To accompany contemprory strategy analysis concepts techiniques application chapter01slides

PRESENTATION SLIDES To accompany: Contemporary Strategy Analysis: Concepts, Techniques, Applications (5th edition, Blackwell, 2004) Robert Robert M M Grant Grant Assisted by Kate Grant The The Concept Concept of of Strategy Strategy OUTLINE • 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 Elements Elements of of Success Success GOALS MADONNA GIAP & NORTH VIETNAMESE MILITARY RICHARD WILLIAMS (VENUS & SERINA’S DAD) Single-minded quest for stardom Reunification of Vietnam under Communist rule Wealth & recognition UNDERSTANDING Identified emerging trends THE in popular culture ENVIRONMENT Recognized power of sex Understood showbiz distribution channels Intimate knowledge of terrain Careful diagnosis of Understanding U.S political the physical and system Psychological determinants of success in women’s professional tennis RESOURSE APPRAISAL Recognized limited raw talent Relied on strengths in self-promotion, imagecreation, relationship management Recognized economic and military weaknesses and political strengths Systematic developed key skills and physical, mental and social attributes from an early age IMPLEMENTATION Commitment to hard work Disciplined, inspirational Leadership Attention to detail Tight control Long-term commitment Effective propaganda Inspirational leadership Careful meshing of roles—father, coach & manager Sustained, supportive leadership Common Common Elements Elements in in Successful Successful Strategy Strategy Successful Strategy EFFECTIVE IMPLEMENTATION Long-term, simple and agreed objectives Profound understanding of the competitive environment Objective appraisal of resources What What is is Strategy? 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 The Evolution Evolution of of Strategic Strategic Management Management DOMINANT THEME MAIN ISSUES KEY CONCEPTS & TOOLS MANAGEMENT IMPLICATIONS 1950s 1960s-early 70s Mid-70s-mid-80s Late 80s –1990s Budgetary planning & control Corporate planning Positioning Competitive advantage Strategic innovation Financial control Planning growth &diversification Selecting sectors/markets Positioning for leadership Focusing on sources of competitive advantage Reconciling size with flexibility & agility Capital budgeting Financial planning Forecasting Corporate planning Synergy Industry analysis Segmentation Experience curve Portfolio analysis Resources & Cooperative capabilities strategy Shareholder Complexity value Owning E-commerce standards — Knowledge Management— Coordination & control by Budgeting systems & virtual Corporate Diversification Restructuring Alliances & planning depts Global strategies Reengineering networks created Rise of Matrix structures Refocusing Self -organiz corporate Outsourcing ation planning 2000s organization The The Basic Basic Framework Framework Strategy: Strategy: the the Link Link between between the the Firm Firm and and its its Environment Environment THE FIRM Goals & Values Resources & Capabilities Structure & Systems STRATEGY STRATEGY THE INDUSTRY ENVIRONMENT Competitors Customers Suppliers Sources of Superior Profitability INDUSTRY ATTRACTIVENESS RATE OF PROFIT ABOVE THE COMPETITIVE LEVEL How we make money? Which businesses should we be in? CORPORATE STRATEGY COMPETITIVE ADVANTAGE How should we compete? BUSINESS STRATEGY Strategy Strategy Making Making :: Design Design or or Process? Process? Strategy as Design Strategy as Process Planning and rational choice Many decision makers responding to multitude of external and internal forces INTENDED STRATEGY EMERGENT STRATEGY REALIZED STRATEGY Mintzberg’s Mintzberg’sCritique Critiqueof ofFormal FormalStrategic StrategicPlanning: Planning: •The •Thefallacy fallacyof of prediction prediction––the thefuture futureisisunknown unknown •The fallacy of detachment -impossible to •The fallacy of detachment impossible todivorce divorceformulation formulationfrom from implementation implementation •The •Thefallacy fallacyof offormalization formalization inhibits inhibitsflexibility, flexibility,spontaneity, spontaneity, intuition and learning intuition and learning Strategy Strategy Making Making Processes Processes within within the the Company: Company: Multiple Multiple Roles Roles of of Strategy Strategy Strategy as Decision Support Improves the quality of decision making Strategy as Coordination and Communication Creates consistency and unity Strategy as Target Improves performance by setting high aspirations The The Role Role of of Analysis 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  ... of of Strategy Strategy OUTLINE • The role of strategy in success • A framework for strategy analysis • The evolution of strategic management • Corporate strategy and business strategy • Strategy. .. 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. .. BUSINESS STRATEGY Strategy Strategy Making Making :: Design Design or or Process? Process? Strategy as Design Strategy as Process Planning and rational choice Many decision makers responding to multitude