By Vadim Kotelnikov, Founder, Ten3 BUSINESS e-COACH Innovation Unlimited, 1000ventures.com
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"Effective managers live in the present but concentrate on the future." James L. Hayes |
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Role of Enterprise Strategy Successful companies are those that focus their efforts strategically. Strategy should be a stretch exercise, not a fit exercise. To meet and exceed customer satisfaction, the business team needs to follow an overall organizational strategy. A successful strategy adds value for the targeted customers over the long run by consistently meeting their needs better than the competition does. Strategy is the way in which a company orients itself towards the market in which it operates and towards the other companies in the marketplace against which it competes. It is a plan an organization formulates to gain a sustainable advantage over the competition. The central strategic issue: why different companies, facing the same environment, perform differently. Strategy answers the following questions:
Strategy is an agreed-on guide to action that should lead business to success in the marketplace by satisfying customer needs better than the competition does. Strategy formulation is the major task for the company entrepreneur and CEO, but it is the task of middle managers and project managers to carry this strategy out and turn it into results. Strategic Leadership
As a
strategic leader your prime responsibility is to ensure
that your organization is going in the right direction. T Ten Major Schools of Strategic Management Ten deeply embedded, though quite narrow, concepts typically dominate current thinking on strategy. These range from the early Design and Planning schools to the more recent Learning, Cultural and Environmental Schools8... More
New Approaches to
Strategy
Formulation The currently dominant view of strategy is the resource-based theory. Traditional strategy models, such as Michael Porter's five forces model, focus on the company's external competitive environment. Most of them do not attempt to look inside the company. In contrast, the resource-based perspective highlights the need for a fit between the external market context in which a company operates and its internal capabilities. According to this view, a company's competitive advantage derives from its ability to assemble and exploit an appropriate combination of resources. Sustainable competitive advantage is achieved by continuously developing existing and creating new resources and capabilities in response to rapidly changing market conditions. In relation to the 10 traditional approaches, today, strategy formulation should also be a combination of them - judgmental designing, intuitive visioning, and emergent learning; it should be about transformation as well as perpetuation; it has to involve individual cognition and social interaction, co-operative as well as conflictive; it must include analyzing before and programming after as well as negotiating during; and all of this must be in response to what can be a demanding environment.8 Balanced Organization: 5 Basic Elements Empowered Employees (Metal):
Build Your Sustainable
Competitive Advantage Sustainable competitive advantage is the prolonged benefit of implementing some unique value-creating strategy based on unique combination of internal organizational resources and capabilities that cannot be replicated by competitors... More 4 Entrepreneurial Strategies By: Peter Drucker
SWOT Analysis: Questions To Answer
New Goals for Strategic Planning In a business environment of rapid changes, heightened risk and uncertainty, developing effective strategies is critical. They prepare executives to face the strategic uncertainties ahead and serve as the focal point for creative thinking about a company's vision and direction. Many companies get little value from their annual strategic-planning process however. To meet the new challenges, this process should be redesigned to support real-time strategy making and to encourage 'creative accidents'1
Your
Strategic Intent Strategic intent is a high-level statement of the means by which your organization will achieve its vision. It is a core component of your dynamic strategy. Strategic intent cannot be planned all in advance. It must evolve on the basis of experience during its implementation... More 3 Market Leadership Strategies
The market leader is dominant in its industry
and has substantial market share.
If you want to lead the market, you must
be the industry leader in developing new
business models and new products
or services.
You must be on the
cutting edge of
new technologies and innovative
business processes. Your
customer value proposition must offer a superior solution to a
customers' problem, and your product must be well
differentiated...
More
Case in Point
7-Part Competitive
Strategy of Microsoft
Although Bill Gates, Founder of
Microsoft, built his empire on technological products, his business
mastery is even more important than his technical skills, and his
competitive urge is a huge driving force.
The early success of Microsoft was founded on
the company's 7-part competitive strategy...
More
Your
Innovation Strategy The innovation portfolio provides visibility that allows your firm pace the introduction of new products and services. You should balance the introduction of revolutionary products with incremental improvements in others so as to maintain a steady flow. By having a comprehensive view of your initiatives over time, you can avoid either overwhelming or underwhelming the marketplace. 3 Primary Criteria to Assess Your Innovation Portfolio Besides assessing each initiative individually for risk, investment, return, and timing, assess your total portfolio to ensure that you have the right initiatives in it:
Case in Point Silicon Valley Companies: Deciding If Your Innovation Portfolio Has Enough Stretch Adapted from Relentless Growth, Christopher Meyer
A little field-mouse was lost in a dense wood, unable to find his way out. He came upon a wise old owl sitting in a tree. "Please help me, wise old owl, how can I get out of this wood?" said the field-mouse. "Easy," said the owl, "Grow wings and fly out, as I do." "But how can I grow wings?" asked the mouse. The owl looked at him haughtily, sniffed disdainfully, and said, "Don't bother me with the details, I only advise on strategy."
Strategy Management... Changing Strategic Direction... Practicing Balanced Approach to Achieve Strategy... Differences between Strategic Management and Classic Managerial Functions... Creating an Enterprise Strategy... Two Interwoven Parts of the Strategic Achievement... Does Your Organization Struggle with Maintaining Strategic Focus?... Strategy Programming... Brand Vision... Strategy Innovation: Evolution of a Successful Strategy... Dynamic Strategy as a Source of Sustainable Competitive Advantage... Strategic Thinking... Strategic Learning... Developing Strategic Market Focus... Implementing Strategy through Projects... Strategy Map Development for a Start-Up Venture (sample)...
Formulation is Easy, it
is
Implementation that is the Problem...
Milestone-based Thinking... FutureStep a New Strategic Management Process...
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