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Bogdan Petrov
Bogdan Petrov

Ansoff Corporate Strategy.pdf

Structured thinking about planning systems 1965 Igor Ansoff Analytical approach to corporate strategy 1972 Igor Ansoff Strategic management concept 1980Strategic Management From Theory to Implementation

Ansoff Corporate Strategy.pdf

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H Igor Ansoff was the prominent reference in the corporate strategy field, especially during the s Management stratégique Organisation et politique Séminaire Introduction au Management Stratégique Première B Igor Ansoff C Peter Frederick Taylor ( ' ) est le fondateur de l'Organisation mars&B NMN M

Igor Ansoff was recognized worldwide as the Pioneer and Father of Strategic Management He was the first In Corporate Strategy, Igor Ansoff explored these issues, and built up a systematic approach to strategy formulation and strategic decision making through a framework of theories, techniques and models Strategy&igor ansoff.html

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Using the Boston Matrix - The Boston Matrix was developed to help organizations allocate their investments across its product range and divisions. However, it is sometimes used as part of brand level decision-making - something it was never designed for. Many of the misconceptions associated with the Boston matrix come from the nature of the economic climate that existed at the time of its inception. These fundamental assumptions were incorporated into its design and are not always applicable in today's global fast-paced market.

Large forest industry companies typically consist of several business units or several groups of business units (e.g., divisions) operating as one financial entity. Business units can be from the same or different branches. Economic and financial questions are generally handled by corporate management, and strategic planning is particularly important at this level.

The following summarizes the definition of corporate strategy and the differences between corporate and marketing strategy. According to Ansoff, careful definition of the product/market area is an essential component of strategic planning. He suggests that strategic decisions are those which define the business area in which the company chooses to operate. These two comments can be used to distinguish corporate from marketing strategies. At the corporate level, product/market decisions are made with respect to the business area or industry chosen. At the business unit level, product/market decisions are clearly made with respect to products to be produced and customers to be served. When the business unit or marketing manager is considering what kind of products to offer, the corporate CEO considers which divisions, industries, businesses, or strategic business units to invest in or divest.

This idea is illustrated in Figure 4-4. At the corporate level, the product is defined as structural panels and the customer as the construction sector. These definitions become much more precise at the marketing level.

The vision statement must indicate a clear understanding of where a corporation is today and how it should proceed in the future. It should be seen as the primary corporate motivation, rather than profit.[39] Vision statements should be action-oriented, present- and future-based views of the dreams of executives. Unfortunately, these days vision statements are often no more than advertising slogans.[40]

The difference between an SBU and an SBA can be explained through the company philosophy: production- versus market-orientation. In corporate strategic planning, a production-oriented company emphasizes SBUs while a market-oriented company emphasizes SBAs.

Since the 1990s the general direction in the forest industries has been to concentrate on core businesses. Many multi-industry corporations have renewed their strategies and now concentrate only on forest-based industries. In the late 1980s, a Finnish multi-industry corporation Rauma-Repola started developing its corporate strategy by listing its strategic business units (also referred to as industry groups or business areas):

Strategic accounts are important at the corporate level of planning because of the size and power of the biggest customers. They might be global or multi-national companies using centralized and harmonized supply processes and preferring one-stop-shopping. Ongoing globalization and consolidation have increased the size of both forest industry companies and their major customers. Big paper users (printers and packagers) or big DIY chains can be larger than even the biggest paper or wood products producers. Very large customers are strategically valuable for the entire corporation and their needs should be taken into consideration in corporate planning.

Strategic account management is a method for dealing with very large customers. Because some mills or divisions may be too small to satisfy the multi-faceted demands of very large customers, the solution must be created at the corporate level. When a market-oriented corporation is making decisions concerning SBAs, the starting point could be a strategic account instead of a traditional end-use sector. In other words, a strategic account may mean that one key customer forms an SBA. Strategic account-based SBAs can actually impact the corporate organizational structure. This means that the whole corporate strategic planning must be market-oriented and more closely resembles strategic marketing planning.

Strategic account-based corporate strategic planning limits the possibilities of marketing planning and coordination on lower company levels. Division level management must take accounts identified by corporate management into consideration in their marketing and production plans. Division level management may identify their own strategic accounts. At the mill or product level, planning the decisions of corporate and division managers must be taken into consideration before separate customer decisions can be made. Again at this level, managers may have their own strategic accounts.

Strategic account-based corporate strategy requires that the company and the customer share information and align many of their processes. Mutual trust and cooperation are needed to form a working, rewarding, and long-term partnership. The structures and functions of the company are planned so that they effectively implement the strategic account-based strategy.

Portfolio planning is the process of evaluating the current portfolio of business units. The results of the portfolio analysis give corporate managers the necessary information to appropriately allocate resources among the business units in the portfolio (Example 4-6). Two major portfolio tools discussed below are the Boston Consulting Group (BCG) Matrix and the General Electric (GE) Business Screen.

Earlier we considered planning of corporate strategies using portfolio matrices. In principle, choosing customers is a similar planning situation. With respect to strategic business areas, we examine end-use sectors with corresponding products. The end-use-sectors could be window manufacturers, furniture manufacturers, edge-glued panel manufacturers or planing mills. The criteria for the attractiveness of these sectors must be developed. Correspondingly, instead of relative position we consider the strengths and weaknesses connected to the products, production, and marketing of the company.

Now that you know how to use the Ansoff matrix. Let us look at incredible Ansoff Matrix examples to inspire you. Our Ansoff Matrix examples come from successful case studies of companies that have incorporated Ansoff Matrix as part of their business strategy.


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