MBA Business in Context Adding value Week 4

Matching organisational capabilities to market needs through competitive positioning

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

Organisational assets
Financial

assets Physical assets Operational assets People assets Legally enforceable assets Systems Marketing assets
With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

Marketing assets
Customer-based

assets

Image and reputation Brand franchises Market leadership Country of origin Unique products and services

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

Marketing assets
Distribution-based

assets

Size and quality of the distribution network Level of control over distribution channels
Internally-based

assets

Cost structure Information systems Innovatory culture Production skills

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

Marketing assets
Alliance-based

assets

Access to markets Managerial expertise Access to technological development or processes Exclusive agreements

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

Organisational competencies
Strategic

competencies Functional competencies Operational competencies Individual competencies Team competencies Corporate-level competencies

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

The Value Chain

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

Relationship between assets and competencies

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

Successful Organisations
See

capabilities as transferable skills across products Link together a number of capabilities to differentiate their offering From this build SCA So how? Role of innovation

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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When Did We Forget About Creativity in Marketing?

Creativity

is not just about smart advertising and promotion (BA) Creativity is not the preserve of tactivizing Creativity belongs in strategizing
new ways of doing business and going to market
Smart

tactics follow smart strategies, not vice versa

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Innovation audit
The

organisational climate Rate of new product development Customer satisfaction ratings The innovation/value matrix The balance of cognitive styles of the senior management team

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Innovation Audit
Climate

- Attitudes - Metaphors
Hard

measures Review policies and practices Review cognitive styles of senior management team
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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

Support
Teamwork Resources Challenges Freedom Supervisor Creativity Recognition Unity and co-operation

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Disablers
Insufficient Status

time

quo Political problems Evaluation pressure

- two other measures
Creativity Productivity

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Hard measures
Rate

of NPD Customer satisfaction ratings Staff turnover

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Cognitive preferences
Intuition Feeling Thinking

Sensation

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Public sector portfolio matrix

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Reality check
But

you are allowed to be weird

Ben and Gerry

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Capability strategy interface

Here

the capabilities must be translated into something which is meaningful for the customer, fits with resources and external environment Only then can the organisation move forward The secret is to decide which way and that maybe different from the current direction
With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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Activity
Select

an organisation and examine its capabilities as a base for competitive advantage and future strategy.

With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII

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