ÅA Strategy workshop

ÅA Strategic Management According to Mintzberg Strategy as  plan (intentional)  pattern (realized)  ploy  position  perspective The design school: as a process of conception The planning school: as a formal process The positioning school: as an analythical process Two fundamental characteristics:  intended, deliberate, realized  emergent, incremental, radical  punctuated equillibrium

ÅA Change Incremental change  things change slowly over time, piecemeal Radical change  sudden, disruptive or dicontinuous change, unanticipated  technological,  external often political economic

ÅA Change Punctuated equilibrium  transformational change, in which there is a fundamental change in strategic direction  infrequent change of CEO technological change merger & acquisitions

ÅA Continuity Incremental Flux Transformational

ÅA Strategic Management According to Mintzberg Strategy sets direction:  can be blinders Focus efforts  coordinations of actions  no peripheral visions, ”taboos” Defines the organization  too simply (simulacra) Provides consistency  creativity and innovativeness thrives on inconsistency

ÅA The Positioning school The BIG guru here is Michael E Porter  despite all criticism he is probably the most well known strategy guy in practice  most firms practice Porter without knowing it  Mintberg likes to refer to his book as a technique book roots in industrial organization other names: Dan Schendel (Hofer & Schendel); SMJ Is not dramatically different from Design and Planning, apart from ONE key point The school argues that only a few key strategies are possible in any given situation  as positions in the economic market place  a very marketing-based mind set  Two generic strategies product differentiation focused market scope

ÅA The key lie in the use of analysis to identify the right relationships Analysis for paralysis

ÅA Positioning school Controlled Conscious process producing full- blown deliberate strategies To be made explicit before Implemented The CEO is the strategist The notion of structure  industry structure  strategic position  organizational structure

ÅA Economic Behavioral Organisational 1940s-50s1960s1970s1980s1990s General Mgmt (Harvard) Penrose: Theory of the growth of the Firm Game Theory Industrial Org. Economics Industry Structures Strategic Groups Value Chain Analysis Re-engi- neering Resource-based view Core competence Evolutionary Theory Dynamic capabilities Cognitive models Leadership Strategic HRM Business Policy Competence-Based Competition

ÅA The premises of the positioning school Strategies are generic, specifically common, identifiable positions in the market place The marketplace (the context) is economic and competitive The strategy formation process is therefore one of selection of these generic positionsbased on analytical calculation Analysts play a major role in this process, feeding the results of their calculations to managers who officially control the choices Strategies thus come out of this process full blown and are then articulated and implemented; in effect, market structure drives deliberate positional strategies that drive organizational structure.

ÅA Sources of the school – three waves The first wave: origins of the military maxims  Sun Tzu  von Clausewitz ”…we bombard customers with marketing information” we launch strategies hostile takeover attack opponents’ weaknesses major focused thrust planned withdrawal stretch opponents resources…” The second wave: the consulting imperative  the rise of strategy boutiques  BCG growth-share matrix  PIMS (Profit Impact of Market Strategies) The third wave: the development of empirical propositions  KNOW YOUR PORTER!!

ÅA Porter’s five competitive forces INDUSTRY COMPETITORS Internal rivalry SUPPLIERS POTENTIAL ENTRANTS BUYERS SUBSTITUTES Bargaining power of Bargaining power of Threat of

ÅA Critique & contribution Concerns about Focus  too narrow  politics Concerns about context  bias towards big business Concerns about Process  too much focus on calculation Concerns about Strategy  narrow – excludes perspective The role of positioning is to support the strategy process not to be Probably good when situations are established and stable Has opened up a huge arena for research and as such made a major contribution to SM