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Lecture 2

BU111 Lecture Notes - Lecture 2: Kodak, Ikea, Competitive Advantage

by

Department
Business
Course Code
BU111
Professor
Sofy Carayannopoulos
Lecture
2

This preview shows pages 1-3. to view the full 10 pages of the document.
Critical success Factors & Environmental Analysis Models
Before your lab next week
Register for a lab
Pearson registration (get code first)
www.laurierbiz/pearson
Complete survey (By Fri. at 4pm!)
Complete all work under "Lab #1" in course outline
As soon as Lab stuff is done
Start research diagnostics assignment
Read TD case
Start thinking about a new venture idea
How to do research assignment
Go to course website, click "documents" then "assignments"
Follow instructions carefully to properly complete required tasks
Road Map
Critical Success Factors
Strategy (Vision/Mission)
Adjust your strategy based on the environment
Internal Organization
Environment
PEST
Industry Forces
Why start with the critical success factors
Guide strategic and daily details
-
Ensure holistic thinking
How all the pieces connect
-
Ensure success over time
Your success will be temporary if you do not think about all the pieces
-
Why is each important? How are they connected?
Achieving Financial Performance
Maximizing profit
ROI (efficiency metric), Profits, Growth
What is happening to those profits over time
Always look ahead, anticipate what is going to happen
Meet customer needs
Knowing what they need and fulfilling them
Anticipating what they may need in the future
Understanding; anticipating; Fulfilling
Important for revenue!
If you dont do so, you are benefiting your competition
Gaining Employment Commitment
Passionate; loyal
Happy employees:
will work harder (productive)
§
Make customers happy
§
Want to see the company succeed
§
Less employee turnover
§
Less hiring costs
§
Encourage Innovation & Creativity
Competitive advantage
Allows you stand apart/ more efficient
Reward and encourage ideas
Allows you to get ahead
Building Quality Products and Services
Value for our money
Consistency
Reliability
Your brand becomes known for building something reliable
§
Customers won't return if the quality of your product is poor
§
Employees may leave because they are embarrassed by the poor quality of products
§
Building Distinctive Competitive Advantage
Unique; inimitable
Sets you apart from your competitors
§
Attract employees, consumers, investors
§
Diamond-E Framework
Strengths and Weaknesses
Opportunities and Threats
Environment
Management Preferences
-
Organization
-
Strategy
Internal: What can we do?
External: What should we do?
The plan the business uses to pursue opportunities & achieve CSF
Critical linking variable between organization and environment
-
Resources
-
PEST (Political, Economic, Social, Technological)
Five Forces
Principle Logic: consistency or alignment
consistency internally leads to performance
-
alignment externally ensures strategy right for the given environment
Example:
P&G Strategy in 2000 (inconsistency)
Too many products
Couldnt handle all of them
§
Ikea Strategy(Consistency)
Stylish, inexpensive
§
Kodak vs. Canon (alignment)
Kodak: ignored the environment
Canon: adapted to the digital age
§
-
Why is it valuable?
Assess current strategy
Generate new strategic proposals
Evaluate strategic proposals
First Task: Deal with strategy-environment linkage
Assess forces at work and their implications
Adjust internal or adjust strategy
Second Task: Management Preferences
Vision, mission, preferences, and biases
Need to be able to make decisions
Organization:
Culture
Capabilities
Example: Apple's marketing
Structure
How to organize the work
How to divide the business ( ex: geographically)
What to focus the company on
Resources:
Human
Capital
Financial
Important!!!! Why are each one
of these important? How are
they connected?
September 13th, 2017
Wednesday, September 13, 2017
9:56 AM

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

www.laurierbiz/pearson
Adjust your strategy based on the environment
PEST
Industry Forces
-
How all the pieces connect
-
Ensure success over time
Your success will be temporary if you do not think about all the pieces
-
Why is each important? How are they connected?
Achieving Financial Performance
Maximizing profit
ROI (efficiency metric), Profits, Growth
What is happening to those profits over time
Always look ahead, anticipate what is going to happen
Meet customer needs
Knowing what they need and fulfilling them
Anticipating what they may need in the future
Understanding; anticipating; Fulfilling
Important for revenue!
If you dont do so, you are benefiting your competition
Gaining Employment Commitment
Passionate; loyal
Happy employees:
will work harder (productive)
§
Make customers happy
§
Want to see the company succeed
§
Less employee turnover
§
Less hiring costs
§
Encourage Innovation & Creativity
Competitive advantage
Allows you stand apart/ more efficient
Reward and encourage ideas
Allows you to get ahead
Building Quality Products and Services
Value for our money
Consistency
Reliability
Your brand becomes known for building something reliable
§
Customers won't return if the quality of your product is poor
§
Employees may leave because they are embarrassed by the poor quality of products
§
Building Distinctive Competitive Advantage
Unique; inimitable
Sets you apart from your competitors
§
Attract employees, consumers, investors
§
Diamond-E Framework
Strengths and Weaknesses
Opportunities and Threats
Environment
Management Preferences
-
Organization
-
Strategy
Internal: What can we do?
External: What should we do?
The plan the business uses to pursue opportunities & achieve CSF
Critical linking variable between organization and environment
-
Resources
-
PEST (Political, Economic, Social, Technological)
Five Forces
Principle Logic: consistency or alignment
consistency internally leads to performance
-
alignment externally ensures strategy right for the given environment
Example:
P&G Strategy in 2000 (inconsistency)
Too many products
Couldnt handle all of them
§
Ikea Strategy(Consistency)
Stylish, inexpensive
§
Kodak vs. Canon (alignment)
Kodak: ignored the environment
Canon: adapted to the digital age
§
-
Why is it valuable?
Assess current strategy
Generate new strategic proposals
Evaluate strategic proposals
First Task: Deal with strategy-environment linkage
Assess forces at work and their implications
Adjust internal or adjust strategy
Second Task: Management Preferences
Vision, mission, preferences, and biases
Need to be able to make decisions
Organization:
Culture
Capabilities
Example: Apple's marketing
Structure
How to organize the work
How to divide the business ( ex: geographically)
What to focus the company on
Resources:
Human
Capital
Financial
Important!!!! Why are each one
of these important? How are
they connected?
September 13th, 2017
Wednesday, September 13, 2017
9:56 AM

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Critical success Factors & Environmental Analysis Models
Before your lab next week
Register for a lab
Pearson registration (get code first)
www.laurierbiz/pearson
Complete survey (By Fri. at 4pm!)
Complete all work under "Lab #1" in course outline
As soon as Lab stuff is done
Start research diagnostics assignment
Read TD case
Start thinking about a new venture idea
How to do research assignment
Go to course website, click "documents" then "assignments"
Follow instructions carefully to properly complete required tasks
Road Map
Critical Success Factors
Strategy (Vision/Mission)
Adjust your strategy based on the environment
Internal Organization
Environment
PEST
Industry Forces
Why start with the critical success factors
Guide strategic and daily details
-
Ensure holistic thinking
How all the pieces connect
-
Ensure success over time
Your success will be temporary if you do not think about all the pieces
-
Why is each important? How are they connected?
Achieving Financial Performance
Maximizing profit
ROI (efficiency metric), Profits, Growth
What is happening to those profits over time
Always look ahead, anticipate what is going to happen
Meet customer needs
Knowing what they need and fulfilling them
Anticipating what they may need in the future
Understanding; anticipating; Fulfilling
Important for revenue!
If you dont do so, you are benefiting your competition
Gaining Employment Commitment
Passionate; loyal
Happy employees:
will work harder (productive)
§
Make customers happy
§
Want to see the company succeed
§
Less employee turnover
§
Less hiring costs
§
Encourage Innovation & Creativity
Competitive advantage
Allows you stand apart/ more efficient
Reward and encourage ideas
Allows you to get ahead
Building Quality Products and Services
Value for our money
Consistency
Reliability
Your brand becomes known for building something reliable
§
Customers won't return if the quality of your product is poor
§
Employees may leave because they are embarrassed by the poor quality of products
§
Building Distinctive Competitive Advantage
Unique; inimitable
Sets you apart from your competitors
§
Attract employees, consumers, investors
§
Diamond-E Framework
Strengths and Weaknesses
Opportunities and Threats
Environment
Management Preferences
-
Organization
-
Strategy
Internal: What can we do?
External: What should we do?
The plan the business uses to pursue opportunities & achieve CSF
Critical linking variable between organization and environment
-
Resources
-
PEST (Political, Economic, Social, Technological)
Five Forces
Principle Logic: consistency or alignment
consistency internally leads to performance
-
alignment externally ensures strategy right for the given environment
Example:
P&G Strategy in 2000 (inconsistency)
Too many products
Couldnt handle all of them
§
Ikea Strategy(Consistency)
Stylish, inexpensive
§
Kodak vs. Canon (alignment)
Kodak: ignored the environment
Canon: adapted to the digital age
§
-
Why is it valuable?
Assess current strategy
Generate new strategic proposals
Evaluate strategic proposals
First Task: Deal with strategy-environment linkage
Assess forces at work and their implications
Adjust internal or adjust strategy
Second Task: Management Preferences
Vision, mission, preferences, and biases
Need to be able to make decisions
Organization:
Culture
Capabilities
Example: Apple's marketing
Structure
How to organize the work
How to divide the business ( ex: geographically)
What to focus the company on
Resources:
Human
Capital
Financial
Important!!!! Why are each one
of these important? How are
they connected?
September 13th, 2017
Wednesday, September 13, 2017 9:56 AM
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