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1. Strategy formulation I Approaching and Articulating Strategy - Coggle…
1. Strategy formulation I Approaching and Articulating Strategy
Introduction to Strategy formulation
What is strategy?
Strategy is about deciding what the right things are and ensuring that you are doing those right things
Strategy: Do the right things
Operation: Do things right
Strategy: Examples of Successful Organisations
Strategy Perspectives
Different Ways to Approach Strategy
Business strategy could be viewed from different lenses or perspectives depending on the factors determined by the following elements:
External environment
Nature of an organisation
Personalities of the people involved
Strategy Lenses
The idea of strategy lenses is one way to describe different approaches to strategy
How it is developed
Level of innovation
Relationship between strategy, power and identity
4 types of strategy lenses:
Design: Views strategy development as a logical process of analysis and evaluation
Experience: Views strategy development as the outcome of people's taken-for-granted assumptions and ways of doing things
Variety: Views strategy as the bubbling up of new ideas from the variety of people in and around organisations
Discourse: Views language as important both for understanding and changing strategy and for managerial power and identity
Strategy Perspectives
Emphasis on competition to protect smaller players for consumer welfare
Emphasis on the creative aspect of human capital due to the nature of the industry it is present in
Emphasis on developing in-house capabilities to serve the nation's nascent automobile industry
Strategy Process
When to Formulate a Strategy
Blue Ocean Strategy & Red Ocean Strategy
The Strategy Process
Strategy Process Model
Four steps of the Strategy Process Model:
External analysis
Strategic capabilities
Strategic choices
Implementation
Articulating Strategy
Articulating Business Strategies
It is also essential to understand how businesses articulate strategies. It is important for two reasons:
How a company articulates its strategy tells stakeholders about its strategy, what it stands for and what it is hoping to achieve
Articulating a strategy makes it clear and compelling; this is necessary to steer everyone in the organisation towards the implementation
Mission and Vision Statements
Companies use their mission and vision statements to articulate their top-line strategies
Mission and vision statements, when appropriately developed, enable companies to simply and powerfully get their strategic direction across. Doing this is essential to:
Unify and motivate staff
Galvanise leadership
Carve out the companies' market share clearly to consumers
Distinctly explain to the target customers what the companies are offering
