Estrategia Empresarial. Horizontal Y Vertical

Topic 0 . Introduction


2. Limits of the company

Strategy: Vertical and horizontal
limits of the company

1

2. Limits of the company

Quote of the
day

“Obstacles are those frightful things you see when
you take your eyes off your goal.”
Henry Ford
2

Topic 0 . Introduction

2. Limits of the company

Strategy – Oriol Palom

Basic Framework
THE FIRM
THE FIRM••Goals &
Goals &
Values
Values
••Resources &
Resources &
Capabilities
Capabilities
••Structure &
Structure &
Systems
Systems

STRATEGY
STRATEGY
STRATEGY

THE
THE
IINDUSTRY
NDUSTRY
ENVIRONMENT
ENVIRONMENT
••Competitors
Competitors
••Customers
Customers
••Suppliers
Suppliers

3

Strategy – Oriol Palom

2. Limits of the company

Strategic Analysis
•

•

Where are wecompeting?
- Product market scope
- Geographical scope
- Vertical scope
How are we competing?
- What is the basis of our
competitive advantage?

COMPETING FOR THE
PRESENT
4

DYNAMIC

STATIC
•

What do we want to become?
- Vision statement

•

What do we want to achieve?
- Mission statement
- Performance goals

•

How will we get there?
- Guidelines for development
-Priorities for capital
expenditure, R&D
- Growth modes: organic
growth, M&A, alliances
PREPARING FOR THE
FUTURE

Topic 0 . Introduction

2. Limits of the company

Strategy – Oriol Palom

Static scheme of a Business
2. What? (FUNCTIONS)

1. Who? (MARKETS)

Examples
3. How? (COMPETENCES, TECHNOLOGIES)

• Watches Rolex vs. Seiko
• Calculators HP vs. Casio
• Pans&Co. vs El Bulli5

Vertical analysis of a firm
Group

Level 1

LO
EP
D
FINANCES

YM

T
EN

G
LI
/A

NM

T
EN

CORPORATION

A.R.C.
B.U. 1

CUSTOMERS

PROCESSES

Level 2

KPI 1

KPI 2

KPI n

Width
6

B.U. 3

B.U. 2

PEOPLE

Depth

Strategy – Oriol Palom

2. Limits of the company

Topic 0 . Introduction

Strategy – Oriol Palom

2. Limits of thecompany

3 Levels of strategy (depth)
1.

Corporate strategy – Board Level

2.

Competitive (business) strategy – Top management

3.

Operational (functional) strategy – Area manager

Big companies (e.g. multinationals)
Top down driven: coherency is key!
7

Strategy – Oriol Palom

2. Limits of the company

What is an (Strategic) Business Unit?
• Significant organization segmentthat is analyzed to
develop organizational strategy aimed at generating
future business or revenue.
• Company division, product line within a division, or single
product or company brand that has an objective and
mission different from other company business and that
can be marketed independently from the rest of the
company.
• The organizational structure of an SBU is typically lessdisciplined than the organizational structure of the parent
company, allowing the SBU to respond more quickly to
market changes and opportunities

8

Topic 0 . Introduction

2. Limits of the company

Strategy – Oriol Palom

Levels of strategy
Strategic analysis

Corporate
Strategy
Business Strategy
Functional
Strategy

Mission, Objectives

Set the big
Objectives

Internal andexternal analysis

Strategy
formulation

Design of strategic options

Formulation
Implementation

Implementation
of the strategy

Evaluation and selection
Control

9

Strategy – Oriol Palom

2. Limits of the company

10

Exercise:

• Think on 3 companies with several
business units

Topic 0 . Introduction

Strategy – Oriol Palom

2. Limits of the companyStrategic Analysis
DYNAMIC

STATIC
•

•

Where are we competing?
- Product market scope
- Geographical scope
- Vertical scope
How are we competing?
- What is the basis of our
competitive advantage?

COMPETING FOR THE
PRESENT

•

What do we want to become?
- Vision statement

•

What do we want to achieve?
- Mission statement
- Performance goals

•

How will we get...