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Corporate Strategy

Corporate Strategy. Rebecca Whitnah BusM 361 Section 1 November 29, 2005. Agenda. Definition of corporate strategy How corporate strategy can be used in your organization Benefits of corporate strategy Critical factors in corporate strategy

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Corporate Strategy

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  1. Corporate Strategy Rebecca Whitnah BusM 361 Section 1 November 29, 2005

  2. Agenda • Definition of corporate strategy • How corporate strategy can be used in your organization • Benefits of corporate strategy • Critical factors in corporate strategy • Importance and implementation of corporate strategy

  3. Alice: Which way should I go? Cat: That depends on where you are going. Alice: I don’t know where I’m going! Cat: Then it doesn’t matter which way you go!! • Lewis Carroll, Through the Looking Glass, 1872 To be a successful company, a planning process should be initiated for making day-to-day decisions and ultimately deciding which direction the company should go

  4. What is Corporate Strategy? • Process by which members of an organization envision its future and develop the necessary procedures and operations to achieve that future (Goodstein, 3)

  5. How can corporate strategy be used in your organization? 1. Provides a plan 2. Establishes a pattern of actions

  6. How can corporate strategy be used in your organization? 3. Establishes position 4. Incorporates perspective • (Henry Mintzberg)

  7. What are the benefits of strategic planning? • Provides framework for action • Mind-sets of employees and organization • Enables organization to share a vision and a belief that the vision can be fulfilled • Energy comes to employees

  8. What are the benefits of strategic planning, part II? • Evaluate your competitors & adjust to current events • Annual evaluations • Motivate & encourage managers

  9. Six Critical Strategic Factors STRATEGY IS…. • A coherent, unifying, and integrative pattern of decisions • An establishment of an organization’s long-term objectives, plans, and allocation of resources • A definition of an organization’s competitive domain

  10. Six Critical Strategic Factors, Part II STRATEGY IS… 4. A response to internal strengths & weaknesses and external threats & opportunities 5. Developing differentiating tasks and roles at all functional levels 6. Identifying the economic factors the organization will contribute to stakeholders (Goodstein, Nolan, Pfeiffer 3)

  11. Importance of Senior Management Two decisions for organizations: • Strategic decisions • Strategically driven decisions • Senior management needs to be involved in both • Must be committed to implement strategy

  12. How can you implement strategy? Focus on a single “driving force” • Products offered • Market needs • Technology • Production Capability • Method of Sale • Method of Distribution

  13. Additional types of driving forces… • Natural resources • Size/growth • Return/profit (Kepner & Tregoe)

  14. Questions to consider for your company’s corporate strategy • Is the current strategy implicit or explicit? • What is happening in the larger, social, and educational environments? • What are our growth, size, and profitability goals? • In which markets will we compete? • In which businesses & geographic areas?

  15. To strategically succeed your company needs to know… • Where you are going -mission statement, specific goals • What is the environment • How do you get there

  16. CASE STUDY: FedEx What should your company bring to the table? • Focus on company • Consider core competencies • Don’t limit to just core competencies

  17. CASE STUDY: FedEx • Core competencies: package routing & delivery • Grew out of technology & skills - bar-codes - wireless communication

  18. CASE STUDY: FedEx Conclusion “Whole package” – those things that can’t be reproduced • Patented products • Strong brands & reputations • Relationships w/suppliers & customers • Position in industry

  19. Exercise • Break into groups of 4 -5 • List 4 strengths of your company & 4 weaknesses • Applying those strengths & weaknesses you listed, answer the following questions: • Where is your company going? • Who are your competitors & your environment? • How are you going fortify your weaknesses?

  20. Summary • Corporate strategy is a process where members envision long-term goals for an organization • Corporate strategy should include all members of the organization • In order for strategic success, each individual needs to be committed to the objectives…this is a direct result from a committed senior management team

  21. Summary continued • A main benefit for implementing corporate strategy is an increased competitive advantage in all functional levels of business • Strategic planning should consider where the company is going, the company’s environment, and how the company is going to attain its goals

  22. Suggested Reading • Harvard Management Update, Vol. 5, #1, January 2000 • Applied Strategic Planning, Leonard Goodstein, Timothy Nolan, and J. William Pfeiffer, 1993, pp. 1, 3-5 • Strategy: Definitions and Meanings, Fred Nickols, http://home.att.net/~nickols/strategy_definition.htm, 2000 • Top Management Strategy, Benjamin Tregoe & John Zimmerman, pp. 7 • The Rise and Fall of Strategic Planning, Henry Mintzberg, 1997, pp. 3

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