Core Principles of Capabilities-Based Corporate Strategy PPT

This PPT slide, part of the 69-slide Corporate Strategy Primer PowerPoint presentation, outlines 4 fundamental principles of capabilities-based competition, emphasizing the importance of business processes and strategic capabilities in corporate strategy. The first principle asserts that business processes serve as the core components of corporate strategy, rather than merely focusing on products or markets. This perspective shifts the emphasis to how a company operates internally.

The second principle highlights the necessity of transforming key processes into strategic capabilities that deliver superior value to customers. This transformation is crucial for achieving competitive success, indicating that organizations must prioritize enhancing their operational efficiencies and customer engagement.

The third principle suggests that companies can develop these strategic capabilities through targeted investments in their support infrastructure. This implies that resources should be allocated strategically to bolster the underlying systems that enable effective business processes.

The final principle identifies the CEO as the champion of a capabilities-based strategy. This role is vital because the CEO must ensure that capabilities are integrated across various functions and strategic business units (SBUs). The CEO's leadership is essential for fostering a cohesive approach to capability development, which can drive overall organizational performance.

Overall, the slide presents a structured framework for understanding how companies can leverage their internal processes and capabilities to create value. It serves as a guide for executives looking to refine their strategic focus and enhance their operational effectiveness.

This slide is part of the Corporate Strategy Primer PowerPoint presentation.

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