StrategicManagement

Team 7 Groupe 2 MPGO

Lucie GuerifLaure LamaisonKatia MonteiroJulien RoubyMathieu Sima PhillipeJulien thuillier

“To lead, create a shared vision”What do you expect from a leader or colleague ?

Leaders : Looking ahead & anticipate Feedback on leadership: Advice: Shared visionTeam need to understand how the leader go to his visionTalk to the team to create the goals and vision

Listen very closely to others: Hopes and NeedsAbility to bring people from the team into the future

“Observe the Human condition”

Article number 9:Lucie Guérif

Leaders / Colleagues

Top ranking : Honesty

72% Be foward-looking 27%

End vision together

Exemple Private Company: Google

Open space to share ideas between employees and chiefs Relax environment to create together and to follow same

goal

Public: Administration of Pau Feedback from people of the company about what they

prefer at work( Invest, recognition, colleagues, salaries …) Shared vision about goals with agents

Lucie Guérif

Article number 9:Lucie Guérif

WHAT IS the theory of your firm?

What is the corporate theory ?

In a few words: 1/Identify and classify the firm’s resources 2/Identify the firm capabilities 3/appraise the money generating potential of resources and capabilities of

the firm 4/select strategy that best exploits the firm’s resources and capabilities

How company can continue to create value ?Value creation, from product development to strategy, involves recombining a large number of existing elementsgood corporate theory enables the acquirer to spot bargains that are uniquely available to it..

The Three “Sights” of Strategy -Foresight -Insight. -Cross-sight.

Article number 10:Laure Lamaison

ExempleArticle number 10:Laure Lamaison

-Innovation and differentiation are his trademark -Lego did not base its strategy on the acquisition of pre-existing businesses, Lego has focused on organic growth Lego will create multiple subsidiaries to leave his homeland -Lego has a very consistent and effective development strategy

-Since 2007, they are focusing on intitiale model: refocusing on the core business (production and marketing of bricks)

-Concept: popularize electronic commerce. -His best-known specialty is selling books, but it has diversified into other products

This strategy deprives potential exclusive affiliate income , but allows us to offer more competitive pricesAt the begining, its "slow" growth provoked the anger of shareholdersBut Amazon has preferred to take the time to establish a solid roadmap before seeking to make growth

How Great Companies Think Differently? Traditional theories of the firm are dominated by the notion of

opposition between capital and labor. According to this view, companies are nothing more than money-generating machines.

Institutional Logic :is built on a foundation of purpose and values, which serve as protect against uncertainty and change Companies that operate using institutional logic reap

substantive benefits

-6 ways to have a benefit in using the institutional logic

A Common Purpose: holding purpose and values at the core of an organization’s identity

•A Long-Term Focus: a willingness to make short-term financial sacrifices for the sake of long-term perspective

•Emotional Engagement: influencing positive emotions to stimulate motivation

•Partnering with the Public: crossing borders for both new business opportunities and to address public concerns

•Innovation: committing to community projects without seeking immediate returns

•Self-Organization: trusting employees to make their own choices

Article number 11Katia Monteiro

Offers low-cost deals

Strategy of cost domination So not much margin in the

the short term But long term, they will

have many more customers than its competitors

Sacrifice now to reap the benefits later.

Great french company Present in more than 130

countries Their mission:

discovering, producing and tranforming

They invest in a lot of projects.

>>> Benefits later They are involded in

Corporate social

Responsability (CSR)

They meet the need of the consumer (like solar energy)

Katia MONTEIRO

Article number 11Katia Monteiro

The Four Things a Service Business Must Get Right (by Frances X. Frei) Each company is different with different product for different needs, but

we can find four different part essential for a good strategy, and where we have to work/ communicate/ to do and being the best, the strategy to sell a product change can change the entire organization of the company. What is this part ?

• The service offering• Funding mechanism• The employee management System• Customer management The decision for each part is difficult because that involved the customers,

employee and shareholders; More important, that engage the company for a long time. So to see if a strategy is efficient or good, check if we failed in ones of this point is essential. If it’s not the case strategic grief can appeared as a threat. Some company try to be multifunctional and every where for every one, and don’t have focus. Generally that failed. The management is also a problem which the different country where is a company.

Article number 12Mathieu Sami Philippe

• Ikea because the costumer make a part of the job (build the closet), so it’s less expensive for funding mechanism, the service offering is show, welcoming, design, and take in count costumer behavior with restaurant and a play game for kids; Cultural problem because some in USA hate this system. But exist since a long time now (1956)

It’s a bad example and strategy, Bic which created pens low cost, mostly. They wanted to be in an other sector like parfum, in the low costbut that created a conflict with the costumer, it’s didn’t work as they want, because the strategy of low cost for parfum didn’t work.

Article number 12Mathieu Sami Philippe

HOW implement a strategy ?Blue ocean strategy

What is the two comming ? The three factors. The Three Strategy Propositions.

Deterministic view : Conditioning by the structure. Blue ocean : Reverse the structure in its favor.

Strategic approach : structural terms . resource and capacity. strategic mindset.

Three proposed strategy: 1/ Propose a value that attracts the consumer. 2/ Proposal for profit. 3/ Proposal to motivate people.

Example of Dubai : External context. Three proposed strategy

Article number 13Julien Rouby

ExampleThe example of the city of Dubai shows us how the state was able to apply the blueocean strategy.

Indeed, the external environment play against the development of Dubai (Structural handicap).-Value Proposition: Dubai has targeted foreign investor. To attract them, how Dubai has to offer advantage of free allocation of capital and profits, a tax rate to zero, owner at 100%.-Proposal for profit: How Dubai generate profit for the state? The city chose to operate as a business. (Dubai Wolrd) investors is increased transportation, tourism, real estate development. Source flow and revenue for the state.-A people proposition: that motivates those working for or with the company to execute the strategy. Or in this case, with the state.Dubai made the students more easily access to the social security system as well as insurance, health care, compensation ... result: the people more likely to take part in the overall strategy.

Two examples of company that have managed to implement the blue ocean strategy.-Creation VCR: who invented? General response: JVC / SONY. False, the first company to create the VCR is AMPEX. We remember SONY or JVC because they were able to develop a sustainable strategy.-Creation of first PC: Who invented? General response : APPLE/IBM. False, its MITS.

Article number 13Julien Rouby

The perils of bad strategy by Richard Rumelt The hallmarks of bad strategy:- Failure to face the problem ( ex: harvester company)

need to identify and analyse the obstacles- Mistaking goals for a strategy (ex: Mr logan 20/20 plan)- Bad strategic objectives: « a dog’s dinner » of goal with

long term label, « blue sky »- Fluff (bank example)

Why so much bad strategy?- The inability to choose (DEC example)- Template-style strategy

The kernel of good strategy A diagnosis, a guiding policy, a coherent actions

Article number 14Julien Thuillier

The ACER example: Bad analysis of the market trends

- Concentration of its activity on the Netbook market: strategic error

- no new tablet models, desertion of professional PC market.

Own examples of company bad strategy

•Nokia example: Strategy at the opposite of the market-Volume strategy focused on entry-level phones-They missed the emergence of new technologies. A cruel lack of strategic vision

Article number 14Julien Thuillier