Chapter 2 - Implementing strategy: The value chain, the balanced scorecard, and the strategy map. After studying this chapter, you will know: Explain how to implement a competitive strategy by using Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis, explain how to implement a competitive strategy by focusing on the execution of goals, explain how to implement a competitive strategy using value-chain analysis. | Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map Chapter Two 2-2 Explain how to implement a competitive strategy by using Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis Explain how to implement a competitive strategy by focusing on the execution of goals Explain how to implement a competitive strategy using value-chain analysis Learning Objectives 2-3 Learning Objectives (continued) Explain how to implement a competitive strategy using the Balanced Scorecard (BSC) and strategy map Explain how to expand a conventional Balanced Scorecard (BSC) by integrating sustainability 2-4 There are two main competitive strategies: cost leadership differentiation Once a firm chooses which strategy to follow, there are various means of implementation: SWOT Analysis Focus on execution Value-chain analysis Balanced scorecard (BSC) Implementing a Strategy 2-5 SWOT Analysis Identification of critical success factors (CSFs) tied to strategy—for example: Product innovation Quality Skill development Identification of quantitative measures for the specified CSFs—for example: Number of design changes or new patents Number of defects or number of returns Number of training hours or amount of skill performance improvement 2-6 SWOT Analysis (continued) The SWOT analysis has four areas: S – strengths/internal W – weaknesses/internal O – opportunities/external T – threats/external Look at product lines, management, R&D, manufacturing, marketing, and strategy Look at barriers to entry, intensity of rivalry among competitors, substitute goods, and customer/supplier bargaining power 2-7 The CSFs a manager executes depend on the chosen strategy Cost leadership: operational performance and quality Differentiation: customer satisfaction and innovation Differentiated firms must pay close attention to marketing and product development Management accountants assist by gathering, analyzing, and reporting on relevant information Can be improved through . | Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map Chapter Two 2-2 Explain how to implement a competitive strategy by using Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis Explain how to implement a competitive strategy by focusing on the execution of goals Explain how to implement a competitive strategy using value-chain analysis Learning Objectives 2-3 Learning Objectives (continued) Explain how to implement a competitive strategy using the Balanced Scorecard (BSC) and strategy map Explain how to expand a conventional Balanced Scorecard (BSC) by integrating sustainability 2-4 There are two main competitive strategies: cost leadership differentiation Once a firm chooses which strategy to follow, there are various means of implementation: SWOT Analysis Focus on execution Value-chain analysis Balanced scorecard (BSC) Implementing a Strategy 2-5 SWOT Analysis Identification of critical success factors (CSFs) tied to strategy—for example: .
