matusik - strategy frameworks

7/25/2019 Matusik - Strategy Frameworks

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Sharon F. Matusik, Ph. D.

Rice University

Strategic Management

Review of the Basics


2/17

What isStrategy?

The creation of a unique and

valuable position involving a

differentset of activities from

those of your competitors.

choosing what to do and whatnot to do.

Adapted from Michael Porters, !hat is Strate"y#$ %&&'.


3/17

Strategy !ramewor"s from #ault

$uide

%ndustry level analysis&orter's ( !orces

&%) application

!irm level analysisSW*T+ore competencies#alue +hain

Seven S Model*ther forms of analysisB+$ ,-, Matri-Benchmar"ing best practices


4/17

&orter's ( !orces

T/) %012STR3Rivalry 4mong

)stablished !irms(competitive structure(demand conditions

(e-it barriers

Bargaining &ower of Suppliers

/igh if5( product has few substitutes and

is important few suppliers( supplier has many other outlets

for product( high switching costs

( threat of vertical integrationforward

Bargaining &ower of Buyers

/igh if5

( few large buyers

( product unimportant to output( buyers purchase in large

quantities and purchase large

percentage of industry output

( low switching costs littledifferentiation

( threat of vertical integration

bac"ward

Ris" of )ntry

6Barriers to )ntry7(brand loyalty(absolute cost advantages(econ of scale cap req't(government regulations(distribution access

Threat of Substitute &roducts

( e-istence of different products

that serve consumers' needs in

a similar way


5/17

!irm level analysis

!irst consider units of

analysis+orporate level

Business level

$lobal level

%mplementation of strategy


6/17

2nits of Strategic 4nalysis

+orporate level strategy8evel and type of diversification

Business level strategy8ow cost differentiation niche

#ariety needs access based

$lobal level strategy$lobal international

transnational multi9domestic


7/17

!irm level analysis

SW*T!irm level strengths and

wea"nesses matched toopportunities and threats from

competitive environment


8/17

Mission, )oals

*nternal Analysis

+stren"ths, eaknesses-

Strate"ic hoice

+S!/0-12ternal Analysis

+opportunities, threats-

Strategies599+orporate 8evel

undiversified, diversified

99$lobal

transnational, "lo3al, intl, multidomestic

99Business 8evel

lo cost, differentiate, niche4focus /R variety, needs, and access 3ased

Strate"y *mplementation5

Match Strate"y, Structure, ontrols


9/17

&ursuing +ompetitive 4dvantage5

+ore +ompetencies

AssetsAssets

apa3ilitiesapa3ilities

oreore

ompetenciesompetencies

66ore Productsore Products

ompetitiveompetitive

Advanta"e5Advanta"e5

Super7Super7

normalnormal

profitsprofits

imita3ilityimita3ility

0an"i3le *ntan"i3le

778alua3le9market access

9contri3utes to perceived customer value

77Rare

77Difficult to *mitate

77:onsu3stituta3le

leading

to


10/17

#alue +hainhain of activities to transform inputs into outputs that customers value.

ompany infrastructure

;uman resourcesMaterials mana"ement

Support

Activities

Primary

Activities R


11/17

Seven S Model5

*rgani:ational 4lignment

EnvironmentEnvironment

Strate"yStrate"y SkillsSkills Formal StructureFormal Structure

SystemsSystems

StaffStaff StyleStyle Shared 8aluesShared 8alues


12/17

*ther Tools;Models

#ault 4nalysesB+$ ,


13/17

$ame Theory

4ssumes interdependence

among players

4llocentrism vs. egocentrism

+onsider how you can shape

the game don't =ust play thegame you find


14/17

)lements of the game

&layers

4dded value capturing vs. creating value

Rules

Tactics

Scope

$ame Theory


15/17

S0A=1;/>D1R A:A>?S*S

Potential to 0hreaten

STAKEHOLDER TYPE

M*@1D >1S*:)

STRATE!Y"/>>A/RA01

STAKEHOLDER TYPE #

SUPP/R0*81

STRATE!Y"*:8/>81

STAKEHOLDER TYPE $

:/:SUPP/R0*81

STRATE!Y"

D1F1:D

STAKEHOLDER TYPE %

MAR)*:A>

STRATE!Y"

M/:*0/R

;i"h

;i"h

>o

>o

?

From Sava"e, :i2, !hitehead < lair, %&&%

Poten

tialto.oo

perate


16/17

The Resource +ontinuum

generalgeneral nature of resourcesnature of resources specializedspecialized

widewide scope of businessesscope of businesses narrownarrow

transferringtransferring coordinationcoordinationmechanismsmechanisms sharingsharing

(continued)(continued)


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The Resource +ontinuum

generalgeneral nature of resourcesnature of resources specializedspecialized

financialfinancial control systemscontrol systems operatingoperating

smallsmall corporate office sizecorporate office size largelarge

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