WINNING STRATEGY AT BUSINESS AND CORPORATE LEVELS CARINE PEETERS

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2 WINNING STRATEGY AT BUSINESS AND CORPORATE LEVELS CARINE PEETERS

3 Master in Economics (ULB) PhD in Management (ULB) Research associate Duke University Assistant professor Solvay Brussels School Full professor Vlerick Business School Area Chair Entrepreneurship, Governance & Strategy Professor in Strategy Executive MBA Executive education In-company programmes Current research Strategy in dynamic environments Senior editor at Management and Organization Review Review board member at Strategic Management Journal and Global Strategy Journal Board member European Outsourcing Association - Belgium

4 4 A firm strategy describes HOW the firm achieves and sustains superior performance

5 WINNING STRATEGIC CHOICES Identity - Mission & values - Vision & objectives Capabilities - Strengths VS competition - External environment - Ecosystem - 5

6 DEFINING STRATEGY Strategic analysis Industry analysis Marketplace trends Environmental forecasts Competitor analysis Assessment of internal strengths, weaknesses, resources Mission Core business Fundamental purpose Values Objectives Vision (BHAGs) Specific targets Strategy Set of choices on where and how to compete Strategy implementation 6 Source: Hambrick & Fredrickson (2001)

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8 STRATEGY AS MULTILEVEL ALIGNMENT Corporate goals Corporate strategy ZOOM 2 BU goals BU strategy ZOOM 1 8 Functional strategy

9 ZOOM 1 BUSINESS STRATEGY FORMULATION

10 DEFINING YOUR WINNING FORMULA 10 Verweire (2014) #experiencevlerick

11 11 FOCUS

12 12 UNIQUE

13 13 COHERENT

14 14 FIT

15 DEFINING YOUR WINNING FORMULA FOCUS UNIQUENESS COHERENCE FIT

16 DO YOU HAVE A WINNING VALUE PROPOSITION? Let s play cards 16 #experiencevlerick

17 VALUE ATTRIBUTES OF BUSINESS TRANSACTIONS Product: Quality and features of goods or services purchased Price: Cost of goods or services Access: How easily consumers obtain and use goods Service: What is done extra before, during, and after the sale Connectivity: How consumers feel about themselves as a result of goods and/or services Source: Crawford & Mathews (2001) 17 #experiencevlerick

18 A FOCUSED VALUE PROPOSITION Customer favourite Customer preference Customer acceptance is an optimal profile 18 Source: Crawford & Mathews (2001) #experiencevlerick

19 ZOOM 2: CORPORATE VALUE CREATION

20 MAIN SOURCES OF CORPORATE VALUE CREATION Brand Restructuring Superior systems, tools, & practices Time horizon Synergies 20

21 A PROBLEM OF NET VALUE CREATION Direct and indirect costs Net value creation Direct and indirect costs Additional corporate costs Gross corporate value creation Additional corporate costs Gross corporate value creation Net value destruction Bureaucracy Inefficient corporate services Poor decisions Interferences Positive corporate value added Negative corporate value added 21 Based on Meyer (2009) #experiencevlerick

22 ADDED VALUE LOGIC Maximize opportunity to add value + Minimize risk of destroying value 22

23 GROWING FROM YOUR STRENGTHS 23 #experiencevlerick

24 24 WRAP UP

25 Strategy is the means to maximize firm performance BIGGER IS NOT ALWAYS BETTER

26 THANK YOU #experiencevlerick

27 FEEL LIKE SOME MORE? Essentials in Strategy (start: 4 December) Successful Strategy Execution (start: 27 November) Advanced Management programme (start: 17 October) Executive MBA (start: 20 October 2017) Or contact us for a customised programmes for your company #experiencevlerick