MBA`s Guide to Corporate Strategy
Transcription
MBA`s Guide to Corporate Strategy
MBA’s Guide to Corporate Strategy, Ben Hughes START: What is the business problem to be analysed? <<1. Issue at hand>> Business Where: Industry Competitiveness & Industry selection Why: Discounted cash flows; Market to book ratio; ROI Achieve competitive advantage Diversification, Vertical integration, Mergers &Acquisitions, Strategic alliances, Divestments, International expansion, Cross-unit resource allocation Cost leadership/ Differentiation / Focus •Where shall we compete? •How do we bring the value of the corporate structure? •How do we grow? •Hire the best people •Find a niche •Control distribution channels <<2. Where to grow>> Core competence refocus Vertical Integration Diversification Geograph. Outsourcing Takeaways Corporate GEOGRAPHICAL EXPANSION M&S Methods & buildings non transferable, quality perception, no local knowledge RELATED DIVERSIFICATION DISNEY (Cartoons to TV & theme parks) VERTIGAL INTERGRATION SOBOCE Negotiation tool for bargaining with suppliers GROWTH CHOICE AOL/TIME WARNER Alliance vs. Acquisition (Merger); Stock market reasons ALIANCES XEROX & FUJI Complementary Alliance (Technology & Asian market knowledge) Reversal of alliance due to Fuji faster learning (new competitor) PARENTING GRANDMET (DIEGO) Sell where no value add; Property - > brand management dist drinks STRATEGY HARMONY AXA Long integration & respect for local brands; independence but performance Growth Strategy Pro Con Vertical integration -Market or hierarchical - choice relates to market not product (up or down) Internalise key ‘value adding’ or quality dependent activities - Market problems: supplier uncertainty. incapacity or quality issues - Barriers to entry - Break supplier power - Lower transactions costs (contracts, specific activities, hold ups) Not in perfect market Geographical - Offensive/Defensive Corporate value add to other regions (evaluation of advantage in home market required) - further Econ of scale Non Related Div 6-sigma culture; Ind. governance; financial investor (non perfect market) Rel. Diversification -Capacity -Synergy/Commonality -Parenting -Brand across industries; -Economies of Reach/range -Competencies, Structure, methods, process, routines Corporate Centre + Tangible; processes, rep. systems + Intangible; corporate reputation -No experience/value added = ready for sale - Corporate value added is not KSD STRATEGIES: FOCUSSED, INNVOATION, ALIGNMENT, FINANCIAL DISCIPLINE <<The role of the board>> <<Resources not controlled + information >> M&S Bus model repl IND. SUPPORT Fuji Xerox Tech leverage Linking synergies << 4. How to govern>> <<3. How to grow>> Soboce Partner Selection Disney Culture, Branding Central services Alliance issues •Nature of alliance •COPLMENTARY/ADDITIVE/JOINT DEV. •Scope •Parties needs/expectations •Alliance management •Results measurement •Risks Acquisition Alliance Internal Dev. Value add n/a; historical adv. Market; path dependency + control + fast + profit control + competitor neutralisation + financial cost + resource sharing + reversible + lower risk + no info sharing + no culture issues + no transaction costs + cost progressive Judging value add of each industry; - costly & risky - target in trouble - culture issues - mergers don’t exits - learning process (create competitor) - change (decision) management -costs recoverable? -long timescale -change management -ideas gen. Req. START: What is the business to be analysed? Ben Hughes 12/04 v0.1 1. Functional Strategies (Activity level, manufacturing considerations etc ) <<1. Analyse the industry>> New Entrants Suppliers Buyers Substitutes Rivalry Factor Economies of Scale Brand Identity Switching cost Capital requirements Distribution Access Government Growth/First Mover Concentration Switching cost Substitutes Proportion of product cost Bkwd/Frwd Integration Industry profitability Concentration Buyer Information Switching Costs Buyer Volume Buyer Profits Brand Identity/Product differentiation Bkwd Integration Price of Sub. Switching costs Propensity to substitute Industry Growth Overcapacity Product Diff/Brand Identity Fixed & variable costs Value added Concentration (Market Shares) Diversity of Competitors Exit barriers Switching costs DF Takeaways Ind. Wide Segment Strategic Target 2.1 Generic strategies DF – Differentiation CL - Cost leadership F - Focus CL F Unique Low Cost Strategic Advantage 2.2 Value chain and integration analysis Where is the value added? - Vital, Vital! Backward Integration Chrysler Steel Horizontal Integration Forward Integration Pepsi/Coke -Industry structure and firm performance combined dictate performance -Strategies are specific to industry features 7UP/Phillip Morris -firms shape industry structure, dominant competitors reactions are key -generic strategies need to be made context specific Nouvelle Frontieres -Cost leadership as a source of advantage & maintaining it -Vertical integration can be good and bad Matra Automobile -high prices charged for differentiated products that are hard to imitate -Different alliance types reflect the company aims Wal-mart -First Mover, pre-empts scarce resources in window of opportunity -Quality of implementation, understanding competitor reactions are key Domino’s Pizza -Industries are mix of global/multi domestic -Local adaptation must be paid for by global integration Lyonnaise Dumez -Beware company messages, synergy expected>potential>achieved -Corporate Diversification does not create value, only synergy & growth Fiat Dealerships Thus, what is extremely importance in war Is to attack your enemies strategy (Sun-Tzu) 3. Corporate Strategies (What business should I be in?) BCG Portfolio Matrix -Mckinsey Parenting Advantage - resource strategy - valuation Pentagon Share < 1 <<4. Recommendations/scenarios>> Recommendation Review •Nature of advantage (existing or expected) in each business •Possible linkages between advantages in different businesses •Imitability of advantage by competitors •Competitors' counter-strategies •Implementation recommendations in each business <<3. Analyse the growth model>> Anshoff Growth Matrix Product E.G. Apple Computers Loose matrix structure for innovation Differentiation - Propriety user friendly products Sustainable competitive Entrepreneurial (from founders) Advantage Creative and adaptable •Rare or unique Cutting edge technology •Hard to imitate Rewards innovation •Not substitutable Fun/Teamwork – goal of Computer in every home •Valuable Share > 1 Corporate Recommendations -diversification, refocusing, integration, international expansion - value creation potential of strategy -M&As, alliances, spin-offs, asset divestitures required -Investors' reactions 2.3 Resources - building blocks of sustainable advantage The Seven S Model Structure (Geographic, customer, technology focus) Strategy (Actions taken by company) Style (Company culture, limits or supports new strategy) Staff (Including human resource system, ability to change) Skills (technical skills, core competencies, capabilities) Systems (gathering info, fin & man control) Statement mission statement of superordinate intent $$$ New <<2. Analyse company positioning>> 2. Business Strategies (Competitive tactics, Range of product in a market etc…) Low (Gwth) High Force Expansion (Product Dev.) Unrelated Diversification Old Business Strategy Market Penetration Strategy Related Diversification (Market Dev.) Old Market New Cas strategiques START: What is the business problem to be analysed? <<1. Issue at hand>> Business Where: Industry Competitiveness & Industry selection Why: Discounted cash flows; Market to book ratio; ROI Achieve competitive advantage Diversification, Vertical integration, Mergers &Acquisitions, Strategic alliances, Divestments, International expansion, Cross-unit resource allocation Cost leadership/ Differentiation / Focus •Where shall we compete? •How do we bring the value of the corporate structure? •How do we grow? •Hire the best people •Find a niche •Control distribution channels <<2. Where to grow>> Takeaways Corporate Mckinsey.com Magna Health •Les profiles des cients, ont-ils change? •Entrentien avec tiers , fournisseurs etc…., pour etablir les normes du marche •Foculise sur collaburatuers qui ont le comportement le moins desirible, pas tous Bain.com Grand dsitributeur Canadien •Une gamme de produits plus restreinte • Le taille moyenne de magasins • Systeme de gesion: Franchise Stategie informatique Analyse d’entreprise – les aspects affaires Question Reponses possibles L’entreprise est dans quelle marche Finance, Autmotive…. Revenus totals < 100,000,000, > 3 milliards Nombre de l’utilisateurs 1-100, > 1000 Nombre de collaborateurs 1-1000, >10,000 Elelements de prendre en compte Renseignements requises Les limites du marche Nombre de clients potential et actual. Gamme de Produits. Le msrche est-il en croissance? Budget pour le mise en oeuvre <250,000€, >3,000,000€ Les competences cles d’entrprise Ce systeme est partie d’une marche stategique ou un opportunite tactical? Temps pour le mise en oeuvre Moins que 3 mois, plus qu’un an Lieu de l’operation Europe, Etats Unis, Asie Le governance d’enterprise, et les processus de managment Qui est responsable Soution pour plusiers langues Oui/Non Les functions souhaites Le competences du personnel L’habitude de utiliser informatique et competences en general Centre d’appel, service en le champ; Automation de la force de vente; Workflow; planification et établissement du programme………… Les usilateurs sont ou? Distrubue dans beacoups endroits, Sur le champ, Plusiers pays, Chez les clients Qu’est-ce qu’il y a deja Rien, Systeme patromnial, Plusiers Systemes pour intergration, Un autre fourniseur Analyse des aspects techniques Question Reponses possibles Elelements de prendre en compte Renseignements requises Securite Les donnes sont sensibles, Il sera acces au web Les limites du marche Nombre de clients potential et actual. Gamme de Produits. Performance Le system veut tranasfer les images? Le reseau intern a quelle largeur de bande Les competences du syteme Disponible dans quel resaux? Perfromance necissaire? Fiabilite et disponibite? Quelle plate-formes sont deja ne place? Voir procaine page (mainframe, unix, sun, linux…) Le basse de donnes en place Voir procaine page (db2, oracle,…) Governance informatique Les reposabilties pour les systemes Les technologies utilise dans l’entreprise Voir procaine page (J2EE, .NET,) Infrastructure Material, Logiciel, Infrastructure de communications Les besoins technologiques Development des systemes Conception des systemes, processus pour mise en oeuvre le strtegie Les personel informatqiue Que sont les competences des personel informatiques? Integration avec autres produits Acces publique au internet ou access sur le champ Processus automatique et workflow On peut externaliser le systeme? Il y a un client richer ou client tres petite On peut voir le source. Decisions informatiques Webservices J2EE servlets EJB JVM jsp .net DLL, ActiveX CLR C#,C++,J# + plus integre avec bon utils + pas besoin d’instalation des autre produits + integration avec le desktop, MS office et sql base de donnes - trop des standars XML HTTP Python COBOL Cold fusion Com, Com+, EJB v1, VB, MTS + pas besoin d’instalation des autre produits + integration avec le desktop, MS office et sql, et bon utils - pas tres vite ni avec bon extensibilite - on est fixe avec le mircrosoft platform Base de donnes Application servers BEA Weblogic Web services SOAP,UDDI, WDSL SOAP IBM Webspere DB2 Sql Message Layers Sybase Oracle SOAP ORACLE MySql Operation Systems -pas beaucoup des logiciels disponisbles -- instilation complex - pas beacoup de documentation ou formation -- pas tres facile a utiliser -- pas support ou responsibilite -- pas support pour tous les materiels + gratuit + efficace et stable + bon reliabilite et securite + evolution rapide (ouvert) + peut utiliser materiel moins cher + bon logiciels disponsibles -Integration avec autres systemes -Bon reactivite a corrections Linux Unix Linux Novell Windows NT,..c IBM Maniframe IBM AS400 Hardware + SB automation de vente, service de champ et de rapport d'associé + SB nombre de clients et experience (qualite de donnes etc…) + SB Pharmaceutiques, telecom, fabrication de haut technologie et services financiers - SB TCO eleve (achat, mise en oeuvre et maintenance) + SAP cycle de vie de client + SAP support pour langues, devises + SAP le soutien de traitent et accomplissent + SAP industries de fabrication et de construction - MBS crm Pas choix de technologie - MBS pas tres bon extensibilite SAP Siebel Peoplesoft Oracle MBS CRM