March 14, 2011
GMS 200 – WEEK 9
1. What are the foundations of strategic competitiveness?
2. What is the strategic management process?
3. What types of strategies are used by organizations?
4. How are strategies formulate?
5. What are current issues in strategy implementation?
Coca-Cola Deal Marks Major Shift in U.S. Strategy
Coca-Cola Company (CCC)
o More than 500 brands, in over 200 countries, and serves 1.6 billion servings each day
Coca-Cola Enterprises (CCE)
o A marketer, producer, and distributor of Coca-Cola products
o Create a SWOT analysis that would lead Coca=Cola to conclude that purchasing its bottler is a
good strategic move
o What growth/diversification strategy approach does the purchase of the bottler represent?
Study Question 1
Basic concepts of strategy:
o Competitive Advantage: attributes that allows an organization to outperform
o Sustainable Competitive Advantage (SCA): difficult to imitate
Strategy: comprehensive action plan, accomplish organizational goals with SCA
Strategic Intent: focus all organizational energies on a unifying and compelling goal
Strategic Management: formulate and implement strategies, accoplish long-term goals and SCA
Goal of Strategic Management: create above-average returns for investors
Environments and Competitive Advantage:
o Monopoly: Microsoft
www.notesolution.com o Oligopoly: Rogers, Telus, Bell
o Hypercompetition: McDonald’s, Burger King, Wendy’s
Figure 9.1: Strategy Formulation and Implementation in the Strategic Management Process
Study Question 2
Strategic Questions (Peter Drucker):
o What is our business mission?
o Who are our customers?
o What do our customers consider value?
o What have been our results?
o What is our plan?
Strategy Implementation: all organizational and management systems must be mobilized to support
and reinforce the accomplishment of strategies
What are the essential tasks for strategy implementation? (Manager’s Notepad 9.1)
o Identify organizational mission and objectives
o Assess current performance vis-à-vis mission and objectives
Analysis of Mission: reason for an organization’s existence
What should good mission statements identify?
o Products and/or services
o Underlying philosophy
How well does it serve the organization’s stakeholders?
Figure 9.2: How External Stakeholdesr can be Valued as Strategic Constituencies of Organizations
Analysis of Values:
o Broad beliefs about what is or isn’t appropriate
o The benefits of strong core values
o Organziational culture relects the dominant value system of the organization as a whole
The functions of organizational culture
www.notesolution.com Analysis of Objectives:
o Operating objectives direct activities toward key and specific performance results
o What are the typical operating objectives?
Analysis of Organizational Resources and Capabilities:
o Important goal of assessing core competencies
o What are the potential core competencies?
Figure 9.3: SWOT Analysis of Strengths, Weaknesses, Opportunities, and Threats
Analysis of Industry and Environment:
• Global Econmy
o Resource suppliers