Crafting and executing strategy 17 edition

Evaluating a Company's External Environment 4. The Five Generic Competitive Strategies 6. Strengthening a Company's Competitive Position 7. Strategies for Competing in International Markets 8. Corporate Strategy 9. Managing Internal Operations Mystic Monk Coffee 2. Airbnb In 3. Competition in the Craft Beer Industry in 6. Fixer Upper: Expanding the Magnolia Brand 7.

Twitter Inc. Grocery Market Shearwater Adventures Ltd. Robin Hood Vail Resorts, Inc. Profiting from Pain: Business and the U. Opioid Epidemic. Margaret Peteraf Margaret A. John Gamble John E. Affordability Find out more about our affordable course material programs. Want more information? Our Learning Technology Representatives can help. View the Full List Of Changes. View The Sample Chapter Brochure. Learn more.

How to Access Instructor Tools for your Course. Your text has great instructor tools — like presentation slides, instructor manuals, test banks and more. Follow the steps below to access your instructor resources or watch the step-by-step video. Edition Notes Includes index. Genre Case studies. Classifications Dewey Decimal Class T53 The Physical Object Pagination p.

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November 14, History. An edition of Crafting and executing strategy Written in English. Libraries near you: WorldCat. Crafting and executing strategy: text and readings , McGraw-Hill Irwin. Lecture Outline I. Introduction Chapter one explores the fundamental concepts surrounding organizational strategy. It begins with an explanation of the term strategy and discusses why companies need a distinctive strategy in order to compete successfully. Next, it explores why a company must have a viable business model and the five most dependable strategic approaches for setting a company apart.

What Do We Mean by Strategy? The assignment can be graded and posted automatically. In effect, it represents a managerial commitment to an integrated array of considered choices about how to compete. Strategy Is about Competing Differently—A strategy stands a better chance of succeeding when it is predicated on actions, business approaches, and competitive moves aimed at: a.

Figure 1. These are the visible actions taken that signal what strategy the company is pursuing. You can post instructions for the student within the assignment and collect their attachments for grading. A company achieves a competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces. In this sense, every strategy needs a distinctive element that attracts customers and produces a competitive edge.

The advantage is sustainable if it persists despite the best efforts of competitors to match or surpass this advantage.

Five of the most frequently used strategic approaches to setting a company apart from rivals and achieving a sustainable competitive advantage are: a. Low Cost Provider—Achieving a cost-based advantage over rivals.

Focused Low Cost—Concentrating on a narrow buyer segment or market niche and outcompeting rivals by having lower costs than rivals and thus being able to serve niche members at a lower priced. Apple Inc. The company focuses on the upper end of the computer buyer market and offers a premium product. These higher cost approaches to the market place are offset by premium pricing that the niche market can support.

Every company must be willing and ready to modify the strategy in response to changing market conditions, advancing technology, unexpected moves by competitors, shifting buyer needs, emerging market opportunities, and mounting evidence that the strategy is not working well. Industry environments characterized by high velocity change require companies to repeatedly adapt their strategies. Managers must always be willing to supplement or modify the proactive strategy elements with asneeded reactions to unanticipated conditions.

Managers must be careful to embrace actions that can pass the test of moral scrutiny. This goes beyond just staying within the bounds of what is legal. Ethical and moral standards are not fully governed by what is legal, they are concerned with right vs. Senior executives with strong ethical convictions are generally proactive in linking strategic action and ethics.

What Makes a Strategy a Winner? Answer: While all three provide essentially the same type of entertainment service, the business models employed by Pandora, Sirius XM, and Over-The-Air Broadcast Radio are completely different. In the area of value proposition what the customer sees , Sirius XM provides commercial free entertainment with some local content based upon a monthly fee, while Broadcast Radio provides entertainment with some local content with interruptions for commercials without a fee.

Pandora bridges these two methods. In one mode it operates more like Over-the-Air Broadcast Radio in that it provides entertainment without a fee that includes targeted advertisements, with the added benefit of allowing the listener to customize the music mix.

In the other mode, listeners can elect to go ad-free for a fee using Pandora One. For profit, Sirius XM must attract a large enough customer base in order to cover costs and provide profit, while Broadcast Radio must attract a large enough advertiser base to cover costs and provide profit.

Pandora, once again bridging the two, generates profit by either an advertiser base or through ad-free services. Three questions can be used to test the merits of one strategy versus another and distinguish a winning strategy from a losing or mediocre strategy: a. The Competitive Advantage Test: Is the strategy helping the company achieve a sustainable competitive advantage? The bigger and more durable the competitive edge that a strategy helps build, the more powerful and appealing it is.

The Performance Test: Is the strategy producing good company performance? Strategies that come up short on one or more of the above questions are plainly less appealing than strategies passing all three test questions with flying colors.

Why are Crafting and Executing Strategy Important? Crafting and executing strategy are top priority managerial tasks for two big reasons a. High-performing enterprises are nearly always the product of astute, creative, and proactive strategy making b. Even the best-conceived strategies will result in performance shortfalls if they are not executed proficiently. Crafting and executing strategy are core management functions.

The Road Ahead 1. Throughout the remaining chapters and the accompanying case collection, the spotlight is trained on the foremost question in running a business enterprise: What must managers do, and do well, to make a company a winner in the marketplace?

The mission of this book is to provide a solid overview of what every business student and aspiring manager needs to know about crafting and executing strategy. Consider using the questions you select to build a comprehensive mid-term and final exam for the course. Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving the unique needs of a niche, or some combination of these?

They strategically place stores in areas where their target market frequent and staff them with knowledgeable people. The firm is also committed to CSR and sustainability throughout its supply chain.

These elements, along with the focus on CSR and sustainability combine to form a high end value proposition for consumers that allows for premium pricing. Sustainable Competitive Advantage—The student should identify that developing a sustainable competitive advantage relies on a building competitively valuable capabilities that rivals cannot readily match and b having a distinctive product offering. Further, they should be able to highlight that the two areas described above are both distinctive and difficult to match.

The company was founded in with the mission of bringing together buyers and sellers in an honest and open marketplace. In , the company began to focus more on the customer experience through its first of many strategic acquisitions. By mid , ebay had begun its oversees expansion with moves into Germany, Australia, and the UK. In , ebay continued to customize the customer experience by providing eBay stores for its sellers.

Global expansion continues today with ebay available in countries. The student should conclude that all of these innovations follow a careful underlying strategy of adding services and features to the overall product mix that leverage and take advantage of developments in personal and business technology and devices as well as shifting consumer demands.

Does the strategy helping the company achieve a sustainable competitive advantage? Yes, the growing base of customers and revenue streams from various services and platforms is led by continuous innovation which differentiates the company well. The growing profit stream indicates that the strategy is sustainable. Does the strategy producing good company performance? Yes, but the company needs to address profit margins.

Taken together, these financial measures indicate market growth but increases in cost of sales which is driving down operating profits 3. Go to investor. Are its subscription fees increasing or declining?

Is its revenue stream advertising and equipment sales growing or declining? Does its cost structure allow for acceptable profit margins? Response: General—The responses developed by the students may include information such as the following.

This is an increase in net profit from This illustrates an increasing value proposition revenue as well as an effective and growing profit formula earnings. The conclusion the student should reach is that the business model is working effectively. Suggestions for Using the Case This case was written as a leadoff case and was carefully crafted by the case author to require students to draw upon most all of the concepts discussed in Chapters 1 and 2 to sufficiently prepare for a class discussion of the case.

The case involves issues relating to mission, vision, objectives, strategy, business models, and decisive strategic leadership; the need for an action plan is obvious—these are the very things one looks for in a good leadoff case. And the nature of the case virtually guarantees the stimulating kind of class discussion one needs to get the course off on the right foot.