Sebastian Perrier

• Trap A – “Singapore syndrome”

Post WWI – what is our defence strategies for the empire’s choke points. Conclusion “Singapore can only last six weeks.” But assumed the attack was seaborne. Didn’t consider attack from Malay peninsula, where Japanese came . Singapore lasted 48 hours, not 6 weeks.Post WW2 analysis – Strategy assumed 6 weeks to justify the dissolution of the Asian fleet and to “prove” the European fleet could get there in time. E.g. Product price or market expansion figures invented to justify costs.

• Trap B – Allow a plan to gain unstoppable momentum

Head in sand – dogs in street knows it will fail. “A Bridge Too Far” syndrome. Don’t be committed to plan.

• Trap C – Know your Enemy but don’t let them dictate to you

Don’t be distracted by competitors’ strategy. Don’t be distracted by industry noise – especially when ego is in play “we will decide when to leave a market, we will not be forced out.”

When defining a business, there are 3 things to consider: i) what are the customer’s needs and wants, what problem is our business solving; ii) who are those customers, who are we specifically helping and; iii) what technology are we using to solve those issues.

The Mission & Vision are the foundations for the company’s strategy; are the guidelines, the framework, the ground rules established to achieve the company’s goals.

MISSION (why are we here for?)

Is the main ideology of the organization, is the bedrock containing the purpose (reason for being) and the values (ideas, atitudes, thoughts, beliefs etc).

VISION (what do you want to achieve?)

The vision is a challenging aspiration of what you want to be when you grow up. It’s objective is to inspire the organization to work towards a goal in the long-term which is currently beyond their expectations. What are you really passionate about? What can you be best in the world?

OBJECTIVES

Set your vision into objectives. There are eight  objectives that every organization should have:

1. Market Standing
2. Innovation
3. Productivity
4. Financial Resources
5. Profitability
6. Management performance and development
7. Employees performance and attitudes
8. Public Responsability

Why is Strategy important?

It is important to have strategies in order to align decision making in the business.

Strategy is about making choices: WHAT to do and what not to. It is also about HOW to do it, how are you going to make it differently. Strategy is about how resources should be allocated to accomplish the goals.

Two levels:

1. Corporate Level Strategy: WHERE (vertical integration / geography / product diversification)
2. Business Level Strategy: HOW to compete in that industry (determine your competitive advantages)