A TASTE OF STRATEGY AT VLERICK: FROM BUSINESS TO CORPORATE, FROM LOCAL TO GLOBAL CARINE PEETERS

Transcription

1 A TASTE OF STRATEGY AT VLERICK: FROM BUSINESS TO CORPORATE, FROM LOCAL TO GLOBAL CARINE PEETERS

2 CONTENT What is strategy? Zoom 1: Business strategy formulation Zoom 2: Corporate value creation Zoom 3: Competing across borders 2

3 1WHAT IS STRATEGY?

4 Method Execution Strategy is the means by which firms achieve and sustain superior performance Adaptation to changing context / Competitors + Continuous improvement VALUE CREATION & CAPTURE

5 A GENERAL FRAMEWORK FOR STRATEGY CORPORATE PARENT PERFORMANCE Zoom 3 FIRM /BU Mission & values Vision & objectives Resources & Capabilities STRATEGY Execution Analysis Formulation INDUSTRY Competitors Customers Suppliers 5 MACRO ENVIRONMENT Technological evolution Global economy Socio/politico/legal forces

6 2ZOOM 1: BUSINESS STRATEGY FORMULATION

7 DEFINING YOUR WINNING FORMULA 7 Verweire (2014)

8 8 FOCUS

9 9 UNIQUE

10 10 COHERENT

11 11 FIT

12 SUCCESSFUL STRATEGY ANSWERS 4 QUESTIONS: CHARACTERISTICS 1. Whom do you serve? FIT 2. What do you provide? 3. With which value COHERENT STRATEGY FOCUS proposition? 4. How do you realize it? UNIQUE

13 DO YOU HAVE A WINNING VALUE PROPOSITION? Let s play cards 13

14 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) 14

15 A FOCUSED VALUE PROPOSITION Customer favourite Customer preference Customer acceptance is an optimal profile 15 Source: Crawford & Mathews (2001)

16 A GENERAL FRAMEWORK FOR STRATEGY CORPORATE PARENT PERFORMANCE FIRM /BU Mission & values Vision & objectives Resources & Capabilities STRATEGY Execution Analysis Formulation INDUSTRY Competitors Customers Suppliers 16 MACRO ENVIRONMENT Technological evolution Global economy Socio/politico/legal forces

17 3ZOOM 2: CORPORATE VALUE CREATION

18 DOES YOUR PARENT COMPANY CREATE VALUE? BRAND SUPERIOR SYSTEMS, TOOLS, PRACTICES RESTRUCTURING SYNERGIES 18

19 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 19 Based on Meyer (2009)

20 GROWING FROM YOUR STRENGTHS 20 Strategy+Business (2014)

21 A GENERAL FRAMEWORK FOR STRATEGY CORPORATE PARENT PERFORMANCE Zoom 3 FIRM /BU Mission & values Vision & objectives Resources & Capabilities STRATEGY Execution Analysis Formulation INDUSTRY Competitors Customers Suppliers 21 MACRO ENVIRONMENT Technological evolution Global economy Socio/politico/legal forces

22 4ZOOM 3: COMPETING ACROSS BORDERS

23 Hoium (2014)

24 VALUE CREATION ACROSS BORDERS Serve the global segment in every country Differentiated by geography and/or product line Overcome Structure Exploit Play the differences Avoid Embrace Target similar countries Localize your parent s strengths 24

25 3-STEPS PROCESS Understand differences Choose a response profile International strategic choices 25

26 26 5WRAP UP

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

28 THANK YOU

29 FEEL LIKE SOME MORE? Essentials in Strategy (start 3 December) Successful Strategy Execution (start 23 November) Advanced Management programme (18 November)