CAN YOU SAY WHAT YOUR STARATEGY IS ??

About the Authors

DAVID J. COLLLIS Adjunct Professor in Strategy Unit of HBS Author of many books on corporate strategy Consultant to Edward Jones, a Brokerage Firm

MICHAEL G. RUKSTAD Was a Senior Research Fellow at HBS Author of many books on Corporate Strategy Received many awards for teaching including the Outstanding Faculty Award for Excellence in Teaching

Understanding Strategy..
How to achieve the goals set by company? Governs the Right Thing to Do Each strategy corresponds to an inherent tradeoff Features of Strategic objectiveSpecific, measurable and time bound

Why Strategize???
Streamlining behaviour within the business Exponentially increasing the efforts Easing the formulation of goals Simplifying the implementation of tasks Communicating mission ,vision and values of company Creating a difference in industry landscape

Elements of Strategy
OBJECTIVE
Definition of ends that strategy is designed to achieve

SCOPE
Highlighting the boundaries within which the business will operate

ADVANTAGE
What you business will do better than others?

OBJECTIVE
Not to be confused with statement of values/mission
VALUES Doing the right thing MISSION Underlying motivation VISION What a business wants to be

STRATEGY The right thing

to do

SCOPE
CUSTOMER Specific type of client Encourages focused experimentation & initiatives Defines boundaries beyond which business will not venture GEOGRAPHICAL LOCATION Identifying the areas where business will be present VERTICAL INTEGRATION Defining levels of distribution channels , upstream suppliers, downstream buyers Benefits of standardization , simplicity & deep experience

Helps organization analyse prospects of organic/inorganic growth

ADVANTAGE
Statement of Customer Value Proposition
A strategy statement that explains why a customer should buy your product. Strategic Sweet Spot of the organisation Walmart: everyday low prices for a broad range of goods that are always in stock in convenient geographic locations

Activity-System Map

A description of how internal activities must be aligned so that only your firm can deliver that value proposition Captures the unique activities that allows the firm ALONE to deliver the value proposition

Edward Jones Strategy Statement

To grow to 17,000 nancial advisers by 2012 by offering trusted and convenient face-to-face nancial advice to conservative individual investors who delegate their nancial decisions, through a national network of one-nancial adviser ofces.

Objective
Advantage

Scope

Edward Jones Strategy

Objective
Was arrived at after passionate arguments among the partners Financial adviser the only profit center

Scope
Clarity about customers. Did not introduce online trading Not vertically integrated into proprietary mutual funds

Advantage
Only 1 financial adviser per office Has the largest number of branch offices among brokerage firms

Developing a Strategy Statement

Detailed understanding of customer needs Segmenting customers Indentify Unique ways to create value

Continuous objective assessment of the competitors

THANK YOU