Chap 1
Chap 1
Chap 1
What is Strategy?
What Is Strategy?
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• The AFI Strategy Framework (1 of 4)
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• What is a Strategy?
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• Strategy
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• How to Gain a Competitive Advantage
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• Sustainable Competitive Advantage
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• Competitive Disadvantage & Competitive
Parity
Competitive Disadvantage: A firm that underperforms its rivals
or the industry average.
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• Strategic Positioning
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• Strategic Positioning Requires Trade-offs
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• A Unique Strategic Position
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• What Is a Good Strategy?
• Guiding Policy
Formulation
• Coherent Actions
Implementati
on
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• What Is a Good Strategy?
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• What Strategy Is Not
1. Grandiose statements
• Example: “We will be No. #1” , “We will be best”
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• Defining Vision, Mission and Values
Mission:
• How do we accomplish our goals? How to achieve the vision?
Products/Services/markets/ Strategic Commitments
Values:
• What commitments do we make, and what guardrails do we put in
place, to act both legally and ethically as we pursue our vision and
mission?
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• Values
Helps employees
• Understand the company culture
• Deal with complexity
• Resolve conflict
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• Customer vs. Product Oriented Vision
Statements
Customer Oriented Vision Statement
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• Vision Statement - MTC
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• Customer-Oriented Vision Statement
Examples
VISION STATEMENTS
Amazon: To be Earth’s most customer-centric company, where customers can find
and discover anything they might want to buy online.
Alibaba: To make it easy to do business anywhere.
Better World Books: To harness the power of capitalism to bring literacy and
opportunity to people around the world.
Facebook: To make the world more open and connected.
GE: To move, cure, build and power the world.
Google: To organize the world’s information and make it universally accessible and
useful.
Nike: To bring inspiration and innovation to every athlete in the world.
Tesla: To accelerate the world’s transition to sustainable energy.
SpaceX: To make human life multi planetary.
Walmart: To be the best retailer in the hearts and minds of consumers and
employees.
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• Vision and Competitive Advantage
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• The AFI Strategy Framework
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• The AFI Strategy Framework (1 of 2)
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• Strategy Analysis (A) Topics and Questions (1 of 2)
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• Strategy Analysis (A) Topics and Questions (2 of 2)
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• Strategy Formulation (F) Topics and Questions
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• Strategy Implementation (I) Topics and Questions
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