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1.2 - Coggle Diagram
1.2
Defining Business Strategy
Peter Moizer, Executive Dean of Business School at the Uni of Leeds
(Uniof Leeds Interview, 2018)
Where are we?
What are we doing?
What is the environment we operate in look like?
What would our competitor do?
Where do we want to get to?? What is our goal and objective??
How to get there?
The Strategy
How do we know we got there?
Strategy becomes a continuous lop of improvements to achieve desired goal. monitoring if we have got there
Chsris Belsham, Group Finance Director in Logistics and Supply Chain Industry
(Uniof Leeds Interview, 2018)
Strategy is a long term action plan and a set of guiding principles
Tim Devinny, Pro Dean for Reasearch and Innovation at the Uni of Leeds
(Uniof Leeds Interview, 2018)
A good strate4gy tells you what you are not doing
Tyrone Pistis, Professor of strategy at the Uni of Leeds
(Uniof Leeds Interview, 2018)
Strategy is the decisions, plans and the process of managing these decisions and plans for sustained competitive advantage
Mthew Free, Arup Director of Geotechnics
(Uniof Leeds Interview, 2018)
The range pf products and services at a reasonable price the client is willing to pay and the measures that remove the obstacles of delivering such services and products efficiently.
Branko Bajatovic, Managing Partner at Avistum Limited
(Uniof Leeds Interview, 2018)
Set of related elements, identification of corporate targets, what the mission and vision are and the commercial proposition.
Is the company planning to a leader or a follower
Corporate must evaluate the current situation and where the market is heading. The gap between these two is the required capabilities to catch up and avoid strategic drift
Perspectives on Strategy
Influential Thinkers
Michael Porter
Strategy is a logical process of choice which can be planned
Mintzberg
Strategic planning and execution is complex and contain uncontrollable elements
Different Schools of Thought
Strategy is to achieve competitive Advantage that is:
Sustainable
Difficult to duplicate by competitors
Positioning or Design school focuses on the design process of strategy formulation
Resource-based School focusing on the organisation available unique resources and capabilities
Strategy as practice focusing on what mangers do when involved in strategic activities
Perspective 1
Origin and history
Strategy is originated from warfare such as Sun Tzu's The Art of War
Strategic management appeared in the 1950s where long-term planning was used before due to slow changing environments
from 1960s to 1970s diversification appeared to enable companies to increase market share
in the 1980s Michael Porter focused on industry analysis and competitive forces
The early 1990s witnessed the resource-based view RBV
The mid 90s focused on hypercompetition and Co-opetition
Perspective 2
Language and people
Strategy as a vocabulary and discourse
Strategy implementation requires the contribution of all levels of the company
Three Dimensions of the Exploring Strategy Framework Researches, P. 18
Context (Internal and External)
Also called Strategic Position
Macro-environmental
Industry Analysis
Cultural Analysis
Resource-based View
Content (Strategic Options)
Also called Strategic Choices
Choice
Performance
Process (Formation and Implementation of Strategy)
Also called Strategy in Action
Strategic Planning
Choice and Change
Strategy-as-practice
Exploring Strategy in Different Contexts P. 20
Small Businesses
Vulnerable to change
The most important Positioning issue is strategic purpose such as profit, objectives, independence, and family control
Acquisitions may not be affordable, however, being acquired choice must be clear
Multinational Corporations
Issues of culture
Strategic choice will be dominated by international strategy questions
Strategy-in-action issues such organizational structure and strategic change
Public Sector and Non-profits
Charitable organizations compete on donors funds
Public-sector organizations such as schools and hospitals compete on measures such as quality and service
Strategy-in-action issues such as leadership and change
Strategic Management Process
A sequential process of four stages to enable the firm define their strategy
Strategic Analysis
Also termed 'Situation Analysis'
Analysis of the external environment (market, industry, macro-environment) and internal environment of the firm
Strategy Formulation
Approaches to strategy making:
Intended
Chosen and planned
Emergent
Arises from adapting and learning also trial and error
Realised
The actual strategy carried out by the organisation ( a combination of intended and emergent)
Strategy Implementation
Strategy Review