Essentials in Management: Strategy 25.9.2017 Henrika Franck Farah Kodeih

Henrika Franck Farah Kodeih henrika.franck@aalto.fi +358-50-4658077 farah.kodeih@aalto.fi +358-46-9431 777

Session outline Case Robin Hood Defining Strategy Levels of strategy Strategy’s three branches Strategy as something we do

Case Robin Hood Presentation name and author - 1/18/2019

A pattern in a stream of decisions Defining Strategy Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value The determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying our these goals A pattern in a stream of decisions Alfred Chandler, 1963 Henry Mintzberg, 2007 Michael Porter, 1996 Presentation name and author - 1/18/2019

Defining Strategy Strategy is the direction and scope of an organization 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. Or Strategy = Knowledge + Capability (or the power to accomplish things)

18.1.2019

Levels of Strategy Corporate-level strategy Business-level strategy Is concerned with the overall scope of an organization and how value is added to the constituent businesses of the organizational whole Corporate-level strategy Is about how the individual businesses should compete in their particular markets Business-level strategy Are concerned with how the components of an organization deliver effectively the corporate- and business-level strategies in terms of resources, processes and people Operational strategies Laitoksen nimi 1/18/2019

Strategy’s three branches Position Environment Capability Purpose Culture Choices Business Corporate International Innovation Acquisitions & Alliances Action Evaluating Organizing Changing Processes Practices Routines Presentation name and author - 1/18/2019

Alignment across levels Environment Macro Strategy Capabilities Organization Micro 18.1.2019

Strategic position Understanding the Environment Capability Expectations Macro, industry-level and intra-corporation 18.1.2019

Strategic Choices The options for strategy in terms of both the direction in which strategy might move and the methods by which strategy might be pursued

Examples: Distinctive competencies Toyota Starbucks Low cost, high –quality manufacturing of motor vehicles Innovative coffee drinks and store ambiance 1/18/2019

Emergent strategy: a process of implementation and renewal Emphasizes a demarcation between strategy and operations, that is, people doing the thinking and acting, between formulators and implementers Renewal Emphasizes strategy and organization as an organic whole, where formulation and implementation often cannot and should not be seen as separate. What is the role of the organization in strategic management? There is a continuous debate within strategy literature whether organizational phenomena (e.g., leadership, change) should be determined within strategic decision making or after it The existence and form of formal strategy processes in a corporation has no significant influence on its success However, a formal strategy process does improve the alignment of goals across the units and levels of hierarchy in an organization A structured strategy processes give you a sense of security, but perhaps not much else? 18.1.2019

Emergent Strategy 18.1.2019

Some robust findings in strategy Change has a negative effect on firm survival and profitability There are obviously situations where not changing is even worse Companies that have more collaborative relationships are more innovative Supposedly because of knowledge flows Acquisitions end badly on average Particularly if you lack experience In general it is far easier to explain bad performance (below average) than good performance (above average)

Strategic action

Strategy 1.0

What are the challenges and solutions in strategy implementation?

Competitive positioning etc. Resources, competences etc. Strategy 1.0 Competitive positioning etc. Outside-in vs. inside-out Content vs. process Planners vs. implementers (Practice vs. research) Resources, competences etc.

Strategy 2.0

What are the challenges and solutions in strategy implementation?

Understanding consumers and clients Strategy 2.0 Agility Dialogue Co-creation Big data Branding & stories Understanding consumers and clients

Keeping up appearances Nothing stays a secret for long… Everything leaves a trace! Openness and transparency a must?

Operating environment: global economy Blurring boundaries Operating environment: global economy Practices Purpose and direction Practices Clients!

Theoretical concepts: Strategizing , doing strategy, strategy work ©Henry Mintzberg

On the problem of participation in strategy Enabling: concretization, self-realization and dialogization Restricting: mystification, technologization and punishment ©Saku Mantere & Eero Vaara

Strategy Courses offered (a selection) Strategy work Strategy Process Managing Mergers and Acquisitions Data-driven business Innovation, strategic resilience and renewal Laitoksen nimi 1/18/2019

Thank you!