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BPM
Marco van der Woude
What is a strategy?
How do you develop it?
Strategy is an assumption
Process
Influences on strategy
Environment
Suppliers
Customers
Where
we are
today
What we
want to be
STRATEGY
Regulations
Shareholders
Technology
Competition
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Analysis
PESTEL
Political
Economic
Socio-cultural
Technological
Environmental
Legal
PESTEL examples
Technological:
lower price of electronic components
makes it possible to produce complex
electronic equipment at lower prices
PESTEL Examples
Socio-Cultural:
Ageing population provides market
opportunities for products sold to older
people
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PESTEL
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PESTEL
Use cheaper
flights
Opportunity
Less money
to spend
Less travel
Threat
Threat
Bank
Crisis
Credit not
available
Strength:
low
inventory
Strategy:
focus on low cost
Weakness:
long
distribution
chain, high
iinventory
Strategy: change production
system
Strength:
money in
the bank
Strategy: buy suppliers
http://hel.org.uk/studies/internationalmanagement/strategicmanagement/gsm5porter5.htm
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Legal restrictions
Economies of scale
Entry Barriers
Access to distribution
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Competition
(Un)balance in market
Market growth
Differentation
Exit?
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Number of competitors
Switching cost
Added Value
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Supplier Power
Dependence
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Substitution
Replacement
Changing pattern
Different choice
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Many knowledgeable
suppliers
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Porter 5 forces
SWOT analysis
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SWOT
Internal Factors:
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SWOT
External Factors:
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Internal
External
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SWOT matrix
Opportunity
Threat
Geo expansion
Strength
Employees
from many
countries
Weakness
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SWOT Matrix
Opportunity
Threat
Geo expansion
Strength
Weakness
Only
English
speakers
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SWOT Matrix
Opportunity
Threat
New Laws
demanding extra
testing
Strength
In house
testing
available
Weakness
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SWOT Matrix
Opportunity
Threat
New Laws
demanding extra
testing
Strength
Weakness
Product
doesnt pass
test
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SWOT Matrix
External Analysis
Strengths
Weaknesses
Internal Analysis
Opportunities
Threats
Grow
Defend
Improve
Withdraw
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SWOT
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BCG Matrix
Portfolio Management
For each combination of product and
market (Product Market Combination or
PMC), determine:
Market Share
Market Growth
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BCG Matrix
Market Share
High
Low
High
Market
Growth
Low
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Assignment 1
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Companies
Group
Company
Ryanair
easyJet
ZARA
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Dont forget
Dont copy/paste !
Mention your sources, plagiarism will
result in a 0 score.
Submit your reports by email to
Marco.vanderwoude@han.nl
Deadline is this Friday (13-2) 23:59
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Assignments
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Some technicalities
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MC trial question
What is a strategy?
A plan to achieve your goals
A set of assumed relationships between
causes and results
A set of activities designed to make
things happen
An action plan
MC trial question
What is the correct order?
SWOT before PESTEL
5-Forces before PESTEL
5-Forces before SWOT
PESTEL after BSC
MC trial question
What is the best overall strategy for an area
where Threats correlate with Strenghts?
Defend
Grow
Withdraw
Improve
Sources
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