Strategic Management 1 marzo 2016 1 COMPANY STRATEGY The company strategy is composed of all the decisions and actions, past or future, that define how the company interacts with the environment. The goal is to achieve lasting success, obtainable on one hand by creating economic value, and on the other by satisfying stakeholders. 2 CORPORATE STRATEGIC MODEL Profit and performance Social consensus Commercial consensus Product system 1 Product system 2 3 CUSTOMER’S NEED 2-3 CUSTOMER’S NEED end market 1-2 1-1 Opportunities for collaboration and using resources 1. RESOUCES & CAPABILITIES 2. ORGANIZED 3. TO RUN ACTIVITIES CUSTOMER’S NEED WORK CAPITAL RAW MATERIALS INSTITUTIONS supply markets CORPORATE STRATEGIC MODEL DECISIONS 1. Corporate structure; 2. Resources and competencies; 3. End market; 4. Value proposition; 5. Remuneration and perspective; 6. Categories of social partners. 4 THE LEVELS OF CORPORATE STRATEGY Meta-Strategy Economicfinancial strategy CORPORATE STRATEGY BUSINESS STRATEGY (BU) Organizational strategy Portfolio strategy Social strategy Competitive strategy Competitive ….. strategy Competitive strategy Business 1 Business 2 Business N Supply strategy Production strategy FUNCTIONAL STRATEGY Sales strategy 5 HOW TO MEASURE SUCCESS SOCIAL C O M P E T I TIVE • EMPLOYEES (retention, turnover, absenteeism, • Market share in VALUE union disputes) • Market share in VOLUME • SUPPLIERS (average days for payment, length of • Market share, RELATIVE commercial relationships) • Penetration levels in specific segments • FINANCIAL BACKERS (debt, average cost of • Premium Price interest-paying debt, nature of financing) • Brand Relevance • GOV. & LOCAL COMMUNITY INCOME COST FLOWS FLOWS ECONOMIC 6