1. Dr. Laura Whitcomb BUS 4970 Fall 2016
Competitive Strategy
Dr. Laura Whitcomb
BUS 4970
Fall 2016

2. Strategic Management Definition
= The process whereby managers establish an organization’s long-term direction. This involves: 1) Setting Mission & Goals 2) Strategy Formation --internal capabilities --external environment --selection of strategy 3) Strategy Implementation 4) Strategy Evaluation

3. How to Analyze a Case Mission/Vision & Objectives Current Strategy
Industry Analysis
S.W.O.T. Analysis
Recommendations

4. MISSION Defined
Answers the question “What business are we in?” or “Why do we exist?”
--Customer Needs: What is being satisfied?
--Customer Groups: Who is being satisfied?
--Distinctive Competencies: How are customer needs being satisfied?

5. Pepsico vs. Coke? To Refresh the World...in body, mind, and spirit.
To be the world's premier consumer products company focused on convenient foods and beverages. 
To Refresh the World...in body, mind, and spirit.
To Inspire Moments of Optimism... through our brands and our actions.
To Create Value and Make a Difference... everywhere we engage.

6. Vision Statements Future-oriented; transformative
Mission = what is; vision = what will be
Companies may have mission or vision or both
Mission and/or vision often accompanied by statement of company values

7. Vision Statements
NASA: Reach for new heights & reveal the unknown for the benefit of humankind
Star Trek: To boldly go where no one has gone before

8. GOALS
= a desired future state that a company attempts to realize. Should be: - precise & measurable - addressing important issues - challenging but realistic - set for a specific time period - consistent with each other

9. Weighting Factors: What to Avoid

10. Types of Goals Financial Customer Internal Process Learning & growth
Profitability
Revenue growth
Long-term shareholder value
Customer
Product/service attributes; relationship; image
Internal Process
Operations, customers, innovation
Corporate social responsibility
Learning & growth
Human, information, & organization resources

12. Levels of Strategy & Organization Structure
Corporate Strategy
------>Corporate Head Office
Competitive (Business-level) Strategy
------>Business Divisions
Functional Strategy
------>R&D, HR, Finance, Operations, Marketing/Sales

13. Porter’s Generic Competitive Strategies
Purpose: achieve above-average long-run ROI for your industry.
Competitive Advantage
Cost Leadership
Differentiation
Competitive Scope
Broad Target
Narrow Target (Focus/Niche)

14. Porter’s Generic Competitive Strategies

15. Dolce & Gabbana

16. Company Situation Analysis
INTERNAL: Strengths & Weaknesses
financial position: relative & changes over time
functional capabilities: sustainable? distinctive?
EXTERNAL: Opportunities & Threats
demographic & socio-cultural changes
economic & political/legal changes
industry & technological changes

17. RECOMMENDATIONS Shift from Analysis--->Synthesis
Is a fundamental shift in strategy required or not?
How do your recommendations line up with your SWOT analysis?
Is this a feasible, creative solution that is supported by your analysis?