SM Winter 2012

Syllabus Questions?

Readings  Wheelen et. al ch 1  what did you notice?  Working Through A Case  An Approach to Case Analysis

So exactly what is strategy? How can profitable growth be achieved? How can the chances of survival be enhanced? How can competition be withstood?  How can we thrive?

Bombardier “strategy” language  “strategic investment in new markets”  “big player in a small number of markets”  “engage in the development of new technologies to keep ahead of its rivals”  “Six Sigma”  “spin off the recreational products division” core business in planes and trains How will Bombardier thrive?

Bombardier “strategy” language  “leader in all markets in which it operates”  “exceed customer expectations with innovative products & services”  “expertise in developing and commercializing innovative products” pg 2-3

Preparing a Case Case Questions Case Notes  What is an “alternative”? an action or cluster of actions  that takes the firm in a distinct direction »that could plausibly enable the firm to thrive

Indigo company website  Indigo Books stock market history  Globe and Mail investor/markets/stocks/ investor/markets/stocks/ How will Indigo thrive?

Prep for Thu reading  Wheelen et al. ch 2  sim Adrenaline Sports group work  meet  decide main tasks for presentation Feb 9 mass%20Research%20Presentation_ pdfhttp://buller.prov.ca/BullerCentre/projects/biomass/PAMI_Bio mass%20Research%20Presentation_ pdf  See slide 18

Examples ch 1  Bombardier2 - 3  Indigo Books21 ch 2  Choice Hotels36  Clodhoppers47 How will they thrive? Situation of each How do we get past “a contest of opinions”?

Strategic Planning Tools  “Generic”  Product/Market  Goals  SWOT TOWS matrix  BCG matrix  Environmental scanning  Five Forces  Benchmarking  Diamond-E  Scenario Planning  Product Cycle  Game theory

Generic Strategies 1.value proposition 2.productivity triangle 3.market options 4.company scope

Generic Strategies 1.value proposition options  lowest-cost  differentiation features execution pick 1 “What’s our value proposition?” “Why will people prefer to buy what we’re selling?” “Niche” “Our distinctives”

Value Proposition Options PRICEFEATURESEXECUTION DirectTangibleAvailability PriceQualityTiming Discount structurePerformanceConvenience RebatesProprietary propertiesDelivery Credit ratesPre- & post- sales serviceReliability IndirectOptions / choiceIntensity Financial assistanceGuaranteesSales hustle Capital vs. operatingIntangible/ImageService hustle Life cycle costDesignFriendliness Cost absorptionFashions Prestige “Personality”

Value Proposition & Competitive Advantage  not the same thing  make sure: you actually can beat competition at this you can live off that value proposition  there are enough customers that care  you can reach them  they will pay you enough

Generic Strategies 1.value proposition options  lowest-cost  differentiation features execution “What’s our value proposition?” Why will people prefer to buy what we’re selling? pg 21 Indigo Books

Generic Strategies 1.value proposition 2.productivity triangle pick any 2 fast cheapgood What 3 product qualities do my sectors’ customers value most?

Generic Strategies 1.value proposition 2.productivity triangle What 3 product qualities do my sectors’ customers value most? accessibility pricequality True North Hideaway Trails End Ross’ Resort Pipestone Happy Landing

pg 47 Clodhoppers Generic Strategies 1.value proposition 2.productivity triangle

Generic Strategies 1.value proposition 2.productivity triangle 3.market options  concentration  penetration  expansion pick 1

Choice Hotels  strategic growth conversion opportunitiesEcono Lodge new constructionSleep Inn  operational services preventative maintenance  sales  marketing  communication pg 38

Generic Strategies 1.value proposition 2.productivity triangle 3.market options  concentration  penetration  expansion pg 38 Choice Hotels

Generic Strategies 4.company scope options  core business  vertical integration  horizontal integration  diversification pick 1

Generic Strategies 1.value proposition 2.productivity triangle 3.market options 4.company scope options raw materials “profit pools”

Generic Strategies 4.company scope options leasingsalesservicingdistributionassemblyparts manufacturingprocessingraw materials “profit pools” revenues profits

Strategic Planning Tools  “Generic”  Product/Market  Goals  SWOT TOWS matrix  BCG matrix  Environmental scanning  Five Forces  Benchmarking  Diamond-E  Scenario Planning  Product Cycle  Game theory

Adrenaline Air Sports generic strategies 1. value proposition 2. productivity triangle 3. market options 4. company scope How can they thrive?

But In The Real World… basic financial planning forecast-based planning externally-oriented planning strategic management day-to-day survival

Strategic Planning Approaches  “Generic”  Product/Market  Goals  SWOT TOWS matrix  BCG matrix  Environmental scanning  Five Forces  Benchmarking  Diamond-E  Scenario Planning  Product Cycle  Game theory