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What you will learn in this Section ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© Sunil Mehrotra
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 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Firm  Infrastructure Human Resource Management Technology Development Procurement ,[object Object],Nicholas Merriam, April 2008 MBA, Graziadio School of Business and Management Pepperdine University
Progressive's value creating activities Infrastructure HR Technology Procurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Walmart's Value Creating Activities Infrastructure HR Technology Procurement
What is the Firm's ARC? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is the best ARC for the firm seeking.... ,[object Object],[object Object],[object Object]
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 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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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Aligning Arc And Strategy

  • 1.
  • 2. Understanding Strategic Management is like pealing an onion
  • 3. 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
  • 4. Business Ecosystem: A more granular view Mbam619 framework models
  • 5. Firm's Resources-Tangible and Intangible Assets
  • 6. 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. •
  • 7. Designing Firm's ARC to align with Strategy
  • 8. Transforming Resources to Capabilities Advantage
  • 10. 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
  • 11. 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
  • 12.
  • 13.
  • 14. Walmart's Value Creating Activities Infrastructure HR Technology Procurement
  • 15.
  • 16.
  • 18. Leader on a pedestal
  • 20. ARCHITECTURE: By Product
  • 22. ARCHITECTURE: By Geography
  • 23.  
  • 24.  
  • 25.  
  • 27.  
  • 28.  
  • 29.
  • 30. Process for Creating sustainable competitive advantage through ARC
  • 31.  
  • 32. Aligning Resources to Market Opportunities and Threats to create sustainable competitive advantage Opportunities Threats $ Strengths + + Weaknesses - -
  • 34. Nappies 15-17 ARc Analysis Transforming resources to capabilities through firm's ARC Strategic SWOT Analysis
  • 35. Mnemonic 8 Transforming Resources to Capabilities Advantage
  • 36. Mnemonic 9 Process for Creating sustainable competitive advantage through ARC
  • 37. Mnemonic 10 Aligning Resources to Market Opportunities and Threats to create sustainable competitive advantage Opportunities Threats $ Strengths + + Weaknesses - -
  • 38. Mnemonic 11 Strategic SWOT Analysis
  • 39.  
  • 40. ARC for Product Innovation