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Business Strategy - Elements Business Strategy
BU481 Chapter 2
Instructors: T. Dominguez, L. Gazzola, P. Lemieux
Goals

Strategic Manageme ent

Value Proposition Product Market Focus Core Activities



Analysis: Degree of linkage and coherence between the elements.

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Pat Lemieux P.Eng

BU481

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Goals

Goals

Goals
HARD GOALS
PROFITABILITY - ROS, - ROCE, - ROE MARKET POSITION - Rank by: Sales, Assets - Market share - Proportion of new products GROWTH - Increase in: Sales, Assets, Earnings - Growth in Earnings Per Share (EPS) RISK - Financial risk - Operating risk MANAGEMENT - Autonomy - Status

Product Market Focus

Value Proposition

Core Activities

Product /Market Focus
PRODUCT

Product Market Focus

Value Proposition

Core Activities

SOFT GOALS

Strategic Manageme ent

Strategic Manageme ent

EMPLOYEES - Economic security - Advancement opportunities - Working conditions COMMUNITY (local) - Contribution to community - Control of externalities SOCIETY (broad) - Benefits of innovation - Contribution to political stability and representation

EXISTING

NEW

EXISTING MARKET NEW

Market penetration

Product development

Market development

Diversification

BU481

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Pat Lemieux P.Eng

BU481

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Goals

Goals

Value Proposition


Product Market Focus

Value Proposition

Core Activities

Value Proposition – Examples
PRICE
DIRECT List price Discount structure Rebates Credit t C dit rates INDIRECT Financial assistance Capital VS operating costs Life cycle cost Cost absorption (delivery, training)

Product Market Focus

Value Proposition

Core Activities

Strategic Manageme ent

1.

2.

Valued by customer in the “Target Market ”. Differentiator


Set a product or service apart from competition within the “Target Market”

Strategic Manageme ent

A product / service attribute is an element of the value proposition when it is:

FEATURES
TANGIBLE Quality