Chapter one, What is Strategy? • What is our present situa4on? – Business environment and industry condi4ons – Firm’s financial and compe44ve capabili4es
• Where do we want to go from here? – Crea4ng a vision for the firm’s future direc4on
• How are we going to get there? – CraBing an ac#on plan that will get us there
The Strategy-‐Making, Strategy-‐Execu4ng
Process
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WHAT IS STRATEGY ABOUT? • Strategy is all about – How to outcompete rivals. – How to respond to economic and market condi4ons and growth opportuni4es. – How to manage func4onal pieces of the business. – How to improve the firm’s financial and market performance.
WHY DO STRATEGY ? • A firm does strategy: – To improve its financial performance. – To strengthen its compe44ve posi4on. – To gain a sustainable compe44ve. advantage over its market rivals.
• A crea4ve, dis4nc4ve strategy: – Can yield above-‐average profits. – Makes compe44on difficult for rivals.
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STRATEGY AND COMPETITORS ♦ Strategy is about compe4ng differently from rivals— ● Doing what they don’t do
or doing it beVer! ● Doing what they can’t do! ● Doing that which sets the firm apart and aVracts customers.
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Common elements in successful strategies
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Sources of superior profitability
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Identifying a Company’s Strategy—What to Look For
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The Quest for Compe44ve Advantage • Compe44ve Advantage – Mee4ng customer needs more effec4vely, with products or services that customers value more highly, or more efficiently, at lower cost.
• Sustainable Compe44ve Advantage – Giving buyers las4ng reasons to prefer a firm’s products or services over those of its compe4tors.
Why a Firm’s Strategy Evolves over Time ♦ Managers modify strategy in response to: ● Changing market condi4ons ● Advancing technology ● Fresh moves of compe4tors ● ShiBing buyer needs ● Emerging market opportuni4es ● New ideas for improving the strategy
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A Company’s Strategy Is a Blend of Proactive Initiatives and Reactive Adjustments
What Roles does Strategy Perform?
Strategy as Decision
Support
What Is a Strategic Plan? Elements of a Firm’s
Strategic Plan
Its strategic vision, business mission, and core values
Its strategic and financial objectives Its chosen strategy
Vision Statement for UBS
We are determined to be the best global financial services company. We focus on wealth and asset management, and on investment banking and securities businesses. We continually earn recognition and trust from clients, shareholders, and staff through our ability to anticipate, learn and shape our future. We share a common ambition to succeed by delivering quality in what we do. Our purpose is to help our clients make financial decisions with confidence. We
