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Strategy zStakeholders ystockholders ycustomers yemployees ysuppliers
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Strategy
Strategy
The alignment of your processes, resources, and organizational structure to maximize benefits to various stakeholders
StrategyStakeholders
stockholders customers employees suppliers
StrategyProcesses
Identifying and reengineering work flows
TQM and just-in-time inventory systems
Building bridges through the use of cross-functional teams
StrategyResources
CapitalLaborMaterialsMachinesInformationFacilities
StrategyOrganizational Structure
Functional structure Product/brand management
structureMatrix structureEtc.
Functional ApproachDepartments based on similar skills and resource use.
CEOCEO
VPVPFinanceFinance
VPVPProductionProduction
VPVPMarketingMarketing
PRODUCT MANAGER ORGANIZATION
M ark e tin g R esearch S a les A d vertis in g
P rod u c t M an ag erP rod u c t A
P rod u c t M an ag erP rod u c t B
P rod u c t M an ag erP rod u c t C
G rou p P rod u c tM an ag ers
M ark e t in g vice -p res id en t/d irec tor
EngineeringManager
ProductionManager
MarketingManager
QualityManager
757Project Mgr
767Project Mgr
737Project Mgr
747Project Mgr
Matrix Organization
StrategyCorporate strategy
Business-unit strategy
Functional strategy (product-market entry) Marketing plans and strategies primarily
focus on this level
Strategic business units Strategic business unit:
An entity that can be separated for planning purposes
Has its own set of customersHas its own set of competitorsHas a manager who is responsible
for the unit
Corporate StrategyMission
Product-oriented vs. market-oriented
Functions to be performed
Social responsibility issues
Corporate Strategy Corporate objectives
Profitability ROI Return on shareholder’s equity $ profit etc.
Discounted cash flowMarket share Etc.
Corporate Development Strategy
Current Markets
New Markets
Current Products
New Products
Market
Penetration
Market Development
Product Development
Diversification
Corporate StrategyCorporate development strategy
Market penetrationMarket developmentProduct developmentDiversification
forward integration backward integration related (concentric) diversification unrelated (conglomerate) diversification
Corporate StrategyResource allocation
Boston Consulting Group model (Boyd, Walker & Larreche, pp. 41, 42)
Industry attractiveness -- business position matrix (General Electric model) (Boyd, Walker & Larreche, p. 44)
BCG Matrix
Market Growth Rate
Relative Market Share
StarsQuestion Marks
Cash Cows
Dogs
Industry Attractiveness—Business Position Matrix
Com
p etit
ive
posi
ti on
High
Medium
Low
Industry AttractivenessHigh Medium Low
1 1
1
2
2
2
3
3 3
Strategic business units Strategy formulation
(Porter’s typology)Overall cost leadership
broad focus narrow focus
Differentiation broad focus narrow focus
Porter’s Typology
Cost Leadership
Differentiation
Narrow Focus
Broad Focus
Functional (product-market) strategy:The marketing mix (4Ps)Product Price Place Promotion
advertising personal selling sales promotion publicity
Value creation & delivery
Choose the value
Provide the value
Communicate the value
Value creation & deliveryChoose the value
Segmentation
Targeting
Positioning
Value creation & deliveryProvide the value
Product & service developmentPricingSourcingManufacturingDistributingServicing
Value creation & deliveryCommunicate the value
Sales forceSales promotionAdvertisingPublicity
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