SM

472.42

2

Winter 2012

Syllabus

Questions?

Readings

Wheelen et. al • ch 1

what did you notice?

Working Through A Case An Approach to Case Analysis

So exactly what is strategy?

• How can profitable growth be achieved?

• How can the chances of survival be enhanced?

• How can competition be withstood?

How can we thrive?

Bombardier

“strategy” language “strategic investment in new markets” “big player in a small number of markets” “engage in the development of new

technologies to keep ahead of its rivals” “Six Sigma” “spin off the recreational products division”

• core business in planes and trains

How will Bombardier thrive?

Bombardier

“strategy” language “leader in all markets in which it operates” “exceed customer expectations with

innovative products & services” “expertise in developing and commercializing

innovative products”

pg 2-3

Preparing a Case

Case Questions

Case Notes What is an “alternative”?

• an action or cluster of actions that takes the firm in a distinct direction

» that could plausibly enable the firm to thrive

Indigo

company website Indigo Books

• http://www.chapters.indigo.ca/home/

stock market history Globe and Mail

• http://www.theglobeandmail.com/globe-investor/markets/stocks/

How will Indigo thrive?

Prep for Thu

reading Wheelen et al.

• ch 2

sim• Adrenaline Sports

group work meet decide main tasks for presentation

• Feb 9

• http://buller.prov.ca/BullerCentre/projects/biomass/PAMI_Biomass%20Research%20Presentation_10-11-04.pdf

See slide 18

Examples

ch 1 Bombardier 2 - 3 Indigo Books 21

ch 2 Choice Hotels 36 Clodhoppers 47

How will they thrive?

Situation of each

How do we get past “a contest of opinions”?

Strategic Planning Tools

“Generic” Product/Market Goals SWOT

• TOWS matrix

BCG matrix Environmental

scanning

Five Forces Benchmarking Diamond-E Scenario Planning Product Cycle Game theory

Generic Strategies

1. value proposition

2. productivity triangle

3. market options

4. company scope

Generic Strategies

1. value proposition options lowest-cost differentiation

• features

• execution pick 1

“What’s our value proposition?”

“Why will people prefer to buy what we’re selling?”

“Niche”“Our distinctives”

Value Proposition Options

PRICE FEATURES EXECUTION

Direct Tangible Availability

Price Quality Timing

Discount structure Performance Convenience

Rebates Proprietary properties Delivery

Credit rates Pre- & post- sales service Reliability

Indirect Options / choice Intensity

Financial assistance Guarantees Sales hustle

Capital vs. operating Intangible/Image Service hustle

Life cycle cost Design Friendliness

Cost absorption Fashions

Prestige

“Personality”

Value Proposition

& Competitive Advantage not the same thing make sure:

• you actually can beat competition at this

• you can live off that value proposition there are enough customers that care you can reach them they will pay you enough

Generic Strategies

1. value proposition options lowest-cost differentiation

• features

• execution

“What’s our value proposition?”

Why will people prefer to buy what we’re selling?

pg 21

Indigo Books

Generic Strategies

1. value proposition

2. productivity trianglepick any 2

fast

cheap good

What 3 product qualities do my sectors’ customersvalue most?

Generic Strategies

1. value proposition

2. productivity triangle

What 3 product qualities do my sectors’ customersvalue most?

accessibility

price quality

True North

Hideaway

Trails EndRoss’ Resort

Pipestone

Happy Landing

pg 47

ClodhoppersGeneric Strategies

1. value proposition

2. productivity triangle

Generic Strategies

1. value proposition

2. productivity triangle

3. market options concentration penetration expansion

pick 1

Choice Hotels

strategic growth• conversion opportunities Econo Lodge

• new construction Sleep Inn

operational services• preventative maintenance

sales marketing communication

pg 38

Generic Strategies

1. value proposition

2. productivity triangle

3. market options concentration penetration expansion

pg 38

Choice Hotels

Generic Strategies

4. company scope options core business vertical integration horizontal integration diversification

pick 1

Generic Strategies

1. value proposition

2. productivity triangle

3. market options

4. company scope options

raw m

aterials

“profit pools”

Generic Strategies

4. company scope optionsleasing

sales

servicing

distribution

assembly

parts manufacturing

processing

raw m

aterials

“profit pools”

revenuesprof

its

Strategic Planning Tools

“Generic” Product/Market Goals SWOT

• TOWS matrix

BCG matrix Environmental

scanning

Five Forces Benchmarking Diamond-E Scenario Planning Product Cycle Game theory

Adrenaline Air Sports

generic strategies1. value proposition

2. productivity triangle

3. market options

4. company scope

How can they thrive?

But In The Real World…

basic financial planning

forecast-based planning

externally-oriented planning

strategic management

day-to-day survival

Strategic Planning Approaches

“Generic” Product/Market Goals SWOT

• TOWS matrix

BCG matrix Environmental

scanning

Five Forces Benchmarking Diamond-E Scenario Planning Product Cycle Game theory