Notesale: Turn your study into money

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*(Kim 2014(created 2005)) Blue Ocean – demand creation, untapped market space
and opportunity for growth
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Creates a new demand cycle
* Reconstruct market boundaries * Focus of big picture not numbers * reach beyond
existing demand * get strategic sequence right * overcome key organisational hurdles *
build execution in the strategy *
*Red Ocean – industry boundaries are defined and accepted
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*Strategic theory has mostly concentrated on competition based red ocean strategies
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Come away from the value-cost trade off by pursuing differentiation and low
cost
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This lowered the cost and differentiated meaning they could charge a higher price
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Yellow Tail wine
created simple wine: cut out aging process, complicated flavours, product range and
jargon
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One of the most popular and
widespread management tools
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Provides an effective vehicle for communicating to
internal and external stakeholders, focuses allocation of resources, provides a sense of
purpose, inspires members by describing values
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The company’s long term direction and what product-marketcustomer business mix
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Should provide a management tool
for giving a sense of direction
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A wellthought-out vision: Sets senior exec’s views of the company direction, reduces risk of
senseless decision making, tool for winning organisation member’s support, provides
an opportunity for lower level management to set objectives, helps prepare for the
future
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Particularly important in geographically dispersed organisations so to
share one vision (Kantabutra & Avery 2010)
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*Understanding how the customer sees the company’s mission and vision is vital,
this can be done by creating a slogan
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Compared to vision statements Fortune’s best companies to work for (2002),
most had similar qualities
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A company strives for
competitive advantage, which is achieved by having some type of
edge over its rivals in attracting buyers and coping with
competitive forces
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A blend of
proactive and reactive responses makes up the deliberate and
emergent strategies of a company, some strategies will be
abandoned due to becoming obsolete or ineffective (Mintzberg)
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Where to
compete? 2
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What resources and
capabilities do we utilise? 4
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IKEA does not try to
compete in the high end furniture market (Kryscynski 2015)
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(Yüksel 2012)Political Economic Social Technological Environmental
Legal ANALYSIS – provides a general idea of the macro environment and
situational of a company
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Macro factors are greater and more important
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Environmental analysis is
important for developing a sustainable competitive advantage, identifying
opportunities and threats and providing opportunities for productive
corporation with other companies
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*Criticisms – does not adopt a qualitative approach to measurement so
cannot be objectively or rationally analysed
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One factor my influence other factors (Erin 2002)
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*Yüksl 2012 – proposes an alternate model to address the limitations
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Porters 5 Forces – The stronger the force, the more pressure it will put
on costs and/or prices
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Anticipate consequences of changes in forces
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*If there are few suppliers, they are able to set the price
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If the product is not unique, the buyer be price sensitive
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Eg cement industry in US, buyers are big companies so
are able to drive down prices, in Mexico most buyers are individuals so
have no power
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Has a great amount of protection
from new entry, competition between firms are limited as they have
different patented products
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*Low profit industries– (wireless telecommunications) power of
suppliers (government-monopoly) is high as you need to bid licence
against competitors
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(Airlines in Europe) High threat of substitutes such as
high-speed rail services
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*Strengths - simplified Micro-economic theory, effectively applied
systems thinking, showed how competitive revelry is a function of the
other forces, helped to predict long-run rate of returns, emphasized the
importance of imperfect markets and their opportunities for superior
returns, emphasized the importance of negotiating power and
bargaining in determining market attractiveness, focused managers on
external environment
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* The great success of the model may have lead to it not being
adequately challenged or developed (Grundy 2006)

Objectives convert mission and vision into specific performance targets
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Financial objectives
are targets for financial performance and strategic objectives are for an
organisations marketing standing and competitive validity
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A company’s past financial performance s
not an indicator for its future (lagging indicator)
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Linking the two provides
a clear guideline for employees on how their jobs are linked the objectives
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The Alliance Strategy Map (by pharmaceutical companies in
Brussels and presented by Kaplan et al 2010) – Identifies 5 strategic
themes (lining the alliance, collaboration, speed and process innovation,
growth and value for both) of a partnership and identifies how each of
them will be of value to each company
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A scorecard is then created by specifying metrics, targets and initiatives
for each objective
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Strategic management process: 1
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Provides direction, motivation and guidance
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Setting objectives to convert mission
and vision into performance targets and using targeted results as measures of performance
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Crafting Strategy to move the organisation along the strategic course which
has been charted
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4
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5
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Sixth Force – Complementors, organisations whose products compliment eg
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Value Net Model (Brandenburger & Nalbuff 1996) shows the relationship between those who surround the business (buyers, complementors, competitors and suppliers)
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Co-opetition (competition and cooperation)
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To change
the game your must change one of these components
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The two mediums of exchange for intangibles are: through conversion to monetary value or through conversion to a
negotiable form of value that can be used more informally as a type of barter
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Knowledge is one of the most interchangeable commodities
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Value
conversion strategy model (Allee & Schwabe 2007) shows the conversion from assets into roles (utilising assets) and roles into assets (realise value) eg
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Roels – played by real people or participants in the newtwork who provide contributions and carry out functions
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Deliverables – actual ‘things’ (physical or non physical) that move from one role to another

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