The Strategic Decision Model Peter Becker, Copenhagen Business School
Explanation to model Intention: the model support management deciding strategic choices based at thoroughly view on all relevant micro, meso and macro parameters influencing the firm A) impact on company (-5+5) B) influence on industry (0-10) AxB = influence factor C) TCE standpoint comment: Fx. increased asset specificity leads generally to less market governance D) RBV standpoint comment: Fx. if fast technology changes resources may hammer performance. Customization may lead to lower transaction cost, but the positive effect is narrated by reduction of performance – customized assets in changing environment.
Strategy S W Micro factors/Corporate level Resource audit Firm specific Physical, intellectual and human assets Organizational structure, production factors and processes Rare, valuable, inimitable & non-substitutable S W Value-chain Micro factors/Corporate level Acceptability Feasibility Suitability Resource audit Customer demandtr Customer need A) Impact/ Influence matrix for organization Firm performance evaluation Buying behavior Development Generic strategy: cost versus differentiation Meso factors/Customer level Strategy Value-system Market performance evaluation Bargaining power, switching costs and concentration Bargaining power, switching costs and concentration Industry attractiveness and barriers to entry B) Impact/ Influence matrix Industry/ macro A) impact on company (-5+5) B) influence on industry (0-10) AxB = influence factor Rivalry between suppliers and links to upstream chain Internal competition among players and critical success factors Rivalry between customers and links to downstream chain Analysis Risk PESTEL macro environmental drivers O T Technical drivers and potential for backward integration Substitution Production factors, processes and competences Price elasticity and potential for forward integration Macro factors/ Environmental scan Meso factors/Industry level
Copenhagen Business School, CBS Internal/external relations Growth in external business BUSINESS Documentation External business Business contracts Competition Marketing Products Market Infrastructure Systems Processes Economy Organisational structure Production resources New customers Control Brand/image Process management Re-purchase Feasibility Mission control EXTERNAL INTERNAL Goodwill Employee investment External Relations Customers Suppliers Partners Industry/Branch Internal Relations Culture Values Behaviour Knowledge sharing Knowledge development Customer loyalty Employee development Customer satisfaction Value experience Employee satisfaction Quality experience Employee loyalty PEOPLE Delivery of quality Quality behaviour Peter Becker Copenhagen Business School, CBS
Copenhagen Business School Interne/eksterne sammenhænge Vækst ekstern business FORRETNING Dokumentation Ekstern business Forretningsaftaler Konkurrenter Markedsføring Produkter Marked Infrastruktur Systemer Processer Økonomi Org. struktur Prod. ressourcer Nye kunder Måling Brand/image Styring Genkøb Lønsomhed Missions kontrol EKSTERNT INTERNT Goodwill Investering i medarb. Eksterne relationer Kunder Leverandører Partnere PR-kontakter Interne relationer Kultur Værdier Adfærd Læring og udvikling Kundeloyalitet Medarbejder- udvikling Kundetilfredshed Oplevet værdi Tilfredshed Oplevet kvalitet Loyalitet MENNESKER Levering af kvalitet Kvalitetsadfærd Peter Becker Copenhagen Business School CBS