1. Strategy: A View From the Top
Cornelius A. de Kluyver & John A. Pearce II
Chapter 1: What is Strategy?
Presentation By: Matt Anderson, Walter Park & Brittany Thiery

2. Introduction
How did Google become the world’s number one search engine?
What is the secret to Toyota’s success?
Why does Southwest Airlines consistently outperform it’s many rivals?

3. Strategic Thinking Continues to Evolve
- The evolution of strategic thinking over the last 50 years is characterized by a gradual shift in focus from an industrial economics to a resource-based perspective to a human and intellectual capital perspective.

4. Strategy versus Tactics
There is a difference between strategy and the application of operational tools and managerial philosophies focused on operational effectiveness
Strategy focuses on doing things differently
Managerial tools are aimed at doing things better than their competitors which is tactical by nature

5. Strategy Forces Trade-offs
-Choosing different approaches to delivering customer value
-Choosing different sets of activities that cannot easily imitated
Creating a competitive advantage

6. Strategy Should focus on Value Creation
-A good strategy focuses on creating value
- Shareholders, partners, suppliers, employees, and the community
-Ex: Dell’s elimination of intermediaries

7. Value Creation
A good strategy focuses on creating value

8. Creating Options
Long-term vision
Learning is an essential component

9. An Ecosystem Perspective
Companies rely heavily on networks
Networks function like a biological ecosystem
Banking, biotechnology, insurance, and software
Boundaries are fluid and difficult to define
Technology is connective tissue
Wal-Mart

10. Strategy as Alignment
Aligning resources and capabilities with strategic goals
Strategic capability gaps
Closing the gap between what it takes to succeed and what the company can do
Better technologies, creating faster delivery mechanisms, adopting stronger branding, building stronger distribution network
Maintaining strategic focus
Ensuring what is said by organization is done
Objectives are communicated, allocating the necessary resources, creating proper incentives for effective alignment

11. Levels of Strategy Corporate level Business unit Functional
What kinds of businesses firm should compete in
How the overall portfolio should be managed
Business unit
What product or service to offer
How to manufacture or create it
How to take it to the marketplace
Functional
Marketing, HR, technology

12. Stakeholders External and Internal
Ownership stake, economic stake, social stake
Formal power, economic power, political power

13. Vision and Mission 2 important lessons in crafting a vision statement
Focus on few activities an do them well
Adopt vision far greater than resource base would allow
Vision statement
Clear
Meet legitimate interests and values of all stakeholders
Feasible
Mission statement
Guides the actions of the organization
Spells out its overall goal
Provides a sense of direction
Guides decision making for management

14. Dell’s Mission Statement
"Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of:
Highest quality
Leading technology
Competitive pricing
Individual and company accountability
Best-in-class service and support
Flexible customization capability
Superior corporate citizenship
Financial stability"

15. Strategic Intent and Stretch
Summary of the strategic goals a company has adopted and a motivational message
Focuses on key competitive targets
Provides goals about which competencies to develop
What kinds of resources to harness
What segments to concentrate on
Stretch reflects what can be
Every company must create a fit between its resources and opportunities
Over what time frame?

16. Strategy and the Non-Profit Sector
3 kinds of performance metrics:
Measure success in mobilizing resources
Evaluate effectiveness of its people
Assess progress towards mission
Narrowly define mission
Invest in research
Develop “micro level goals”

17. Strategy Formulation Process
Steps
Where are we now?
Where do we go?
How do we get there?
Ex: Dell

18. Strategy & Planning Strategy Review
Strategy Planning – imposing structure to the process comes from:
Need to cope with complex issues
Changing competitive environment
Planning Cycle

19. Evaluating Strategic Options
Criteria
A strategy should:
Create a competitive advantage and above avg. returns
Focus on future competitiveness and long term obj.
Be consistent and achievable
Shareholder Value
Value to shareholders, not customers
Can create inconsistencies

20. Works Cited
“Strategy A View From the Top” by Kluyver and Pearce