Strategy and Decision Making

x: Relative cost position

y: Nonprice buyer value delivered

• Operational effectiveness (OE) means performing similar activities better than rivals perform them

• Operational effectiveness includes but is not limited to efficiency

• It refers to any number of practices that allow a company to better utilize its inputs by, for example, reducing defects in products or developing better products faster

• In contrast, strategic positioning means performing different activities from rivals’ or performing similar activities in different ways

• Nokia

• Kodak

1. Mission, vision and values

2. Industry structure

3. Strategic positioning

4. Market approach

5. Culture

6. Decision-making process

Motive, purpose or reason for being of the company. Define its fundamental purpose.

Where we want to take the company. What kind of company do we want to become?

Set of guiding principles and fundamental beliefs that help a group of people function together as a team and work toward a common business goal.

• Cost leadership: Outperform competitors by producing at the lowest cost, consistent with the quality demanded by the consumer.

• Differentiation: Create value for the customer through product innovation, product features, customer service, etc. for which the customer is willing to pay.

Customer needs

• A unique value proposition

• A strategic fit

• A distinctive value chain

“Values, principles, traditions and ‘ways of doing things’ shared by the members of the company that influence the way they act and distinguish the organization from all others.”

• It is a perception, invisible and intangible, but employees perceive it in what they experience within the organization.

• All of them, regardless of their position in the company, describe the company culture in similar terms. shared culture

• Attention to detail

• Innovation and Risk-Taking

• Stability

• Outcome Orientation

• People Orientation

• Team Orientation

• Aggressiveness

1. Analysis of the situation/problem

2. Synthesis: problem definition

3. Decision criteria definition

4. Alternatives generation

5. Decision

6. Action plan