Transcript MUST Strategy 01 Introduction

CEM 503
Strategic Management
John D. Macomber
Lecture Notes: Introduction
Concepts and Calendar
Strategic Management CEM503
Course Introduction
•
•
•
•
•
•
•
Welcome and Introductions
About John Macomber
Why Strategy?
About You
Overview of Topics and Calendar
Introduction of Concepts
Expectations
MIT / MUST Strategic Management Intro
John Macomber 2
Why Strategy?
• It’s about how businesses compete.
• How to earn above average returns.
•
•
•
•
Selection of industries
Selection of segments
Choice of tactics
How to IMPLEMENT!
MIT / MUST Strategic Management Intro
John Macomber 3
Sample Analytical Framework Technology Strategies
Intent of IT Initiative:
Scope of IT Initiative:
External
Advantage
Internal
Processes
Change
Industry
Structure
Compete
in Same
Arenas
MIT / MUST Strategic Management Intro
John Macomber 4
Why You?
• You will be principals in firms
• You will have to decide what to do:
– What markets?
– What services?
– Where to dedicate your time?
– What kinds of people?
• You probably will be part of a team.
MIT / MUST Strategic Management Intro
John Macomber 5
Why these tools?
•
•
•
•
•
Linear conversation
Lots of information
Organize thinking
Lay out assumptions
Plan ACTION!
MIT / MUST Strategic Management Intro
John Macomber 6
Indicators of Segment Profitability:
“Five Forces” Model - M. Porter
Barriers to
Entry
Supplier
Bargaining
Power
Barriers to
Exit
Existing
Rivalry
Availability of
Substitutes
MIT / MUST Strategic Management Intro
Buyer
Bargaining
Power
Attractiveness of an Industry
or of a Segment is a function
of these forces.
Use them in selection of
segments - and in defense of
segments.
John Macomber 7
John Macomber Background
•
Construction CEO
– George B. H. Macomber Co., $250 mm GC
• Cisco, MIT Media Lab, Children’s Hospital
•
Real Estate Partner
– 2,000,000 SF
•
Academic Thought Leader
– MIT: Strategic Management in the Design and Construction Value
System
– Harvard: E-Commerce and the Internet in Real Estate and
Construction
•
Dot.com Entrepreneur
– Collaborative Structures, Inc. (sold to e-Builder)
•
Consultant, Director, and Angel Investor
– BuildingVision - Pursuing industry transformation
MIT / MUST Strategic Management Intro
John Macomber 8
Who are You? - Self
Introductions
•
•
•
•
•
•
Name
From
Undergraduate Studies
Work experience, if any
What are you interested in?
What do you hope to gain from this
course?
MIT / MUST Strategic Management Intro
John Macomber 9
About the Course
• Part 1: Strategic Planning
– Strategic Management in the Design
and Construction Value System
• Part 2: E-Business Strategies
– E-Commerce and the Internet in Real
Estate and Construction
MIT / MUST Strategic Management Intro
John Macomber 10
The AEC/EPC Value System:
Permanent
Finance
Consultant
Engineer
Owner/
Operator
Designer
Sponsor
Labor
Material
Labor
Constructor
Subcontractor
Material
Project
Finance
Distributor
Land and
Permissions
Building
Product
Manufacturer
MIT / MUST Strategic Management Intro
End
User
John Macomber 11
Strategic Planning: Key
Concepts
1-8
Steps in Planning
Market Segmentation
Attractiveness: 5 Forces
Generic Strategies
The Firm Value Chain
MIT / MUST Strategic Management Intro
John Macomber 12
Calendar and Topics, Part 1
The Industry Value System
Steps in planning
The Industry Value System
Case: Poland’s A2 Motorway
Market Segmentation
Case: Del Webb
Segment Attractiveness &
Generic Strategies
Case: Del Webb (second day)
Cost Advantage
Case: Arborite
Differentiation
Case: KONE: The Monospace
Launch in Germany
Vertical Integration
Case: Savannah West
Strategy in Fragmented
Industries
Case: George B. H. Macomber
Company
Implementation and Review:
Case: Wood Structures, Inc.
E-Business Key Concepts
• How Information Gives You Competitive
Advantage
• Knowing a Winning Business Idea
• Marketplaces & Auctions
• Supply Chain Management
• 3D Modeling
• Knowledge Management
• Aligning Incentives
MIT / MUST Strategic Management Intro
John Macomber 22
Calendar and Topics: Part 2
How Information Gives You
Competitive Advantage
Case: Otisline
Knowing a Winning Business
Idea When You See One
Case: E-Bricks
Marketplaces and
Disintermediation
Case: Quicken Insurance: The
Race to Click & Close
Auctions, Consulting, and
Services
Case: Freemarkets.com
Supply Chain Management
Case: World Co. Inc.
3D Modeling
Case: BMW
Knowledge Management:
Fragmented Industries
Case: Buckman Chemical
Knowledge Management:
Economies of Scale
Case: Knowledge Management
at Andersen Consulting
Aligning Economic
Incentives
Case: Blockbuster Video
(Turn Your Revenue Chain into a
Profit Chain)
Aligning Incentives
Case: Regency Plaza
Consortia and Federations
Case: Colliers and the
Technology Solution
About the Case Method
•
•
•
•
•
•
“Case Study” = a business story
Actual situation (could be fiction)
Messy!
Lots of information
Often no right answer
Like real life
MIT / MUST Strategic Management Intro
John Macomber 35
The Case Method and You:
Preparation
•
•
•
•
•
Skim first for key issues
Read carefully for relevant detail
What is going on?
How can you describe the choices?
Can you use ideas from the other
readings?
MIT / MUST Strategic Management Intro
John Macomber 36
Case Method:
Class Discussions
• Usually the instructor will have a structure to
guide the discussion
• Talk about the issues and choices
• Discuss (argue) with your classmates
• Sometimes there is a consensus
• Sometimes you can find out what happened
• Sometimes not!
• The learning is in the struggle.
MIT / MUST Strategic Management Intro
John Macomber 37
Expectations for the
Course: You Will…
•
•
•
•
Study many real business situations
Practice the core planning tools
Struggle with figuring out what to do
Be prepared to participate in planning
for your own firms
• Be prepared to do the work to earn
above average returns.
MIT / MUST Strategic Management Intro
John Macomber 38
CEM 503
Strategic Management
John D. Macomber
Lecture Notes: Introduction
-- end --