1 / 17

Chapter Five

Chapter Five. Business Mission and Strategy. 5- 2. Learning Outcomes. 5.1 Recognize how mission statements guide a new business 5.2 Explain what constitutes a sustainable competitive advantage 5.3 Identify a new business’s assets and capabilities

demaree
Download Presentation

Chapter Five

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter Five Business Mission and Strategy

  2. 5-2 Learning Outcomes 5.1 Recognize how mission statements guide a new business 5.2 Explain what constitutes a sustainable competitive advantage 5.3 Identify a new business’s assets and capabilities 5.4 Distinguish which of those assets and capabilities are standard and which are extraordinary

  3. 5-3 Learning Outcomes 5.5 Apply a resource-based analysis approach to arrive at a list of true competitive advantages 5.6 Determine a strategy to match the new business mission

  4. 5-4 Mission Statement • According to the author, “A firm’s mission statement is a brief statement that summarizes how and where the firm will compete.” • From the mission statement, the business develops its strategy, which specifies the broad approaches the new business will use to accomplish that mission.

  5. 5-5 Mission Statement and Strategy • Mission Statement-a brief statement that summarizes how and where a firm will compete • Strategy-the broad approaches a small business will use to accomplish its mission

  6. 5-6 Philo Asian Grille Mission Statement: Philo is a small, intimate Asian dumpling restaurant in Uptown Charlotte that is known for its dedication to authentic food, creative drinks, and exceptional service. • Positioning • Product Mix • Staffing • Location

  7. 5-7 Designing a Mission Statement • Keep it short • Keep it simple • Make it universal • Be specific • Establish measurable goals

  8. 5-8 Mission Statement Impact • In order to consider the range of decisions that are impacted by the mission statement, consider the following three domains: • Advertising • Location of the Business • Staffing

  9. 5-9 Sustainable Competitive Advantage • Defined as an advantage that others cannot immediately copy • All competitive advantages eventually disappear • All businesses should seek to maintain an advantage for as long as possible by continually refining their business model

  10. 5-10 Identifying a Sustainable Competitive Advantage Step 1-Develop a list of your business’s assets and capabilities. Step 2-Break that list into two groups: standard and extraordinary Step 3-Evaluate the extraordinary resources and capabilities

  11. 5-11 Develop a List of Your Business’s Assets and Capabilities • Tangible Assets-hard assets such as equipment or a location • Intangible Assets-things that are not physical but are just as critical to success

  12. 5-12 Split the List into Standard and Extraordinary Assets • First mover advantage-the benefit of gaining customer loyalty by being the first firm to the market • Followers-firms that enter a market after the first mover

  13. 5-13 Evaluate Competitiveness of Extraordinary Resources/Capabilities • Only those that meet all four of the following criteria are truly keys to the new business’s strategy: • Is it Rare? • Is it Easily Substituted? • Is it Durable? • Is it Valuable?

  14. 5-14 Strategy The firm’s strategy is how the firm plans to accomplish its mission. Michael Porter argues that there are fundamentally two broad means to view a business’s strategy: Low cost and Differentiation

  15. 5-15 Four Steps to Developing Strategy Step 1-the firm’s mission statement is employed to specify where the firm will compete and how Step 2-a detailed strategic plan is laid out Step 3-the strategy needs to meet the criterion of being defendable for some length of time Step 4-The firm’s strategy needs to be constantly evaluated

  16. 5-16 Applying the Strategy • Implementing a strategy is all about fit and alignment within the business • The key is that the firm seeks out a consistent set of activities around what typically will be a focus differentiation strategy

  17. 5-17 Summary • Develop the Mission Statement: keep it short, keep it simple, make it universal, be specific, and establish measurable goals • Identify a Sustainable Competitive Advantage: develop a list of assets and capabilities, establish whether they’re standard or extraordinary, evaluate the extraordinary resources and capabilities

More Related