4 - corporate strategy 2012

7/26/2019 4 - Corporate Strategy 2012

1/33

LEARN. PERFORM. GROW.

4. The Strategic Position (II)

Corporate Strategy Master Degree

The Faculty of International Business and Economics,

ASE Bucharest


2/33


Detailed Course Contents:

1. Introducing Strategy

2.The Strategic Pos it ion The Environment; StrategicCapability; Expectations & Purposes

3.Strategic choices (I) - Business-Level, Corporate-Leveland International Strategy

4.Strategic choices (II); Directions and Methods ofDevelopment

5.Strategy into action Organising for Success; EnablingSuccess & Managing Strategic Chance


3/33


Layers of business environment

The macro-environment

Industry (or sector)

Competitors

The Organization


4/33


Analising strategic position

a. External analysis> environment

b. Internal analysis> strategic capability

Expectations

& Purposes


5/33


The Strategic Position (II)

Strategic Capability

Foundations of strategic capability

Cost efficiency

Capabilities for sustainable competitive advantage

Organizational knowledge

Diagnosing strategic capability

Managing strategic capability

Organization assessment / scan vs. departmental analysis (HR, financial,

operational)


6/33



Cost efficiency

Capabilities for sustainable competitive

advantage Organizational knowledge



Organization assessment / scan vs. departmental

analysis (HR, financial, operational)

AGENDA for TODAY4.The Strategic Position (II)



7/33



Cost efficiency










8/33



The resource-based view of strategy: the competitive advantage of an

organization is explained by the distinctiveness of its capabilities

Strategic capability the adequacy and suitability of the resources and

competences of an organization for it to survive and prosper


9/33


Strategic capabilities and competitive advantage

Treshold resources Tangible

Intangible

Tresholdcompetences

Tresholdcapabilities

Capabilitiesfor

competitive

advantage

Unique resources

Tangible

Intangible

Core competences

CompetencesResources


10/33


a. Resources & competences

Tangible resources the physical assets of an organization such as

plant, labour and finance

Intangible resources non-physical assets such as information,

reputation and knowledge

Competences the activities and processes through which an

organization deploys its resources effectively


11/33


b. Treshold capabilities & Unique resources and core competences

Treshold capabilities - essential for the organization to be able to

compete in a given market

Unique resources those resources that criticaly underpin competitive

advantage and that others cannot easily imitate or obtain

Core competences the activities and processes through which

resources are deployed in such a way as to achieve competitive

advantage in ways that others cannot imitate or obtain


12/33


Foundat ions of strategic capabi l i ty

Cost efficiency










13/33


Cost efficiency

Cost

efficiency

Experience

Product /

process designSupply costs

Economies

of scale


14/33



Cost ef f ic iency










15/33


Criteria for the robustness of strategic capability

Robustness of

strategic capability

Complexity

Internal linkages

External linkages

Culture & history

Taken for granted

activities

Path dependency

Causal ambiguity

Characteristic ambiguity

Linkage ambiguity


16/33



Cost ef f ic iency

Capabi l i t ies for sustainable com pet i t ive

advantage









17/33



The collective and shared experience accumulated through systems,

routines and activities of sharing across the organization

Sharing of knowledge and experience is an essentially social process relying on

communities of interest

Exchange of knowledge is more likely to occur in cul tures of trust without strong

hierarchical or functional boundaries

Expl ic i t knowledgevs. taci t know ledge

Improving the sharing of knowledge by setting up IT-based sy stems

Danger of im itat ion


18/33



Cost ef f ic iency

Capabi l i t ies for s ustainable compet i t ive advantage

Organizat ional k now ledge





AGENDA for TODAYCourse 4:

The Strategic Position (II)



19/33


The value chain within an organization

Inbound

logistics Operations

Outbound

logistics

Marketing

and sales Service

Procurement

Firm infrastructure

Human resource management

Technology development

Primary activities

Suppor

tactivities


20/33


The value chain within an organization

Primary activities directly concerned with the creation or delivery of a

product or service

Support activities help to improve the effectiveness or efficiency of

primary activities


21/33


The value network

Organizations

value chain

Supplier

value chainChannel

value chain

Customer

value chain


22/33


The value network

The value network - the set of inter-organizational links and relationships

that are necessary to create a product or service

Where cost and value are created?

Which activities are centrally important? Where the profit pools (potential profits at different parts of the value network)

are? It is possible to focus on the areas of greatest profit potential?

The make or buy for a particular activity or component (outsourcing) is

critical?

Who might be the best partners in the various parts of the value network? And

what kind of relationships are important to develop with each partner? Shouldthey be regarded as suppliers or should they be regarded as alliance partners?


23/33


Other ways to diagnose strategic capability

Activity maps

Benchmarking


24/33


SWOT Analysis

Opportunities Threats

WeaknessesStrengths


25/33



Cost eff ic iency

Capabi l i t ies for susta inable com pet i t iveadvantage

Organizat ional know ledge

Diagno sing strategic capabi l i ty







26/33


Knowledge creation process

Socialization

(sympathised knowledge)

Combination

(systematic knowledge)

Internalisation

(operational knowledge)

Externalisation

(conceptual knowledge)

Tacit knowledge Explicit knowledge

Tacit

knowledge

Explicit

knowledge

TO

FROM


27/33



Cost ef f ic iency

Capabi l i t ies for sustainable com pet i t ive

advantage Organizat ional know ledge

Diagno sing strategic capabi l i ty

Managing strategic capabi l i ty






28/33


Organization assessment / scan:

GOALS:

Assess the organizations degree of understanding and alignment with

Top Managements goals for the organization

Gain an understanding of the culture of your organization and how the

culture supports or impedes Managements ability to achieve established

goals

Identify barriers to change within the organization

Identify leverage points within the organization where readiness for

change is high and success is likely


29/33


Organization assessment - COMPASS model:

Universals

Past Strategy

Standards


30/33


COMPASS model:

Universals - Beliefs that drive behavior across the organization

Past - We encouraged people to share experiences, concerns and

frustrations

Standards - What are the company expectations from their employees?

Strategy - Is the future clear to the employees? Are they aligned with this

future?


31/33


Organization assessment - 6 Key Areas

System based on a questionnaire which allows us to understand the gaps

between the desired perception and the reality:

1. VISION AND DIRECTION

2. EFFECTIVE LEADERSHIP

3. INTERNAL COMMUNICATION

4. READINESS FOR CHANGE

5. COMPETENCIES & SKILLS

6. CLIENTS


32/33


Departmental analysis

HR Analysis

Competences

Knowledge

Skills

Attitude

Financial resources analysis:

Financial analysis

Financial data

Financial index

Operational resources analysis

Systems

Processes

Procedures


33/33


For more information:

Cosmin Jolde

cosmin. jo ldes@achieveglobal . ro

Thank you!


4 - corporate strategy 2012

Documents