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Successful Strategies Must be clear and simple. Must define how to get more than a fair share. Companies must be committed to its strategic moves and signal that commitment to competitors. Companies must follow through on commitments continually and retaliate quickly and aggressively to counter moves. Innovate The Strategy Focused Organization * Mission: “Why we exist” Core Values: “What we believe in” Vision: “What we want to be” Strategy: “Our game plan (how to win)” Goals For Implementing Strategy (Metrics): “What we need to do” OUTCOMES Satisfied Shareholders Delighted Customers Effective Process Motivated and Prepared Workforce * The Strategy Focused Organization, Robert Kaplan, David Notron, Harvard Business School Press, 2001 * 25 * 26 * 27 * 28 What is Strategy? Strategy is about getting customers and keeping them. Drucker: “The purpose of a business is to create a customer.” “Build it and they will come.” Strategy is planning that allows you to get more than your fair share. Also “Strategic thinking is the art of outdoing an adversary, knowing that the adversary is trying to do the same to you.” “It is also the art of finding ways to cooperate, even when others are motivated by self-interest, not benevolence. It is the art of convincing others, and even yourself, to do what you say. It is the art of interpreting and revealing information. It is the art of putting yourself in others shoes so as to predict and influence what they will do.” The Art of Strategy, Dixit and Nalebuff, W.W. Norton, 2008. Strategic Planning Planning how to get more than your fair share involves: Scanning the overall environment Scanning and researching the industry environment Researching direct competitors Researching a firm’s skills and resources Analyzing current strategy “The Five Competitive Forces That Shape Strategy,” Michael Porter, Harvard Business Review, January 2008. Before the Internet Michael Porter wrote the initial model for the Five Forces in 1979. He wrote “Wha
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