BPM 2 Strategic Management

7/21/2019 BPM 2 Strategic Management

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Strategic management Toolkit

BPM

Marco van der Woude

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How are strategies built?

What is a strategy?

How do you develop it?

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From Mission to ction

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Mission: Why we exist

Core Values: What we believe in

Vision: What we want to be

Strategy: How to get there

BSC: Implement & Focus

Initiatives: What we need to do

Personal Objectives: What I need to do


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Strategy is an assumption

strategy is a set o! activitiesintended to

lead to a desired result

The outcome is not certain"

Toolkit to translate mission and vision to

strategy

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Process

#e!ine Mission $ %ision

naly&e using strategic Toolkit

#e!ine a Strategy to reali&e vision

#e!ine 'ritical Success Factors 'hoose Per!ormance (ndicators

Prepare a Balanced Scorecard

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(n!luences on strategy

!"ere

#e are

to$ay

S"are"ol$ers

%ec"nology

Custo&ers

Co&'etition

!"at #e

#ant to be

Su''liers (nviron&ent

)egulations

ST)T*+,


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nalysis

What is our environment?

Where are we today?

Where could we go?

What are our possibilities?

Tools- P*ST*./ Porter 0 !orces/ SW1T/

B'+

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P*ST*.

#escribe relevant e2ternal developments

in si2 areas Political

*conomic Socio3cultural

Technological

*nvironmental

.egal

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P*ST*. e2amples

Technological-

lower price o! electronic components

makes it possible to produce comple2

electronic e4uipment at lower prices

,


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P*ST*. *2amples

Socio3'ultural-

geing population provides market

opportunities !or products sold to older

people

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P*ST*.

)elevantin!o- trends that have an e!!ect

on the organi&ation under study .e/g/ generalco&&ents about 'olitical stability or #"et"er a country is a

0ing$o& or not are usually not relevant

Mention the e2pected e!!ecto! the trend

described .e/g/: t"e increase in t"e nu&ber o tabletPCs &a0es it 'ossible to sell &ore a''s

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P*ST*.

nalysis o! the M')1 environment

Translate to generalopportunities and

threats


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P*ST*. trend- 1pportunity or Threat?

Economiccrisis

Less travel

%"reat

Less moneyto spend

%"reat

Use cheaper

fightsO''ortunity


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Credit not

available

BankCrisis Weakness:longdistributionchain, highiinventory

Strategy: c"ange 'ro$uction

syste&

Strength:loinventory

Strategy:

ocus on lo# cost

Strength:

money inthe bank

Strategy: buy su''liers


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Porter5s 0 !orces model

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"tt':"el/org/u0stu$iesinternational&anage&entstrategic&anage&entgs&5'orter5/"t&


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Threat o! new entrants

.egal restrictions Which permits apply? ccreditations?

*conomies o! scale

'an a new entrant start on a small scale? *ntry Barriers

6nowledge base? High (nvestments?

ccess to distribution Products to end users? (s distribution

available?

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'ompetition

78n9balance in market Who is doing what/ how are market shares

developing? 7:ielsen/ intercompany comparisons9

Market growth How is the market as a whole developing?

'apacity and !i2ed costs (s e2isting capacity utili&ed?

#i!!erentation re new customers coming into reach?

*2it?

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2-


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:ever ever underestimate the

competition

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'ustomer Bargaining power

'oncentration on buying side Buying groups/ or simply scale

:umber o! competitors

.oyalty/ availability o! alternatives/uni4ueness

Switching cost

dded %alue

(s your added value priced correctly?

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2*


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2+


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Supplier Power

#ependence 1nly one supplier? Trouble;

Widely spread base

(s it possible to !ind more suppliers?

2,


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3-


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Substitution

)eplacement Who still remembers what a !a2 machine

is? 1r an analog camera?

'hanging pattern From S8%5s to small cars to electric

#i!!erent choice

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Barriers: Color Collection

istribution

Many s&all B2B

custo&ersMany 0no#le$geable

su''liers

6one

*2ample #e Beer )e!inish

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Porter 0 !orces

Similar !or all organi&ations operating in

the same product


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SW1T analysis

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SW1T

(nternal Factors- Strengths- The things we do well/ the

capabilities we have (7a&'les: very goo$ 'ro$uct $esigners8 lo# cost

'ro$uction8 loyal custo&er base Weaknesses- 'apabilities we do not have/

processes we5re not that good at (7a&'les: 'oor logistics8 out$ate$ costing syste&8 "ig"

'ersonnel turnover

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SW1T

*2ternal Factors- 1pportunities- possibilities to develop/

grow/ sell more 9eogra'"ic e7'ansion8 6e# tec"nology8 6e# &ar0ets

Threats- what is endangering our position!rom the outside?

Co&'etition #it" lo#er 'rices8 6e# la#s8 6e# entrants

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Internal

(7ternal

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SW1T matri2

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O''ortunity %"reat

9eo e7'ansion

Strengt" (&'loyeesro& &anycountries

!ea0ness


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SW1T Matri2

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O''ortunity %"reat

6e#


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SW1T Matri2

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O''ortunity %"reat

6e#


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SW1T

Speci!ic !or each organi&ation

'ombines *2ternal issues 71pportunities

and Threats9 with internal issues7Strenghts and Weaknesses9

.eads to speci!icstrategic choices

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B'+ Matri2

Port!olio Management

For each combination o! product and

market 7Product Market 'ombination or

PM'9/ determine- Market Share Market +rowth

Make separate matri2 !or current position

and desired position 7be!ore = a!ter9

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B'+ Matri2

Mar0et S"are

>ig"


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ssignment >

+ather in!ormation about a company

Find out about their activities

naly&e using P*ST*./ Porter/ SW1T

matri2 Write a report 7ma2 pages9

Prepare !or presentation ;

)eports- MT > group @;doc729

*mail to marco;vanderwoudeAhan;nl

4*
mailto:[email protected]:[email protected]


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'ompanies

9rou' Co&'any

1 )yanair

2 easy?et3 @ennes MauritD

4+


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#on5t !orget

#on5t copy


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ssignments

*dit your report to harmoni&e the writing

style

Mention your sources 7P style9

8se title page < introduction < table o!contents < page numbers < conclusion

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Some technicalities

Please submit in W1)# 7;doc or ;doc29

!ormat/ any version

( can also handle other !ormats but no

P#F please

Please name your document as !ollows-

mt > group @;doc2

nswer the assignment 4uestions;

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M' trial 4uestion

What is a strategy?

plan to achieve your goals

set o! assumed relationships between

causes and results set o! activities designed to make

things happen

n action plan


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M' trial 4uestion

What is the correct order?

SW1T be!ore P*ST*.

03Forces be!ore P*ST*.

03Forces be!ore SW1T P*ST*. a!ter BS'


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M' trial 4uestion

What is the best overall strategy !or an area

where Threats correlate with Strenghts?

#e!end

+row Withdraw

(mprove


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Sources

6aplan and :orton/ The Balanced Scorecard/ HBS

Press >GG/ (SB: C3IJ0I30>3E

6aplan and :orton/ The strategy !ocused organi&ation/

HBS Press CC>/ (SB: >30JI0>30C3

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BPM 2 Strategic Management

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