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 do 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.