Bus Strategy
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Transcript of Bus Strategy
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Business Strategy
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Business Strategy
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Corporate Culture
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Corporate Culture The beliefs and values shared by people
who work in an organisation How people behave with each other
How people behave with customers/clients How people view their relationship with
stakeholders
Peoples responses to energy use,
community involvement, absence, workethic, etc.
How the organisation behaves to itsemployees training, professionaldevelopment, etc.
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Corporate Culture
May be driven by:
Vision where the organisation
wants to go in the future
Mission Statement summaryof the beliefs of the organisation
and where it is now
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Corporate Culture
May be reflected in:
Attitude and behaviour of the leadership
Attitude to the role of individuals in theworkplace open plan offices, team basedworking, etc.
Logo of the organisation
The image it presents to the outside world Its attitude to change
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Corporate Culture
What corporateculture do you thinkthe following
businesses havemanaged todevelop?
Virgin Group
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The Body Shop
Copyright: fadaquiqa,http://www.sxc.huMcDonalds
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Nike
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Strategic Planning
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Strategic Planning
First Stage of StrategicPlanning may involve:
Futures Thinking
Thinking about what the
business might need todo 1020 years ahead
Strategic Intents
Thinking about keystrategic themesthat will inform
decision making The thicker the planning
document, the more uselessit will be (Brent Davies: 1999)
Taking time to think and reflectmay be more important than manybusinesses allow time for!
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Strategic Planning
The VisionCommunicating to all staff where the
organisation is going and whereit intends to be in the future
Allows the firm to set goals
Aims and Objectives:
Aims long term targetObjectives the way in which you
are going to achieve the aim
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Strategic Planning Example:
Aim may be for a chocolatemanufacturer to break into
a new overseas market Objectives:
Develop relationships with overseassuppliers
Identify network of retail outlets Conduct market research to identify
consumer needs
Find location for overseas sales team HQ
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Strategic Planning
Once the direction is identified:
Analyse position
Develop and introduce strategy
Evaluate:
Evaluation is constant and the resultsof the evaluation feed backinto the vision
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Analysis
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SWOT
Strengths identifying existingorganisational strengths
Weaknesses identifying existingorganisational weaknesses
Opportunities what marketopportunities might there be
for the organisation to exploit?
Threats where might the threatsto the future success come from?
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PEST Political: local, national and international
political developments how will they affectthe organisation and in what way/s?
Economic: what are the main economic
issues both nationally and internationally that might affect the organisation?
Social: what are the developing social trendsthat may impact on how the organisation
operates and what will they mean for futureplanning?
Technological: changing technology canimpact on competitive advantage very quickly!
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PEST
Examples: Growth of China and India as manufacturing centres
Concern over treatment of workers and the
environment in less developed countries who may besuppliers
The future direction of the interest rate, consumerspending, etc.
The changing age structure of the population
The popularity of fads like the Atkins Diet The move towards greater political regulation of
business
The effect of more bureaucracy in the labour market
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Five-Forces Developed by Michael Porter: forces that shape and
influence the industry or market the organisationoperates in.
Strength of Barriers to Entry - how easy is it
for new rivals to enter the industry? Extent of rivalry between firms how competitive
is the existing market?
Supplier power the greater the power, the less controlthe organisation has on the supply of its inputs.
Buyer power how much power do customersin the industry have?
Threat from substitutes what alternative productsand services are there and what is the extentof the threat they pose?
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Required Inputs Changing strategy will impact on the resources
needed to carry out the strategy:
Specifically the impact on:
Land opportunities for acquiring land fordevelopment green belt, brownfield sites,planning regulations, etc.
Labour ease of obtaining the skilled and
unskilled labour required
Capital the type of capital and the cost ofthe capital needed to fulfil the strategy
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Evaluation
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Evaluation
Data from sales,profit, etc. usedto evaluate theprogress andsuccess of thestrategy and toinform of changes
to the strategy inthe light of thatdata
Information from a wide variety of sourcescan help to measure and inform the impactand direction of the strategy.
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Types of Strategy
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Types of Strategy
Competitive Advantage somethingwhich gives the organisation some
advantage over its rivals Cost advantage A strategy to seek
out and secure a cost advantageof some kind - lower average costs,
lower labour costs, etc.
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Types of Strategy
Market Dominance: Achieved through:
Internal growth
Acquisitions mergers and takeovers
New product development:tokeep ahead of rivals and set the pace
Contraction/Expansionfocus onwhat you are good at (core competencies) orseek to expand into a range of markets?
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Types of Strategy
Price Leadership throughdominating the industry others follow
your price lead Global seeking to expand
global operations
Reengineering thinking outside the
box looking at news ways of doingthings to leverage the organisationsperformance
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Types of Strategy
Internal business level strategies
Downsizing selling off unwantedparts of the business similarto contraction
Delayering flattening themanagement structure, removingbureaucracy, speed up decision making
Restructuring complete re-thinkof the way the business is organised