STRATEGIC PLANNING AND ORGANIZATION CLARITY.ppt
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1、STRATEGIC PLANNING AND ORGANIZATION CLARITY Case Study,Concepts and Debatable IdeasKenny OngCNI Holdings Berhad,Intro:CNI,20 years oldCore Business:MLMOthers:Contract Manufacturing,Export/Trading,eCommerceMalaysia,Singapore,Brunei,Indonesia,India,China,Hong Kong,Philippines,Italy,Taiwan,Oman,United
2、States,VietnamStaff force:500Distributors:200,000Products:Consumer Goods and Services,The digital watch didnt come from established watch companies,the calculator didnt come from slide rule or adding machine companies,video games didnt come from board-game manufacturers Parker Bros or Mattel,the bal
3、lpoint pen didnt come from fountain pen manufacturers,and Google didnt come from the Yellow Pages Bob Seidensticker,Futurehype,Whats wrong with Strategic Planning Today?,Long-term PlansObjectivesStrategiesEnablersResources,Also known as L.O.S.E.R.,Whats wrong with Strategic Planning Today?,Biggest T
4、hreats often come from OUTSIDE your normal industryPlanning from the base of an Existing organization vs.zero-basedTraditional Analysis(e.g.SWOT)based only on known or existing assumptions or knowledgeSpending too much time in market research and analysisDefining the company from a Product/Service p
5、erspective vs.Category vs.JTBD(e.g.Coca-cola)Wrong Benchmark already successful vs.what made them successfulNew strategy,same people,Todays Agenda,Summary:Todays presentation,1.Business Model Clarity,2.Strategy Clarity,3.Execution Clarity,What is the Business Model?,USP,Market Discipline,Profit Mode
6、l,Business Model:USP,Unique Selling Proposition(USP)=Targeted Customer=Core Buying Purpose/Customer Value Proposition/Job To Be Done(JBTD),Business Model:USP,“The Product is Not the Product”What is the customer really buying?What is the“Core Buying Purpose”?What is the“Job To Be Done”?,Business Mode
7、l:USP,Obstacles to JBTD:Insufficient WEALTHInsufficient ACCESSInsufficient SKILLInsufficient TIME,What is the Business Model?,USP,Market Discipline,Profit Model,Business Model:Profit Model,Business Model:Profit Model,Profit Model Examples:Gillette ShaveriPod and iTunesIBM and LenovoGM and GM Finance
8、Google and Ad RevenueMcD and Drive-thru revenue,Subsidizing Hire Purchase Loan vs.reduce price to protect brand Oracle Project Financing over 4 years covering even non-Oracle componentsSaaS PAYU e.g.Siebel/Salesforce,Who Killed Disney?,Profit Model vs.Competition:DVD vs.video games and online movies
9、car sales vs.car leasingnewspaper vs.online newsclient server systems vs.SaaS,Bussinessweek,February 19 2009,“Hollywood Is Worried as DVD Sales Slow”,your greatest competitor for market share is often a different profit model,What is the Business Model?,USP,Market Discipline,Profit Model,Intro:Marke
10、t Discipline,Mamak stall,Intro:Market Discipline,They are the most innovativeConstantly renewing and creativeAlways on the leading edge,A great deal!Excellent/attractive priceMinimal acquisition cost and hassleLowest overall cost of ownershipA no-hassles firmConvenience and speedReliable product and
11、 service,Exactly what I needCustomized productsPersonalized communicationsTheyre very responsivePreferential service and flexibilityRecommends what I needIm very loyal to themHelps us to be a success,Product Leadership,OperationalExcellence,CustomerIntimacy,Operational Excellence(low cost producer),
12、Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leader
13、ship(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Valu
14、e Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Disciplines,HP well-balanced portfolio,mass customization,Acer super lean c
15、ost structure,aggressive pricing,Apple powerful products,premium pricing,limited range,Still Doing well in 2009,Business Model vs.Competition,Competitor Anchoring vs.Business Model:Air Asia vs.Busses&TrainsTata Nano vs.MotorbikesiPod vs.Sony BMGKindle(Amazon)vs.iPhone(Apple)Google vs.Newspaper(Ads)v
16、s.Yahoo(Search)vs.Microsoft(Software)McD vs.Toys R Us,Shift your Business Model,and your Competitor will change,Operational ExcellenceCompetitive priceError free,reliableFast(on demand)SimpleResponsiveConsistent information for allTransactionalOnce and Done,Customer IntimacyManagement by FactEasy to
17、 do business withHave it your way(customization)Market segments of oneProactive,flexibleRelationship and consultative sellingCross selling,Product LeadershipNew,state of the art products or servicesRisk takersMeet volatile customer needsFast concept-to-counterNever satisfied-obsolete own and competi
18、tors productsLearning organization,Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,The McPlaybook*,Make it easy to eat50%drive-thruMeals held in one hand,Make it easy to prepareHigh TurnoverTasks simple to learn&repeat,Make it quick“Fast Food”Tests new products for Cooking Times,Make what
19、customers wantProwls market for new productsMonitored field tests,*Adapted from:Businessweek,Februrary 5th 2007,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best to
20、tal solution),Strategy:Disciplines,Business Model,1.change one,effect three,2.change one,change model,Summary:Todays presentation,1.Business Model Clarity,Done,2.Strategy Clarity,3.Execution Clarity,2.Strategy Clarity,Hope is not a strategy,What is Strategic Planning?,Strategic Planning,Variables:Re
21、searchGrowthRisksStakeholdersConstraintsSWOTMisc.,Output:PlansPrioritiesKPIs,Before we start,Which comes first?Strategies-KPI?KPI-Strategies?,Before we start,Which comes first?Strategies-KPI?KPI-Strategies?,already know our priorities,aware of all strategy options availablecreating something UNIQUE,
22、INNOVATIVE and DISRUPTIVE e.g.Air Asiaconducting a business Turnaround e.g.MAS,Before we start,Which comes first?Strategies-KPI?KPI-Strategies?,want to find out possible strategies,determine our priorities first thru selection of important KPIs;growing through normal business,not a Turnaround.,Busin
23、ess Situation vs.Focus,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,Change mgmtReduce FatContinuityEveryone Happy,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Talent MgmtInnovation/R&DEarly winsSlow Down HR Costs,Top Talent focusSales,Sales,SalesIncrease attrition,
24、www.myCNI.com.my,www.OOBEY.com,Business Situations vs.Focus,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,Change mgmtReduce FatContinuityEveryone Happy,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Talent MgmtStack R&DEarly winsSlow Down HR Costs,Top Talent focusStac
25、k SalesIncrease attrition,Many times,you need a different CEO/Leader/Management Team for each business situation,www.myCNI.com.my,www.OOBEY.com,What is your Goal?,Cost ReductionGrowthBoth?,Growth Strategy,“Double-Digit Growth”,Michael Treacy,www.myCNI.com.my,www.OOBEY.com,How Markets determine Growt
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