  Steering company activities in new directions dictated by shifting market conditions.

Slide 2: Fig. 2.1: A Company’s Strategy-Making Hierarchy

Slide 3: Tasks  of  Corporate  Strategy

• —   Moves to achieve diversification
• — Actions to boost performance of individual businesses
• —  Capturing valuable cross-business synergies to provide 1 + 1 = 3 effects!
• —  Establishing investment            
• priorities and steering corporate resources into the most attractive businesses.

Slide 4: Tasks  of  Business  Strategy

• —     Initiating approaches to produce successful performance in a specific business
• —  Crafting competitive moves to build 

sustainable competitive advantage

• Developing competitively valuable

competencies and capabilities

• —    Uniting strategic activities of functional areas
•    —  Gaining approval of business strategies by corporate-level officers and directors.
• 
  

Slide 5: Tasks  of  Functional  Strategies

• —                  Game plan for a strategically-relevant

function, activity, or business process.

• —       Detail how key activities

will be managed

• —                                     Provide support for

business strategy.

•           —  Specify how functional objectives

are to be achieved.  

Slide 6: Tasks  of  Operating  Strategies

• —                  Concern narrow strategic approaches to manage key operating units and strategically-relevant operating activities.
•    —  Add detail to business

and functional strategies.

•     —  Delegation of responsibility

to frontline managers.

Slide 7: What  Is  a  Strategic  Plan?

                A Company’s Strategic Plan Consists of :

                                                                                                Its strategic vision and business mission.

                                                                                                        Its strategic and financial objectives.

                                                                                                                Its strategy.

Slide 8: Implementing  and  Executing  Strategy

                  Phase  4  of  the  Strategy-Making  Process

• —                  Operations-oriented activity aimed at performing core business activities in a strategy-supportive manner
•     —  Tougher and more time-consuming than crafting strategy
•         —  Key tasks include :
• —                          Improving efficiency of strategy being executed
• —     Showing measurable progress in achieving targeted results

Slide 9: What  Does  Strategy  Implementation  Involve?

• —  Building a capable organization.
• —  Allocating resources to strategy-critical activities.
• —  Establishing strategy-supportive policies.
• —  Instituting best practices and programs for continuous improvement.
• —  Installing information, communication, and operating systems
• —  Motivating people to pursue the target objectives.
• —  Tying rewards to achievement of results.
• —  Creating a strategy-supportive corporate culture.
• —  Exerting the leadership necessary to drive the process forward and keep improving.

Slide 10: Evaluating  Performance  and Making  Corrective  Adjustment

                         Phase  5  of  the  Strategy-Making  Process

—  Tasks of crafting and implementing the strategy are not a one-time exercise:

• —  Customer needs and competitive conditions change
• —  New opportunities appear; technology advances; any number of other outside developments occur.
• —  One or more aspects of executing the strategy may not be going well
• —  New managers with different ideas take over.
• —  Organizational learning occurs.

—  All these trigger a need for corrective actions and adjustments on an as-needed basis