Professional Documents
Culture Documents
What is Strategy?
Large-scale, future-oriented plan for
interacting with the competitive
environment to achieve objectives
Companys game plan
Framework for managerial decisions
McGraw-Hill/Irwin
McGraw-Hill/Irwin
McGraw-Hill/Irwin
C o rp o ra te /
b u s in e s s le v e l
P O M /R & D
s t r a te g ie s
McGraw-Hill/Irwin
F i n a n c i a l/
a c c o u n t in g
s t r a te g ie s
M a r k e t in g
s t r a te g ie s
H um an
r e la t io n s
s t r a te g ie s
McGraw-Hill/Irwin
B u s in e s s 2
T y p e t it le h e re
F i n a n c i a l/
a c c o u n t in g
s t r a te g ie s
B u s in e s s 3
T y p e t it le h e re
M a r k e t in g
s t r a te g ie s
H um an
r e la t io n s
s t r a te g ie s
McGraw-Hill/Irwin
Involve action-oriented
operational issues
Are relatively short range
and low risk
Incur only modest costs
McGraw-Hill/Irwin
McGraw-Hill/Irwin
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Ex 2-2 (contd.)
Geographic domain
We are dedicated to total success of Corning Glass Works as
a worldwide competitor
Technology
The common technology in these areas relates to discrete
particle coatings (NASHUA)
Concern for Survival
In this respect, the company will conduct its operations
prudently, and will provide the profits and growth which
will assure Hoovers ultimate success
McGraw-Hill/Irwin
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Ex 2-2 (contd.)
Philosophy
We are committed to improve health care throughout the world
(Baxter Travenol)
Self-concept
Hoover Universal is a diversified, multi-industry corporation
with strong manufacturing capabilities, entrepreneurial
policies, and individual business unit autonomy
Concern for Public Image
We are responsible to the communities in which we live and
work and to the world community as well (Johnson & Johnson)
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Outside Stakeholders
Executive officers
Board of directors
Stockholders
Employees
Customers
Suppliers
Creditors
Governments
Unions
Competitors
General
public
McGraw-Hill/Irwin
Company
Mission
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Profitability
Productivity
Competitive position
Employee development
Employee relations
Technological leadership
Public responsibility
McGraw-Hill/Irwin
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Acceptable
Criteria used
in preparing
objectives
Flexible
Measurable
Suitable
Motivating
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Generic Strategies
Low-cost Leadership
Differentiation
McGraw-Hill/Irwin
Focus
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Overall Cost
Leadership
McGraw-Hill/Irwin
Common Organizational
Requirements
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Common Organizational
Requirements
Differentiation
Product engineering
Creative flare
Strong capability in basic research
Corporate reputation for quality or
technological leadership
Unique combination of skills
Strong cooperation from channels
Strong marketing abilities
Strong coordination
among functions in
R&D, product
development, and
marketing
Subjective measurement and
incentives instead of
quantitative measures
Amenities to attract highly
skilled labor, scientists, or
creative people
Focus
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Risks of Differentiation
Differentiation is not
sustained
Competitors imitate
Bases for differentiation
become less important to
buyers
Cost proximity is lost
Differentiation focusers
achieve greater
differentiation in segments
McGraw-Hill/Irwin
Risks of Focus
Focus strategy is imitated
Target segment becomes
unattractive
Structure erodes
Demand disappears
Broadly target competitors
overwhelm segments
Segments differences from
others narrow
Advantages of broad line
increase
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Concentrated growth
Market development
Product development
Innovation
Horizontal integration
Vertical integration
Concentric
diversification
McGraw-Hill/Irwin
Conglomerate
diversification
Turnaround
Divestiture
Liquidation
Bankruptcy
Joint ventures
Strategic alliances
Consortia
2003 The McGraw-Hill Companies, Inc., All Rights
Reserved.
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Textile producer
Shirt manufacturer
Shirt manufacturer
Clothing store
Clothing store
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