Strategy24_slides_session2.pptx

Strategic Management Session 2 Playing to Win FHR MBA August 27th, 2024 Playing to win Where will we What capabilities Purpose of the play? Unique right to win must be in place?...

Strategic Management Session 2 Playing to Win FHR MBA August 27th, 2024 Playing to win Where will we What capabilities Purpose of the play? Unique right to win must be in place? Support systems enterprise Value proposition Systems, structures, Our guiding aspiratios The right plying Competitive Required measures to support field advantage capabilities to win your choice Where will we Reinforcing activities compete, our Specific geographies, product configurations categories, customer What What is your segments, channels, management winning How will we win? integration systems are aspiration? required? Lafley & Martin 2014, p.15 Structure of the Session Playing to win A. Surinam Airways A. Break-Out Groups explore different questions for Alphabet B. Final class discussion on Alphabet B. Volkswagen A. How Volkswagen is playing to win B. Break Out Groups discussing the challenges and risks associated with each step C. Final Class Discussion Playing to Win for Staatsolie  Each group discusses one of the four steps Winning Aspiration Do play to win, rather than simply compete, paint a bright picture of the Purpose of future of the organization the Aspirations need to be meaningful to enterprise customers and employees – find the Our guiding deeper idea Start with consumers rather than aspiratios What is your products winning Think about winnng relative to the aspiration? competition Lafley & Martin 2014, p.15 Aspirations are just the first step Playing to win Geography Product Type The right plying Consumer Segment field Distribution Channel Where will we compete, our Vertical Stage of Production geographies, product categories, customer Failing to choose Where will segments, Buy your way out channels, we play? integration Accepting existing choices Lafley & Martin 2014, p.15 Playing to win Generic Porter Strategies Cost leadership and differentation Growth Engines Unique right If there is no winning strategy move back to the to win playing field How to win plays with where to win Value Do consider support functions as well proposition Competitive Understandin Consumers Creating and building brands advantage How will we Innovation Partnering win? Leverage Lafley & Martin 2014, p.15 Playing to win Performance Management System Goals – Measures – Monitoring What Capabilities and systems management Strategy is a continuous activity Required systems are required? Think about clarity and simplicity capabilities to win Support Build systems and measures Reinforcing systems Short and long-run measures activities Systems, structures, Financial and non-financial measures Specific What capabilities configurations measures to must be in support your place? choice Lafley & Martin 2014, p.15 Break-Out Groups  Discuss your question in your group  You can look for additional information on the Internet - corporate website of staatsolie  - websites of financial and business magazines /newspapers 30 minutes Break Herbie goes electric  What Where will capabilities Purpose we play? Unique must be in Support Guiding The right way place? Required systems Volkswagen in 2025 aspirations playing Value capabilitie Structures, field proposition s to win Measures Where will Competitiv Reinforcing Manageme How will we Aspiration? e nt systems we win? activities advantage required? compete Specific configurati Herbert Diess, CEO Volkswagen, 2019 ons What does the vision for our Group in 2025 look like? o In 2025, Volkswagen is the leading mobility company in the electric, connected era. With vehicles and more and more services that protect the environment, benefit and excite our customers, and secure our economic success. o In 2025, our Group strongly resembles a software company in many respects. We will create scaling advantages with new software platforms and will become the fastest player in the new automotive world. o Our digital ecosystem takes our customers’ world to their vehicles, with the best user experience and a raft of mobility services that make life easier and are fun to use. We will attract the best talents and partners from all over the world with our constructive, performance-oriented corporate culture marked by integrity. o Customers, employees, partners, investors and society will esteem and respectVolkswagen for our valuable contribution: Shaping Mobility – for generations to come.  What Where will capabilities Purpose we play? Unique must be in Support Guiding The right way place? Required systems Volkswagen: Together 2025+: Focus and Speed aspirations playing Value capabilitie Structures, field proposition s to win Measures Where will Competitiv Reinforcing Manageme How will we Aspiration? e nt systems we win? activities advantage required? compete Specific configurati ons  What Where will capabilities we play? must be in Where will we compete? Purpose Unique Support Guiding The right way place? Required systems aspirations playing Value capabilitie Structures, field proposition s to win Measures Where will Competitiv Reinforcing Manageme How will we Aspiration? e nt systems we win? activities advantage required? compete Specific configurati ons New vison connecting functions and product categories / countries  What Where will capabilities Purpose we play? Unique must be in Support Unique position Guiding The right way place? Required systems aspirations playing Value capabilitie Structures, field proposition s to win Measures Where will Competitiv Reinforcing Manageme How will we Aspiration? e nt systems we win? activities advantage required? compete Specific configurati ons  What Where will capabilities Purpose we play? Unique must be in Support Guiding The right way place? Required systems Sample of Announcements in March 2021 aspirations playing Value capabilitie Structures, field proposition s to win Measures Where will Competitiv Reinforcing Manageme How will we Aspiration? e nt systems we win? activities advantage required? compete Specific configurati ons The TRATON GROUP is systematically preparing for the transition to electric drives. The commercial vehicle manufacturer has now decided to invest a total of €1.6 billion in research and development for e-mobility by 2025. An e- mobility investment of €1 billion had been planned originally over this period. At the same time, TRATON is scaling back The Volkswagen Group presented its technology investments in conventional drives for these to make up less roadmap for batteries and charging up to 2030 than one-fifth of its product development in 2025. This means today on its first Power Day. The goal of the that by then, the share of product development dedicated to roadmap is to significantly reduce the complexity electric mobility will have doubled. and cost of the battery. At the same time, the Group is aiming to secure the supply of battery cells beyond 2025. In Europe alone, six gigafactories with A personalized website, improved myAudi a total production capacity of 240 GWh are to be app features and additional consulting established by the end of the decade. options: AUGI AG is making significant progress in the digitization of its sales. 2022 Financials Volkswagen and Tesloa compared Market Cap 77 bill 636 bill EBITA 49.4 bill 17.68 bill Price / Earning Ratio 4.1 55.49 Electric cars delivered 762,000* 1,310,000 R&D investments 15.6 bill 3.1 bill R%D ration (to revenues) 7.6 % 3.8 % * + 309,000 plug-in hybrids of 8,610,000 cars on total  What Volkswagen, Toyota and Tesla Where will capabilities Purpose we play? Unique must be in Support Guiding The right way place? Required systems aspirations playing Value capabilitie Structures, field proposition s to win Measures Where will Competitiv Reinforcing Manageme How will we Aspiration? e nt systems we win? activities advantage required? compete Specific configurati ons Share price development last year Share price development last three years Breakout Groups Work on answering your question for Surinam Airways - Prepare a three minute pitch answering your question GROUP 2 & 5 GROUP 4 Where will we What capabilities Purpose of the play? Unique right to win must be in place? Support systems enterprise Value proposition Systems, structures, Our guiding aspiratios The right plying Competitive Required measures to support field advantage capabilities to win your choice Where will we Reinforcing activities compete, our Specific geographies, product configurations GROUP 1 categories, customer What What is your segments, channels, GROUP 3 & 6 management winning integration How will we win? systems are aspiration? required? Going back to Volkswagen Risk and Challenges in Volkswagen 2025 strategy Taking the five steps strategy framework, identify the Volkswagen‘s risk and challegnes on each step GROUP 2 & 5 GROUP 4 Can VW become the technology Where will we Creating scaling advantage What capabilities Culture leader? play? Creating pest ux’s. must be in place? How to manage the change Will electric vehicles be the winning Leverage across models technology? Missing developing countries Increased competition from new Lacking R&D Repairing reputation and trust New market entry has high costs entrants Builing reputation Aligning employees behind new Is electronic car affordable for lower Environmental challenge Understanding customer behaviour strategy income people? Increase demand for cars and Customer loyalty Image of the brands electricity Heavier commercial vehicles Outsourcing critical components Patent protection GROUP 1 What What is your GROUP 3 & 6 management winning How will we win? systems are aspiration? required? Challenges and Risks for Staatsolie  Group 1 challenges Group 4 and vice versa  Group 2 challenges Group 5 and vice versa  Group 3 challenges Group 6 and vice versa