Presentation8 Implementation

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Marketing Strategy

Implementation



Organizational Issues



I hope you ar en¶t using this str ategy

for your pr oject:

³This r epor t, by its ver y length,

defends itself against the r isk of being

r ead.´

- Winston Churchill



³If I had to sum up in one wor d what

makes a good manager , I¶d saydecisiveness. You can use the fanciest

computer s to gather the number s, but

in the end you have to set a timetable

and act.´

- Lee Iacocca



Implementation

� Recall: A strategy involves the product-marketinvestment decision, the value proposition, theselection of functional area strategies and the

identification of bases for SCA.� Must assess strategy in ter ms of organizational

risks and any organizational changes required.Costs? Feasibility?

� Strategy must successfully interact with the 4organizational components and organizational perfor mance.



A Fr amewor k for Analyzing

Organizations

Figur e 16.1

People Str uctur e

Systems Cultur e

Exter nal Analysis

Str ategy

Inter nal Analysis

Per for mance

Per for mance



Organizational Structure

� Defines lines of authority and communication and specifiesthe mechanism by which tasks and programs areaccomplished.

� Decentralization vs. Centralization± Advantages of Decentralization:

� Managers are close to market and understand customer needs so theycan provide superior value propositions.

� Managers understand and product technology.

� Managers are empowered to act quickly.

� Managers can be held accountable for results.� Fosters energy and vitality.

± Disadvantages of Decentralization:

� Does not create cross-business synergies.

� What is best for an SBU is not necessarily best for fir m.



Organizational Structure

� Matrix Organization allows a person to

have two or more reporting links.

� Virtual Cor poration is a team of peopleand organizations specifically designed for

a client or job (e.g., communication fir ms).

� Alliance Networks with suppliers,

customers, distributors and even

competitors.



Systems

� Systems can fundamentally inf luencestrategy:

± Accounting and Budgeting Systems

± Infor mation Systems (e.g., EDI)

± Measurement and Reward System� Must be sure rewarding desired behaviors.

� Must be sure not based so closely to SBU thatthey jeopardize cooperation, communication andsynergy across SBUs.

± Planning System



People� Make, Buy or Convert� Culture involves 3 elements:

1. Set of shared values or dominant beliefs that define anorganization¶s priorities.

2. Set of nor m

s of behavior. Can vary on 2 dim

ensions:

1. Intensity or amount of approval/disapproval attached.

2. Degree of consensus or consistency.

3. Symbols and symbolic activities used to develop andnurture shared values and nor ms.

± Founder and Original Mission (e.g., Disney, Shaklee, P&G)

± Modern Role Models± Activities

± Questions Asked

± Rituals



Shar ed

ValuesNor ms of Behavior

Symbols and

Symbolic Action

Organizational Cultur e

Figur e 16.2

Organizational

Cultur e



Obtaining Strategic Congruence

� Do the systems fit the structure?

� Do the people fit the structure?

� Does the structure fit the culture?



Hit Industry Topology(Figure 16.4)

� Hit Industry is one in which the goal is to

obtain, produce, and exploit a product that

will have a relatively short life cycle (e.g.,

movies, records, fashion, publishing, oil).

± Drillers (e.g., wildcatters, talent scouts, artists)

± Pumpers (e.g., well operators & refiners, DVD

pressers, movie directors, printers)

± Distributors (e.g., pipeline operators, retailers,

distributors)



14

Organizing for Innovation

� Decentralization - Keeping Business Units Small

� Task Forces

� Skunk Works

� Kaizen ± Ongoing improvements

� Reengineering ± Breakthrough Results

� Seeking Radical, Disruptive Innovation



Str ategy Development:

ADiscussion

Agenda

Customer Analysis

y Who are the major segments?y What are their motivations and unmet needs?

Figur e 16.5




A Discussion Agenda

Competitor Analysis

y Who are the existing and potential competitors?

y What strategic groups can be identified?

y What are their sales, share, and profits?

y What are the growth trends?

y What are their strengths, weaknesses, and strategies?

Figur e 16.5



Market Analysisy How attractive is the market or industry and its submarkets?

y

What are the forces reducing profitability in the market,entry and exit barriers, growth projections,cost structures, and profitability prospects?

y What are the alternative distribution channels

and their relative strengths?

y What industry trends are significant to strategy?y What are the current and future key success factors?


A Discussion Agenda

Figur e 16.5




A DiscussionAgenda

Environmental Analysisy What environmental threats, opportunities,

and trends exist?

y What are the major strategic uncertainties

and infor mation need areas?

y What scenarios can be conceived?

Figur e 16.5




A Discussion Agenda

Internal Analysis

y What are our costs, strategy, perfor mance, points of differentiation, strengths, weaknesses, strategic problems

and culture?

y What is our existing business portfolio?

y What has been our level of investment in our variousproduct markets?

Figur e 16.5



Strategy Developmenty What strategic options should be considered - quality, value,

focus, innovation, global, product attributes, product design,product-line breadth, cor porate social responsibility, brand

familiarity, and customer intimacy.

y What assets and competencies will provide the basis for

an SCA?H

ow can they be developed and maintained?How can they be leveraged?

y What value proposition will be the core of the offering?


ADiscussion

Agenda

Figur e 16.5



Strategy Developmenty What are the alternative functional strategies?

y What strategies best fit our strengths, our objectives

and our organization?

y What alternative growth directions should be considered?

How should they be pursued? What investment level is

most appropriate for each product-market withdrawal,

milking, maintaining, or growing?


ADiscussion

Agenda

Figur e 16.5

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