PRESENTATION SLIDES To accompany: Contemporary Strategy Analysis: Concepts, Techniques, Applications (5 th edition, Blackwell, 2004) Robert M. Grant Assisted by Kate Grant

The Concept of Strategy The role of strategy in success A framework for strategy analysis The evolution of strategic management Corporate strategy and business strategy Strategy making: Design or process? The role of strategy OUTLINE

Elements of Success MADONNAGIAP & NORTH RICHARD WILLIAMS VIETNAMESE MILITARY (VENUS & SERINA’S DAD) GOALSSingle-minded quest forReunification of Vietnam Wealth & recognition stardom. under Communist rule. UNDERSTANDINGIdentified emerging trends Intimate knowledge of terrain. Careful diagnosis of THE in popular culture. Understanding U.S. political the physical and ENVIRONMENTRecognized power of sex.system. Psychological determinants Understood showbiz of success in women’s distribution channels. professional tennis RESOURSERecognized limited raw Recognized economic and Systematic developed APPRAISALtalent. Relied on strengthsmilitary weaknesses and key skills and physical, in self-promotion, image-political strengths. mental and social creation, relationship attributes from an early age. management IMPLEMENT-Commitment to hard work.Tight control. Long-term Careful meshing of ATIONDisciplined, inspirationalcommitment. Effective roles—father, coach & Leadership. Attention to propaganda. Inspirational manager. Sustained, detail.leadership. supportive leadership.

Successful Strategy Long-term, simple and agreed objectives Profound understanding of the competitive environment Objective appraisal of resources Common Elements in Successful Strategy EFFECTIVE IMPLEMENTATION

What is Strategy? Distinguishing strategy from tactics: –Strategy is the overall plan for deploying resources to establish a favorable position. –Tactic is a scheme for a specific maneuver. Characteristics of strategic decisions: –Important. –Involve a significant commitment of resources. –Not easily reversible.

The Evolution of Strategic Management DOMINANT THEME 1950s1960s-early 70sMid-70s-mid-80s Late 80s –1990s 2000s BudgetaryCorporatePositioning CompetitiveStrategic planning &planning advantageinnovation control Financial PlanningSelecting Focusing onReconciling control growth&- sectors/markets. sources of size with diversification Positioning for competitiveflexibility & leadership advantageagility Capital Forecasting.Industry analysis Resources &Cooperative budgeting. Corporate Segmentation capabilities. strategy. Financial planning. Experience curve Shareholder Complexity. planning SynergyPortfolio analysis value.Owning E-commerce. standards. — Knowledge Management— CoordinationCorporateDiversification. Restructuring. Alliances & & control byplanning depts.Global strategies. Reengineering.networks Budgetingcreated. Rise ofMatrix structures Refocusing.Self -organiz systems corporate Outsourcing. ation & virtual planning organization MAIN ISSUES KEY CONCEPTS & TOOLS MANAGE- MENT IMPLIC- ATIONS

The Basic Framework Strategy: the Link between the Firm and its Environment THE FIRM Goals & Values Resources & Capabilities Structure & Systems THE INDUSTRY ENVIRONMENT Competitors Customers Suppliers STRATEGY

Sources of Superior Profitability RATE OF PROFIT ABOVE THE COMPETITIVE LEVEL How do we make money? INDUSTRY ATTRACTIVENESS Which businesses should we be in? COMPETITIVE ADVANTAGE How should we compete? CORPORATE STRATEGY BUSINESS STRATEGY

Strategy Making : Design or Process? Strategy as Design Planning and rational choice INTENDED STRATEGY Many decision makers responding to multitude of external and internal forces REALIZED STRATEGY EMERGENT STRATEGY Strategy as Process Mintzberg’s Critique of Formal Strategic Planning: The fallacy of prediction – the future is unknown The fallacy of detachment -- impossible to divorce formulation from implementation The fallacy of formalization --inhibits flexibility, spontaneity, intuition and learning. Mintzberg’s Critique of Formal Strategic Planning: The fallacy of prediction – the future is unknown The fallacy of detachment -- impossible to divorce formulation from implementation The fallacy of formalization --inhibits flexibility, spontaneity, intuition and learning.

Strategy Making Processes within the Company: Multiple Roles of Strategy Strategy as Decision Support Strategy as Coordination and Communication Strategy as Target Improves the quality of decision making Creates consistency and unity Improves perform- ance by setting high aspirations

The Role of Analysis Strategy analysis improves decision processes, but doesn’t give answers. Strategy analysis assists us to identify and understand the main issues. Strategy analysis helps us to manage complexity. Strategy analysis can enhance flexibility and innovation by supporting learning.