Review At what levels are goals set? What are characteristics of good objectives? What are contingency plans? What are operational plans? examples What are barriers to setting goals? What is MBO? Is it good or bad?

Strategy Theory A comprehensive plan for accomplishing an organization’s goals. Strategy Components Core competencies Distinctive competency (only a few have this) Scope Resources Types Deliberate Emergent

SWOT Analysis Practice Strengths (internal) Distinctive vs. Common Core competencies – look for Distinctive competency Competitive advantage Differentiation Weaknesses (internal) Organizational Competitive disadvantage Opportunities (external) Threats (external)

Michael Porter’s “five forces”: Theory Level of competitive rivalry Power of suppliers Power of buyers (customers) Threat of substitutes Threat of new entrants Practice Use in strategic planning Use in SWOT analysis

Porter’s Generic Strategies Theory Differentiation Cost leadership Focus Competitive Advantage Low Cost Product Uniqueness Competitive Scope Broad Cost leader Differentiator Narrow Focused

Miles and Snow Typology Theory / Practice Prospector Innovative and growth oriented E.g. 3M, Amazon, J&J Defender Protects current markets E.g. BIC, eBay, Mrs. Fields Analyzer Current markets with some innovation E.g. Most large companies. DuPont, IBM, Starbucks Reactor Changes with events E.g. A losing strategy, Navistar, Kmart What are implementation considerations? What organizations are key?

Product Life Cycle Strategy Theory

Product Life Cycle Strategies Practice What are potential strategies in each phase? Examples Together In pairs Videos Griffin DVD – Ch. 3, Recycline DVD Nike – Birth of an Empire