Download - 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
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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