Doing Well at Doing Good

Presentation Made by Professor Michael E. Porter at Willow Creek Leadership Summit, August 2007

Define Appropriate Goals

Choose Where to Serve

What services to provide

Choose How to Serve

A clear strategy for each service area

Setting Strategy

Strategy Principles

1. Define Clear Goals

2. Choose a Sustainable Solution Model

3. Understand the Value Chain

4. Combine Operational Effectiveness and Strategy

5. Define a Clear Value Proposition

6. Create a Distinctive Value Chain

7. Make Clear Tradeoffs

Barriers to Strategy

Strategy Principles

6. Create a Distinctive Value Chain

Value Proposition

Distinctive Activities

• Natural, fresh, organic, and prepared foods and health items with excellent service at premium prices

• Educated, middle class and affluent customers who are passionate about food as a part of a healthy lifestyle

• Well-lit, inviting supermarket store formats with appealing displays and extensive prepared foods sections

• Produce section as “theater”

• Each store carries local produce and has the authority to contract with the local farmers

• Information and education provided to shoppers along with products

• High touch in-store customer service via knowledgeable, flexible, highly motivated personnel

• Café-style seating areas with wireless internet for meetings and meals

• Egalitarian compensation structure

• Own seafood procurement and processing facilities to control quality (and price) from the boat to the counter

• Donates 5% of profits to non-profits

• Each store has “green projects,” directed by employees to improve environmental performance



Copyright 2007 © Professor Michael E. Porter.	Used by Permission.