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 over traditional product and market focus. The first principle asserts that business processes serve as the core elements of corporate strategy. This perspective shifts the emphasis from merely what a company sells to how it operates, suggesting that operational efficiency and effectiveness are crucial for success.

The second principle highlights that achieving competitive success hinges on the transformation of these business processes into strategic capabilities. This transformation is essential for delivering superior customer value, indicating that companies must not only identify their processes, but also enhance them to meet customer needs effectively.

The third principle discusses the role of support infrastructure in creating capabilities. It suggests that strategic investments in infrastructure are necessary to connect various functions and business units. This interconnectedness is vital for fostering collaboration and ensuring that capabilities transcend traditional organizational boundaries.

Finally, the fourth principle identifies the CEO as the key champion of a capabilities-based strategy. This underscores the CEO's role in driving the transformation of business processes into strategic capabilities that span across functions and strategic business units (SBUs). The CEO's leadership is crucial for aligning organizational efforts towards a common goal, ensuring that capabilities are effectively leveraged to enhance overall performance.

Overall, the slide presents a framework that encourages organizations to rethink their strategic approach, focusing on the integration of processes and capabilities to create lasting value for customers.

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