Slides for Presentation to Sir John Talbot's Technology College October 2012

1. All slides courtesy of:
©2012 Robert M. Grant & Judith Jordan
www.foundationsofstrategy.com
The Concept of Strategy
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2. Common elements in successful strategies
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3. Mission statements
(aka Long Term Goals)
“I will build a motor car for the great multitude . . . It will be so low in price that no man
making good wages will be unable to own one and to enjoy with his family the blessing of
hours of pleasure in God’s great open spaces . . . When I’m through, everyone will be able to
afford one and everyone will have one.”
To organize the world’s information and make it universally accessible and useful
To create a better everyday life for the many people. We make this possible by offering a wide
range of well-designed, functional home furnishing products at prices so low that as many
people as possible will be able to afford them.
To refresh the world... To inspire moments of optimism and happiness... To create value and
make a difference.
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4. Layers of the business environment
The
Organisation

5. From environmental analysis to industry analysis
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6. The Five Forces Framework

7. The basic framework: strategy as a link
between the firm and its environment
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8. Resources of a Business?
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9. The links among resources, capabilities and
competitive advantage
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10. Appraising resources
RESOURCE CHARACTERISTICS INDICATORS
Financial Borrowing capacity Debt/Equity ratio
Internal funds generation Credit rating
Tangible Net cash flow
Resources
Physical Plant and equipment: Market value of fixed assets.
Size, location, technology flexibility. Scale of plants
Land and buildings Alternative uses for fixed assets
Raw materials
Technology Patent, copyrights, know-how, R&D Number of patents owned
facilities Royalty income
Intangible Technical and scientific employees R&D expenditure
Resources R&D staff
Reputation Brands, customer loyalty, company Brand equity
reputation (with suppliers, customers, Customer retention
government) Supplier loyalty
Human Resources Training, experience,adaptability, Employee qualifications,
commitment and loyalty of employees Pay rates, turnover
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11. The world’s most valuable brands, 2012
n
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Source: Interbrand

12. Porter’s value chain
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13. Putting resource and capability analysis to
work: a practical guide
Step 1: Identify the key resources and capabilities
Step 2: Appraising resources and capabilities
― Assessing importance
― Assessing relative strength
Step 3: Developing strategy implications
KEY
― Exploiting key strengths
CONCEPT
― Managing key weaknesses
― What about superfluous strengths?
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14. Summary: a framework for analysing
resources and capabilities
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