Professional Documents
Culture Documents
McGraw-Hill/Irwin
Copyright 2012 The McGraw-Hill Companies, Inc.
1. Understand why every company needs a sound strategy to
compete successfully, manage the conduct of its business, and
strengthen its prospects for long-term success.
2. Develop an awareness of the four most dependable strategic
approaches for setting a company apart from rivals and
winning a sustainable competitive advantage.
3. Understand that a companys strategy tends to evolve over
time because of changing circumstances and ongoing
management efforts to improve the companys strategy.
4. Learn why it is important for a company to have a viable
business model that outlines the companys customer value
proposition and its profit formula.
5. Learn the three tests of a winning strategy.
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WHAT DO WE MEAN BY STRATEGY ?
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WHAT IS STRATEGY ABOUT?
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WHY DO STRATEGY ?
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STRATEGY AND COMPETITORS
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1.1 Identifying a Companys StrategyWhat to Look For
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Key initiatives of the Plan-to-Win strategy:
Improved restaurant operations
Affordable pricing
Wide menu variety and beverage choices
Convenience and expansion of dining opportunities
Ongoing restaurant reinvestment and international
expansion
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Follow-up
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The Quest for Competitive Advantage
Competitive Advantage
Meeting customer needs more effectively,
with products or services that customers
value more highly, or more efficiently, at
lower cost.
Sustainable Competitive Advantage
Giving buyers lasting reasons to prefer a
firms products or services over those of its
competitors.
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STRATEGIC APPROACH CHOICES
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STRATEGIC APPROACHES
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GAINING SUSTAINABLE COMPETITIVE
ADVANTAGE
How to create a sustainable competitive
advantage:
Develop valuable expertise and competitive
capabilities over the long-term that rivals
cannot readily copy, match or best.
Put the constant quest for sustainable
competitive advantage at center stage in
crafting your strategy.
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Why a Firms Strategy Evolves over Time
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The Evolving Nature of a Firms Strategy
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1.2 A Companys Strategy Is a Blend of Proactive Initiatives
and Reactive Adjustments
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THE RELATIONSHIP BETWEEN A
FIRMS STRATEGY AND ITS BUSINESS
MODEL
Realized Business
Strategy $$$? Model
Competitive Value
Initiatives Proposition
Business
Profit Formula
Approaches
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A Companys Business Model
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Business Model Elements
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Business Model Elements (contd)
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IS OUR STRATEGY A WINNER?
The Strategic
Fit Test
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WHAT MAKES A STRATEGY A
WINNER?
A winning strategy must pass three tests:
The Fit Test
Does it exhibit dynamic fit with the external and
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Follow-up
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WHY CRAFTING AND EXECUTING
STRATEGY ARE IMPORTANT TASKS
Strategy provides:
A prescription for doing business.
A road map to competitive advantage.
A game plan for pleasing customers.
A formula for attaining long-term standout
marketplace performance.
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THE ROAD AHEAD