L10

1. Industry Studies
Topic: Planning for the Future
in CGI
Topic Number: 10

2. Overview
With the marketplace rapidly evolving, firms operating
in the CGI need to constantly re-invent themselves to
stay ahead of their competitors.
In this final lecture, we will explore a number of
strategic questions firms need to constantly ask and
act upon to ensure they maintain a competitive
advantage. We will also look at a number of the
challenges and issues they may face in conducting
operations globally.
We will also look at a number of major consumer
trends taking shape that firms operating in the CGI
should be aware off.
2

3. Learning Outcomes
3
• Be able to characterise the key challenges facing
the CGI industry
• Determine the key strategic questions firms
should consider to plan for the future
• Identify the key consumer trends the CGI should
be mindful of
• Assess potential routes these firms can adopt to
maximise their competitive advantage

4. Developing and implementing strategy
Management is all about
managing in the short term,
while developing the plans for
the long term
Jack Welsh
Your life will be no better
than the plans you make
and the action you take. You
are the architect and builder
of your own life, fortune,
destiny.
Alfred Montapert

5. Key questions for CGI firms
• What products and services
to sell?
• Where and how to make
them?
• Where and how to sell
them?
• Where and how to get
resources?
• How to outperform the
competition?

6. Let’s determine a number of megatrends
that impact the CGI
Source: http://www.pwc.co.uk/issues/megatrends/index.jhtml

7. Let’s get an overview of the key trends
Source:
http://www.pwc.co.uk/en_UK/uk/issues/megatrends/issues/megatrends-overview.
jhtml

8. Let’s get an overview of the key trends
Source: http://www.pwc.co.uk/issues/megatrends/index.jhtml

9. Let’s get an overview of the key trends
• Go through each of the key trends above
Source: http://www.pwc.co.uk/issues/megatrends/index.jhtml

10. Impacts for Unilever
https://www.youtube.com/watch?v=ZobiigxgCzg

11. Impact on the CGI?
Who What
How are the target
audiences for
companies in the
CGI changing?
Consider the way
products are
changing in order to
meet consumer and
environment needs.
How When
How is the way we
deliver products
and services to
people changing?
How are the target
audiences for
companies in the
CGI changing?

12. Steps in future strategy formulation
1. Develop Mission Statement
1. Perform SWOT Analysis
2. Set Strategic Goals
3. Develop Tactical Goals and Plans
4. Develop Control Framework

13. Mission Statement
•Purpose
•Values
•Directions
Chapter 11 - 13

14. SWOT Analysis
Strengths
Opportunities
Weaknesses
Threats

15. Primary Activities
15
R&D and
Design
Manufacture Marketing Distribution
After-Sales
Service
Organizational Structure and Culture
Management of Information Systems
Human Resource Management
Supply Chain Management
Support Activities
Porter’s Value Chain

16. Strategic Goals
•Measurable
•Feasible
•Time-Limited

17. Develop tactics
Strategic
Goals
Daily
Activities

18. Control Framework
Managerial Processes
Strategic Goals
Organizational Processes
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19. What does all this mean for the Coca-Cola
company?

20. Corporate Strategy
Single Business
Related Diversification
Unrelated Diversification

21. Related
Diversification
Unrelated
Diversification
Strategic Business Unit (SBU)
Differentiation
Overall Cost
Leadership
Focus
Business Strategy

22. Three Strategic Options
• Differentiation
• Cost Leadership
• Focus Strategy

23. What does Apple do?

24. Functional Strategies
Core Competency
Resources
and Supplies
Finances
Operations
Research and
Development
Human Resources
New Markets Industry Rivals

25. Organisation of the future?
Source: http://www.economist.com/node/21542432

26. End of presentation
© Pearson College 2013