ITU Centre of Excellence/AFRALTI Business Strategy for Telecom Somalia David Beard
Business Strategy Introductions • Name • Current job • Involvement in business strategy • Current “Big Issue” for you at work
Business Strategy Training Objectives • Understand business strategy • Know your core competence • Know how to use your core competence to make profits
Business Strategy Popular misunderstandings: • “Strategy is just for senior managers” • “Strategy is about external forces” • “Strategy is planning”
Strategy is about the: creation delivery of value Business Strategy
Business Strategy Value: • Share price + dividend (private sector) • Value for voters…better service (public sector)
Business Strategy • Know your industry • Know your own strengths & weaknesses and develop your core competence • Know your customers’ needs • Know how they fit together
Business Strategy Core Competence: “Focus on what you are good at”
Business Strategy • Develop core competence • Divest non-core?
Business Strategy P,C Price Cost Q Quantity profit = (P – C) X Q
Business Strategy Internal Rivals Suppliers Entrants Five-Force Analysis (Porter) Buyers Substitutes
Business Strategy Which is Your Strategy? 1. Fast and Flexible • How fast? • How flexible? • How do you maintain your competitive advantage? 2. Manage Value Chain • How do you manage each part of the value chain? • How do you ensure no one gets too powerful? • How do you ensure profitability for all participants?
Business Strategy Business Strategy Annual Business Plan Balanced Scorecard
Business Strategy • Staffs’ Needs • Recognition • Motivation • Growth • Quality • Processes • Systems Balanced Scorecard Customer’s Needs Owners’ Needs • Reliability • Responsiveness • Range • Value • Profitability • Success Kaplan & Norton, 1995
Business Strategy Balanced Scorecard Financial Targets Customer Service Targets Internal Process Targets Learning and Growth Targets
Business Strategy Social Obligation v Commercialism • Universal access • Social-driven • Standard pricing • Pay as you go • Market-driven • Pricing for profit Which Model?