Download - 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