Final Flashcards
(29 cards)
I/O Model
Driven by external influences
Attractive industries
Resource mobility
“Follow the crowd”
Resource Model
Acquires resources to succeed in any industry
Resources > capabilities > core competencies > competitive advantage
Internal/External/SWOT Analysis
Strengths + Weaknesses = Internal
Opportunities + Threats = External
Effective Strategy
Who- to pursue
What- need to fulfill
How- to use core competencies to gain a competitive advantage
Why- what goal or benefit does it provide
Business Strategies
Cost leadership
Focused cost leadership
Differentiation
Focused differentiation
Cost leadership
Lowest cost, acceptable quality, standardized goods, cost efficient production, large company
Focused cost leadership
Lower cost strategy on select brands or markets but NOT on all products/brands
Differentiation
products/services are perceived as different/superior to competitors on multiple features, thorough understanding of customer needs, and continual upgrade of features/offerings
Focused Differentiation
Differentiate on select brands or markets but NOT on all products/brands
Diversification Models
Related linked
Related constrained
Unrealted
Related linked
Less than 70% comes from dominant business. Only limited links between businesses (Frito Lay, Pepsi, KFC)
Related Constrained
70% revenue from one business. All businesses share product, technological, and distribution links. (Pepsi, Mountain Dew)
Unrelated
No common links between businesses, less than 70% comes from dominant businesses (Berkshire Hathaway)
BCG Matrix
By relative Market Share/cash generation and Market growth rate/cash usage respectively Star (high high) Question mark (low high) Cash cows (high low) Dogs (low low)
Ansoff Matrix
By Products and Markets respectively
Market penetration strategy (existing existing)
Product Development strategy (new existing)
Market Development strategy (existing new)
Diversification strategy (new new)
Level 5 leadership hierarchy
Level 5 executive Effective leader Competent manager Contributing team member Highly capable individual
Level 5 leader builds
Enduring greatness with paradoxical blend of
personal humility and professional will.
Effective leader
Catalyzes commitment to and pursuit of a clear and compelling vision, stimulating higher performance standards
Competent manager
Organizes people and resources toward the effective and efficient pursuit of predetermined objectives
Contributing team member
Contributes individual capabilities to the achievement of group objectives and works effectively with others in group setting
Highly capable individual
Makes productive contributions through talent, knowledge, skills and good work habits
First who then what
Separates level 5 from level 4
WHO:
Get the right people on the bus
Build a superior executive team
WHAT:
Once you have the right people in place, figure the best path to greatness WITH THEM
Hedgehog Concept
Hedgehogs:
- Simplify a complex world into a single organizing idea – a basic principle or concept that unifies & guides everything.
- See what is essential and ignore the rest.
- Take a single concept & implement with fanatical consistency
Foxes:
Pursue many ends at the same time & see the world in all its complexity
6 Steps of the Blue Ocean Strategy
Reconstruct Market Boundaries Focus on the Big Picture Reach beyond existing demand Get the strategic sequence right Overcome key organizational hurdles Build execution into strategy
