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1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur And rsen. All rights reserved. Implications for Competitive Advantage: ? existing value chains will fragment into multiple businesses each with its own sources of petitive advantage ? some new businesses will benefit from economics of scale, which can give rise to monopolies ? as value chains fragment and reconfigure, new opportunities will arise for purely physical businesses Strategy amp。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur And rsen. All rights reserved. POTENTIAL ENTRANTS BUYERS SUBSTITUTES SUPPLIERS INDUSTRY COMPETITIORS INTENSITY OF RIVALRY 5 Forces Model Threats of potential entrants Bargaining power of buyers Bargaining power of suppliers Threats of substitute products 21 169。 1998 Arthur And rsen. All rights reserved. Key Deliverables ? Determine buyer values via secondary research, interviews with key buyers ? Assess effectiveness of current anisation structure ? Customer segmentation and value analysis ? Value chain and Cost/Asset Maps ? Summary of performance relative to key performance indicators (performed concurrently with industry/petitor analysis) ? Summary of strengths and weaknesses Major Activities (cont’) Phase 3: Internal Analysis 17 169。 1998 Arthur And rsen. All rights reserved. Key Deliverables ? Determine preliminary strategy/ planning issues ? Select problem solving framework and develop detailed research and analysis plans ? Industry and Company structure models (. Five Forces, Value Chain) ? Summary of key issues ? Issue analysis worksheets Major Activities (cont’) Phase 2: Preliminary Direction Setting 13 169。 Action Plan Strategic Planning Methodology 9 169。 1998 Arthur And rsen. All rights reserved. ? Introduction ? Strategic Planning What is it? ? Arthur Andersen Strategic Planning Methodology ? Case Study Exercise Agenda for Day 1 ? Case Study (continue) ? Latest thinking in Strategy ? Corporate Strategy for Asian Conglomerates ? Selling Strategy work today Agenda for Day 2 Agenda 7 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur And rsen. All rights reserved. Strategic Planning Training Session 1 January 22, 1998 1:30 5:00 pm Chow Sang Hoe Senior Manager, Kuala Lumpur 2 169。 1998 Arthur And rsen. All rights reserved. STRATEGIC TACTICAL OPERATIONAL Strategic Plan Evaluation Action Goals amp。 1998 Arthur And rsen. All rights reserved. External Analysis Project Organisation Preliminary Direction Setting Set Business Objectives Strategy Formulation Develop Action Plan Internal Analysis Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Organise amp。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur And rsen. All rights reserved. Market Peration Product Development Diversification Market Development Customers Products Current Current New Strategic Alternatives New 27 169。 1998 Arthur And rsen. All rights reserved. 1. Illustrate The Importance Of Trying To “Read customers” 2. Illustrate The Importance Of Trying To “Read Competitors” 3. Show How A Rapidly Changing Environment /Industry Creates Problems For Some But Opportunities For Others (Poulan) Case Study: Chain Saw Industry Objectives 31 169。 1998 Arthur And rsen. All rights reserved. Strategic Planning Training Session 2 January 23, 1998 8:00 am 10:00am Chow Sang Hoe Senior Manager, Kuala Lumpur 35 169。 extent of residual uncertainties Step 2 choose strategic posture Step 3 build portfolio of actions Step 4 actively manage the strategy Strategy under uncertainty 38 169。 1998 Arthur And rsen. All rights reserved. Level 3 A Range of Futures ? A range of possible outes, but no natural scenarios ? Latentdemand research ? Technology forecasting ? Scenario planning ? Entering emerging markets, such as India ? Developing or acquiring emerging technologies in consumer electronics What Can Be Known? Analytic Tools Examples 42 169。 Plan Gather amp。 1998 Arthur And rsen. All rights reserved. Strategy amp。 1998 Arthur Andersen. All rights reserved. 169。 what kind of value to offer to customers Customer intimacy 3 value disciplines Product leadership Operational excellence Discipline of market leader 53 169。 1998 Arthur Andersen. All rights reserved. 169。 1998 Arthur And rsen. All rights reserved. Not Only But Also... Mobilising For The Future ? Strategy as Fit ? Strategy as Resource Allocation ? Strategy as Stretch ? Strategy as Resource Accumulation and Leverage The New Strategy Paradigm 59 169。 1998 Arthur And rsen. All rights reserved. Why do great panies fail? Unparalleled track record of success No gap between expectations and performance Contentment with c