Session 3 & 4

Value Delivery Process

CHOOSING CREATING DELIVERING COMMUNICATING

The Value Chain (Porter)
 Core Competencies

“Collective learning in the organization, especially how to co-ordinate

diverse production skills and integrate multiple streams of
technologies.”

“Organization of work and delivery of value”

“Communication, involvement, and deep commitment to working

across organizational boundaries.”
 POTENTIAL ACCESS TO WIDE
VARIETY OF MARKETS

Core SIGNIFICANT CONTRIBUTION TO THE

Competencies PERCEIVED CUSTOMER BENEFITS

DIFFICULT TO IMITATE
Marketing
Plan
• Central instrument for directing
and coordinating the marketing
effort.

• Level of operations
• Strategic Marketing Plan:
Value proposition & target
markets
• Tactical Marketing Plan:
Product features, promotion,
pricing, sales channel and
service.
Corporate and Division Strategic Planning
• Defining the Corporate Mission
• Establishing the SBU
• Assessing Growth Opportunities
Defining the Corporate Mission
• Business Definition??
• Product vs Market?? (Link)
• Mission Statement Characteristics
• They focus on limited number of goals
• They stress the company’s major policies and values
• They define the major competitive spheres within which the company will operate
• They take a long-term view
• They are as short, memorable, and meaningful as possible
Establishing the SBU
• SBU Characteristics
• It is a single business, or a collection of related businesses, that can be planned
separately from the rest of the company.
• It has its own set of competitors.
• It has a manager responsible for strategic planning and profit performance, who
controls most of the factors affecting profit.
Resource
Allocation to
SBU’s
• BCG Matrix
Assessing
Growth
Opportunities
Intensive
Growth
• Product/Market
Expansion Matrix (Ansoff
Matrix)
Integrative Growth
• Horizontal Integration

• Vertical Integration
• Backward
• Forward
 • Concentric
Diversification
Growth • Conglomerate
SBU Strategic Planning
Goal Formulation
• Criteria for Management by Objective (MBO)
• They must be arranged hierarchically, from most to least important
• Objectives should be quantitative whenever possible
• Goals should be realistic
• Objectives must be consistent
 Porter’s Overall cost leadership
Generic
Strategies
Differentiation

Focus
Strategic
Formulation Strategic
Alliance
Product or service alliance
Promotional alliance
Logistic alliance
Pricing collaborations