the transformation of porter’s strategic mind from

7/31/2019 The transformation of Porters strategic mind from

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Content

First- hand Porter

Porter is not fast food, nor is strategy

Porters great achievements Porters greatest short-falls

Where is Porter going

Where does the journey of strategy go Conclusions


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Michael Porter 1979- 2012

Founder of Competitive Strategy

competition = competition for profits


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Porters Five Forces Model


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Porters Universe

e

Economics


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Porters vision derived fromeconomics


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In essence, the job of strategist is to understand

and cope with competition. Yet competitionfor profits.


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Porter a journey of strategy inthree decads

http://www.youtube.com/watch?v=GZCmWkQuyPc

http://www.youtube.com/watch?v=z2oS3zk8VA4&feature=results_main&playnext=1&list=PL217F70EF5D34D789

Deutschlands lteste betriebswirtschaftliche Hochschule, die Handelshochschule

Leipzig (HHL), hat am 23.01.2008 die Ehrendoktorwrde an Dr. Thomas Middelhoff

(Vorstandsvorsitzender der Arcandor AG) und Prof. Michael E. Porter (Harvard

Business School) verliehen.

In applying for437m ($611m) in states aid, thecompany had tried to present itself as a hapless

casualty of the credit crunch and ensuing recession.

Yet the firm's problems predate the global economic

crisis and are, in many respects, the creation of its

former boss, Thomas Middelhoff, a celebrated

executive who once headed Bertelsmann, a media

group, and who left in February, breezily insisting the

firm was in good health. (The Economist June 2009)

Bankruptcy 09.06.2009
http://www.youtube.com/watch?v=GZCmWkQuyPchttp://www.youtube.com/watch?v=GZCmWkQuyPc


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Porter (1979, 2008, 2012)

In essence, the job of the strategist is to understand andcope with competition. Often, however, managers definecompetition too narrowly, as if it occurred only among

todays direct competitors. Yetcompetition for profitsgoes beyond established industry rivals to include fourother competitive forces as well: customers, suppliers,potential entrants, and substitute products. (Porter,1979-2008)


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Kamran Ph.D proposal

What is the next major question which needs to beanswered by the grand strategist competing in a rapidlychanging world? What is the next major force affectingthe organizations ability to compete or lets put it

differently, what is the primary concern of allstrategists? Is it maybe the understanding of reality? Orcoping with the growing ubiquitously complexity and theunpreventable change? What is challenging strategistsfrom both the scientific and the practical side so much

that even by the consideration of experience curves, westill accept failure and collapse of our institutions as apart of an excuse of dysfunctionality of managementcalled financial crisis? (Kamran, 2009)


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Kamran Ph.D proposal

The Five Forces Modelis a strong description oforganizations competition forces and how the mastery incoping with these competitive forces shapes thecompetitive positioning of the firm; the Porters modelhas withstood the test of time, peers and scientific

reviews. It has shaped and still does shape thecurriculum of most business schools especially all MBAprogrammes around the world since decades.

But the latest economy- down- turns and the turbulences

have proven that profound strategies and models need anew and a fresh approach. (Kamran 2009)


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(Porter, 2012)


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Shared Value


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Adam Smiths

invisible hand:

Self-interested

demands will resultin a socially

efficient allocation.


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(Kamran, 2011a) Publication

Management by Deception

Our governments act more for the benefits of corporations than on the

behalf of the environment and the society. The author emphasizes

that there is an academic institution, on whichs shoulder a heavyburden is laid, and which needs to wake up and organize itself as

whole and train the future managers as the only real safeguards of

tomorrow, as (Drucker, 2007) rightfully observed. (Wittgensten,1989)

observed we have to set on the fallacy and convey it to the truth,

which means we have identify the routs of all delusion, otherwise the

knowing of the truth does not help us, if something else has taken its

place. The solution was given to us by (Darwin, 1859), who claimed:

Only the organisms that are fit will survive. We have to define fit forour corporations and our academia. This fit can and must only be

designing an organizational conscious system, embedded to maintain

the ethos of the organization not only for its own survival (Beer, 1972)

but for the survival of the environment in which it needs to be

embedded in to exist. (Kamran, 2011a) (05. April.2011)


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Introducing Robert H. Franks

TheoryThe Darwin Economy:Liberty, Competition, and theCommon Good

Robert H. Frank

2012 Winner of a Bronze Medal in theAxiom Business Book Awards in thecategory of Economics

Finalist - 2011 ForeWord Reviews Bookof the Year Awards in the Business &Economics Category15. August 2011


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Introducing Robert H. Franks

theory on Darwin

Who was the greater economist--Adam Smith or CharlesDarwin? The question seems absurd. Darwin, after all,was a naturalist, not an economist. But Robert Frank,New York Timeseconomics columnist and best-selling

author ofThe Economic Naturalist, predicts that withinthe next century Darwin will unseat Smith as theintellectual founder of economics. The reason, Frankargues, is that Darwin's understanding of competitiondescribes economic reality far more accurately thanSmith's. And the consequences of this fact are profound.

Indeed, the failure to recognize that we live in Darwin'sworld rather than Smith's is putting us all at risk bypreventing us from seeing that competition alone will notsolve our problems.


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Charles Darwin: Traits

are selected because

of their impact on thereproductive fitness of

individuals, not groups.

Traits that benefit

individuals often work

to the disadvantageof groups.


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Gaining access to mates

= a positional good

Minimizing the risk of death from predators

= a nonpositional goodThe laws of viability lie at the heart of any

enterprise. So too do human beings. (Beer, 1985)

Bionics


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Organism OrganizationBionics


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In a number of respects the US now resembles an emerging

country more than the advanced economy it was some decadesago. Its industrial base is largely gone, sold off or off-shored, andits public infrastructure is in visible despair. Because of theseverity of the real estate collapse, parts of its housing stock are

being abandoned and once thriving neighbourhoods are nowslums. But it is in the politics, even more than in the economy thatthe chaotic conditions of some emerging economies most clearlyprevail.

John Grey

Capitalism is under siege. In recent

years business increasingly has been

viewed as a major cause of social,

environmental, and economicproblems Porter 2012


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Kamran 2011 (published 2012 b)The new globally trained manager will have additional skills and

his concerns for the company would exceed the data of the last

quarter. He might need to make some choices, which will cause

temporary pain, but with long term successful results for the

company. He will need to apply universal laws of organizationssurvival and would manage by his holistic approach.

The problem of our Western strategy is reductionist, not viable

and military orientedin terms of describing and copingcompetition. It does not embed what is required from a strategy,

where the primary objective is survival. The real competition forthe new world is economic multi-polarity, political turbulences anduncertainties, organizational structure, civilization and culture runeconomic revolution, ubiquitous change, and man-madeenvironmental catastrophes, as we rightfully may observe as

complexity.


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Porter (June 2012)


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1996


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2009


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Jobs Strategy


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Cutting the crap about strategy

Journey

Action

Plan

STRATE

GY

C

OMPL

EXITY


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How Crises Emerge


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Blue Ocean

I C


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Porters Hyper- competition model


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Porters Value Chain


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http://www.youtube.com/watch?v=0pm0Y5K4tO0&feature=related


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I think the next century will be the century of complexity.Stephen HawkingJanuary 2000

Complex trategy


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Complex-trategy

Structure does not follow the strategy

Kamran, 2012 unpublished work

Structure

is

theStrategy


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Beers VSM Theory

Family- tree organizationsmodel vs. Beers VSM


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Porters Diamond


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Ashbys Law - Only variety canabsorb variety


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Beers VSM

System 1 Opertions

System 2 Coordination

System 3 and 3* Control of InternatStructure

System 4 External Control

Systm 5 Meta- management


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Designing organizational conscious system

Society


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/+

Society

Nature

Technology

Economics

Resources

Norms

Shareholder value

Environment & Ecology

Innovation

Stakeholder

Government

Ethics

Information

HR Cluster

the transformation of porter’s strategic mind from

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