Corporate strategy

CORPORATE STRATEGY

CHAPITRE 1: WHAT IS STRATEGY?

Strategy is the direction & scope of a firm over the long term, which aims to achieve advantage in a changing environment by configuring resources & capabilities to satisfy stakeholder expectations.

This involves:

• Analysis grounded in data
• Trade offs (what they can do best, it’s a forced choice)
• Execution

• It's about doing things differently

Strategic decisions:

• The direction of a firm
• The scope of a firm's activities (business level) and chosen businesses & markets (corporate level)
• Achieving competitive advantage
• Understanding & responding to changes in the business environment
• Deciding what resources & capabilities (activities) are necessary
• Identifying powerful stakeholders, their expectations, and how they may impact strategic decisions

Strategic decisions = complex, always made in situations of uncertainty, time consuming, uncomfortable

3 levels of strategy:

• Corporate-level strategy: what can we do new / different with resources & capabilities
• Business-level strategy: How could we achieve competitive advantage? What do we do better?
• Functional-level strategy: how a firm should operate within specific functional areas  (marketing, R&D, operations, finance etc.) => support higher-level strategic themes.

Strategic actions:

> Coordinating activities => achieve competitive advantage > low cost / differentiation

> Markets & products > The Products & markets a firm may enter, grow or exit.

> Methods for pursuing strategies > How to execute strategic choices.

3 C’s of a strategic action > a= firm has to …

• Get the most out of a COMPANY’s resources & capabilities…
• Deliver CUSTOMER value
• Make of COMPETITORS while anticipating their possible responses

Strategic vision = how the firm will exist in next 5, 10, 15 years.

Mission = what the firm is and what it does.

Values = how the firm will fulfil its mission to reach its vision.

CHAPITRE 2: BUSINESS MODEL CANVAS  ( p 108 pour + infos )

A business model => Know the business > How to create, deliver & capture value.

Mains areas of a business covered by the business model:

• Customers
• Offer
• Infrastructure
• Financial viability

The canvas:

1. The Revenue Streams

= What is the offering & how does it make to firm money?

• Asset sale, usage fee, subscription fee (Netflix), lending-common in banking, Renting-Fixed short period, Leasing-fixed longer period, Licensing, brokerage fees (commissions), advertising.

1. Value propositions

= Main promise that the P makes = how the offering delivers value for the targeted Customer segment.

• Performance, customization, “getting the job done”, Brand/status, design, cost reduction, risk reduction, accessibility, convenience (easy to buy, to find), usability, newness

Buyer utility (Customer value)

= How the customer evaluates the offering.

• Savings (cost less), productivity, simplicity, convenience, compatibility, risk, fun, statues, environmental friendliness.

1. Key resources

= The most important assets required to deliver a value proposition

• Physical, infrastructure, Intellectual property, financial, production, platform, culture/ reputation.

NO CAPABILITIES WITHOUT RESOURCES AND RECIPROQUELY

1. Key capabilities

= The intelligent orchestration of Rss

• Marketing, engineering, managing, selling, problem solving

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 HUMAIN RESOURCES IS NOT A RESOURCE > Human resources management = function within an organization that focuses on the recruitment of, management of, & providing direction for the people who work in an organization. In this case, it would be considered a “capability”.

1. Key partners

Suppliers & intermediaries between the firm and its end-users.

• Strategic alliances, competition (alliance between competitors), Joint ventures to dvlp new offerings, buyer-supplier relationships.

1. Customer segments

= Who are the most important customers?

• Mass market (Ryanair), segmented (air France), niche market (restaurant not known), diversified (BMW > Car & moto)
• Multi-sized platform > 2 or more distinct interdependent groups of customers. ex : Ebay, Google > Consumers, content owners, advertisers

1. Customer relationships

= How much do these relationships cost? Are they necessary?

• Dedicated personal assistance, Personal Assistance, Self-service (Ikea), Automated services (Book travel online, Mcdo), Communities (Sephora, Apple)

1. Channels

= Via which channels do customer segments want to be reached? How are they being reached now? Which are working best (or not working)?

Phases:

1. Raising awareness: How to raise awareness about the product?
2. Evaluation: How to help customers evaluate the product’s value proposition?
3. Purchase: How do we allow customers to purchase specific products & services?
4. Delivery: How do we deliver the offering to customers?
5. After sales: How to provide post-purchase customer support?

Channel types:  

Direct: sales force, web sales

Indirect: Own stores, partner stores, and wholesaler

Owner / Partner

1. Cost structure

= What is the ratio of the most important costs inherent in delivering the value proposition?

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