DOCTORAL DEGREE IN BUSINESS

MANAGEMENT

PASUNDAN UNIVERSITY

2013

Dynamic MarketsMature MarketsAppropriate

Contexts

PositionalCore CompetenciesStrategy Profiles

ResourcesMarketsDerivatives

Customer/ Competitors

Unique ResourcesDrivers of Strategy

Dimensions

Based

Phase

1

Phase

2

Phase 3

Phase

4

Framework SWOT(1960s)

Strategic Planning

Matrix(1970s)

Competitiveness

(1980s)

Competency

(1990s)Strategic

Relationship

(2000s)

Perspective Inside-out and current

Inside-out and future

Outside-in and current

Inside-out and future

Outside inand future

Management Approach

R&D Management

Innovation Management

TechnologyManagement

Value Based

Management

Total RelationshipManagement

Strategy Competitive Comparative Cooperative

CAPABILITIES MISMATCH

EXTERNAL

RESOURCES

CAPABILITIS

MISMATCH

BUSINESS

VALUE

CUSTOMER

LOYALTY

TRUST

IMAGE

?

SCH-2

(TURBULENCE & DIVERSITY)

(RESOURCES LIMITATION)

Unrealized

Strategy

Emergent

Strategy

Realized

Strategy

Warren Kim : 2003

STRATEGIC DECISION FOR SUCCESS

Develop new opportunities /competences

Exploit existing Opportunities /

competences

Strategic Decision

Sustainabillity of success

Create

value

Long term

commitment Difficult to

reverse

Major resource

commitment

ANALYSIS DECISION ACTION PERFORMANCE

STRATEGICSITUATIONANALYSIS

STRATEGY FORMULATION

STRATEGYIMPLEMENTATION

EVALUATION & CONTROL

FEED BACK

CORPORATEEVALUATION &

CONTROL

(EC)

DIVISION

FUNCTIONAL

(EC)

(EC)

STRATEGY DEVELOPMENT PROCESS

EXTERNAL

ENVIRONTMENT ANALYSIS

(OPPORTUNITY AND THREAT)

Strategic Situation

Analysis

(TOWS)

(STRENGTH AND WEAKNESS)

INTERNAL

ENVIRONTMENT ANALYSIS

STRATEGY

FORMULATION

STRATEGY

IMPLEMENTATION

STRATEGY

EVALUATION

AND CONTROL

Feed Back

MISIONVISION

Strategic

Situation

Analysis

Strategy

Formulation

Strategy

Implementation

Strategy Evaluation and Control

STRONG AVERAGE WEAK

1

Winners

2

Winners

3

Selectivity

4

Winners

5

Selectivity

6

Losser

7Selectivity

8

Losser

9

Losser

MARKET

O

P

P

O

R

T

U

N

I

T

YATTRACTIVENES

A

V

E

R

A

G

E

T

H

R

E

A

T

S

High Medium Low

Investment and Growth

Selective Growth Selectivity

Selective Growth SelectivityHarvest /

Divest

SelectivityHarvest /

DivestHarvest /

Divest

High

Medium

Low

Bu

sin

ess

Str

eng

thThe Industry Attractiveness – Business Strength Matrix

Pankaj Ghemawat 11

The Industry Attractiveness

*GROWTH*RETRENCHMEN

T*STABILITY

ConcentrationVertical GrowthHorizontal Growth

Diversification ConcentricConglomerate

TurnaroundCaptive Company Sell-Out / Divestment Bankruptcy / Liquidation

Pause / Proceed with Caution No Change Profit

Winners

A Winners

B

C

Question Marks

D

WinnersE

Average Businesses

F

Losers

Losers

G

Profit

Producers

Losers

H

High

Medium

Low

Strong Average Weak

Business Strength / Competitive Position

Ind

ustr

y A

ttra

cti

ven

ess

Company

Competitors

Superior

Value

Inferior Value

Comparative

Advantage

Competitive

Advantage

Cooperative

Advantage

Unique

Resources

CA1

CA2

CA3Strategic

Relationship

S P

U E

P R

E F

R O

I R

O M

R A

N

B C

U E

S

I

N

E

S

S

P

O

S

I

T

I

O

N

A

L

A

D

V

A

N

T

A

G

E

3-CA’s Model (Sucherly, 2010)

Comparative

Strategy

Competitive

Strategy

Cooperative

Strategy

STRATEGIC PLANNING (6-As MODEL)

ARENA

ACCESS

ADAPT

ACCOUNT

INDUSTRY FACTORS- Competitive Forces- Cooperative Forces- Macro environment

FIRM – SPECIFIC FACTORS

Profitability

Atuah,2004

Industry

Competitors

Rivalry Among

Existing Firms

Threat of New

Entrants

Bargaining Power

of Buyers

Threat of Substitute

Products or

Services

Bargaining Power

of Suppliers

Relative Power of

Unions,

Governments,

Special Interest

Groups,etc.

THE FIVE GENERIC COMPETITIVE STRATEGIES

(each stake out a different market position)

THOMSON : 2006

Types of Competitive

Advantage Being Pursued

Market

Target

A – Broad

Cross section

of buyer

A Narrow

Buyer Segment

Or Market

niche

Lower Cost Differentiation

Cost Leadership Differentiation

Cost Focus Differentiation Focus

Bro

ad

Ta

rge

tN

arr

ow

Ta

rge

t

Competitive Advantage

Com

petitive S

cope

Value Drivers

Cost Drivers

Retaining Customers

Preventing Imitation

Resources Capabilities

Superior Market Position Defendable Market Position

Sustainable Competitive Advantage

Gordon . W 77

1.Specific Result

2.Measurable

3.Audacious / Achievable

4.Result oriented

5.Time Bond / Time Specific

6.Encompassing (linkages)

7.Reviewed

Self-knowledge serves as the Binding Tie in the PBSC concept ( Rampersad, 2005)

Personal Balanced Scorecard

Personal Ambition

Self

Knowledge

Thinking Doing

ORGANIZATIONAL BALANCED SCORECARD (OBSC)

“To succeed

Financially, how

Should we

appear to our

Shareholders?”

Financial

“To achieve our

Vision, how

should we

appear to our

customers?”

Customer

“To achieve our

Vision, how will

we sustain our

ability to

Change and

Improve?”

Learning and Growth

“To satisfy our

shareholders

And customers,

what business

processes must

We excel at?”

Internal Business

ProcessVision

And

Strategy

Financial

ROCE

Customer

Loyalty

On-time

Delivery

Process

Quality

Process

Cycle Time

Employee

Skills

Customer

Internal/Business Process

Learning and Growth