sm wk 5 - strategic tools i
TRANSCRIPT
-
8/8/2019 SM Wk 5 - Strategic Tools I
1/33
Class 5
Strategic Tool I611407 Strategic Management
King Mongkuts University of Technology North Bangkok
Dr.PardTeekasap
-
8/8/2019 SM Wk 5 - Strategic Tools I
2/33
Agenda
Discuss on midterm exam
Lecture on strategic tool 1
Strategytalk
Term project progress report
-
8/8/2019 SM Wk 5 - Strategic Tools I
3/33
Comment on midterm exam
Please dont send an excel file
Please use .docx or .pdf
Content is what I want, not the decoration
Everything you answer, you need to explain it
-
8/8/2019 SM Wk 5 - Strategic Tools I
4/33
What is Vision?
-
8/8/2019 SM Wk 5 - Strategic Tools I
5/33
Companys Vision
-
8/8/2019 SM Wk 5 - Strategic Tools I
6/33
Core values
Companies have between 3 to 5 core values
If the circumstances changed and penalized usfor holding this core value, would we still keep it?
-
8/8/2019 SM Wk 5 - Strategic Tools I
7/33
Core values of Philip Morris
The right to freedom ofchoice
Winning beating others ina good fight
Encouraging individualinitiative
Opportunity based on merit;no one is entitled to anyone
Hard work and continuousself-improvement
-
8/8/2019 SM Wk 5 - Strategic Tools I
8/33
Core purpose
Organizations reason for being
5Whys?
-
8/8/2019 SM Wk 5 - Strategic Tools I
9/33
Core purpose ofWalt Disney
To make peoplehappy
-
8/8/2019 SM Wk 5 - Strategic Tools I
10/33
Discovering core ideology
Core ideology cant becreated
You discover coreideology
Core ideology is to guideand inspire, not todifferentiate
-
8/8/2019 SM Wk 5 - Strategic Tools I
11/33
Vision-level BHAG
Big, Hairy, Audacious Goals
Bold missions to stimulate progress
Requires 10 30 years of effort to complete
-
8/8/2019 SM Wk 5 - Strategic Tools I
12/33
Example of BHAG
Become a $125 billion company by year 2000 (Wal-Mart, 1990)
Crush Adidas (Nike, 1960s)
Become number one or number two in every marketwe served and revolutionize this company to havethe strengths of a big company combined with theleanness and agility of a small company (GE, 1980s)
-
8/8/2019 SM Wk 5 - Strategic Tools I
13/33
Vivid description
A vibrant, engaging, and specific description ofwhat it will be like to achieve the BHAG
-
8/8/2019 SM Wk 5 - Strategic Tools I
14/33
Vivid description of Ford
I will build a motor car for thegreat multitudeIt will be solow in price that no manmaking a good salary will be
unable to own one and enjoywith his family the blessing ofhours of pleasure in Godsgreat open spacesWhen Imthrough, everybody will be ableto afford one, and everyonewill have one. The horse will
have disappeared from ourhighways, the automobile willbe taken for grantedgive alarge number of menemployment at good wages
-
8/8/2019 SM Wk 5 - Strategic Tools I
15/33
Why IPOD successful?
-
8/8/2019 SM Wk 5 - Strategic Tools I
16/33
Not just the design, but the
function IPODs design is unique
and cool
But the key success factoris Itune.
This is a new businessmodel
-
8/8/2019 SM Wk 5 - Strategic Tools I
17/33
3 Steps for business model
innovation Identify opportunity to satisfy customers
Lay out how to make a profit
Compare with existing model to see what tochange
-
8/8/2019 SM Wk 5 - Strategic Tools I
18/33
Business model has 4 elements
Customer value proposition (CVP)
Profit formula
Key resources
Key processes
-
8/8/2019 SM Wk 5 - Strategic Tools I
19/33
Customer value proposition
A way to help customers to get an important jobdone
Job = a fundamental problem in a givensituation that needs a solution
-
8/8/2019 SM Wk 5 - Strategic Tools I
20/33
Tatas CVP
Ratan Tata sawmotorcycles
carrying entirefamilies.What if hecould providethese families with
a safe, enclosedcar at a price theycould afford?
-
8/8/2019 SM Wk 5 - Strategic Tools I
21/33
KMUTNB wants new business
model
What is the CVP theuniversity should target?
-
8/8/2019 SM Wk 5 - Strategic Tools I
22/33
Profit formula
Revenue model: price x volume
Cost structure: direct costs, indirect costs, economiesof scale
Margin model: margin for each transaction
Resource velocity: how to utilize resource
-
8/8/2019 SM Wk 5 - Strategic Tools I
23/33
Tatas profit formula
To build a car for $2,500
Profit would be generated through high volume
-
8/8/2019 SM Wk 5 - Strategic Tools I
24/33
What is the profit formula for
KMUTNB?
-
8/8/2019 SM Wk 5 - Strategic Tools I
25/33
Key resources & key processes
Key elements that create value for the customerand the company
Tata form a team of young engineers to developnew processes
Outsourcing 85% of car component
60% fewer vendors
Employing a network of assemblers
-
8/8/2019 SM Wk 5 - Strategic Tools I
26/33
What are the key resources &
key processes for KMUTNB?
-
8/8/2019 SM Wk 5 - Strategic Tools I
27/33
Hints on CVP: 4 common barriers
to get jobs done Insufficient wealth
Insufficient access
Insufficient skill
Insufficient time
-
8/8/2019 SM Wk 5 - Strategic Tools I
28/33
New business model is expensive
Business innovation should not be used every time
New products can be created withoutfundamentally change the business model
Business model change should be used when thesignificant changes are needed to all elements of
existing model
-
8/8/2019 SM Wk 5 - Strategic Tools I
29/33
Why global film industry locates
together at Hollywood?
-
8/8/2019 SM Wk 5 - Strategic Tools I
30/33
What is cluster?
Geographic concentrations of interconnectedcompanies and institutions in a particular field
Clusters promote both competition andcooperation
-
8/8/2019 SM Wk 5 - Strategic Tools I
31/33
How clusters affect competition
Increasing the productivity of companies in thearea
Driving the direction and pace of innovation
Stimulating the formation of new businesses
-
8/8/2019 SM Wk 5 - Strategic Tools I
32/33
Strategy Talk
-
8/8/2019 SM Wk 5 - Strategic Tools I
33/33
Term Project Progress Report