What are the four elements of Strategy - ANSWERDART:
D = Decisions = How to make decision
A = Activities = Which activities are undertaken
R = Resources = How resources will be deployed
T = Tradeoffs = How tradeoffs will be addressed
Boundary Conditions - ANSWERYour strategy must stay within the bounds of the
organization's:
1. Vision
2. Mission
3. Values
Goal of strategy - ANSWER1. Create a competitive advantage
2. Create, capture, and deliver value
Alignment - ANSWERConsistency in the pattern of decision
- Both within the business model and between strategy, business model, and execution
Interconnectedness of the decisions
- Decisions about one facet must be made with consideration of each of the others
What is the Business Model Canvas - ANSWER- A business model aligns internal
capabilities with market expectations
- Visualization tool for looking at an organization's Business model
- Purpose--> align internal capabilities to market expectations
What are the four Questions the BMC answers? - ANSWER1. Who are the customers
2. What do the customers value?
3. What are revenue streams?
4. What is the cost Structure
BMC - Key Activities - ANSWERLHS
The critical processes or works steps needed to deliver value to the customer
Question:
What is the main work that segments want done?
What activities deliver value to the customer? What activities support value delivery?
What sequence Should the activities be in?
Examples: Delta: In-flight services, bag checking, lounge services
Emory Example: Advising, Dining hall
BMC - Key Partnerships - ANSWERLHS
The critical external entities needed to deliver value to the customer
Questions:
Who owns that? What does what? Who decides about what?
, Examples: Suppliers, Suppliers to suppliers, Distributors
BMC - Key Resources - ANSWERLHS
The critical tangible and intangible assets that are internal to the org. needed to deliver
value
Four types:
1. Physical
2. Information
3. People
4. Organizational
Key Resources (types + Questions) - ANSWERLHS
1. Physical(Hardware) - trucks, factories, raw materials
-Where is each type of work located?
-What is the volume of production?
2. Information(Software) - Websites, Technology, data
- What data is needed to deliver value?
- Who owns that data?
- What applications and IT infrastructure is required
- Who owns the infrastructure?
3. People(employees)
- What are key roles?
What are appropriate staffing levels?
4. Organizational(organization structure, rewards system)
- what is the organization's culture?
- who has decision rights for which decisions?
- What are the incentives?
Customer Relationships - ANSWERRHS
Org's reputation, High touch V. Low touch, Loyalty programs, transactional relationships
Channels - ANSWERRHS
Deciding how to get the product to the customers, how to reach the customers, what
and where the touch-points are with the customers
Customer Segments - ANSWERRHS
Demographic (age, gender); Analysis of who the customers are and what they value
Cost Structure - ANSWERBottom of BMC
The firms expenses and the balance between fixed costs and variable costs
Revenue Streams - ANSWERBottom of BMC
How the organization brings in money from customers
- subscriptions, Licensing(Name, image, likeness), transaction fees(AMEX), advertising
based(google)