Capture essence of the business: Strategic Diamond

- Value Curve
Relationships (Environment, V/MPs, Operations, Resources, Strategy
Performance)
- Poor performance relates to the relationships that dont fit together
Resource:
- The various assets and capabilities
- They are combined in the value chain
- Analysis from a functional perspective is the easiest way to address these
- A few individual assets or capabilities provide a competitive advantage
[Survive VRINE analysis] So nobody can copy our performance
- Resources provide the differentiator but also affect revenues and cost
[economic logic]
Environment:
- Different levels
o PESTEL driving forces
o Industry [definition, value stream, 5 forces]
o Direct Competitors [who after, how compete, how serious a competitor,
who is the leader]
o Customer [who are they, how many are there, what do they want]
- Closely allied with the arena [in the strategy model]
Creating a Strategy
- The value curve contrasts the companys strategy with that of competitors
[differentiators]
- Generic competitive strategies [focus, low cost, differentiated] cirque de
soleil
- How resources contribute to these strategy cirque de soleil (changed their
resources)
- Testing the quality of the strategy
Crafting a Strategy in a Dynamic Context
- First movers, second movers
- Where to assert change [value curve again]
- Offensive moves: other comps out there
- Defensive moves: other comps out there
- Complementors
Performance:
- NPV of CF
- Managing performance [various systems]: balanced scorecards, measuring
the goals and seeing if the stakeholders can achieve the goals and giving
incentive to encourage them to achieve goals
- Stakeholder analysis
- Corporate Social Responsibility: what is the role of business in the society and
how should it fulfill its role
Implementing strategy
- Organizing people [structure, systems, staffing having the right people in
place]
- OR
- Getting people to change [managing change]
- Making changes in resources
- Gantt Chart should be the best way to show the implementation of strategy

Think Like a Manager

- You are always dealing with change
1. Why change is needed: proactive, dynamic environment
2. What needs to be changed: strategy fit, relationship mismatch, driven
3. How it needs to be changed:
4. How will I change it: responsible and accountable for results
Corporate Strategy
- Earlier discussions dealt with business strategy building and sustaining a
competitive advantage in an industry
- Corporate strategy works at higher plan which industries should we be in
[may reflect a corporate
- Entering New business
- Diversification [related, unrelated]: most companies do related
Vehicles
- Alliances
- M&As
- Special times in the life of the company
- Entrepreneurship/intrapreneurship
- Addressing conditions of the aging company
o Company is a continuing entity, ossified (cant change) companies will
die due to a changing environment
Governance
- The varying state of governance
- Shareholders
- Board
- CEO [compensation]
o Have to work well, if SH are the ultimate beneficiary