1. THE ESSENCE OF BUSINESS STRATEGY The Core Question in Strategy © Dafir Kramer Consultant and Lecturer in Strategy and Change www.dksc.nl

2. The Core Question in Strategy Organization It all boils down to… How can an organization stay in business? What business are you in?

3. The Core Question in Strategy Every organization will only remain if it has a fit with its environment FIT Organization Environment What business are you in?

4. The Core Question in Strategy No fit = No sustainability ‘ elimination of the unfit ’ What business are you in? Commercial Non profit Public Environment Money Funding Legitimation

5. The Core Question in Strategy FIT Supply Demand What business are you in? Connecting to environmental demand with a proper supply

6. The Core Question in Strategy FIT Product Market What business are you in? Choosing to which market You will offer a product

7. The Core Question in Strategy Organization Environment Supply Demand Product Market PRODUCT FIT MARKET PMC What business are you in? So the core question is… Which Product-Market-Combination?

8. The Core Question in Strategy Organization Environment CAPABILITIES FIT VALUE BUSINESS What business are you in? And Product-Market-Combination is synonymous to Business PRODUCT FIT MARKET Value Proposition

9. The Core Question in Strategy What business are you in? So the essence of strategy is knowing your business Do you know… WHAT BUSINESS YOU ARE IN?

10. The Core Question in Strategy Organization Environment BUSINESS What business are you in? Business Strategy How to fit the organization to the environment Resources Competences Configuration Strenghts / Weaknesses Opportunities / Threaths Market segments Industry dynamics Network partners Value Proposition Cost Differentiation Focus

11. The Core Question in Strategy Organization Market What business are you in? The Outside-In approach Adapting the organizational capabilities to market demands Adapting BUSINESS

12. The Core Question in Strategy Organization Market What business are you in? The Inside-Out approach Selecting markets that fit to organizational capabilities Selecting BUSINESS

13. The Core Question in Strategy What business are you in? Final Remarks… Combine creativity and logic Its a matter of judgement and deciding Be focused It’s not about finding the thruth, but creating thruth

14. THE ESSENCE OF BUSINESS STRATEGY The Core Question in Strategy © Dafir Kramer Consultant and Lecturer in Strategy and Change www.dksc.nl