Please enable JavaScript.
Coggle requires JavaScript to display documents.
Business Strategy - Leading Strategy (1-2 Business Model and Business…
Business Strategy - Leading Strategy
About the Course
About Deepak Somaya
mechanical engineering background
researcher and scolar
professor of strategy and entrepreneurship in the Giese College of Business / law at the university of Illinois since 2008
born and grew up in Mumbai, India
MBA degree>work in management consulting
PhD in BA at the University of California
research
intellectual property
human capital strategies
business model
Course Welcome and Orientation
after the course>the the companion course on corporate strategy
4 core module
1 strategic leadership
mission, vision, value, business model
2 analysis of the external environment
industry analysis, five forces
3 inside the companies
competitive advantage (what makes a company's competitive advantage durable or sustainable in the long run)
4 combine internal and external analysis
to understand how firms can strategically position themselves in their environment
the ways companies can respond to adversity and change by strategically renewing or dynamically repositioning themselves
learning goals
1 understand how a company's strategy is critical for making its different functions and activities fit together, aligning internal element and external environment to create overall performance
2 learn the main strategic management tools and frameworks
3 core skill>the ability to process diverse business and industry data separate important information
extra resources
lecture slides,
video interviews with experts, CEOs of billion dollar companies
case study exercises
soccer
the strategy management of single business unit
Imformation
Overview Lecture
business model and V-A-R-S framework
SWOT framework
two key concept / Coherence and FIT
mission, vision, and values / and their roles in strategic management
Executive Interview Introduction
Kurt Bock, CEO of Country Financial
Sean Chou, founder and CEO of Catalytic / previously CTO of Fieldglass
Al Goldstein, CEO and founder of Avant
1-1 Mission, Vision, and Values
mission > the company's ultimate goals and objectives
ex,Google's mission > organize the world's information and make it universally accessible and useful
make the mission become core value and belief / what you do everyday
if you have a mission
makes it transparent to stakeholders, customers, investors, employees, and business partners why it exists and what's its goals
easier to resolve dispute about future direction / focus on business that fits their mission
good inspiration / boost employees and managers' work efficiency
how to make "good" mission
emphasize creation of customers or social value / not being best or making money
focus on customer needs or problems to address / not products or services
actually lived and practiced
memorable, inspiring, and brief
rate of mission : poor<okay<good
vision > the company's aspirational statement about future direction and impact
ex,Google's vision > to provide the access to the world's information in one click
not permanent / can be achieved or replaced by next vision
strategic intent > strategic plan to achieve vision
value > a code of conduct for the company and employees
ex, Google's 10 core beliefs
up-play value, not down-play
1-2 Business Model and Business Model Innovation
examples of business model failure
stores are replaced by internet retailers and online media
liquor stores survive
less internet-base competition
unusual phenomenon
retail establishment closed down
they pushed out too quick
they failed due to different type of competition
new companies provide better business model to meet the same customer need
ex, Netflix and Redbox beated Hollywood Video
potential crisis
companies may be satisfied with income statement or balance sheet and ignore their business model
understand and recognize that business model is vital
companies pay more attention on their business models can have larger increase in profitability
what is business model ?
there is no generally accepted answer
became popular since 1990s (internet boom)
key elements
V - value proposition
business model with more EVA (economic value added) than the older one
R - realization of value or the revenue model used
A - activities, resources, and capabilities that make business model implement
S - scope of the enterprise pursuing business model
role of leadership
be a good example and encourage others
failure example > Enron
responsible to
communicate
mission, vision, and value
V-A-R-S Framework (Netflix's business model)
reasonable price & more value than rental stores
reduce cost / no inventories, no realistic stores
based on internet ordering
activities of website, application, recommendation system