Strategy Setting Consultancy project: By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Our Agenda •Consultancy Project | Strategy Setting 01 10 min Basic principles 02 10 min Mission statement 03 20 min Long term vision 04 20 min Business strategy 05 20 min Strategy elements Basic Principles Strategy Setting By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Three Pillars It formulates why do we exist. What is the main purpose of our company. §Same during the entire operation of the company §Specific, company can be recognized by its mission §Public, part of the company PR §Attracts the future employees §Should define a higher purpouse of meaning of company's activities § Mission It explains the goal for specific period of time. What we want to achieve in the near future. Where do we want to go as a company. §Time framed, new vision is created when the previous where achieved §Shows the direction to the people §Alligns the people´s work to one direction §Adjustable based on new circumstances §Evaluable § • Vision Particular goals which contribute to the vision achivement in the future. It includes the organizationa and resources alocation. Tells how to achieve the vision §Time framed §Measurable §It contains particular steps towards the vision § Strategy •Consultancy Project | Strategy Setting | Basic Principles ‹#› J. Cech & A. Sisolak Company Thinking WHY WHAT HOW Mission Why do we exist Strategy How to do it Vision Where we want to go, what we want to achieve •Consultancy Project | Strategy Setting | Basic Principles Vynikající obrys Dobrý nápad obrys Fúze obrys Mission Statement Strategy Setting By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Definition of Mission Statement It formulates why do we exist. What is the main purpose of our company. §Same during the entire operation of the company §Specific, company can be recognized by its mission §Public, part of the company PR §Attracts the future employees §Should define a higher purpouse of meaning of company's activities § Mission It explains the goal for specific period of time. What we want to achieve in the near future. Where do we want to go as a company. §Time framed, new vision is created when the previous where achieved §Shows the direction to the people §Alligns the people´s work to one direction §Adjustable based on new circumstances §Evaluable § • Vision Particular goals which contribute to the vision achivement in the future. It includes the organizationa and resources alocation. Tells how to achieve the vision §Time framed §Measurable §It contains particular steps towards the vision § Strategy •Consultancy Project | Strategy Setting | Mission Statement ‹#› J. Cech & A. Sisolak Elements of the Mission •Consultancy Project| Strategy Setting | Mission Statement Purpose What does your products or services do or aim to provide and to whom. Why do you exist Brand values What does the company stand for? Values, which makes your company unique. Brand goals What does your company do for the customers. Why should they buy the products from you instead of competition. Mozek v hlavě obrys Diamant obrys Oko obrys ‹#› J. Cech & A. Sisolak Examples of the Mission •Consultancy Project| Strategy Setting | Mission Statement LG Electronics focused on developing new innovations across the globe. We are committed to providing electronic products that help customers live better. To support this, we wish to continue bringing added value to the lives of a consumers. LG's Mission is to be #1 by creating a better life with our customers. To make delicious feel-good moments easy for everyone. This is how we uniquely feed and foster communities. We serve delicious food people feel good about eating, with convenient locations and hours and affordable prices, and by working hard to offer the speed, choice and personalization our customers expect. At our best, we don’t just serve food, we serve moments of feel-good, all with the lighthearted, unpretentious, welcoming, dependable personality consumers know and love. To bring the best user experience to customers through innovative hardware, software, and services. ‹#› J. Cech & A. Sisolak Examples of the Mission •Consultancy Project| Strategy Setting | Mission Statement We also want to deliver on our mission to make eating well effortless at any time, for anyone. Our vision is to make it possible for everyone to discover the world to enjoy smart, sustainable travel. Ease of booking and an ever-growing offering mean that we provide millions of travelers with a comfortable, affordable, eco-friendly travel experience. We will provide products and services of superior quality which improves and protects the health of the feet of our customers. We are the innovator and driving the industry. We are the preferred business partner for our customers. In Kiam Metal we believe in quality and service. Since establishing in 1990 with only Aluminum utensils, we have grown into the largest kitchenware manufacturing brand in Bangladesh, driven by a commitment to meeting quality and innovation. Our recent additions are Die-Casting and SS Pressure Cookers demonstrate our dedication to quality and progress. ‹#› J. Cech & A. Sisolak Examples of the Mission •Consultancy Project| Strategy Setting | Mission Statement To deliver value through our products and services and to be the most trusted global network for our customers and suppliers. To be a responsible value-creation partner for all stakeholders. To innovate mobility solutions with a passion to enhance the quality of life. We as one team are driven by inventiveness, continuously expanding our value chain to shape the mobility transformation, making a difference to stakeholders and society in India. A sustainable organization that provides industry leading mobility solutions keeping customers at the heart of everything we do. Our Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. Long Term Vision Strategy Setting By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Definition of Vision It formulates why do we exist. What is the main purpose of our company. §Same during the entire operation of the company §Specific, company can be recognized by its mission §Public, part of the company PR §Attracts the future employees §Should define a higher purpouse of meaning of company's activities § Mission It explains the goal for specific period of time. What we want to achieve in the near future. Where do we want to go as a company. §Time framed, new vision is created when the previous where achieved §Shows the direction to the people §Alligns the people´s work to one direction §Adjustable based on new circumstances §Evaluable § • Vision Particular goals which contribute to the vision achivement in the future. It includes the organizationa and resources alocation. Tells how to achieve the vision §Time framed §Measurable §It contains particular steps towards the vision § Strategy •Consultancy Project | Strategy Setting | Long Term Vision ‹#› J. Cech & A. Sisolak Jim Collins The Hedgehog Concept •Consultancy Project| Strategy Setting | Long Term Vision The Hedgehog Concept is not a goal to be best, a strategy to be the best, an intention to be the best, a plant to be best. It is an understanding of what you can be the best at. Try to identify areas of business for which are you passionate about. Try to find a higher meaning of your activity. Do not try make people passionate about the vison or strategy. Be the best in the world? And what you can not be the best in the world. Does not have to be your current core competencies. It can be something in which you are not even in yet. Drivers of economic engine? Define the most important profit denominator. Profit per customer, product, employee, customer visit, shop, sales region etc. Stadion obrys Trofej obrys Ukazatel obrys What Are You Deeply Passionate About ? What You Can Be The Best In The World At? What Drives Your Economic Engine? Passion about? ‹#› J. Cech & A. Sisolak Elements of the Vision •Consultancy Project| Strategy Setting | Long Term Vision Target Where, who, or what do we want to become in the defined period? Content What will our future look like within a couple of years? Describe the future status of the company. KPI’s Set a couple of the most important Key Performance Indicators by which we will evaluate the achievements of the vision's targets. Obrázek obrys Deska s klipem, částečně zaškrtnuté obrys ‹#› J. Cech & A. Sisolak Sika CZ Vision 2023 •Consultancy Project| Strategy Setting | Long Term Vision Business Strategy Strategy Setting By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Definition of Strategy It formulates why do we exist. What is the main purpose of our company. §Same during the entire operation of the company §Specific, company can be recognized by its mission §Public, part of the company PR §Attracts the future employees §Should define a higher purpouse of meaning of company's activities § Mission It explains the goal for specific period of time. What we want to achieve in the near future. Where do we want to go as a company. §Time framed, new vision is created when the previous where achieved §Shows the direction to the people §Alligns the people´s work to one direction §Adjustable based on new circumstances §Evaluable § • Vision Particular goals which contribute to the vision achivement in the future. It includes the organizational and resources alocation. Tells how to achieve the vision §Time framed §Measurable §It contains particular steps towards the vision § Strategy •Consultancy Project | Strategy Setting | Business Strategy ‹#› J. Cech & A. Sisolak Strategy Content •Consultancy project Introduction | Strategy Setting | Business Strategy 03 04 Why? Which parameters confirm that the selected market segment is the best for company‘s future development? What? What elements will be the main drivers of the value proposition of the company‘s product and services portfolio? 01 02 Where? What market segment will be the best for future company development? How? Which way will be the best to successful approach selected market segment? 05 06 Who? How will the company organize itself for the successful implementation of the strategy? When? What will be timing of all the strategic activities? ‹#› J. Cech & A. Sisolak Why? Where? •Consultancy project Introduction | Strategy Setting | Business Strategy ‹#› J. Cech & A. Sisolak Why? Where? •Consultancy project Introduction | Strategy Setting | Business Strategy Grow Grow Hold Grow Hold Harvest Hold Harvest Harvest Business Unit Strength High Medium Low Grow Segments with the leadership position in the attractive market segments. Needs investments to grow or protect the position. Hold Selectivity | earnings segments. Invest into the business with the low position in the attractive markets or harvest the business with the strong position in not attractive market. Harvest Segments with weak position in the unattractive markets. Go for divestments of maximize the profit. Pruhový graf se vzestupným trendem obrys Rozdvojující se cesta obrys Půjčka obrys Segment 1 100m$ 25% Segment 2 80m$ 18% Segment 3 45m$ 7% Segment 4 110m$ 15% ‹#› J. Cech & A. Sisolak What? Value Proposition •Consultancy project Introduction | Strategy Setting | Business Strategy Value proposition is the value a company promises to deliver to customers should they choose to buy their products. Value proposition should contain an easy-to-understand reason why a customer should buy product or service from that particular business Benefits Value proposition should clearly explain how products fill a needs, communicate the specifics of its added benefits, and state the reason why it is better than similar products on the market Importance The ideal value proposition is to-the-point and appeals to a customer’s strongest decision-making drivers Zvonění obrys Dárek obrys Srdce s pulsem obrys Needs C:\Users\nje\Desktop\Logos WMF und EMF\1000_SIK_Logo_ClaimR_NO_ARTWORK_RGB.wmf ‹#› J. Cech & A. Sisolak How? Value Chain (M. Porter) •Consultancy project Introduction | Strategy Setting | Business Strategy A business model that describes the full range of activities needed to create and deliver product or service with promised value proposition. Inbound logistic Sklápěč obrys Robotická ruka obrys Nákladní vůz obrys Potřesení rukou obrys Automechanik obrys Procurement Technology Development Technology Development Technology Development Human Resources Management Technology Development Firm Infrastructure Operations Outbound logistic Marketing&Sales Service ‹#› J. Cech & A. Sisolak How? Value Chain (M. Porter) •Consultancy project Introduction | Strategy Setting | Business Strategy Inbound logistics Apple has a massive supply chain, and it has several alternatives to getting raw materials. Its top 200 suppliers include component suppliers and others who accounted for at least 97 percent of its materials, manufacturing, and assembly procurement spending in 2016. China and Japan are home to a substantial number of the company’s leading suppliers. 3M and Foxconn are two of its key raw material suppliers. Apple has a lot of negotiating leverage with its suppliers because of its financial heft. It has set quality requirements for its suppliers to ensure that its goods and services meet the highest possible standards. Apart from that, Apple has used more sophisticated ways to decrease storage needs and expedite the purchase process. Operations Apple goods are manufactured in several different countries. However, most of its items are assembled in China, which is why some of them have the Made in China label. Apple is also in negotiations with the Indian government, and production might begin there shortly. A significant portion of the assembly is done in China, although a minor part is done in other countries. Because labor expenses are lower in Asian countries, Apple’s production costs are cheaper. Aside from that, Apple has decreased the usage of hazardous chemicals in its product production and assembly. Apple is increasingly using recyclable materials. By outsourcing its production, on the other hand, the company has been able to control its production costs to an acceptable level. Example | Primary Activities ‹#› J. Cech & A. Sisolak How? Value Chain (M. Porter) •Consultancy project Introduction | Strategy Setting | Business Strategy Outbound logistics Apple has a massive distribution network that includes both direct and indirect channels. Apple has an extensive channel for distributing its products to clients, ranging from retail shops to internet shopping and its own branded stores. It has improved its distribution route and increased the number of brand outlets over time. Apart from these considerations, the focus has remained on green packaging and waste reduction. Marketing and Sales Apple is a well-known brand whose goods are recognized for their high quality, innovative design, and technical advancements. Any new Apple product is news, and it is covered not only by the media but also by a variety of other sources, including small and large websites. That does not, however, imply that Apple does not invest in brand marketing. While Apple’s goods are extensively promoted in the media, it also creates distinctive advertisements that engage its fans. It has a high level of brand loyalty due to its advertising strategy’s originality and imagination. Apart from television and internet commercials, the company also uses print advertisements to market and promote its products. Apple sells its products through the following channels: Value-added resellers, Retailers, Wholesalers, Third-party cellular network carriers, Direct salesforce, Apple online store, Apple retail stores. The IT behemoth is steadily expanding the proportion of sales made through direct channels instead of indirect ones. Net sales through the company’s direct and indirect distribution channels will account for 34 percent and 66 percent of total net sales in 2020, respectively. Apple has been focusing more on corporate sales in recent years, and CEO Tim Cook recently indicated that the company would rely heavily on channel partners to boost enterprise sales even more. Example | Primary Activities ‹#› J. Cech & A. Sisolak How? Value Chain (M. Porter) •Consultancy project Introduction | Strategy Setting | Business Strategy Example | Primary Activities Products and Services Apple provides its customers with complete after-sales assistance. The majority of Apple goods come with 90 days of free service and a one-year limited warranty. Aside from that, Apple users may get support via the online shop. They may monitor the status of their order online. Customers may talk to professionals online or call Apple for assistance. Customers may fix their phones or other Apple goods at an Apple-approved service provider or an Apple shop with a genius bar. Apple provides outstanding customer support at all three phases of the buying process: pre-purchase, purchase, and post-purchase. Apple has experience centers in key cities worldwide where anybody may try out its goods and get persuaded of their excellence. Apple salespeople are often well-trained, courteous young men and women tech-savvy and eager to show product features and capabilities. With unique iPhone trade-in schemes that allow iPhone customers to switch to newer models with additional cost, post-purchase customer care is also outstanding. Only products purchased directly from Apple, either online or at an Apple Retail Store, can be returned to Apple. Within 14 calendar days of purchase, products can be returned. Customers can go to Apple Stores if they are unsure about anything or if something goes wrong. Customers have had their broken iPhone screens fixed for free at an Apple Store in the past. ‹#› J. Cech & A. Sisolak How? Value Chain (M. Porter) •Consultancy project Introduction | Strategy Setting | Business Strategy Example | Support Activities Technolody and R&D Apple invests a lot of money in R&D. Its brand is recognized for technical innovation as well as high quality and distinctive product designs. The brand must invest heavily in R&D in order to preserve its competitive advantage. The company spent more than ten billion dollars on research and development in 2016 and 11.6 billion dollars in 2017. Apple has raised its R&D investment by more than 5 billion dollars since 2014. Three significant causes fuel this drive. Its expanded product variety, increasing the scope of Apple’s services, and increased concentration on in-house technological development are among them. HR Management Human resource management is also an essential element of a company’s value chain. Apple prioritizes both hiring and remuneration. Since the days of Apple founder Steve Jobs, this has been the standard. Apple has always sought the most acceptable candidates. However, during Tim Cook’s tenure, the HRM style has shifted slightly. Apart from inclusion and diversity, the new CEO has implemented many measures to improve Apple’s HR reputation. Procurement At Apple, procurement is also a significant priority. It has maintained positive ties with its vendors. Suppliers must provide safe working conditions for employees as well as goods and services that meet industry standards. All of these variables have an impact on supplier relationships. Apple, on the other hand, is a big buyer for most of its suppliers. Thus the two have a mutually beneficial partnership. ‹#› J. Cech & A. Sisolak Who? Organization Set-up •Consultancy project Introduction | Strategy Setting | Business Strategy Customers’ Segment Sales Marketing Service Territorial Sales Specialized Sales Communication Team Development Team Operations Logistic ‹#› J. Cech & A. Sisolak When? Process Goals & Milestones •Consultancy project Introduction | Strategy Setting | Business Strategy Vision & Strategy 2027 2023 2024 2025 2026 No. Tasks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 01 New organization set-up 02 Product development 03 Marketing campaign 04 Sales promotion activities 05 Acquisition 06 Integration 07 Check the final Task Duration Task Completed Process goals Thank You For Your Watching Jakub & Andrej