1. A view from the Top John shonk Bob Odgers Don Ewalt

2. Strategy Evolution Strategy vs. Tactics and the trade off Focus on value creation and creating options Strategy vs. Alignment

3. Strategy Formulation Current State What are the alternatives? Where do we go?

4. 4+2 To Sustain Strategy Execution Culture Structure Secondary Practices ◦ Talent ◦ Innovation ◦ Leadership ◦ Mergers and partnerships

5. Have a Balanced Scorecard Answers 4 basic questions ◦ How do customers see us? ◦ At what must we excel? ◦ Can we continue to improve and create value? ◦ How do we look to our companies shareholders?

6. What Should The Board Do? Make knowledgeable its role, agenda, and information Management performing with integrity Set the tone and culture Help formulate corporate strategy Make sure corporate aspects are aligned and consistent Assist in understanding expectations of shareholders and regulators

7. Globalization 12 global trends: ◦ Population trends ◦ Urbanization ◦ Spread of infectious disease ◦ Resource management ◦ Environmental degradation ◦ Economic integration ◦ Knowledge dissemination ◦ Information technology ◦ Biotechnology ◦ Nanotechnology ◦ Conflict ◦ Governance

8. Major Implication Laws of Abundance Right location Highest demand, lowest barriers Different value for different people at different times Sustained value Human capital

9. New Laws Size means scrutiny Cutting cost raises compliance risk Strategy must involve society Reducing risks means building trust Shareholders = Stakeholders Global growth requires gains Productivity needs sustainability Differentiation depends upon reputation Governance needs representation

10. Analyzing an Industry What is Industry? Profit Potential Industry Evolution Analyzing Industry Analyzing Product/Market Scope

11. Analyzing your Resource Base What are Strategic Resources? Forces for Change

12. Formulating Business Unit Strategy Foundation Strategy Formulation Value Disciplines

13. Hypercompetitive Market - Due to globalization = lots of Rivalry (red oceans) - - how to survive: Rapid innovation and speed Superior short term focus Market awareness

14. Hypercompetitive Market 1. Innovation: creating value, leveraging core comps. - Sustaining: year to year improvements (Ipods) - Disruptive : imitations, maybe cost less. (cheap MP3s) 2. Speed: responding to current and future business needs. - Immediate satisfaction (fast pizza, road service) - Industry shifts (technology changes)

15. Global Strategy 1. Innovation: creating value, leveraging core comps. - Sustaining: year to year improvements (Ipods) - Disruptive : imitations, maybe cost less. (cheap MP3s) 2. Speed: responding to current and future business needs. - Immediate satisfaction (fast pizza, road service) - Industry shifts (technology changes) MKT - changing customer needs - adapt to regions - distribution channels Economic - logistics -R&D -Manufacturing Competitive - diversity - degree of imports/ ex -interdependence Governmental - subsidies - regulations - Standards Global potential

16. Shaping the portfolio (growing) Diversificat ion (MKTS) Build BondBuy Merger/ acquisition Ventures. alliances Green fielding

17. Portfolio Management

18. : selection and management of all of an organisation’s projects, programmes and related business-as-usual activities taking into account resource constraints Corporate Strategy Business Unit STG How to allocate recourses and macro picture of industry (mission statement) Defines competitive positions (products) Establishes Structure and relationships with other business units How to move to attractive industry segments and grow Sets targets and goals and how to measure them How to sustain competitive advantages