Table of Contents

  1   Table  of  Contents  

Part  1  –  Fundamentals  of  strategy  (I/O,  RBV,  External  environment)  ...  2  

Strategic  Management  ...  2

 

SERVO  model  of  strategy  ...  2

 

Elements  of  strategy  ...  2

 

Strategy  Gurus  ...  3

 

Strategic  Management  Process  ...  3

 

I/O  vs.  RBV  ...  4

 

External  Environment  ...  5

 

PESTEL  /  EPSGTPD  ...  5

 

Porter’s  5  Forces  ...  6

 

Industry  &  Product  Life  Cycles  Analysis  ...  7

 

Strategic  Groups  ...  8

 

Part  2  –  Internal  Analysis,  Business-­‐level  Strategy  and  Competitive  Rivalry  ...  9  

Internal  Analysis  ...  9

 

Competitive  Advantage  ...  10

 

Value  Chain  Analysis  ...  10

 

Outsourcing  ...  12

 

VRIO/VRIN  ...  13

 

Dynamic  capabilities  (1990s)  ...  14

 

Business-­‐level  strategy  ...  14

 

Generic  strategies:  ...  15

 

The  Ansoff  Growth  Matrix  ...  18

 

Market  penetration  ...  18

 

Market  development  (marketing  driven,  brand  awareness)  ...  18

 

Product  development  (R&D  driven)  ...  19

 

Diversification  (now  products  in  new  markets)  ...  19

 

Competitive  rivalry:  ...  19

 

Competitor  analysis  ...  19

 

Curveball  strategies  (George  Stalk  Jr)  ...  21

 

Predicting  your  competitor’s  reaction  (Coyne  &  Horn)  ...  21

 

Part  3  -­‐  Corporate-­‐level  strategy,  globalization,  strategic  leadership  and  implementation  ...  22  

Corporate  strategy  ...  22

 

Globalization  ...  23

 

Porter’s  diamond  ...  24

 

GI-­‐LR  model:  international  corporate  level  strategies  ...  25

 

Adaptation,  aggregation,  adaptation  ...  27

 

Strategic  leadership  ...  28

 

Strategy  implementation  ...  29

 

4  structural  types  ...  30

 

A  new  take  on  strategy  implementation  ...  31

 

The  balanced  scorecard  ...  31

   

     

  2  

Part  1  –  Fundamentals  of  strategy  (I/O,  RBV,  External  environment)  

 

Strategy  is  an  integrated  and  coordinated  set  of  commitments  and  actions  designed  to   exploit  core  competencies  and  gain  a  competitive  advantage  

 

Strategic  competitiveness  is  achieved  when  a  firm  successfully  formulates  and   implements  a  value-­‐creating  strategy  

 

Definition  limitation:    

•

Misses  the  dynamic  nature  of  strategy.  Nothing  about  looking  ahead  to  what  things   will  be.    

•

Does  not  mention  the  collaborative  nature  of  today’s  markets.  Think  of  the  book   James  Moore  wrote  in  1999  called  the  Death  of  Competition.  

•

Strategy  is  interdisciplinary.  It  is  both  internally  and  externally  focused  while  also   looking  towards  the  future  and  being  agile  enough  to  adapt  to  the  dynamic  

markets.  

Strategic  Management   Four  Characteristics:  

1. Interdisciplinary   2. Externally  focused   3. Internally  focused     4. Future  focused  

SERVO  model  of  strategy  

Want  to  do:  Encompasses  

the  management  values.  i.e.  a   socially  active  org,  will   encompass  such  value    

Need  To  Do:  based  on  an  

ever-­‐changing  environment  

 

Can  Do:  relates  to  the  

resources  and  capabilities  in   the  organisation  

 

Elements  of  strategy  

A  good  strategy  reflects  the  

environment,  building  on  org  R&C,   based  on  the  org.  values.    

*Capabilities  are  embedded  within   your  resources  

*A  strategy  needs  a  long-­‐term  

orientation  because  changing  the  

strategy  daily  based  on  people  leaving  

etc.  is  not  feasible.  It  needs  to  guide  

the  organisation  and  adapt  with  it.  

  3  

Strategy  Gurus  

Alfred  P.  Sloan  (1923-­‐56)–  President  of  GM  saw  strategy,  as  ‘position’  with  practices  emphasising   structure,  decentralising  divisions,  and  strategy  formulation  separate  from  implementation.  

 

Alfred  D.  Chandler  –  MIT  Profession  argued  strategy  drives  structure  and  is  a  result  of  rational   (top  down)  planning.    

• Strategy  ‘the  determination  of  the  basic,  long  term  goals  and  objectives  of  an  enterprise   and  the  adoption  of  courses  of  action  for  the  allocation  of  resources  necessary  to  achieve   those  goals’  

 

Igor  Ansoff  (1965)  -­‐  Strategy  is  the  common  thread  across  activities  and  product-­‐markets.  It’s   about  decision  on  what  kind  of  business  the  firm  should  seek  to  be  in.  

 

Four  key  components  to  strategy:    

• Product-­‐market  scope  –  clear  focus    

• Growth  vector  –  how  to  orient  your  growth  

• Competitive  advantage  

• Synergy  –  2+2=5  (More  than  the  ‘sum  of  all  parts’)    

Michael  Porter  (1980)  -­‐  I/O  focus  and  that  rational  analysis  and  planning  as  foundation  of  strong   strategy.    

• Competitive  strategy  (value  chain,  net,  etc)  

• Generic  strategies  

• 5  Forces  to  link  between  profitability  and  industry  structure  

• Environment  matters  more  than  resources    

Karl  Weick  

• Argued  that  the  planning  school  neglects  social  human  dynamics  (as  they  focus  on   rationale),  therefore,  strategy  is  emergent.  

• Org.  as  collections  of  choices,  where  the  choices,  solutions  and  decision-­‐makers  interface   in  various  ways.  

 

Henry  Mintzberg    

o Strategy  as  a  process  and  link  between  day-­‐today  activities  and  rather  match  the   situation  than  a  specific  state.  

o Prescriptive  strategy  >  simple,  stable  situation   o Emergent  strategy  >  complex,  changing  situation.  

 

Strategic  Management  Process  

Deliberate  Strategy   Emergent  Strategy  

 

Deliberate  strategy  (Plan):  

• Close  relationship  between  intended   and  realized  strategy  

 

Focus  on  external  (I/O)    

Author:  Porter  

Emergent  strategy  (process):  

• No  intention,  rather  clear  pattern  of   behaviour    

• Continuum  –  intention,  choice  and  pattern   of  formation.  

 

Author:  Mintzberg