Strategic Management © Robert Jones 2012 Based on Johnson, Scholes & Whittington (2005) Exploring...
-
Upload
amelia-grant -
Category
Documents
-
view
230 -
download
1
Transcript of Strategic Management © Robert Jones 2012 Based on Johnson, Scholes & Whittington (2005) Exploring...
Strategic Management
© Robert Jones 2012
Based on Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Definition of Strategy
Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Exhibit 2.1
Layers of the business environment
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Exhibit 1.2
The vocabulary of strategy
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Exhibit 1.3
A model of the elements of strategic management
Analysis – external, internaland stakeholders(fairly straightforward)
Optionsand selection ofoption(not so difficult)
Implementation (now it gets tricky ! )
Based on Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
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) Exploring Corporate Strategy, 7th Edition, Pearson Education
Mintzberg, H. Ten Strategy Schools (The Strategy Safari)
Bowman, C. Generic Strategies – a Substitute for Thinking
There are many ways of looking at strategy:
The risk of strategic drift
Exhibit 1.4 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Good strategy is in the overlap
Often, the environment E movesand the organisation does not move- this can be fatal (strategic drift)
• Internationalisation– Size of market– Range of competitors– Relationships
overseas– Institutional/cultural
orientation to strategy and profit orientation
• E-Commerce– Speed and direction
of technology change– Expectations about
how to do business– E-commerce
capability– Service small markets
Contemporary Strategy Themes (1)
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
• Changing purposes– Change from pure
profit driven– Corporate scandals– Corporate social
responsibility– AND drive for
shareholder value– Public sector more
“business-like” – target setting and service orientation
• Knowledge and Learning– Innovation – Generate and
integrate knowledge/promote learning
– New ways of doing business
– People interactions
Contemporary Strategy Themes (2)
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Exhibit I.i
The role of the paradigm in strategy formulation
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Exhibit I.v
Three strategy lenses
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Macroenvironment – PESTEL (1)
Exhibit 2.2 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
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=RuQY_WKbHEM&feature=related
Wille Walsh, IAG plc (British Airways) and Mike O’Leary, Ryanairrespond to recent changes in APD Air Passenger Duty
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) Exploring Corporate Strategy, 7th Edition, Pearson Education
Porter’s Diamond The Determinants of National Advantage
Source: M. Porter, Competitive Advantage of Nations, Macmillan, 1990.
Exhibit 2.4
This is an excellent frameworkwhen looking atconditions for business
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
First test yourself –you have seen this beforefill in the blanks
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
The Life-Cycle Model
Exhibit 2.6 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Strategic Capability- the terminology
Exhibit 3.2 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
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) Exploring Corporate Strategy, 7th Edition, Pearson Education
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) Exploring Corporate Strategy, 7th Edition, Pearson Education
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/
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) Exploring Corporate Strategy, 7th Edition, Pearson Education
Expectations and Purposes - Outline
• Corporate governance• Organisational stakeholders• Stakeholder mapping• Ethical issues• Culture• Cultural web• Communication of organisational purposes
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Expectations and Purposes
Exhibit 4.1 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
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) Exploring Corporate Strategy, 7th Edition, Pearson Education
The Cultural Web
Exhibit 4.11 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Exhibit III.1
Strategic choices
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
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 of Competitive Strategy, Prentice Hall, 1995.) However, Bowman uses the dimenstion ‘Perceived Use Value’.
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
The Strategy Clock
Exhibit 5.2b Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Competitive Strategies in Hypercompetitive Conditions
• Competitive advantage is temporary– Rapid imitation– Not sustainable
• Competitive advantage relates to– Organisation’s ability to change– Speed– Flexibility– Innovation– Disruption of market
Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Competition and Collaboration
Exhibit 5.5 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Game Theory - Prisoner’s Dilemma
Exhibit 5.6 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Corporate Level Issues
Exhibit 6.1 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Related Diversification
Exhibit 6.3 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Diversity and Performance
Exhibit 6.4 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Reasons for International DiversityMarket-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) Exploring Corporate Strategy, 7th Edition, Pearson Education
The Growth Share (or BCG) Matrix
Exhibit 6.8 Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
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) Exploring Corporate Strategy, 7th Edition, Pearson Education
Indicators of SBU Strength and Market Attractiveness
Exhibit 6.10a Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Market Attractiveness/SBU Strength Matrix
Exhibit 6.10b Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education
Strategy Guidelines Based on Directional Policy Matrix
Exhibit 6.10c Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education