Chelmsford 11th March 2017 Cambridge 18th March 2017 B301 Tutorial Four Chelmsford 11th March 2017 Cambridge 18th March 2017

Agenda Review of TMA03 and 04 Block 5 and implementation TMA05 Block 6 and the future of strategy TMA06

TMA03 (remember that one?) Very much like the exam questions (might even be one) Average score of 56 (spread 31-92) Needed a careful focus on the question – the actual wording of the Part 1 question was: Discuss arguments for and against the suitability of an integrated cost and differentiation competitive strategy. Illustrate your answer with suitable examples from B301 and/or your own experience. Lots of people gave me a reference of: Hitt, M. A., Ireland, R. D. and Hoskisson, R. E. (2003) Strategic Management: Competitiveness and Globalisation, Mason, OH, Thompson-South Western. But how many of you had actually read it?

Key points on TMA03 Very few writers disagree with Porter’s basic hypothesis regarding “caught in the middle” and the risks of trying do everything at the same time Even Hitt, Ireland and Hoskisson explicitly accept the validity of the “caught in the middle” argument in their book (which many people claimed to have read) Integrated or mixed strategies are best seen as a fifth variant – a fifth deliberately chosen approach But integrated strategies don’t “disprove” Porter’s view. Thornhill and White’s article gives you recent empirical evidence that “pure” strategies tend to succeed more And there are numerous “real life” examples

TMA04 (how could you forget that one?) Still being marked Remember that “critical thinking” doesn’t simply mean negative thinking. The aims of the course include: thinking strategically in the context of a case study (learning outcome 7) critical thinking, analysis and synthesis; including identifying and questioning assumptions, weighing evidence appropriately, identifying and challenging false logic or reasoning, and generalising in a way which recognises the limits of knowledge in strategy (learning outcome 8) evaluation and comparison of competing perspectives from a variety of sources, including some informed by current issues or research developments (learning outcome 9) the ability to argue relevantly and justify a point of view (learning outcome 10).

Block 5 explores ‘Implementation’ Analysis Choice Johnson and Scholes’ (2006) Implementation

Block 5: Strategic Implementation Barriers to implementation Strategists as People Structure and Strategy Managing Strategic Change

Alexander’s five key obstacles to successful implementation Key tasks are not defined in enough detail Problems requiring intervention by top management were not communicated to them fast enough Changes in roles and responsibilities were not clearly defined The key formulators of the strategic decision did not play an active enough role in implementation Major problems surfaced during implementation, which had not been identified beforehand B301 Block 5, Unit 1

Critically assess Alexander’s proposition Two groups to prepare an argument: In support of Alexander’s propositions To critically appraise Alexander’s propositions And to present it to the other group on flipcharts. After the two presentations each group will make a brief closing statement on the conclusions they have drawn.

Facilitating Implementation – Gantt Chart However: “Unfortunately, no GANTT chart survives contact with reality. No plan can anticipate every event that might help or hinder a company trying to achieve its strategic objectives” Sull et al. (HBR March 2015 p.61)

Control Loop Set objectives and establish standards of performance Plan tasks, identify performance measures, carry out tasks Monitor progress and compare performance to standards Act on results of monitoring and take corrective action if necessary Possible action: Adjust task/resources Possible action: Do nothing But – vertical alignment (top down) tends to overlook horizontal alignment – across functions. “Past performance is two or three times more likely than a track record of collaboration to be rewarded with promotion” (Sull et al. HBR March 2015 p.64)

Temporal Separation Organisations change back and forth between different corporate structures Decentralisation is used to ignite innovation and change: centralisation to increase coordination and efficiency Exploitation and exploration are emphasized sequentially rather than simultaneously

Structural Separation Organisations are divided into two (or more) separate units with different structures at the same time Flexible ‘innovative units’ explore new areas for growth, while more formal ‘operational units ensure efficient organisations in the existing businesses Exploitation and exploration are addressed by different employees and organisational units Remember that this is how Xerox set up the Palo Alto Research Centre (the PARC) and failed to take advantage of its innovations.

Parallel Structures This is what 3M and HP do (allegedly) Organisations create supplemental network structures to compliment the formal primary structure Employees switch between the two types of structures depending on their respective tasks Exploitation and exploration are addressed by the same employees, but in different structural environments This is what 3M and HP do (allegedly)

Think about the process

TMA 05 Due in on 6th April 2017 Selecting concepts from Block 5 as appropriate to your discussion, explain some common barriers to successful strategy implementation and how they may be overcome with regard to the BRF 2015 strategy for Brasil Foods (evaluated in TMA 04). You should write your answer as a report from the perspective of an independent strategy consultant to the board of directors – but with appropriate academic referencing. Ensure that you make relevant and critical use of your selected concepts. 2500 words

TMA 05 Guidance This question requires you to make it clear what aspects of the BRF 2015 strategy you think are likely to be problematic in implementation and what recommendations you would make to overcome such implementation problems. You also need to demonstrate how both problems and solutions relate to material in Block 5. The concepts you choose (both to clarify problems and suggest solutions) can be from anywhere in the Block but part of the challenge of the assignment is to demonstrate your ability to select them appropriately and apply them with critical understanding, and practicality.

BREAK

Block 6: Contemporary directions in Strategy Strategy and the future Forecasting Quantitative forecasting Qualitative forecasting Scenario planning New understandings of Strategy Complexity Theory Strategy as discourse Critical management studies

Scenarios are based around a focal question

Scenario Planning In groups, critically assess the utility of scenarios such as those provided in the Rockefeller Foundation report

Bedrock Principles of Complexity Equilibrium is a precursor to death for complex adaptive systems (so no growth is not an option) Complex adaptive systems have the capacity to organise themselves and generate more complexity (remember Merton’s law of unintended consequences) Complex adaptive systems tend to move towards the edge of chaos You can’t direct a living system, only disturb it. Richard Pascale (1999) ‘Surfing the edge of chaos’.

The Cane Toad “solution” In 1935 the Queensland Department of Agriculture imported 102 cane toads to control a plague of beetles that was ravaging local sugar cane plantations Today there are over 100 million cane toads in Australia and any animal which eats one (including eggs and tadpoles) dies of instant heart failure

The Libyan “solution”

Other Block 6 Considerations Strategy as discourse Discourse see strategy as existing in talk – so strategy is a fiction about the future Strategy and critical management studies Critical theorists see strategy as a way in which a small group expresses and legitimises its power over others CSR as a source of competitive advantage

TMA 06 Due in 11th May 2017 To what extent might applying complexity theory enhance the formation and implementation of strategy in an organisation? Use examples drawn from your experience and/or reading to support your argument. (2000 words)

TMA 06 Guidance This question is an opportunity to demonstrate your critical understanding of complexity theory as it applies to strategy. The first part of Block 6 Unit 2, including Reading 18, gives an extensive account of the nature of complex adaptive systems, and the implications for strategists of seeing their organisations as such systems. As in any critical argument, make sure you offer a balance of points for and against a point of view – in this case the extent to which complexity theory might enhance strategy formation and strategy implementation. While connected, these are two different issues so make sure you offer a reasoned opinion on both.

See you again on 13th May 2017