Aligning Arc And Strategy

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Information about Aligning Arc And Strategy
Business & Mgmt

Published on March 19, 2009

Author: smehro

Source: slideshare.net

What you will learn in this Section ? Envisioning Strategy Definition Framework Visual Models External Analysis PEST PEST Impact Analysis Industry and Competitive Analysis Industry Structure Evolution of Industries Industry Supply Chain Potential Industry Earnings Porter’s 5 Forces Analysis Competitive Intensity Strategies for minimizing competitive forces Perceptual Map Barriers to Entry/Incumbency advantages DSIR effect Company Resources and Capabilities ARC Analysis/HR SWOT Analysis Value Creating Processes/Core Competencies Strategic Gameboard Balanced Scorecard Change Management © Sunil Mehrotra

Envisioning Strategy

Definition

Framework

Visual Models

External Analysis

PEST

PEST Impact Analysis

Industry and Competitive Analysis

Industry Structure

Evolution of Industries

Industry Supply Chain

Potential Industry Earnings

Porter’s 5 Forces Analysis

Competitive Intensity

Strategies for minimizing competitive forces

Perceptual Map

Barriers to Entry/Incumbency advantages

DSIR effect

Company Resources and Capabilities

ARC Analysis/HR

SWOT Analysis

Value Creating Processes/Core Competencies

Strategic Gameboard

Balanced Scorecard

Change Management

Understanding Strategic Management is like pealing an onion

A Visual Model Business Ecosystem New Paradigm Consulting The environment International law Governments Standards bodies Stakeholders Supplier’s suppliers Customer’s customers New entrants Customers Suppliers Competitors Substitutes Organisation

Business Ecosystem: A more granular view Mbam619 framework models

Firm's Resources-Tangible and Intangible Assets

Aligning Organization, Systems and Processes to Goals and Strategy to create sustainable Competitive Advantage Adapted from: www.buildingbrands.com/didyouknow/14_7s_mckinsey Mckinsey 7-S Framework Structure: The basic organization of the company, its departments, reporting lines, areas of expertise, and responsibility (and how they inter-relate Systems: Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (retail systems, call centre systems, online systems, etc). Skills: The capabilities and competencies that exist within the company. What it does best. Shared values: The values and beliefs of the company. Ultimately they guide employees towards 'valued' behavior. Staff: The company's people resources and how they are developed, trained, and motivated. Style: The leadership approach of top management and the company's overall operating approach. Hardware S Software Strategy: The direction and scope of the company over the long term. •

Designing Firm's ARC to align with Strategy

Transforming Resources to Capabilities Advantage

Firm's Resources

Key functions and activities within a firm Suppliers Manufacturers Distributors Retailers Consumers Adapted from: http://faculty.msb.edu/homak/HomaHelpSite/WebHelp/HomaHelp.htm Key Operational Issues

Activity Based View of Value Creation Process Infrastructure Human Resources Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing and Sales Service Profit Margin Profit Margin Support Activities Primary Activities Sequence of Activities

Starbuck’s key activities that create Value M A R G I N Inbound Logistics Operations Marketing And Sales Outbound Logistics - Financial Policy - Legal - Accounting - Organizational Form - Incentive Systems New Espresso Machines Roasting Coffee Operating Stores Barista Training Buying Coffee Other Purchasing Superior Rewards Better Espresso Machines New Clover Method Maintaining Stores CPG’s in retailers Desirable store settings (3 rd Place)‏ Excellent Customer Service Limited Advertising Firm Infrastructure Human Resource Management Technology Development Procurement Only the best 3% of coffee Nicholas Merriam, April 2008 MBA, Graziadio School of Business and Management Pepperdine University

New Espresso Machines

Roasting Coffee

Operating Stores

Barista Training

Buying Coffee

Other Purchasing

Superior Rewards

Better Espresso Machines

New Clover Method

Maintaining Stores

CPG’s in retailers

Desirable store settings (3 rd Place)‏

Excellent Customer Service

Limited Advertising

Only the best 3% of coffee

Progressive's value creating activities Infrastructure HR Technology Procurement Financial Policy Regulatory Compliance Legal Accounting Org. structure Incentive system Actuary Training Agent Training Adjuster Training Actuarial methods Investment practices Information Technology New Product Dev. Market Research Settlement Procedures Communication Technology Data Gathering Rating Underwriting Investment Policy Issuing Billing & Collection New Policy sales Policy Renewals Policy Repricing Create Network of independent agents Build internal sales force Agent Management Advertising Claims Response Loss settlement Loss Control

Financial Policy

Regulatory Compliance

Legal

Accounting

Org. structure

Incentive system

Actuary

Training

Agent

Training

Adjuster

Training

Actuarial methods

Investment practices

Information

Technology

New Product Dev.

Market Research

Settlement

Procedures

Communication

Technology

Data Gathering

Rating

Underwriting

Investment

Policy Issuing

Billing & Collection

New Policy sales

Policy Renewals

Policy Repricing

Create Network of

independent agents

Build internal sales force

Agent Management

Advertising

Claims Response

Loss settlement

Loss Control

Walmart's Value Creating Activities Infrastructure HR Technology Procurement

What is the Firm's ARC? How is the firm organized? ARCHITECTURE What are the firm's processes for getting things done? ROUTINEs What are the firm's shared values? CULTURE How well does the Firm's ARC align with its strategy?

How is the firm organized?

ARCHITECTURE

What are the firm's processes for getting things done?

ROUTINEs

What are the firm's shared values?

CULTURE

How well does the Firm's ARC align with its strategy?

What is the best ARC for the firm seeking.... Product Leadership(Innovation) ? Operational Efficiency (Cost leadership)? Customer Intimacy (Customer focus)?

Product Leadership(Innovation) ?

Operational Efficiency (Cost leadership)?

Customer Intimacy (Customer focus)?

Firm's Architecture Geography

Leader on a pedestal

ARCHITECTURE: Functional

ARCHITECTURE: By Product

ARCHITECTURE: Matrix

ARCHITECTURE: By Geography

 

 

 

Components of Culture

 

 

How does a firm organize, resource, set policies and procedures, establish behavioral norms for High-growth ? Product innovation? Cost leadership? Customer intimacy? Global reach? Survival? Uncertainty? Leveraging core competencies?

High-growth ?

Product innovation?

Cost leadership?

Customer intimacy?

Global reach?

Survival?

Uncertainty?

Leveraging core competencies?

Process for Creating sustainable competitive advantage through ARC

 

Aligning Resources to Market Opportunities and Threats to create sustainable competitive advantage Opportunities Threats $ Strengths + + Weaknesses - -

SWOT Analysis

Nappies 15-17 ARc Analysis Transforming resources to capabilities through firm's ARC Strategic SWOT Analysis

Mnemonic 8 Transforming Resources to Capabilities Advantage

Mnemonic 9 Process for Creating sustainable competitive advantage through ARC

Mnemonic 10 Aligning Resources to Market Opportunities and Threats to create sustainable competitive advantage Opportunities Threats $ Strengths + + Weaknesses - -

Mnemonic 11 Strategic SWOT Analysis

 

ARC for Product Innovation

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