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Strategy Introduction

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Strategy Introduction

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    1. Strategy Introduction

    3. What is Strategy? Business literature is saturated with jargon and “catch phrases”, many incorporating the word “strategy” in some form. Here are the fundamental concepts (Know these): Strategy: A means to an end Strategic Management: Continuous adjustments to plans as a result of new information Strategic Planning: Episodic review or creation of your strategy plan to create an alignment of plans/assets towards a goal. Long Range Planning: Not necessarily strategic planning. Planning for events beyond the quarter or the year.

    4. Back to Strategy- Strategy: A means to an end. “How you get there”

    5. Back to Strategy Strategy: A means to an end. “How you get there”

    6. Getting from A to B

    7. Getting from A to B

    8. Expected Winners in Selected Occupations

    9. Expected Losers in Selected Occupations

    10. Change The rate of change in society is accelerating. Of the last 800 life-spans of human history: The first 650 were spent in caves Only the last 70 saw communication from one lifetime to the next. Only the last six saw widespread printed word. Only the last four saw time measured with precision. Only the last two saw the electric motor. Only the current lifetime has seen the overwhelming majority of material goods we take for granted today.

    11. Winners and Losers in Strategy A new way of thinking Recognition of SWOTs Bourne Identity Within and Between Person cognitive synthesis Execution, Execution, Execution

    12. Mind Computer Interface Technology CNN News

    13. Should this matter to you? Who should care about this? Product Innovation: Entertainment Nintendo, Xbox (Microsoft), Playstation (Sony) Apple, Dell, AMD, Intel, Verizon, Samsung, Motorola Other applications Flight- Boeing, EADS Weapons- Northrup Grumman, Lockheed

    14. 12/30/2009- 2 Billion Apps downloaded for the Apple I-phone What does this mean for… Sprint, ATT Verizon (4G towers with no 4G phones) New markets for gaming companies Requirements of Google’s Android powered phone

    15. Health Care Reform: The Public Option

    16. What does this mean for… Aetna Assurant Unicare Any firm offering health insurance? Any firm not offering health insurance?

    17. Strategy Application Black Disciples- South Side Chicago

    18. Business: Southside Franchise of the “Black Disciples” Industry: Illicit drugs/protection General Manager: “J.T.” 29 years old BA-Business University of Chicago Previous Job: Office Supplies Sales Rep Manages 260 person organization 20% revenues for 12 sq block territory to the “Board of directors” 2005: Levtit & Dubner “Why do drug dealers still live with their moms”

    19. Business: Southside Franchise of the “Black Disciples” Revenues: Drug Sales $24,800 Dues: $ 5,100 Extortionary $ 2,100 Taxes Total Monthly $32,000 Revenue 2005: Venkatesh & Levitt “Why do drug dealers still live with their moms”

    20. The Black Disciples “Board of Directors” (20 of them, oversee 120 franchises) G.M. of the Southside franchise: “J.T.” Officers-3: Enforcer: Ensured gang members’ safety Treasurer: Overseas gang’s liquid assets Runner: Manages exchanges between gang & suppliers Foot Soldiers-50-60: Sell product on franchised locations Rank and File-200+: seek protection from other gangs, or potential position as foot soldier.

    21. The Black Disciples Total Net Monthly Income without labor: $ 18,000 J.T. has 260 employees How much do you think J.T. made?

    22. The Black Disciples Total Net Monthly Income without labor: $ 18,000 How much do you think J.T. Made? $8,500/month Labor expense: $9,500/month

    23. The Black Disciples Average hourly for foot soldier: $3.30 (officers: $7.00) Employment Conditions-typical fate in four years of employment: No. of times arrested: 5.9 No. of nonfatal wounds or injuries: 2.4 This doesn’t include injuries from gang admonishment for rules violations. Chances of being killed: 1 in 4 Why do people work here?

    24. The Black Disciples Tournament Theory: You must prove yourself at lower level to gain access to next level. Motivation is from lure of future level achievement. “Board of Directors”: 20 $500,000+/year G.M. “J.T.”: 120 $100,000+/year Officers: 360 $15-20K/year Foot Soldiers: 7,500 $6K/year Rank and File: 24,000 -$250/year

    25. Application of tournament theory “ I know it’s not a lot of money but keep doing such a good job and you’ll be a manager soon!” “ I know it’s not a lot of money but keep managing well and you’ll be an executive soon!” Pyramid Schemes

    26. How the Great Fall

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