5 Ps of Strategy- Henry Mintzberg

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<p>5 Ps of Strategy- As a Plan, Pattern, Position, Perspective and a PloyExcerpts from:Strategy Safari by Henry Mintzberg</p> <p>Academic Definition of Strategy:Top management plans to attain outcomes consistent with the organization mission and goals (write et al)</p> <p>Strategy requires a number of definitions according to Mintzberg.</p> <p>Ask someone to define strategy and the answer would be Strategy is a plan, a direction,a guide or a course of action into the future, a path to get from here to there.</p> <p>Ask the same person about the strategy actually followed by his organization or competitorOver the last 5 years. His answer would defer from his own definition. Strategy is one of those words we define in one way but use in another.</p> <p>Strategy, is a pattern, a consistency in behaviour over time.</p> <p>A company that perpetually markets most expensive products in the industry persuesA high- end strategy.</p> <p>Strategy as a plan- looking ahead is in contrast with strategy as a pattern- looking at the past behaviour.</p> <p>Both are valid. Organizations develop plans for their future and also evolve patterns out of their past. One is intended strategy and the other realized strategy.</p> <p>Do all strategies have to be intended- an important question.Most people would say somewhat in-between.A perfectly realised strategy implies brilliant foresight and realization means mindlessness</p> <p>Intentions fully realized are deliberate strategies and reverse is unrealized. There is a 3rd case- Emergent Strategies where a pattern realised was not fully intended.</p> <p>Few strategies are fully are purely Deliberate or purely Emergent.</p> <p>An umbrella strategy means that the broad outline are deliberate while details are allowed to emerge.</p> <p>Effective strategies are a mix strategies mix these and reflect ability to predict as well as need to react to unexpected events.</p> <p>Cont to page 2...</p> <p>Two more Ps:</p> <p>Some time ago, McDonald introduced a new product called Egg McMuffins, the American breakfast in a bun.</p> <p>This was to encourage the use of their restaurant facilities in the mornings.</p> <p>This is a strategic change for McDonalds. Two ways to look at it.1.It brought them into the breakfast market2.The same McDonalds way, just a different package.</p> <p>To some Strategy is a position, locating a particular product in a particular market.e.g. Egg McMuffins in the breakfast market.</p> <p>To others strategy is a perspective, namely an organizations fundamental way of doing things. In this case, McDonald way of doing things.</p> <p>Or in Peter Druckers memorable phrase theory of business</p> <p>As position you look into the market. As perspective strategy looks inside an organization,inside the heads of strategists.</p> <p>We need both the definitions:McDonalds introduced Egg McMuffins successfully because the position was consistent with the existing perspective.</p> <p>The executives at McDonalds seemed to understand that one cannot ignore perspective.Changing position within a perspective may be easy but changing perspective while trying to maintain position may is not.</p> <p>5th definition- Strategy as a Ploy:That is a specific manoeuvre intended to outwit an opponent or a competitor.e. g. A corporation may buy land to give the impression that it plans to expand its capacity,in order to discourage a competitor from building a new plan.</p> <p>Here the real strategy (as plan that is the real intention) is the threat, not the expansionItself, therefore a Ploy.</p> <p>Note: refer to examples given in the class</p>

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