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Strategy and the Business Landscape

Strategy and the Business Landscape. 1. The Origins of Strategy 2. Mapping the Business Landscape 3. Creating Competitive Advantage 4. Anticipating Competitive and Cooperative Dynamics 5. Building and Sustaining Success. Chapter 1 Exhibits. from Strategy and the Business Landscape.

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Strategy and the Business Landscape

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  1. Strategy and the Business Landscape 1. The Origins of Strategy 2. Mapping the Business Landscape 3. Creating Competitive Advantage 4. Anticipating Competitive and Cooperative Dynamics 5. Building and Sustaining Success

  2. Chapter 1 Exhibits from Strategy and the Business Landscape

  3. Andrews’ Strategy Framework Environmental Conditions and Trends Economic Technical Physical Political Social Community Nation World Distinctive Competence Capabilities: Financial Managerial Functional Organizational Reputation History Consideration ofall combinations Corporate Resources As extending or constrainingopportunityIdentification ofstrengths andweaknessesPrograms forincreasingcapability Evaluation to determinebest match ofopportunity and resources Opportunities and Risks Identification Inquiry Assessment of Risk Choice of Productsand Markets Economic Strategy Source: Kenneth R. Andrews, The Concept of Corporate Strategy, 1971

  4. Ansoff’s Product/Mission Matrix Source: Ansoff

  5. Experience Curve for Semiconductor Memories 1976 100 1977 75 1978 50 1979 Price per bit (millicents) 25 1980 10 1981 1982 1983 1984 0.1 1.0 10 100 Cumulated output (bits x 1012) Source:Integrated Circuit Engineering Corporation

  6. BCG’s Growth-Share Matrix High Share Low Share ? High Growth “Star” “Question Mark” “Cash Cow” “Dog” Slow Growth

  7. The Industry Attractiveness-Business Strength Matrix Industry Attractiveness High Medium Low Investment and Growth Selective Growth High Selectivity Selective Growth Harvest/ Divest Medium Selectivity Harvest/ Divest Harvest/ Divest Business Strength Harvest/ Harvest/ Low Selectivity Divest Divest

  8. Four Phases of Strategy 4. Strategic Management: Create the Future 3. Externally Oriented Planning: Think Strategically Dynamic Analysis Static Analysis 2. Forecast-Based Planning: Predict the Future 1. Financial Planning: Meet Annual Budget Source: Gluck et al

  9. Two Determinants of Profitability Advantage Competitive Position Disadvantage Low High Environmental Attractiveness a

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