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Chapter 6 Organizational Strategy

MGMT Chuck Williams. Chapter 6 Organizational Strategy. Designed & Prepared by B-books, Ltd. Sustainable Competitive Advantage. Resources. The assets, capabilities, processes, information, and knowledge that the organization controls. Competitive Advantage. Sustainable Competitive

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Chapter 6 Organizational Strategy

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  1. MGMT Chuck Williams Chapter 6Organizational Strategy Designed & Prepared byB-books, Ltd.

  2. Sustainable Competitive Advantage Resources The assets, capabilities, processes, information, and knowledge that the organization controls Competitive Advantage Sustainable Competitive Advantage Providing greater value for customersthan competitors can A competitive advantage that othercompanies have tried unsuccessfullyto duplicate 1

  3. Strategy-Making Process Assess need forstrategic change Conduct a Situational Analysis ChooseStrategicAlternatives 2

  4. S Strengths Internal W Weaknesses O Opportunities External T Threats Situational Analysis 2.2

  5. PORTFOLIO STRATEGY GRAND STRATEGIES • Acquisitions, unrelated diversification, related diversification, single businesses • BCG Matrix • Stars • Question marks • Cash cows • Dogs • Growth • Stability • Retrenchment/recovery Corporate-Level Strategies 3

  6. GrowthStrategy focuses on increasing profits, revenues, market share, or numberof places to do business Stability Strategy RetrenchmentStrategy focuses on improving the way the company sells the same products or services to the same customers focuses on turning around very poorcompany performance by shrinking the size or scope of the business Grand Strategies 3.2

  7. Industry-Level Strategies Five Industry Forces Positioning Strategies AdaptiveStrategies 4

  8. Threats ofNew Entrants Character of Rivalry BargainingPower ofSuppliers BargainingPower ofBuyers Threat of Substitutes Porter’s Five Industry Forces 4.1

  9. Positioning Strategies Cost Leadership Differentiation Focus Strategy 4.2

  10. Adaptive Strategies • Defenders • seek moderate growth • retain customers • Prospectors • seek fast growth • emphasize risk-taking& innovation Analyzers • blend of defender &prospector strategies • imitate others’ successes Reactors • use an inconsistent strategy • respond to changes 4.3

  11. Firm-Level Strategies Basics ofDirectCompetition Strategic Moves inDirect Competition Entrepreneurship 5

  12. Strategic Moves of Direct Competition Attack A competitive move designed to reduce a rival’s market share or profits. Response A competitive countermove, prompted by a rival’s attack, to defend or improve a company’s market share or profit. 5.2

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