overview of corporate strategy

8/8/2019 Overview of Corporate Strategy

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What is Corporate Strategy?

The Blind Men of Hindustan!


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The Nature of Corporate

Strategy The Characteristics of Strategic Decisions

The Different views on Strategy* Design * Negotiation

* Planning * Cultural Process

*Vision * Reactive Process

* Positioning * Transformation

* Cognition * Learning


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Company Vision Mission

Values Purpose

Reason for its Existence

Mission Product Market Definition

How it will meet its Purpose

Vision How does it See itself

Values What it will always do..never do


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Goal Type Definition Examples

Qualitative An aspiration "Good corporate

citizenship" "Ethical practices"

"Improved quality of life"

"Heightened awareness"

Quantitative (Final Goal)Numerical aim "6 percentincrease in sale

"Raise ROI by percent"

Hurdle goal Minimum to be reached w/in atimeframe "Increase sales by

percent per year for threeyears


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How? Scan the Environment

Opportunities

Threats

Understand the Organization

Strengths

Weaknesses


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Opportunities and Threats Remote Environment

Political

Economic

Social

Technological

Is the Environment to be Tracked orCreated?


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Business Environment

Industry Analysis Porters ModelValue Chain, Life Cycle, BCG, Ansoff

Operational Environment

Supply Chain, CostOfOperations,Benchmarking,Reengineering,Balanced Score Card

Opportunities and Threats ..


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Understanding the Organization

Strengths and Weaknesses

Distinctive competence

Managerial Technical Financial PeopleProcesses

Can a Strength be a Weakness?


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Session 2


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Environmental AnalysisAssess the Nature of the Environment

AuditEnvironment Influences

Identify key competitive forces throughStructural Analysis

Analyse firms Strategic Position Identify Opportunities and Threats

State firms Strategic Position


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AuditingEnvironmentalInfluences ECONOMIC FactorsandRestructuring

Demographics

SocioCultural CapitalMarkets

Technology

Labour

Ecology Competition

Government

Supplies


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P E S T


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SCENARIOPLANNING Key Assumptions or Forces

Trends past & future Specialized Techniques


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Five Forces Model Economies of Scale

CapitalRequirements

Access to distribution channels

Cost advantages independent of size

Expected Retaliation Legislative or Government action

Differentiation


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Strategic Group Analysis Positioning of an organization in relation to the strategies of

other organizations

Product diversity

Geographic Coverage Market Segment Served

Distribution Channels Used

Branding

Marketing Effort

Vertical Integration Quality

Technological Leadership

R & D


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Positioning Methodologies BCG

GE


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Analyzing Resources &

Strategic Capability Resource Audit

Value Chain Analysis

Assessing Balance

Strengths Weaknesses

Comparitive Analysis


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PHARMA R&D

P

ATEN

TS PRODUCTS

GENERICS

SPECIALITY

BIOTECHNOLOGY

DISTRIBUTION


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Crafting Strategy

Future Vision

CurrentReality

Creative Tension


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WhatConstitutesthe Future

Vision? Customer/ Stakeholder

NeedSatisfaction The Environment

The Response/ The Initiative

The Role


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WhatisCurrentReality? The Organizationpositionedinits

Environment?

CanFuture Visionbe totallydifferent?


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Corporate Restructuring

Corporate Structuring Theory of the Firm- Transaction CostEfficiencyNexus of Contracts

The Concept of a Joint Stock Company The Question ofPerformance and Wealth Creation

Corporate Restructuring The Concept of Value Enhancement

Sell Offs SplitOffs Spin OffsLBOs Equity Carve Outs

JVs and Strategic Alliances

M&As

Forms ofOrganizations

UForm and M form.. Divisions SBUs Companies


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ValuationofaFirmAverage Rate ofReturn

Payback

IRR

NPV

P/E * E

PS

overview of corporate strategy

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