ระดับสูง กลยุทธ์ระดับองค์กร สภาพแวดล้อมทั่วไป การเปลี่ยนแปลง คิดให้ไกล กำหนดวิสัยทัศน์ ไปให้ถึง กำหนดยุทธศาสตร์ การคิดเชิงกลยุทธ์ Who are you? Purpose inspiration Objective What business we want to be in? Environment O Resources S Value Opportunities Scenarios Strengths Challenges OS strategy What to become ?
7 TOWS Matrix WT Strategies Minimize weaknesses and avoid threats ST Strategies Use strengths to avoid threats Threats-T List Threats WO Strategies Overcome weaknesses by taking advantage of opportunities SO Strategies Use strengths to take advantage of opportunities Opportunities-O List Opportunities Weaknesses-W List Weaknesses Strengths-S List Strengths Leave Blank
Initiating the Strategy process Market analysis Company analysis Developing a Vision and long-term objectives Developing a Corporate strategy Developing a Functional strategy Developing a business strategy Strategy implementation Performance monitoring
ระดับสูง กลยุทธ์ระดับองค์กร สภาพแวดล้อมทั่วไป การคิดเชิงกลยุทธ์ Who are you? Purpose inspiration Objective Environment O Resources S Value What to become ? Vision Business to be inCan doMight do PESTLE O/T Where to go? TOWS OSTS TWOW Resources S/W Who are you? Mission BCG GE matrix 9 Cells Ansoff Portfolio Directional Parenting
Corporate Strategies A corporate strategy is a set of specific plans of action that an organization must implement in order to achieve its goals and objectives in pursuit of attaining its overall corporate mission.
Corporate Level Strategy ► What businesses are we in? What businesses should we be in? ► Four areas of focus Diversification management (acquisitions and divestitures) Synergy between units Investment priorities Business level strategy approval (but not crafting)
Corporate Strategy 16 Three Dimensions of Corporate Strategy Business Diversification - Horizontal expansion Vertical Integration - forward or backward expansion Geographic Scope - geographic and/or global expansion
Corporate-Level Strategies Firm Status Valuable strengths Critical weaknesses Environmental Status Abundant environmental opportunities Critical environmental threats Corporate growth strategies Concentric Diversification (Economies of Scope) Conglomerate Diversification (Risk Mgt.) Corporate retrenchment strategies Can still go for business-level growth (economies of scale) Corporate stability strategies
Strong Average Weak SBUs Competitive Position Life-Cycle Portfolio Matrix Introduction Growth Early Maturity Late Maturity Decline Life- Cycle Stages
Corporate growth strategies Vertical Integration Forward or Backward International Global or Multi-domestic Horizontal Integration Diversification Related or Unrelated CorporateGrowth Concentration
Business-Level Strategies For Growth Market Penetration Strategy Product Development Strategy Market Development Strategy Diversification Strategy Existing New Domain (i.e., Industry Market Product/Service ExistingNew
Implementation of growth strategies OptionsProsCons Mergers & Acquisitions ► Quick to obtain proven expertise & market positions ► Bypass barriers to entry ► Increase market power ► Economies of scale ► Takeover premium ► Excessive borrowing ► Integration difficulties ► Overestimate synergy ► Possible antitrust problems Strategic Alliances & Partnerships ► Quick entry to a market ► Bypass barriers to entry ► Less capital investment ► Allow risk sharing ► Combine strengths & capabilities of two companies ► Potential conflicts in cultures and management personalities ► No full management control Internal Development ► Capture all the value created ► Encourage innovation ► Full management control ► Can take a long time ► High development costs with uncertain outcomes ► Lack of needed technical expertise and know-how
Vision ► ► A vision statement is sometimes called a picture of your company in the future but it’s so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning.
24 Corporate Strategy deals with three key issues facing the corporation as a whole: Directional Strategy The firm’s overall orientation toward growth, stability, or retrenchment. Portfolio Strategy The industries or markets in which the firm competes through its products and business units. Parenting Strategy The manner in which management coordinates activities and transfers resources and cultivates capabilities among product lines and business units.
25 Directional Strategy(1/3) ► ► What are directional strategy? A corporation’s directional strategy is composed of three general orientations toward growth (sometimes called grand strategies): Stability Pause No change Profit Growth Concentration vertical growth horizontal growth Diversification concentric conglomerate Retrenchment Turnaround Captive Company Sell out/Divestment Bankruptcy/Liquidation
27 Directional Strategy(3/3) ► ► What are stability strategies? Stability Strategy can be very useful in the short run but can be dangerous if followed for too. Some of the more popular of these strategies are the pause strategy the no change strategy the profit strategy What are retrenchment strategies? Retrenchment Strategy Management may pursue retrenchment strategies when the company has a weak competitive position in some or all of its product line resulting in poor performance. Some of more popular of these strategies are turnaround strategy captive company strategy selling out divestment strategy Bankruptcy strategy liquidation strategy
Corporate Strategies Strategic direction varies from one company to another Penetration Acquisition New Products Vertical Integration Horizontal Integration Strategic Alliance Divestment
29 Portfolio Analysis(1/3) ► ► Why use the Boston consulting group (BCG) growth-share matrix The growth-share matrix is categorized into one of four types for the purpose of funding decisions: Question marks Stars Cash cows Dogs
30 Portfolio Analysis(2/3) ► ► Why use the General Electric (GE) business screen? The GE Business Screen Includes nine cells based on Long-term industry attractiveness Business strength & competitive position
General Electric’s Industry Attractiveness- Business Strength Matrix Low High Medium AverageStrongWeak Market Size Growth Rate Profit Margin Intensity of Competition Seasonality Cyclicality Resource Requirements Social Impact Regulation Environment Opportunities & Threats Relative Market Share Reputation/ Image Bargaining Leverage Ability to Match Quality/Service Relative Costs Profit Margins Fit with KSFs Industry Attractiveness Business Strength Rating Scale: 1 = Weak ; 10 = Strong 6.7 3.3 10.0 1.0 3.36.7
32 Portfolio Analysis(3/3) ► ► What are the advantages & limitations of portfolio analysis? Portfolio offers certain advantages: It encourages top management to evaluate each of the corporation’s businesses individually and to set objectives and allocate resources for each. It stimulates the use of externally oriented data to supplement management’s judgment. It raises the issue of cash flow availability for use in expansion and growth. Its graphic depiction facilitates communication. Portfolio have some very real limitations: It is not easy to define market segments. It suggests the use of standard strategies that can miss opportunities or be impractical. It provides an illusion of scientific rigor when in reality positions are based on subjective judgments. Its value-laden terms like “cash cow” and “dog” can lead to self-fulfilling prophecies. It is not always clear what makes an industry attractive or what stage a product is at in its life cycle. Naively following the prescriptions of a portfolio model may actually reduce corporate profits if they are used inappropriately.
33 Corporate Parenting ► ► What are the corporate parenting? Corporate parenting views the corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units How is a corporate parenting strategy developed? Campbell, Goold, and Alexander recommend that the search for an appropriate corporate strategy should involve three analytical steps: Examine each business unit (or target firm in the case of acquisition) in terms of its strategic factors. Examine each business unit (or target firm) in terms of areas in which performance can be improved. Analyze how well the parent corporation fits with the business unit (or target firm)