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Business Strategies 2

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Strategic Planning: What is CORE COMPETENCY?
the activities that the company has expertise in and performing very well, WHAT ARE YOU BEST AT?
Core competencies of Walmart, Target, IBM, Pappas
-Distribution, low prices, supply chain managment (retail dictates manufacturer)
-good merchandiser
-tech comp svcs & tradtl consulting
-food,service,location (big cities)
Strategic Planning: What are strategic alliances?
a win-win strategy where all parties benefit from the relationship
Strategic alliances of:
UH Bauer & _____
Toyota & _______
Busch beer & ______
-Methodist hospital, New MBA taught at hospital
-Nissan, share R&D costs
-Tsingtao beer, distribution benefits of huge Chinese market
Strategic Planning: What are noncore strategies?
Outsourcing - letting an outside organization perform some company function, Offshoring - moving your entire plant overseas, INSOURCING - letting your transportation expert repair your warranty defects
Sustainable Adv: LOCATION
EX.
location can be used as a sustainable advantage when competitors cannot match your location, Specs liquor Store, UH Bookstore, Flying Y Truck Stops
Strategic Options: Contrasting Business Models
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Traditional Business model-highly structured, many levels of management, rules are very important, focus on command & control
Entrepreneurial model-highly flexible, few levels of management, rules are guideline, focus on recognition & response
Strategic Options: Strategic Decision Choices
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Optimizing: or maximizing is where you are trying to get the one correct answer, MC=MR
Satisficing: trying to get a satisfactory(best) answer, given the existing alternatives in your analysis
Strategic Options: SWOT ANALYSIS
Controllable vs Uncontrollable
Controllable by management: strengths of the business, weaknesses that can directly control
Uncontrollable by management: Opportunities & Threats
Strategic Options: Dynamic Information Changes
Internet, email, web, scanning data, RFID data, search engines, cell phones
Future Business Careers: Needed?
better integrate your business analysis & creative skills, need networking & group dynamic skills, need oral & written comm skills, will be working w/ people from multiple cultures
Threatened Business Models?
Airlines - Hub&Spoke, Department Stores - lots of services, telephone companies - physical phone lines, brokerage firms - execute orders, financial advice
Strategic Options: Changing Business models?
Southwest Airlines, Toyota, Dell, Starbucks
Southwest Airline Model
Use one type of plane, avoid hub airports for secondary airports, concentrate on short-haul flights, use low fare prices, no frill service, fast turnaround time for planes
Toyota Business Model
faster turnaround for new cars, outsource manufacturing & assembly to low cost countries, close high cost manufacturing plants, revolutionize traditional inventory & supply chain systems
Dell Business Model
assembly firm, minimal R&D, no intermediaries, minimize inventory, low operating costs
Starbucks Business Model
-6500 company years since 2yrago
-kiosks within retail stores
- sysco-wholesale distributor
-kraft - distributor of coffee in supermarkets
- breyer - distributer of starbucks ice cream
-pepsi cola- distributor of frappuccino
Global Market Driven strategies (4)
1 push for healthy competition
2 meaningful incentives
3 rules for the system
4 move to common standards
Push for healthy competition
Japanese retailers with protection from intl competitors, moscow roadblocks for IkEa, rewarding friends in Thailand and Indonesia, China breaks up a state power monopoly into 7 companies to promote more competition
Meaningful Incentives
cut bureaucratic cost of starting a new business in Mexico, change the incentives of US Ceo's to inflate short term profits which will maximize the value of their stock options, cheaper labor costs in India and the Phillipines gives businesses incentives to move call center from Houston
Rules for the system
Russia-Mafia, Indonesia-family licenses, japan-banking off book losses, United States-Enron stretching CPA audits
Move to Common Standards
English is the business language of the world, Common metric system measurements except for US, Euro monetary system, DVD formats, global accounting standards
Resistance to Standardization
Microsoft vs Linux, HP Printer Cartridges vs refill cartridges, apple mac imac g% vs overseas grey markets
Major marketing strategies
Intensive growth within the organization, concentrated niche (one target segment), multiple niches (more than one target market), market positioning, multiple revenue streams
Intensive growth
Market penetration-existing products in existing markets, product development-new products in existing markets, market development-existing products in new markets
Market penetration
EX
use more of the product, cross-sell products/services,take competitor's business
Green Ketchup, Arm& Hammer baking soda, Prestone antifreeze
Product development
new improved products, new yearly products, new technical products, modified products
market development
expand from Houston to Dallas, expand from Houston to all major US cities, expand overseas, develop new market for existing products
Intensive growth of blue bell ice cream
market penetration-increasing share of market for existing prducts in Houston, produc devel- introducing new line of diet bluebell ice cream, mkt devel-entering OK and KS w/ existing product
Concentrated Niche
marketing to one market segment rather than the whole market for a product/service
Cliff notes, Jolt soda, Long haul blue jeans, Mayo clinic, curves
Multiple niches
marketing to more than one market segment rather than the whole market for a product/service
Proctor&gamble, anheuser-busch, GM, Kraft foods
Market positioning
EX
the perception that a potential customer has about your product versus your competitor's product
Lite beer, Gerber, HEB, Barbie doll
Gerber's positioning statement
"Babies are our business"
Multiple Revenue streams
Sterling mccall-buy the entire product line, wellsfargo, CPAs audit consult taxes, UH football, Harry Potter
Sterling McCall Toyota MRS
new, used autos, service & finance contracts, service dept, leasing dept, rental cars

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