Strategy Formulation & Implementation

MGMT.6910-061

Week 1 Slides

Introductory comments

Review Syllabus, text book, class notes, etc.

Discuss Group Project and assignments

Introduce “What is Strategy?”

Course Description The Course walks you through the process of strategic analysis. strategic decision making. It offers students detailed discussion on how contemporary firms develop their business strategies in an ever changing competitive environment. development of alternate courses of actions. The Course places a special emphasis on the integrative aspects of strategy implementation. implementation and management of strategic plans. It will cover major concepts and numerous real life examples to elaborate these concepts. .

2 and 3 . assignment 4.6.10 points each. Evaluation/Grading Discuss Board participation 25% (discussion board posts and quizzes) Individual Assignments (4 assignments) 35% (Assignments 1.5points) .5 points) Group Project (Business Strategy Game .BSG) 40% (BSG graded.30 points. Report.5points and Presentation.

21st edition. Strickland. Gamble.Text Book There is a Custom eBook based on “Crafting and Executing Strategy. McGraw Hill Publishing.” instructions in Syllabus Class Notes uploaded by Sunday 8:00AM Weekly Chat Sessions Sundays see Blackboard home page for times Participation DB Posting comments Use microphone for audio chats . Thompson.

Group Project – BSG Business Simulation Instructor will form groups by Sunday .

Discussion Board Posts .Weekly Question responses must be posted by Saturday midnight Comments on a classmate’s post(s) by following Wednesday Chat Sessions Not mandatory but STRONGLY recommend to participate Discuss DB Posts and Assignments Email Must use Blackboard email to communicate with me DO NOT USE UML EMAIL .

Kodak. Microsoft. Maytag. FedEx and UPS) -Analyzing financial performance -Understanding of strategy and execution -Strategy Planning Process and Issues .Lacks employee empowerment .Does not recognize/accept fast changing World . thus creates execution issues . Xerox. staffing.Too much structured. tops-down. rigid . communication. performance evaluation) -Breakdown in the process – experience -Business Basics and Starting Points -“What is Strategy?” .Focuses on Market share Vs Opportunity share -Importance of Strategy Execution (organizational Alignment.Too quantitative and analytical .Week 1 Notes -Examples (Apple.Lacks organizational involvement.

actions.Strategy – decisions. from top to operating units Strategy Execution – detailed action plan. evaluation and control . long term effect Strategy formulation is based on Strategic Analysis Strategic analysis of Internal and External environments Financial statements are the best place to start External Environment Internal Analysis Trends Understand causes (for good as well as bad) Strategic decisions (on what to do and what not to do) leads to resource allocation --. monitoring. managing. resource allocations & management.hierarchical.

Assignments & Group Projects .

and 9 – questions assigned to students Weeks 3. 4. 6. 5.Assignments There are 4 individual assignments. 7 and 8 – short quizzes Week 10 – feedback (not graded) . 2. three(3) of which are based on Mini Case Studies and one Reflection paper. Specific instructions are given for each assignment Discussion Board Postings Weeks 1.

Discussion Boards) in Blackboard and also Chat in BSG . download and review Player’s Guide (Player’s Guide is also available on Blackboard). email.Connect with your group. .4 students per group .Group Projects BSG-Online Business Strategy Game) – simulation game Students will be assigned to groups by Sunday .Register using the Registration given in Syllabus and in Blackboard (see Groups) . After registration. . first Practice Round is due Saturday May 27 -You can use collaboration tools (Chat rooms.Log on to BSG-Online and familiarize with different decision screens.

What Is The Business Strategy Game All About? • It’s an online. and Asia Pacific • There are 12 market segments—4 geographic segments each for branded footwear sales to retailers. Latin America. Europe-Africa. for online footwear sales direct to consumers. and for private-label sales . • The marketplace is worldwide—production and sales activities can be pursued in North America. PC-based exercise where you run an athletic footwear company in head-to-head competition against companies run by other class members.

. • The company you will be running began operations 10 years ago. • Each decision period in The Business Strategy Game represents a year. global market share. • The company had Year 10 revenues of $238 million. footwear quality. costs. net profits of $25 million (equal to $2. and the first set of decisions you and your co-managers will make is for Year 11. and its products are well-regarded by the buyers of athletic footwear. and so on. Your Company’s Situation • All companies start out on the same footing—with equal sales volume. revenues. and a solid B+ credit rating. an ROE of ~17%. • Your company is in sound financial condition. is performing well.50 per share). profits.

The Decisions You Will Be Making You and your co-managers will make decisions each period relating to • Corporate social responsibility and citizenship (up to 6 decisions) • Production of branded and private-label athletic footwear (up to 10 decisions each plant. with a maximum of 4 plants) • Plant capacity additions/sales/upgrades (up to 6 decisions per plant) • Worker compensation and training (3 decisions per plant) • Shipping (up to 8 decisions each plant) • Pricing and marketing (up to 10 decisions in 4 geographic regions) • Bids to sign celebrities to endorse your company’s footwear (2 decision entries per bid) • Financing of company operations (up to 8 decisions) • Plus there is a screen for making annual sales forecasts and deciding whether to have inventory clearance sales .

Competition Is Head-to-Head: Company Against Company The head-to-head competition among companies to persuade consumers to buy their brand of athletic footwear is based on 10 factors: • Price • Number of models/styles • Styling/quality (S/Q) rating • Advertising • Size of retailer network • Celebrity endorsements • Delivery time • Retailer support • Mail-in rebates • Shipping charges (Internet sales only) .

BSG Key Points You Have Many Strategic Options No One Strategy Is “Best” A Company’s Competitive Effort vis-à-vis Rivals Is Crucial The Contest in the Marketplace Is a “Battle of Strategies” Outcompeting Rivals Is the Key to Market Success It’s All About Developing Winning Strategies .

Year 15 21-Jun-17 11:59 pm Quiz 2 Deadline 24-Jun-17 11:59 pm Decision 6 .Year 11 7-Jun-17 11:59 pm Decision 2 .Year 19 12-Jul-17 11:59 pm Decision 10 .Year 13 14-Jun-17 11:59 pm Decision 4 .Year 20 15-Jul-17 11:59 pm End-of-Game Peer Evaluations Deadline 22-Jul-17 11:59 pm . All times are displayed in the US/Eastern time zone — UTC -04:00 Decision Deadline For Saving Entries Quiz 1 Available 15-May-17 11:59 pm Quiz 1 Deadline 27-May-17 11:59 pm Practice Decision 1 .Practice Year 12 3-Jun-17 11:59 pm End of Practice Period (Data reset to Year 11 and practice results are no longer available) 5-Jun-17 11:59 pm Decision 1 .Year 17 1-Jul-17 11:59 pm End-of-Game Peer Evaluations Available 2-Jul-17 11:59 pm 3-Year Strategic Plan 8-Jul-17 11:59 pm Decision 8 .Year 18 8-Jul-17 11:59 pm Decision 9 .Year 14 17-Jun-17 11:59 pm Decision 5 .Year 12 10-Jun-17 11:59 pm Decision 3 .Practice Year 11 27-May-17 11:59 pm Quiz 2 Available 28-May-17 11:59 pm Practice Decision 2 .Year 16 24-Jun-17 11:59 pm Decision 7 .

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Decision Screens Corporate Citizenship Sales Forecast Performance Reports Plant Capacity Footwear Industry Report Branded Production 7-Page Branded Distribution Competitive Intelligence Report Internet Marketing Market Snapshot Wholesale Marketing Company Analysis Celebrities Bids Company Operating Reports Plant-Label Operations Finance & Cash Flow .

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1 Review P&G’s income and balance sheet statements for ALL the last 5 years (you will get this data from their website) and comment on trends in revenue. R&D. that is all line items as % of revenue). Discussion Board Question Question Assigned to Q. cash position and debt (it is suggested that you convert income statements to a common size statement. SG&A. Post question(s) for instructor and/or comments to share ALL with all . gross margins. Include in your comments what you see as their strategy and how do you think they are doing.

Questions? .