STRATEGIC MAPS
Robert S. Kaplan, David P. Norton
The collaboration between Kaplan and Norton began in 1990 with a multi-company research project dedicated to exploring new ways to measure organizational performance. Back then, we believed that knowledge-based assets above all employees and information technologies were becoming increasingly important for the competitive success of companies.
In the field of business, the concept of strategy maps was developed by Robert Kaplan and David P. Norton, But companies, to measure their results, continued to resort to the financial accounting system, which considered investments in employee training, databases, information systems, customer relations, quality, response processes, innovative products and services. as expenses for the period in which they were incurred. Financial information systems did not provide any basis for measuring and managing the value created by increasing the capabilities of a company's intangible assets.
Requirements to be a good strategist
- Be creative Develop conceptual thinking ❖ Have a capacity for expression Have Sense of Foresight
What is Strategy:
- Strategy is a plan to address an issue. A strategy is made up of a series of planned actions that help to make decisions and achieve the best results The strategy is oriented to achieve a goal following a pattern of action A strategy comprises a series of tactics that are more concrete measures to achieve one or various objectives.
Strategies
Military strategy
The original meaning of strategy is the art or the way of directing military operations. In this sense, military strategy refers to the action plans designed to achieve victory in a war conflict taking into account different variables. "The Art of War", a book written by the Chinese Sun Tzu, is a manual in which examples of military strategies can be found.
Strategy games
- In the world of leisure, this term appears to talk about strategy games. In this case, it is a type of playful activity based on intelligence and technical skills in which victory is sought through planning. In this section we can find different modalities, such as card games or some video games. A classic and universal example of a game of strategy is chess.
Business strategy
- In the field of business, the term business strategy is used to talk about the series of steps or guidelines that a company must follow to obtain the greatest benefits. An example of a business strategy can be to acquire companies in the same sector to eliminate the competition.
Teaching / learning strategies
In the area of education, we talk about teaching and learning strategies to refer to the set of techniques that help improve the educational process. For example, you can talk about a content organization strategy to talk about a way of acting in front of a task using different techniques such as underlining, summarizing or making outlines.
Reason for the corporate strategy
In order to understand what corporate strategies are, we must first define what strategies are, these being all those steps that a company must follow in order to establish and achieve objectives.
We can define corporate strategies as:
Corporate Strategy are the decision-based processes that an organization takes to define and achieve its objectives, through constant interaction between it and its environment, which:
Corporative strategy
1.) It involves the formulation of the mission and objectives for the time horizon, which includes the decision system.
- It seeks to improve and defend the competitiveness of the company. It requires the establishment of policies and operational objectives.
Vertical Integration
- Vertical integration.
This strategy seeks to relate the company directly with its suppliers and distributors. Since we can identify 3 entities in this chain, where all seek to achieve economic performance and in turn all seek to obtain greater power with their customers and with their suppliers.
For this reason, the vertical integration strategy seeks to coordinate more than two entities located at different levels in order to obtain greater control, as well as an efficient and effective supply or distribution system.
- According to Valiño (2006) This strategy seeks to: Reduce the uncertainty with which companies operate, both in terms of
supplies (supply volatility, high power of suppliers) as well as on the demand side (increasing power of consumers, low customer loyalty).
- Achieve a better orientation of investments towards activities in the channel that present higher profitability.
Types of corporate strategies
- The achievement of economies of scale and scope due to the coordination of distribution functions (optimization of warehousing and delivery of goods, improvement of the order and collection cycle, etc.). The creation of entry barriers, Potential competitors will see an increase in the scale of operation at the same time that they may encounter difficulties in their provisioning, depending on the power achieved by the vertical organizations existing in the market.
STABILITY STRATEGIES
The organization continues to do what it does. No significant change occurs, the same service or product is offered, maintains the same market segment and sustains its current operations (the organization does not grow but declines) Many times it occurs due to:
Lack of resources
Lack of skills
Have grown too
GROWTH STRATEGIES
It is characterized by seeking to elevate the operations of the company.
Growth can be achieved through:
Vertical integration
Cooperation
Diversification
Licenses
STRATEGIES OF CONTRACTION
- It consists of expanding the actions of the Companies. It can be forward or back. Disadvantages of this integration:
- Disadvantages in costs Technological changes Uncertainty of demand.
INTEGRATION STRATEGIES
- It consists of expanding the actions of the Companies. It can be forward or back. Disadvantages of this integration:
- Disadvantages in costs Technological changes Uncertainty of demand.
Cooperation strategies
The strategic reasons that justify these strategies are:
- Collaborate in the development of a new product General economies of scale Lack of knowledge Market access
This type of strategy is very useful to penetrate international markets.
Diversification strategies
- They consist of acquiring businesses related or not to the original business. Diversification is not necessarily a good strategy. Failures to diversify are due to bureaucratic costs that are greater than the value created.
Construction strategies
- They consist of acquiring businesses related or not to the original business. Diversification is not necessarily a good strategy. Failures to diversify are due to bureaucratic costs that are greater than the value created.
Combination strategies
It is the strategy that simultaneously seeks two or more of the following stability, growth or contraction strategies.
An example of this is the case of FIFO I.
Download the original file
