BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION

CHAP 10 :BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION

Approaches to build building and strengthening capabilities

1- develop capabilities internally

2- acquire capabilities through mergers and acquisitions

3- access capabilties via collaborative partnerships

Set stretch goals

1-  thinking strategically about a firm's knowledge and skills base 

2- setting a stretch goal of developing an organizational ability to do something well

3- evolving the ability into a competence or capability by performing it well and at an accept

4- thinking strategically about a firm's opportunities and challenges

5- refreshing, updating and upgrading competencies and capabilities as necessary to gain and maintain competitive advantage

Approaches to acquiring capabilities from an external source

1- outsource the function requiring the capabilities to a key supplier or another provider

2- collaborate with a firm that has complementary resources and capabilities

3- engage in a collaborative partnership for the purpose of learning how the partner does things

 Determining how much authority to delegate

1- centralized decision making : authority is retained by top management

2- decentralized decision making : authority delegated to lower-level managers and employees

CHAP 11 :
MANAGING INTERNAL OPERATIONS : ACTIONS THAT PROMOTE GOOD STRATEGY EXECUTION

Managing for continuous improvement

1- benchmarking

2-process reengineering

 3-best practices

4-six sigma quality program

5-total quality management

 Six sigma and new projects

Define : What are our project goals and customer requirements

Measure :  How do we measure and determine both our goals and the needs of our customers?

Analyze :  What existing process options do we have for meeting customer needs?

Design : Should we use an old or new process to meet customer needs and specifications?

Verify :  How will we verify design performance and our ability to meet customer needs?

Corporate culture and leadership

Assalamualaikum....directly to my topic Corporate culture and leadership. Based on what i understand corporate culture is refer to values, attitudes, beliefs which is determine by norms of behavior, work practices and styles of operating.

 

 In tutorial class

1- find an example of any organization that have a good corporate culture?

SHELL  : An excellent company to work for, Shell provides you with a platform for
          trainings and knowledge, while at the same time providing you with
         opportunity for growth while climbing the technical and corporate leader

 

 thank you...

 

 

 

 

 

Corporate Strategy: Diversification and The Multibusiness Company

 Assalamualaikum.... say Alhamdulillah.....today we still given a chance to breathe again...keep smiling... :) 

 

Ok for this time i want share a little bit about what i understand in lecture.WHAT CORPORATE STRATEGY?? In corporate strategy there are measure/crafting a diversification strategy entail which is

1-  picking new industries to enter and deciding on the means of entry

                             2- pusuing opportunities to leverage cross-business value chain relationships and strategic fit into competitive.

                         3- establishing investment priorities and steering corporate resources into the most attractive business units

4- initiating actions to boost the combined performance of the cooperation's collection of business

There are 4 component that a company becomes a prime candidate for DIVERSIFYING

1)  When it spots opportunities for expanding into industries whose technologies and products complement its present business.  2) When it can leverage its collection of resources and capabilities by expanding into business where these resources and capabilities are valuable competitive assets. 3) When diversifying into additional business opens new avenues for reducing costs.4) When it has a powerful and well-known brand name that can be transferred to the products of other business. Futhermore, to diversify a new business must past 3 tests. Firstly the industry attractiveness test which is must offer an opportunity for profits and return on investment. Secondly, the cost of entry test which is must not be so high as to exceed the potential for good profitability. Thirdly, the better off test which is synergy ( create added value via diversification requires building a multibusiness company)    Moreover, once a company decides to divesify, it faces the choice to diversify into related businesses, unrelated businesses or some mix of both.Related business means have competitively valuable cross-business value chain and resource matchups. While unrelated businesses means have dissimilar value chains and resource requirements with no competitively important cross-business relationships at the value chain level.

Strategies for competing in international markets

Assalamualaikum.....for this lecture i can understand primary reason companies choose to compete in international markets. Among of reason :

1) to gain access to new customers

2) to further exploit core competencies

3) to spread business risk across a wider market base

4) to gain access to resources and capabilities located in foreign markets

5) to achieve lpwer costs through economies of scale, experience and increased purchasing power

Competing internationally

3 strategic approaches

-multidomestic strategy

-global strategy

-transnational strategy

Strengthening of a company's competitive position

Assalamualaikum.....ok for this topic as we know as a company should have more strength in competitive position.Firstly,the company should making choices that complement a competitive approach and maximize the power of strategy. Among from that

1) offensive and defensive competitive action

2) competitive dynamics and the timing of strategic moves

3) scope of operations along the industry's value chain

Considering strategy enhancing measures

        •Whether and when to go on the offensive.

        •Whether and when to employ defensive strategies.

        •When to undertake strategic moves—first mover, a fast follower, or a late                               mover.

        •Whether to merge with or acquire another firm.

        •Whether to integrate backward or forward into more stages of the industry's activity chain

        •Which value chain activities, if any, should be outsourced.

        •Whether to enter into strategic alliances or  partnership arrangements.

Blue-ocean strategy 

A special kind of offensive

A blue ocean strategy offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand

Timing a firm's offensive and defensive strategic moves

1) knowing when to make a strategic move is as crucial as knowing what move to make

2) moving first is no guarantee of success or competitive advantage

3) the risks of moving first to stake out a monopoly position must be carefully weighed

Strengthening a firm's market position via its scope of operations

1) range of its activities performed internally

2) breadth of its product and service offerings

3) extent of its geographic market presence and its mix of businesses

4) size of its competitive footprint on its market or industry

Generic Strategies

For this time my lecturer ask me to answer several question about 5 generic competitive strategies...

1) Broad cost-leadership:

IKEA  : which is they promote with low price strategy and innovatively designed furniture.

2) Focused cost-leadership

MYDIN : they offer wholesale prices all year round that could easily for customer get from branches company 

3)Broad differentation

OLD TOWN KOPITIAM : they own have taste of coffee that are not easily copied and different with their competitors

4)Focused differentation

BONIA : provides a wide variety of high quality leather and fashion products through innovative and creative marketing activities and offer niche customer needs.

Evaluates a Company's Resources, Capabilities And Competitiveness

For this time i have learned how well a company's strategy is working...and understand why a company's resources and capabilities are central to its strategic approach and also how to evaluate their potential for giving the company a competitive edge over rivals.

The best indicator of firm's present strategy working which is they achieving its stated financial and their strategic objectives. And also their firm is an above-average industry performer

Furthermore, a company also should have a specific indicators of strategic success. For instance 

- growth in firm's sales and market share

-acquisition and retention of customers

-strengthening image and reputation with customers

-increasing profit margins, net profits and ROI

-growing financial strength and credit rating

-leadership in factors relevant to market/industry success

-continuing improvement in key measures of operating performance

Besides that, the company should able to seize market opportunity and nullify external 

threats. For example use SWOT analysis as a tool for sizing up firms. 

1-internal strength (the basis for strategy)

2-internal weaknesses (deficient capabilities)

3-market opportunities (strategic objectives)

4-external threats (strategic defenses)

And the importance things in company's strategy is BENCHMARK. 

Benchmarking is a potent tool for improving a company's own internal activities which is we compare with other companies performance and borrowing their "best practices"

Where we can get benchmarking information???

                           -reports, trade groups, analysts and customers

-visits to benchmark companies

-data from consulting firm