Read the summary and the most important questions on Week 2 Strategy Consulting MCM

• 2 Collis and Rukstad, 2008

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• 2.1 Strategy Statement

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• Why should a scope be taken up in the strategy statement of an organisation?

  Because firms compete in more or less unbounded landscapes.

• What does the scope, or domain, of the business entail?

  The part of the landscape in which the firm will operate. What are the boundaries beyond which it will not venture?

• But with only the objective and the scope a strategy statement is insufficient, because you need to still define the essence of your strategy, what is this?

  The competitive advantage.

• What is the description that best suits the strategy statement?

  What our competitive game plan will be.

• 2.1.1 Statements But Not Strategic Objective

• What is the structure of the statements that a company has?

  The mission statement is the greatest guiding light and least specific. Going down your statements become more concrete and unique. Therefore, your strategy statement and balanced scorecard are something no other company will have.

• What are the 3 statements that come BEFORE the strategy is formulated? Thus these three statements are NOT strategic.

  1. Mission: Why we exist.
     
  2. Values: What we believe in and how we will behave.
  3. Vision: What we want to be in coming 3-5 years.

• 2.1.1.1 Defining the Objective

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• It is always easy to claim that maximising shareholder value is the company's objective - but what should you actually ask yourself?

  Which objective is most likely to maximise shareholder value over the next several years?

• 2.1.1.2 Defining the Scope

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• What 3 dimensions does a firm's scope encompass?

  1. Customer or offering; 
     
  2. Geographic location; 
  3. Vertical integration.

• As the scope of an enterprise does not prescribe what exactly should be done in the boundaries that are give, what does this encourage companies to do?

  Experimentation and initiative.

• The scope does not explain exactly what should be done within the boundaries, but what does it say that SHOULD be done? And why?

  Where the firm or business will not go to prevent managers from spending hours on projects that get turned down by higher-ups because they don't fit the strategy.