MBA820 Course Slides 1-21

8/3/2019 MBA820 Course Slides 1-21

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B820 STRATEGY

AIMS AND OBJECTIVES

develop skills in the process of thinking strategically - an awareness of

what analysis, choice and implementation of strategy each require -

through applied work on case material and investigations into your

own organisations strategic activities

develop a high level of understanding of the concepts, theoretical ideas

and empirical research findings which underpin the study andmanagement practice of strategy

challenge these concepts, theoretical ideas and empirical findings and

develop your own views on the part which managers play in the making

of strategy

You are expected to:

Slide 1/Bk.1p.6


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B820 STRATEGY

STRATEGIC ISSUES

Strategic issues can be characterised asdevelopments inside or outside an organisation

that are likely to have an important impact on its

ability to meet or determine its purposes and

objectives.

Slide 2/Bk.1p.16


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B820 STRATEGY

STRATEGIC CHOICES

Determining the nature, domain and scope of activities

Evaluating the success of activities

Acquiring, allocating and committing resources and capabilities

Creating an effective match with the challenges of the environment

Managing the networks of relationships with and between stakeholders

Slide 3/Bk.1p.17


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LEVELS OF STRATEGY

B820 STRATEGY

Corporate Strategy

Business Strategy

Internal unit strategy

Fig.3.1 The hierarchy of levels of strategy in an organisation

Slide 4/Bk.1p.20


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B820 STRATEGY

STRATEGIC SUCCESS AND

STRATEGIC FIT

Corporate success is based on an effective match

between the external relationships of a firm and its

own distinctive capabilities.

(Kay, 1993)

Slide 5/Bk.1p.21


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B820 STRATEGY

COMPETITIVE ADVANTAGE

Your most dangerous competitors are those thatare most like you. The differences between you

and your competitors are the basis of your

advantage.

(Henderson, 1989)

Slide 6/Bk.1p.22


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B820 STRATEGY

A STRATEGY OF STRETCH

1. Creating a chasm between an organisations

resources and capabilities, and its ambitions.

2. Bridging the chasm through leveraging

resources and capabilities.

(Hamel and Prahalad, 1993)

Slide 7/Bk.1p.24


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B820 STRATEGY

DELIBERATE AND EMERGENT

STRATEGIES

Slide 8/Bk.1p.27

Intended strategy Realised strategyDeliberate strategy

Unrealised

strategyEmergent

strategy

(Mintzberg& Waters, 1985)

Fig.4.2 Making Strategy: Deliberate and emergent strategy


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B820 STRATEGY

STRATEGIC THINKING AND INFORMATION

PROCESSING

1. BOTTOM-UP: examine available information;

review all possible solutions;

decide after detailed consideration

2. TOP-DOWN: build models and theories from pastexperience;

recall and apply to new situations.

(Walsh, 1995)

Slide 9/Bk.1p.28


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UNCERTAINTY, OBJECTIVES AND ACTION

Un

certaintyoverconsequenceso

faction

Relative certainty Relative uncertainty

Relative certainty

Relative uncertainty

Computation Bargaining

Judgement Inspiration

B820 STRATEGY

Uncertainty over objectives for action

(Earl and Hopwood, 1980)

Slide 10/Bk.1p.29

Fig.5.1 Uncertainty, objectives and action


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B820 STRATEGY

SCOPE OF STRATEGIC THINKING

CONTEXT in

which strategy

occurs

PROCESS of

strategic

change

CONTENT

of strategy

(Pettigrew1988)

Slide 11/Bk.1p.36

Fig.5.2 The Scope of strategic thinking


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B820 STRATEGY

DEVELOPING YOUR SKILLS IN STRATEGIC

THINKING

Relevance and realism of thinking Rigour of thinking

Varied approach to informationprocessing

Use of theory to explain practice, and practice to build and

test theory

A critical, challenging approach

Slide 12/Bk.1p.39


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B820 STRATEGY

BUILDING A MISSIONWhy the company exists

The policies and behaviour patterns that underpin

the distinctive competence and the value system

The competitive

position

and distinctive

competence

What the

company

believes in

Purpose

Strategy

Behaviourstandards

Values

Slide 13/Bk.2p.20Reader p.287


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THE TOOL OF STRATEGIC RHETORIC

Defining powerful core concepts

Defining clear guides for action Communicating and exemplifying the

rhetoric

Using strategy rehetoric for multiplepurpose

(Eccles and Nohria, 1992)

B820 STRATEGY

Slide 14/Bk.2p.21Grant p.54


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ORGANIZATIONAL PARTICIPATION

1. Coercion2. Mutually beneficial exchange

3. Identification with values, norms or

beliefs(Etzioni, 1971)

B820 STRATEGY

Slide 15/Bk.2p.23


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B820 STRATEGY

STAKEHOLDING

Slide 16/Bk.2p.24

Suppliers CustomersLabour

Government ManagementOrganisation

Competitors ShareholdersLenders

Fig.4.1 Simplified stakeholder diagram


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LONG-TERM COLLABORATION

Classical Contracts Relationship Contracting

Legal Contractbased on altered

pay-offs

Understanding ofmutual interdependence

in series of repeated

transactions

Explicit and Specified Implicit and

UnspecifiedRestricted to Terms

of ContractFree Flow

Long certainty of

responseCommitted but

flexible response

B820 STRATEGY

Commitment to

achieve collaboration

Terms

Flow of information

Main benefits

Slide 17/Bk.2p.35(After Kay, 1993)


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SOURCES OF POWER

1. Formal Authority

2. Control of Scarce Resources

3. Organisational Structures and Procedures

4. Control of decision processes

5. Control of knowledge and information6. Boundary management

7. Ability to manage uncertainty

8. Control of technology

9. Alliances and informal networks

10. Countervailing power

11. Symbolism and the management of meaning

12. Gender power

(Morgan, 1986)

B820 STRATEGY

Slide 18/Bk.2p.39


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B820 STRATEGY

THE MACRO-ENVIRONMENT

Sociological factors

Demographics

Life styles Social value

Political factors

Political milieu

Regulatoryenvironment

Economic factorsTechnological

factors

Slide 19/Bk.3p.8

(Fahey and Narayanan, 1986)

Fig. 2.1 A model of the macro-environment


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B820 STRATEGY

Slide 20/Bk.3p.10Grant p.53

(Grant, 1995)

THE MACRO ENVIRONMENT

THE INDUSTRY

ENVIRONMENT

Suppliers Competitors Customers

The National/

international

economy

Technology

The National

environment

Demographic

structure

Government Social structure

THE BUSINESS ENVIRONMENT


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B820 STRATEGY

INDUSTRY STRUCTURE

SUPPLIERS

BUYERS

POTENTIAL

ENTRANTSSUBSTITUTES

INDUSTRY

RIVALRY

Bargaining power of suppliers

Bargaining power of buyers

Threat of

new

entrants

Threat of

substitute

products

or services

Slide 21/Bk.3p.10G t 57

(Porter, 1980)

Rivalry amongexisting firms

Documents

MBA820 Course Slides 1-21