工商管理专业MBALectureLecture

工商管理专业MBALectureLecture第1页/共18页KeyConsiderationsWearelookingattheissueofcorporatestrategyfromtheperspectiveofwhatisthemulti-businessscopeoftheorganisation.WhatistheoptimalnumberofbusinessesforthefirmShouldwestayinthisbusinessHowshouldourbusinessesbemanagedHowisthecorporationgoingtooperateasawhole2第2页/共18页3ThesourcesofsuperiorprofitabilityRATEOFRETURNABOVETHECOSTOFCAPITALHowdowemakeMoney?INDUSTRYATTRACTIVENESSWhichindustriesshouldwebein?CORPORATESTRATEGYCOMPETITIVEADVANTAGEHowshouldwecompete?BUSINESSSTRATEGY第3页/共18页StrategiesDiversificationtwobroadtypes:Relateddiversificationisdevelopmentbeyondthepresentproductandmarket,butstillwithinthebroadconfinesofthe‘industry’.ForExampleUnileverisadiversifiedcorporation,butvirtuallyallitsinterestsareintheconsumergoodsindustry.(a)Backwardintegrationreferstoinputsintothecurrentbusinessfurtherbackinthevaluesysteme.g.Rawmaterials,machinery,labour(b)Forwardintegrationreferstoactivitieswhichareconcernedwiththecompany’soutputse.g.Transport,distribution,repairs,andservicing.Thesearefurtherforwardinthevaluesystem(c)Horizontalintegrationreferstoactivitieswhicharecompetitivewithordirectlycomplementarytoacompany’spresentactivitiesUnrelateddiversificationreferstoactivitydevelopmentbeyondthepresentindustryintoproducts/markets,whichatfacevalue,maybearnoclearrelationshipwithpresentproducts/markets.4第4页/共18页Relateddevelopments;relatedandunrelateddiversification5第5页/共18页SomeReasonsforrelatedDiversificationPossibleadvantagesExamples/Comments1.ControlofsuppliesQuantityQualityPriceTeaProcessorsownplantationstosecurecontinuityofSupply.ComponentsformotorcarsmayneedtobemanufacturedbythecompanyPrintingfacilitycanbecheaperin-house2.ControlofmarketsUKshoemanufacturersownretailoutletstogainguaranteeddistribution3.AccessofinformationManufacturersareinvolvedinmachinerydevelopmentcompaniestokeepabreastofdevelopment4.CostsavingsFullyintegratedsteelplantssavecostonreheatingandtransportBuildingon:ExpertiseTechnologyAccountancyFirmsmovingintotaxadviceorcorporaterecoveryTransfertosimilartechnicalrequirementsinanotherfield6.SpreadingRiskAvoidoverrelianceononeproduct/market,butbuildonrelatedexperience7.ResourceUtilisationUnder-utilisedmanufactureracquirescompanywithcompatibleproductstofillcapacity6第6页/共18页SomereasonsforunrelateddiversificationPossibleAdvantagesExamples/CommentsNeedtouseexcesscashorsafeguardprofitsBuyingataxlosssituation2.PersonalvaluesorobjectivesofpowerfulfiguresPersonalimagelocallyornationallymaybeastrongmotiveExploitingunderutilisedresourcesFarmersusefieldsforcampsites,festivalsCompanieshiretheirconferencesfacilities4.EscapefrompresentbusinessAcompany’sproductsmaybeindeclineandunrelateddiversificationistheonlyescape5.SpreadingriskSomecompaniesbelieveitisgoodsensetohave‘alltheireggsinonebasket’.6.EvenoutcyclicaleffectsinagivensectorToymanufacturersmakeasubcontractforplasticmouldproductsforindustry.7.BenefitsfromsynergisticeffectsPositivecashflowfromonebusinessusedtofundingrequirementsofanother7第7页/共18页StrategiesforDevelopmentWithdrawal:thisoptionneedstobeconsideredbyorganisationswhencompleteorpartialwithdrawalneedstobeconsidered.Assetscanchangeovertime,mayneedtodispose,acquireothersetc.Entrepreneurmayhaveachievedgoalswishestomoveonacquiredifferentthings.Consolidation:Ingrowingmarket,companyexpandswithmarkettomaintainshareofmarketInmaturemarketmoredifficultchallenges,tendencyisforemphasisoncost,qualityofproductorservice.Competitorsareallseekingtoconsolidatetherepositions第8页/共18页StrategiescontinuedConsolidationIndecliningmarkets;needtoconsidersignificantchangese.g.Buyinguptheorderbooksofthoseleavingthemarket,distributorsmayneedtofindnewsuppliers.Newinternalagreementstomaincompetitiveedge.Duringatransitionformamaturetoadecliningmarket,theymightconsiderharvestingi.e.gainingmaximumpayofffromstrongposition.e.g.Licensingoftechnology,ordistributionrights,orleasingfacilities.Difficultdecisionwhethertoremaininmarketwherethereisproductdeclinebutchanceofrecovery第9页/共18页StrategiesContinuedMarketPenetration:howeasythisisdependsonnatureofthemarketandpositionofcompetitors.Ingeneraleasieringrowingmarkets,thanstaticmarketsormaturemarkets.Productdevelopment:afirmmightthinkconsolidationisnotsufficientinitself.Nospecialstrategyforthisbutthefollowingfactorsinfirmshavebeenshowntohaveinfluencedtheirsuccess.TheyaremoremarketfocusedinselectingopportunitiesforproductdevelopmentandintailoringthemtomarketneedsTheyconcentratedondevelopingproductswhichbuiltontheircorecompetencesandskillsThecommunicatedthenewproductswellwithinthefirmthusavoidingdisruptionstothenewdevelopmentsTheyusedcross-disciplinaryteams,aswellasskillsandviewsformoutsidethefirm,includingsuppliersandcustomers.10第10页/共18页StrategiesContinuedMarketDevelopment:inthecaseofmarketdevelopmenttheorganisationmaintainsthesecurityofitspresentproductswhileventuringintonewmarketareas.ThesemayincludeNewmarketsegments;exploitingnewusesoftheproductornewgeographicalareasOptionofproductdevelopmentandmarketdevelopmenttogetherorseparatelyExportdriveOutsourcingtoothercountriesforcostsoflabour,transportsupplies.11第11页/共18页PortfolioAnalysisMarketPowerandMarketShareareimportantconceptsforastrategicbusinessunittoconsider.RelativemarketsharemeanstheamountofmarketshareafirmhasrelativetoitcompetitorsThereisanestablishedrelationshipbetweenmarketpowerandperformanceincommercialorganisations.UsefultobreakdownmarketsharebysegmentsandtoexaminemarketsharewithinthosesegmentsWhatisimportantistoseewhichmarketsegmentsareimportantfromcorporate/profitpointofview.Segmentmaybemorecompetitiveorgrowingmoreorbigger12第12页/共18页GrowthShareMatrix

MarketShareCOMPETITIVEPOSITIONHighLowStrongAverageWeakHighHighMarketStars?sIndustryGrowthAttractiveness

LowCashDogsMEDCowsLow

TheoriginalBostonConsultingGroupmatrix(BCG)13第13页/共18页GrowthShareMatrixcontinuedAstarisanSBUwhichhasahighmarketshareinagrowthmarket.Thefirmmaybespendingheavilytogainthatshare,butexperiencecurvebenefitsshouldmeanthatcostsarereducingovertimeandatfasterratethancompetitorsThequestionmarkisanSBUwithhighgrowbutdoesnothaveahighmarketshare.FirmcouldbespendingheavilybutnotreducingcostsandnotmakinginroadsoncompetitionTheCashCowhasahighmarketshareinamaturemarket.Lowgrowthmarketconditionsstable,needtospendisless.HighrelativemarketsharemeansSBUabletomaintainunitcostlevelsbelowcompetitors.Dogshavelowshareinstaticordecliningmarkets,worstofallcombinations,maydraincashandusedisproportionateamountoftimeandresources.14第14页/共18页MarketattractivenessandbusinessstrengthIndicatorsofSBUStrengthIndicatorsofmarketattractivenessMarketshareMarketsizeSalesforceMarketgrowthrateMarketingCyclicalityCustomerserviceCompetitivestructureR&DBarrierstoentryManufacturingIndustryprofitabilityDistributionTechnologyFinancialresourcesInflationImageRegulationWorkforceavailabilityBreadthofproductlineSocialIssuesQuality/reliabilityEnvironmentalissuesManagerialCompetencePoliticalissuesLegaliss