1. Essentials in Management: Strategy
Henrika Franck
Farah Kodeih

2. Henrika Franck Farah Kodeih henrika.franck@aalto.fi +358-50-4658077

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

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

5. 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

6. 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)

8. 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

9. 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

10. Alignment across levels
Environment
Macro
Strategy
Capabilities
Organization
Micro

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

12. 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

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

14. 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?

15. Emergent Strategy

16. 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)

17. Strategic action

18. Strategy 1.0

19. What are the challenges and solutions in strategy implementation?

20. 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.

22. Strategy 2.0

23. What are the challenges and solutions in strategy implementation?

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

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

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

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

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

30. 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

31. Thank you!