To accompany contemprory strategy analysis concepts techiniques application chapter01slides

PRESENTATION SLIDES To accompany: Contemporary Strategy Analysis: Concepts, Techniques, Applications 5th edition, Blackwell, 2004 Robert M... The Concept of Strategy• The role of strate

PRESENTATION SLIDES

To accompany:

Contemporary Strategy Analysis: Concepts, Techniques, Applications

(5th edition, Blackwell, 2004)

Robert M Grant

The Concept of Strategy

• The role of strategy in success

• A framework for strategy analysis

• The evolution of strategic management

• Corporate strategy and business strategy

• Strategy making: Design or process?

• The role of strategy

OUTLINE

Elements of Success

MADONNA GIAP & NORTH RICHARD WILLIAMS

VIETNAMESE MILITARY (VENUS & SERINA’S DAD)

GOALS Single-minded quest for Reunification of Vietnam Wealth & recognition

stardom under Communist rule.

UNDERSTANDING Identified emerging trends Intimate knowledge of terrain Careful diagnosis of

THE in popular culture Understanding U.S political the physical and

ENVIRONMENT Recognized power of sex system Psychological determinants

Understood showbiz of success in women’s distribution channels professional tennis

RESOURSE Recognized limited raw Recognized economic and Systematic developed

APPRAISAL talent Relied on strengths military weaknesses and key skills and physical,

in self-promotion, image- political strengths mental and social creation, relationship attributes from an early age

IMPLEMENT- Commitment to hard work Tight control Long-term Careful meshing of

ATION Disciplined, inspirational commitment Effective roles—father, coach &

Leadership Attention to propaganda Inspirational manager Sustained, detail leadership supportive leadership.

Successful Strategy

Long-term,

simple and

agreed

objectives

Profound understanding of the competitive environment

Objective appraisal of resources

Common Elements in Successful Strategy

EFFECTIVE IMPLEMENTATION

What is Strategy?

• Distinguishing strategy from tactics:

– Strategy is the overall plan for deploying

resources to establish a favorable position.

– Tactic is a scheme for a specific maneuver.

• Characteristics of strategic decisions:

– Important.

– Involve a significant commitment of

resources.

– Not easily reversible.

The Evolution of Strategic Management

DOMINANT

THEME

1950s 1960s-early 70s Mid-70s-mid-80s Late 80s –1990s 2000s

Budgetary Corporate Positioning Competitive Strategic planning & planning advantage innovation control

Financial Planning Selecting Focusing on Reconciling control growth &- sectors/markets sources of size with

diversification Positioning for competitive flexibility &

leadership advantage agility

Capital Forecasting Industry analysis Resources & Cooperative budgeting Corporate Segmentation capabilities strategy.

Financial planning Experience curve Shareholder Complexity planning Synergy Portfolio analysis value Owning

E-commerce standards — Knowledge Management—

Coordination Corporate Diversification Restructuring Alliances &

& control by planning depts Global strategies Reengineering networks Budgeting created Rise of Matrix structures Refocusing Self -organiz systems corporate Outsourcing ation

& virtual

planning organization

MAIN

ISSUES

KEY

CONCEPTS

&

TOOLS

MANAGE-MENT

IMPLIC-ATIONS

The Basic Framework

Strategy: the Link between the

Firm and its Environment

The Basic Framework

Strategy: the Link between the

Firm and its Environment

THE FIRM

Goals &

Values

Resources &

Capabilities

Structure &

Systems

THE INDUSTRY ENVIRONMENT

Competitors Customers Suppliers STRATEGY

STRATEGY

Sources of Superior Profitability

RATE OF PROFIT

ABOVE THE

COMPETITIVE

LEVEL

How do we

make

money?

INDUSTRY ATTRACTIVENESS

Which businesses should we be

in?

COMPETITIVE ADVANTAGE

How should

we compete?

CORPORATE STRATEGY

BUSINESS STRATEGY

Strategy Making : Design or Process?

Strategy as Design

Planning and

rational choice

INTENDED

STRATEGY

Many decision makers responding to multitude of external and internal forces

REALIZED STRATEGY

EMERGENT STRATEGY Strategy as Process

Mintzberg’s Critique of Formal Strategic Planning:

•The fallacy of prediction – the future is unknown

•The fallacy of detachment impossible to divorce formulation from

implementation

•The fallacy of formalization inhibits flexibility, spontaneity,

Mintzberg’s Critique of Formal Strategic Planning:

•The fallacy of prediction – the future is unknown

•The fallacy of detachment impossible to divorce formulation from

implementation

•The fallacy of formalization inhibits flexibility, spontaneity,

Strategy Making Processes within the Company: Multiple Roles of Strategy

Strategy Making Processes within the Company: Multiple Roles of Strategy

Strategy as Decision

Support

Strategy as Coordination

and Communication

Strategy as Target

Improves the quality

of decision making

Creates consistency and unity

Improves ance by setting

high aspirations

The Role of Analysis

• Strategy analysis improves decision processes,

but doesn’t give answers.

• Strategy analysis assists us to identify and

understand the main issues.

• Strategy analysis helps us to manage complexity.

• Strategy analysis can enhance flexibility and

innovation by supporting learning.