Chapter 6 Organizational Strategy PowerPoint Presentation, PPT - DocSlides

Chapter 6 Organizational Strategy PowerPoint Presentation, PPT - DocSlides

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© . 2015 . Cengage Learning. MGMT7. © . 2015 . Cengage Learning. 6-1 . specify the components of sustainable competitive advantage and explain why it’s important. 6-2 . describe the steps involved in the strategy-making process. ID: 712616

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Presentations text content in Chapter 6 Organizational Strategy

Slide1

Chapter 6Organizational Strategy

© 2015 Cengage Learning

MGMT7

Slide2

© 2015 Cengage Learning

6-1 specify the components of sustainable competitive advantage and explain why it’s important

6-2

describe the steps involved in the strategy-making process

6-3

explain the different kinds of corporate-level strategies

6-4

describe the different kinds of industry-level strategies

6-5

explain the components and kinds of firm-level strategies

Slide3

Competitive Advantage

Resources assets, capabilities, processes, employee time, information, and knowledge that an organization controls.Competitive advantageproviding greater value for customers than competitors canSustainable competitive advantage

when other companies cannot duplicate the value a firm is providing to customers

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Sustainable Competitive Advantage

Resources must be…ValuableRareImperfectly imitableNonsubstitutable

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Three Steps of the Strategy-Making Process

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6-2

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Assess

Difficult because there is a lot of uncertainty in business.Also, top managers are often slow to recognize the need for strategic change. competitive inertia

Managers must be aware of strategic dissonance.

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Situational Analysis

StrengthsWeaknessesOpportunitiesThreats

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Internal AnalysisDistinctive competence

something that a company can make, do, or perform better than competitorsCore capabilities less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs

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Slide9

Looking Outside

Environmental scanningStrategic groupgroup of companies within an industry that top managers choose to compare, evaluate, and benchmark strategic threats and opportunities

Core firms

central companies in a strategic group

Secondary firms

firms that use strategies related to but somewhat different from those of core firms

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Choosing Strategic Alternatives

Risk-avoiding strategyRisk-seeking strategy© 2015 Cengage Learning

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Strategic Reference Points

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Corporate Level Strategy

“What business or businesses are we in or should we be in?”© 2015

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Portfolio Strategy

A corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.Companies can grow through:acquisitions

unrelated diversification

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Boston Consulting Group Matrix

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U-Shaped Relationship between Diversification and Risk

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Grand Strategies

Broad strategic plans used to help an organization achieve its strategic goalsGrowth strategyStability strategy

Retrenchment strategy

make significant cuts

recovery

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Industry-Level Strategies

“How should we compete in this industry?”©

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Porter’s Five Industry Forces

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Positioning Strategies

Cost leadershipDifferentiationFocus© 2015

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Adaptive Strategies

DefendersProspectorsAnalyzersReactors

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Firm-Level Strategies

“How should we compete against a particular firm?”©

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Direct Competition

The rivalry between two companies offering similar products or services that acknowledge each other as rivals and take offensive and defensive positions as they act and react to each other’s strategic actions.Market commonality

Resource similarity

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Slide23

A Framework of Direct Competition

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Strategic Moves of Direct Competition

Attacka competitive move designed to reduce a rival’s market share or profitsResponse

a countermove, prompted by a rival’s attack, designed to defend or improve a company’s market share or profit

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Slide25

Theo Chocolate

1. Evaluate Theo’s new strategy in light of the company’s strengths, weaknesses, opportunities, and threats. 2. Using the BCG Matrix, explain Theo’s decision to offer a classic line of chocolate bars after having limited success with Fantasy Flavor chocolates. 3. Which of the three competitive strategies—differentiation, cost leadership, or focus—do you think is right for Theo Chocolate? Explain.

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Cengage Learning


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