strategy lecture mar2012

Upload: murtaza-shaikh

Post on 03-Jun-2018

224 views

Category:

Documents


3 download

TRANSCRIPT

  • 8/11/2019 Strategy Lecture Mar2012

    1/46

    Strategic Management

    Robert Jones 2012

    Based on Johnson, Scholes & Whittington (2005)

    ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    2/46

    Definition of Strategy

    Strategy is the directionand scopeof an

    organisation over the long term,which

    achieves advantagein a changing

    environmentthrough its configuration of

    resources and competenceswith the aim

    of fulfilling stakeholderexpectations.

    Johnson, Scholes & Whittington (2005)

    ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    3/46

    Exhibit 2.1

    Layers of the business environment

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    4/46

    Exhibit 1.2

    The vocabulary of strategy

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    5/46

    Exhibit 1.3

    A model of the elements of strategic management

    Analysisexternal, internaland stakeholders

    (fairly straightforward)

    Options

    and selection ofoption

    (not so difficult)

    Implementation

    (now it gets tricky ! )

    Based on Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    6/46

    Strategy as a Subject of Study

    Unique resources, core competencesResource based

    theory (Hamel,

    Prahalad)

    1980s

    Innovation to deal with changeFirms as organisms

    (Eisenhardt, Stacey)

    1990s

    Assessing competitive forces (5 forces) and

    positioning

    Market positioning

    (Porter)

    1980s

    Complexity and uncertainty. Influence of

    experience, politics, culture, history

    Adaptive processes

    (Quinn)

    1980s

    Systematised and analytical approachCorporate planning60/70s

    What would you do if you were CEO?Harvard case study1960s

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    7/46

    Mintzberg, H. Ten Strategy Schools (The Strategy Safari)

    Bowman, C. Generic Strategiesa Substitute for Thinking

  • 8/11/2019 Strategy Lecture Mar2012

    8/46

    There are many ways of looking at strategy:

  • 8/11/2019 Strategy Lecture Mar2012

    9/46

    The risk of strategic drift

    Exhibit 1.4 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    10/46

  • 8/11/2019 Strategy Lecture Mar2012

    11/46

    Internationalisation Size of market

    Range of competitors

    Relationshipsoverseas

    Institutional/cultural

    orientation to

    strategy and profit

    orientation

    E-Commerce Speed and direction

    of technology change

    Expectations abouthow to do business

    E-commercecapability

    Service small markets

    Contemporary Strategy Themes (1)

    Johnson, Scholes & Whittington (2005)

    ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    12/46

    Changing purposes Change from pure

    profit driven

    Corporate scandals

    Corporate socialresponsibility

    AND drive forshareholder value

    Public sector morebusiness-like target setting andservice orientation

    Knowledge andLearning

    Innovation

    Generate andintegrateknowledge/promotelearning

    New ways of doingbusiness

    People interactions

    Contemporary Strategy Themes (2)

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    13/46

    Exhibit I.i

    The role of the paradigm in strategy

    formulation

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    14/46

    Exhibit I.v

    Three strategy lenses

    Johnson, Scholes & Whittington (2005)

    ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    15/46

    MacroenvironmentPESTEL (1)

    Exhibit 2.2 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    16/46

    Government policy

    The 2012 Financial Statement

    How will this influence business and strategy?

    http://www.youtube.com/watch?v=d0-V_HrrzcU

    http://www.youtube.com/watch?v=d0-V_HrrzcUhttp://www.youtube.com/watch?v=d0-V_HrrzcUhttp://www.youtube.com/watch?v=d0-V_HrrzcUhttp://www.youtube.com/watch?v=d0-V_HrrzcUhttp://www.youtube.com/watch?v=d0-V_HrrzcUhttp://www.youtube.com/watch?v=d0-V_HrrzcU
  • 8/11/2019 Strategy Lecture Mar2012

    17/46

    http://www.youtube.com/watch?v=RuQY_WKbHEM&feature=related

    Wille Walsh, IAG plc (British Airways) and Mike OLeary, Ryanair

    respond to recent changes in APD Air Passenger Duty

    http://www.youtube.com/watch?v=RuQY_WKbHEM&feature=relatedhttp://www.youtube.com/watch?v=RuQY_WKbHEM&feature=related
  • 8/11/2019 Strategy Lecture Mar2012

    18/46

    Drivers of Globalisation

    Source:Based on G. Yip, Total Global Strategy ll, FT/Prentice Hall, 2003, chapter 2.

    Exhibit 2.3

    This is an excellent framework

    we will build on this in later lectures

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    19/46

    Porters DiamondThe Determinants of National Advantage

    Source:M. Porter, Competitive Advantage of Nations, Macmillan, 1990.

    Exhibit 2.4

    This is an excellent frameworkwhen looking at

    conditions for business

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    20/46

    First test yourself

    you have seen this before

    fill in the blanks

  • 8/11/2019 Strategy Lecture Mar2012

    21/46

    The Five Forces Framework

    Source:Adapted from M.E. Porter, Competitive Strategy:Techniques for Analyzing Industries and Competitors 1980, Free Press, 1980, p. 4.

    Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.

    Exhibit 2.5

  • 8/11/2019 Strategy Lecture Mar2012

    22/46

    The Life-Cycle Model

    Exhibit 2.6 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    23/46

    Strategic Capability- the terminology

    Exhibit 3.2 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    24/46

    The Value Chain

    Source: M.E. Porter, Competitive Advantage:Creating and Sustaining Superior Performance,Free Press, 1985. Used with permission of

    The Free Press, a division of Simon & Schuster, Inc. 1985, 1988 by Michael E. Porter. All rights reserved.

    Exhibit 3.6 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    25/46

    The Value Network

    Source: M.E. Porter, Competitive Advantage:Creating and Sustaining Superior Performance,Free Press, 1985. Used with permission of

    The Free Press, a division of Simon & Schuster Inc. 1985, 1988 by Michael E. Porter. All rights reserved.

    Exhibit 3.7 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    26/46

    See my lecture on Competences

    based on application of the Value Chain

    With examples of

    Zara

    Ryanair

    Apple

    Honda

    Toyota

    http://cambridgemba.wordpress.com/strategy/

    http://cambridgemba.wordpress.com/strategyhttp://cambridgemba.wordpress.com/strategy
  • 8/11/2019 Strategy Lecture Mar2012

    27/46

    Knowledge Creation Processes

    Exhibit 3.9

    Source: I. Nonaka and H. Takeuchi, The Knowledge-Creating Company, Oxford University Press Inc., 1995. Reprinted by

    permission of Oxford University Press.

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    28/46

    Expectations and Purposes - Outline

    Corporate governance

    Organisational stakeholders

    Stakeholder mapping

    Ethical issues

    Culture

    Cultural web

    Communication of organisational purposes

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    29/46

    Expectations andPurposes

    Exhibit 4.1 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    30/46

    Stakeholder Mapping: the Power/Interest Matrix

    Exhibit 4.5

    Source:Adapted from A. Mendelow, Proceedings of the Second International Conference on Information Systems,Cambridge, MA,

    1991.

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    31/46

    The Cultural Web

    Exhibit 4.11 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    32/46

    Exhibit III.1

    Strategic choices

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    33/46

    The Strategy Clock

    Exhibit 5.2a

    Note: The strategy clock is adapted from the work of Cliff Bowman (see D. Faulkner and C. Bowman, The Essence ofCompetitive

    Strategy, Prentice Hall, 1995.) However, Bowman uses the dimenstion Perceived Use Value.

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    34/46

    The Strategy Clock

    Exhibit 5.2b Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    35/46

    Competitive Strategies in Hypercompetitive

    Conditions

    Competitive advantage is temporary

    Rapid imitation

    Not sustainable

    Competitive advantage relates to

    Organisations ability to change

    Speed

    Flexibility Innovation

    Disruption of market

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    36/46

    Competition and Collaboration

    Exhibit 5.5 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    37/46

    Game Theory - Prisoners Dilemma

    Exhibit 5.6 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    38/46

    Corporate Level Issues

    Exhibit 6.1 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    39/46

    Related Diversification

    Exhibit 6.3 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    40/46

    Diversity and Performance

    Exhibit 6.4 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    41/46

    Reasons for International Diversity

    Market based Exploit cultural/

    geographic differences

    Globalisation of markets &

    competition

    Cash in on differences in culture

    Following customers Administrative differences

    Bypass limitations in home market Specific geographical/

    economic differences

    Utilise strategic capabilities Economic benefits

    Broaden market size Economies of scale

    Internationalise value-adding

    activities

    Stabilisation of earnings across

    markets

    Enhance knowledge

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    42/46

    The Growth Share (or BCG) Matrix

    Exhibit 6.8 Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    43/46

    Public Sector Portfolio Matrix

    Exhibit 6.9

    Source: J.R. Montanari and J.S. Bracker, Strategic Management Journal, vol. 7, no. 3 (1986), reprinted by permission of

    John Wiley & Sons Ltd.

    Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    44/46

    Indicators of SBU Strength and Market Attractiveness

    Exhibit 6.10a Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    45/46

    Market Attractiveness/SBU Strength Matrix

    Exhibit 6.10b Johnson, Scholes & Whittington (2005)ExploringCorporate Strategy, 7th Edition, Pearson Education

  • 8/11/2019 Strategy Lecture Mar2012

    46/46

    Strategy Guidelines Based on Directional Policy

    Matrix