Transcript Role of Board in Strategy Development and Strategy
Thriving in Uncertain Times: Markets, Food, and Governing
Michael L. Cook University of Missouri Graduate Institute of Cooperative Leadership (GICL)
In a cooperative Marketing, Strategy and Governing are interrelated.
Cooperatives are primarily user owned, controlled and benefiting There are cooperatives where the 1.
Member is a Supplier 2.
Member is a Consumer 3.
Member is Both
What role can a director play in governing her/his cooperative through uncertain times?
Director Development Programs suggest that directors should ask more and better questions.
Our objective today is to assist in achieving this objective as it relates to strategy and marketing.
Let’s start with strategy formulation.
What is Strategy?
The Central, Integrated, Externally Oriented Concept of How We Will Achieve Our Objectives
An Overview Strategic Analysis Values & Beliefs Mission & Vision Objectives Strategy Organizational Architecture
Five Elements of Strategy
1.
2.
3.
4.
5.
Arenas Vehicles Differentiation Staging Economic Logic
The Five Elements
1.
2.
3.
4.
5.
Arenas: Where will we be active?
Vehicles: How will we get there?
Differentiators: How do we set ourselves apart?
Staging: Speed and sequencing Economic Logic: Impact measurement
Arenas
Where will we be active?
• Output Categories • Market Segments • Geographic Arena • Core Technologies • Value Creation Stages
Vehicles
How will we get there?
• Internal Development • Joint Venture • Licensing / Venturing • Acquisition
Differentiators
1. Image 2. Customization 3. Cost 4. Quality 5. Ability to Continue Learning 6. From Plow to Plate
Staging
1. Speed 2. Sequencing
Economic Logic
1. Low Cost — Scale 2. Low Cost — Scope 3. Premium Price — Proprietary Service 4. Premium Price — Proprietary Output Features 5. A Continuum
Economic Logic
How does this increase my per unit return?
or
Economic Logic
How does this help us achieve our vision — which is . . . . . . . . . !
An Overview Strategic Analysis Values & Beliefs Mission & Vision Objectives Strategy Organizational Architecture
Graduate Institute of Cooperative Leadership (GICL) A Collaborative Research / Teaching / Outreach Experience
Embedded in
• Summer Institute • Board Chair / CEO • Undergraduate Courses • Graduate Seminars
Fosters
• Cases • Outreach • Presentations • Training Professional Networks - Relationships - Trust
Translates to Generates
GICL Process
Academic Outputs - Publications - Conferences • Ideas • Student Opportunities • Customized Programs • Exchanges
Results in Informs
Model Testing
Leads to
Model Development - Inductive - Deductive Finance Organizational Economics Management Sociology Law Agricultural Economics