Read the summary and the most important questions on SABMD

• 5 Business Strategy

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• WHY DO YOU NEED A STRATEGY ?

  • Consists of clear decisions 
    
  • Based upon strong evidence and/or business judgement
    
  • Has a good fit with the business model and the organisation
    
  • Provides (longer-term) direction
    
  • Gives guidance in case of unexpected events and/or insights
    
  • Motivates internally
    
  • Convinces externally
    

• 6 External Convincing

• How do investors read a plan?

  1. big opportunity
     
  2. team execute
  3. opportunity arise
  4. works
  5. finance and when

• How much submitted plan becomes deals?

  Less than 2%

• 7 Common Errors

• What are the common errors and assumptions?

  1. Self deception
  2. Poor assessment of competitors
  3. Failure to consider risks
  4. Optimistic financial
  5. Naive funding strategy
  6. Techno-babble and product fixation
  7. Failure to articulate the deal

• 8 Business plan

• Whats a business plan?

  Captures the key element of the business with the key supporting arguments and evidence

• What are the strategies in a business plan?

  1. Value proposition 
  2. Customer 
  3. Competitive
  4. Technological
  5. Make or buy
  6. Agility
  7. Resource
  8. Goal

• 9 Porter Strategy

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• What is useful from Porter Strategy?

  • Attention for conditions
  • Don't get stuck in the middle
  • Link between strategy and activity system
  • Focus on where external conditions most favourable

• What is Porters limitation?

  • Does not explain differences between companies in same industry
  • Assumes company can use only one generic strategy
  • No attention to strengths of companies
  • No attention for dynamic/agile strategy
  • Operational effectiveness is no strategy

• 10 Resource-based strategy

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• What makes a resource valuable?

  • Scarcity
    
  • Demand
    
  • Appropiability
    

• What are the capabilities resources?

  • Supplier chain
    
  • Managerial judgement