strategy07 session2

Business Strategy

• Session 2

POSITIONING BASED VIEW

(PBV)

WHERE AND HOW SHALL WE COMPETE?

RESOURCE BASED VIEW

(RBV)

WHAT SORT OF ORGANISATION SHOULD WE BE?

IN ORDER TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE

Stick to the knitting

Exploit what you know

Meet current customer needs

Plan

Demand accountability

Process and Structure

Systems

Dream of opportunity spaces

Explore what you don’t know (you don’t know)

Anticipate future needs

Learning and Emergence

Freedom and Flexibility

Unstructured Interaction

EFFICIENCY

CREATIVITY

SWOT BOX

OPPORTUNITIES THREATS

STRENGTHS WEAKNESSES

OPPORTUNITIES AND THREATS

STRENGTHS AND WEAKNESSES

ARE

INTERNAL

EXTERNAL

OPPORTUNITIES AND THREATS

ARE EXTERNAL TO THE COMPANY AND COME FROM …..

IN THE PEST FACTORS

PEST(EL)

POLITICAL

ECONOMIC

SOCIAL TECHNOLOGICAL

ENVIRONMENTAL LEGAL

THE ONLY USE OF THE WORD SUSTAINABLE IN MANAGEMENT IS WHEN IT GOES IN FRONT OF THE WORDS ‘COMPETITIVE ADVANTAGE’

TODAY

BUSINESS SUSTAINABILITY IS THE OPPORTUNITY FOR BUSINESS TO IMPROVE ITS PROFITABILITY, COMPETITIVENESS, AND MARKET SHARE WITHOUT COMPROMISING RESOURCES FOR FUTURE GENERATIONS.

YESTERDAY

POLITICAL

ECONOMIC

SOCIALTECHNOLOGICAL

ECOLOGICAL

POLITICAL

ECONOMIC

SOCIALTECHNOLOGICAL

ECOLOGICAL

PETE’S PEST

L O O K O U T W A R D SA N D F O R W A R D S

S T R A T E G I S T S S H O U L D

FROM THE ENDGAME

BACKWARDS

TIME HORIZON

EXTERNAL FOCUSINTERNAL FOCUS

PAST

LONG-TERM FUTURE

CURRENT PRACTICE

CHAMPIONS PRACTICE

FROM ‘FIT’

WITH OUR EXISTING RESOURCES WHAT

OPPORTUNITIES ARE THERE?

STRENGTHS

OPPORTUNITIES

TO ‘STRETCH’

OPPORTUNITIES

STRENGTHS

GIVEN THE OPPORTUNITIES HOW COULD WE

STRETCH OUR RESOURCES TO PROFIT FROM THEM?

TOWARDS THE FUTURE

TOWARDSTHE WORLD

INNOVATION

GLOBALISATION

Visionary AND Practical

100 YEARS AGO

NO…

AUTOMOBILE

AVIATION

MUSIC RECORDING

PETROCHEMICALS

PHARMACEUTICALS

INDUSTRIES

30 YEARS AGO

NO…

MOBILE PHONES

EXPRESS PACKAGE DELIVERY

HOME COMPUTERS

MUTUAL FUNDS

5 YEARS AGO

NO…

WIRELESS HOTSPOTS

CAMERAPHONES

RFID TAGS

DECODED GENOMES

WHAT INDUSTRIES WILL BE IMPORTANT BY THE END OF YOUR WORKING LIVES THAT DON’T/ (HARDLY) EXIST?

NANOTECHNOLOGY

NEUROTECHNOLOGY

SOLAR PHOTOVOLTAICS

NON INVASIVE DIAGNOSTICS

HUMAN/ANIMAL HYBRIDISATION

PROBABLY NOT…

TELEPORTATION

FASTER THAN LIGHT TRAVEL

INTERDIMENSIONAL WORMHOLES TO PARALLEL UNIVERSES

ALIEN/HUMAN HYBRIDS

DEVELOP A NEW PRODUCT/SERVICE

HELP START A NEW INDUSTRY

START A NEW COMPANY IN AN EXISTING INDUSTRY

‘The point is not only to understand the world, but to change it’

Karl Marx

The bottom of the Pyramid

Web 2.0/3.0

Eco-entrepreneurship

Per Capita Income

>$30000296 million

>$10000723 million

>$4000

2,397 million

2,692 million

THE ISLAND OF CONSUMERS

THE SEA OF NON-CONSUMERS

Deforestation

Topsoil erosion

Water shortage

Sana’a (capital of Yemen) waterless by 2010

Quetta (capital of Baluchistan) dry by 2020

Beijing fresh water now 1 mile underground

Depleted fisheries

DEEP ERRORS OF CLASSICAL ECONOMICS (Number 1)

Price goes up

Message to trawler owners

Invest in bigger trawlers, larger nets, deeper sea technologies.

Markets don’t tell the ecological truth

Deep mistakes of classical economics (number 2)

Desertification

Within 1 hour’s drive of Teheran 88 villages have been lost to the desert

Deteriorating rangelands

Vanishing coral reefs

1903

2007

Melting glaciers

Flooding

Reducing biodiversity

Waste mountains

Designtex

Rohner Textile Gmbh

This leading U.S. commercial fabric firm teamed up with a textile mill in Switzerland and McDonough-Braungart to design and produce an upholstery fabric so toxin free that the local garden club uses factory trimmings as mulch. When Swiss inspectors tested the mill's effluent, they thought their instruments were broken-the water leaving the

factory was as clean as when it entered.

All waste that isn’t food represents a serious design failure

‘Our vision for the future is zero-emissions driving’

Norbert Reithofer

CEO BMW 27th Sept 2007

Boring. Yawn

‘FIT’ STRATEGY

Our vision for the future is positive emissions driving………

The nutri-car

‘STRETCH’ STRATEGY

CAPTURES WATER VAPOUR

STORES NITROUS OXIDE FOR USE AS FERTILISER

STORES CARBON AS CARBON BLACK

TIRES ATTRACT AND CAPTURE HARMFUL AIRBORN PARTICLES

Nutrishoes

Nutri……..??

Paint

Cans

Before opening it checks my blood sugar/alcohol level and DNA for warning signs.

Plays short movie with sound (and advert) after opening

Absorbs toxic particulates and renders them harmless

Solar powered heat exchanger cools can in sunlight

Dissolves when emptyPrinted RFID tag

Nutri-Missiles

CREATING A GLOBAL ECONOMY THAT IS ECOLOGICALLY SUSTAINABLE REPRESENTS THE GREATEST INVESTMENT OPPORTUNITY…….PERHAPS EVER.

Much too important to be left to either the

Treehuggers or ‘Suits’

Per Capita Income

>$30000296 million

>$10000723 million

>$4000

2,397 million

2,692 million + eco-entrepreneurship

3 billion people cook indoors with biomass fuels – wood, dung etc.

1.6 million premature deaths per annum

Destroys trees and other ground cover promoting erosion and flooding

SOLAR COOKERS

Deforestation

Accsys plc

Softwoods with the properties of Hardwoods

Water shortage

Amiad Filtration plc

Hydro International plc

Family of 5 produce 250 litres of body wastes per annum

Which takes 150,000 litres of clean water to get rid of…

Composting toilets

McDonough and Braungart

Major soap manufacturer trying to penetrate the Indian market

‘You’ve been asking for many years about what your potential customers and consumers

want – we want to ask the question:

What does the river want?’

THE OLD PARADIGM:

CRADLE TO GRAVE

THE NEW PARADIGM:

CRADLE TO CRADLE

Powerfilm

GERMANY CREATED 250,000 JOBS LAST YEAR IN RENEWABLE ENERGY

Vestas – world’s largest wind turbine manufacturer

RESOURCEFULNESS

NOT

RESOURCES

PORTER’S 5 FORCES

BARRIERS TO ENTRY

INTENSITY OF COMPETITIVE

RIVALRY

AVAILABILITY OF SUBSTITUTES

POWER OF SUPPLIERS

POWER OF BUYERS

BARRIERS TO ENTRY

CAPITAL REQUIREMENTS

ACCESS TO DISTRIBUTION CHANNELS

BRAND STRENGTH

TECHNICAL KNOWLEDGE

INNOVATIVENESS

MANAGEMENT COMPETENCE

EXISTING NEW

MARKETS

PRODUCTS

EXISTING

NEW

THE ANSOFF MATRIX

MARKET

PENETRATION

MARKET

DEVELOPMENT

PRODUCT DEVELOPMENT

DIVERSIFICATION