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Business Strategy Basics Key Strategy Concepts:Fit and Providing Superior Value Key Strategy Concepts:Providing Superior Value, Differentiation, and Core Competencies Key Strategy Concepts: Providing Superior Value, Quality, Measuring and Tracking Results Additional Observations on Strategy Hierarchy of Strategy Strategic Business Units SBU Organizational entities within within a corporation that address a single business. SBUs must be capable of being planned and measured separately from the rest of the organization (though this does not imply independence from the larger organization). Business Portfolio A collection of strategic business units that serve various needs in the corporate structure. An ongoing firm will need Sources of cash to fund investment in growing markets New possibilities emerging from research and development that may be valuable business opportunities in the future. Exhibit 5-2 Growth-Share Matrix Growth Share Matrix: Stars Growth Share Matrix: Cash Cows Growth Share Matrix: Dogs Growth Share Matrix: Question Marks Potential Issues with the Growth-Share Matrix The relationship between market share and profitability is suspect. There is inherent subjectivity in the analysis of shares and growth. Investment implications of the categories are not consistent. The matrix is a snapshot in time. Exhibit 5-5 Attractiveness-Strength Matrix Strategic Management Steps in the Business-to-Business Company Special Issues in Strategy Development Strategy Development and the Internet Volatility and Uncertainty Require Flexibility Strategy Implications of Value Networks Strategy Implications of Market Ownership Strategy Development in New Business * Chapter 5 Concepts and Context of Business Strategy Goals A general statement of desirable outcomes, directly supportive of and aligned with the mission. Mission A qualitative description/definition of who the organization is and what it expects to accomplish. It is further defined by goals and objectives. O
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