The transformation of Porter’s strategic mind from
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Transcript of The transformation of Porter’s 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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