Strategic Thinking and Business Strategy

DIVING BUSINESS STRATEGY Strategic thinking is essential in order for companies to succeed #1 BANKRUPTCY is bad strategy |cause of The economy is only 4% of the reasons businesses struggle. ONLY 3 out of every 10 managers are strategic teams spend 70% leadership of a company's poor performance is due to decisions about strategy 50% spend no time 80% of top management's time is devoted to issues 85% less than one hour that account for less than their strated 20% of a company's long term value Companies with clearly defined strategies on average beat their competition by 304% 332% Shallow Strategy Some companies fail to think strategically, leading to insolvency and bankruptcy. See which companies are dead in the water from poor management and leadership. BLOCKBUSTER VIDEO In 1994 it merged with Viacom to create a media colossus. One decade later it failed to innovate, allowing competitors like redbox and Netflix to dominate the marketplace. Shares at $27.50 Today: $.15 When Borders first started, the mega bookstore chain took over the book sellin industry. Despite its BORDERS initial strategy, Borders drifted from strategic thinking and was unable to adjust to an internet-laced competitive landscape. Fifteen years later Borders declared bankruptcy. Shares at $36.50 in 1996. Today: $.23 Sears In the 1960's, Sears was the world's largest retailer. Today, Sears has failed to incorporate new business models and to adopt new selling platforms, leaving their market value at 4% of Wal-Mart's. Since 2005, Sears Holding Company income has plunged 84%. Deep Success See companies who have leaders that dive deep into strategy and constantly innovate to find incredible success. DISNEY The Walt Disney Company has consistently innovated since its humble beginnings in 1923. Beginning with animated pictures, Disney spent the next century growing into theme parks, television, musicals, major pictures, media networks, and consumer products. With its continuous growth, each year Disney grosses more money. This made 2010 its highest year yet, grossing $38 billion With constant innovations and strategic management, Google hit a new record for quarterly revenue in 2011: reporting $9.03 billion for Q2. This means Q2 had a 32 percent increase over Q2 in 2010 when the company reported $6.82 billion in revenue. Google TM In 1997 Apple almost folded, but Steve Jobs came back and started rebuilding the company. As of May 2011, Apple Inc. is the most valuable tech company in the world valued at $317.60 billion. Second quarter of 2011 was its highest grossing quarter ever. brought to you by: StrategicThinking INSTITUTE www.strategyskills.com executive leade Amount eend per month discussing PROFIT MARGIN SALES