1. Chapter 1 : The Concept of Strategy
Prof. Luciano Thomé e Castro

2. © 2013 Robert M. Grant

3. The Concept of Strategy
OUTLINE
The role of strategy in success
A framework for strategy analysis
The evolution of strategic management
What is strategy? Who do we describe it?
How is strategy made?
Strategy and not-for-profit organizations
© 2013 Robert M. Grant

4. Ingredients of Success
Queen Elizabeth & The House of Windsor
Lady Gaga and the Haus of Gaga
Goals
Life-long dedication to role as head of state and reigning monarch
Single-minded quest for stardom through her Lady Gaga persona
Understanding the Environment
Alertness to the changing political environment
Sensitive to the mood and needs of the British people
Awareness of the new economics of the music business, the marketing potential of social networking and needs of Generation Y
Resource Appraisal
Recognized lack of formal authority and need to exploit traditional loyalties and informal influence
Exploited her innate theatricality, eccentricity, design capability and musical skills
Implementation
Resolute commitment; strong self discipline; emphasis on building an effective family team supported by loyal professionals
Devotion to living the Lady Gaga character; wiliness to create new images on almost a daily basis
© 2013 Robert M. Grant

5. What Makes a Successful Strategy?
© 2013 Robert M. Grant

6. The Basic Strategy Framework
Strategy as a Link Between the Firm and its Environment
© 2013 Robert M. Grant

7. The Evolution of Strategic Management
© 2013 Robert M. Grant

8. Ryanair’s Activity System
© 2013 Robert M. Grant

9. 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 manoeuvre
Characteristics of strategic decisions
Important
Involve a significant commitment of resources
Not easily reversible
© 2013 Robert M. Grant

10. Definitions of Strategy
Strategy: a plan, method or series of actions designed to achieve a specific goal or effect
Wordsmythe Dictionary (
Strategy is the pattern of objectives, purposes or goals and the major policies and plans for achieving these goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be.
Kenneth Andrews - The Concept of Strategy (Irwin, 1971)
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 out these goals.
Alfred Chandler - Strategy and Structure (MIT Press, 1962)
© 2013 Robert M. Grant

11. Sources of Superior Profitability
© 2013 Robert M. Grant

12. Current Positioning; Future Direction
Describing Strategy
Current Positioning; Future Direction
© 2013 Robert M. Grant

13. Strategy Making: Decision or Process?
STRATEGY AS DESIGN
STRATEGY AS PROCESS
Planning and rational choice
Many decision makers responding to multitude of external and internal forces
INTENDED STRATEGY
EMERGENT STRATEGY
REALIZED STRATEGY
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
© 2013 Robert M. Grant

14. Sources of Superior Profitability
Strategy as Decision Support
Improves the quality of decision making
Strategy as Coordination & Communication
Creates consistency and unity
Improves performance by setting high aspirations
Strategy as Target
© 2013 Robert M. Grant

15. The Role of Analysis in Strategy Making
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
© 2013 Robert M. Grant

16. Applying Strategy Analysis to
Not-For-Profits
© 2013 Robert M. Grant