1. PRESENTATION SLIDES To accompany: Contemporary Strategy Analysis (6 th edition, Blackwell Publishing, 2008) Robert M. Grant Assisted by Kate Grant

2. 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

3. Components of Success MADONNAGIAP & NORTH VIETNAMESE LANCE ARMSTRONG GOALSSingle-minded quest for stardom. Reunification of Vietnam under Communist rule. Winning the Tour de France UNDER- STANDING THE ENVIRONMENT Identified emerging trends in popular culture. Understood key success factors in showbiz Intimate knowledge of terrain Understanding U.S. political system. Diagnosis of the physical, psychological and strategic determinants of individual and team performance RESOURCE APPRAISAL Recognized limited raw talent. Exploited strengths in self- promotion, product development & relationship management Recognized economic and military weaknesses and core political strengths Systematic development of individual stamina and team capabilities IMPLEMENT- ATION Commitment and discipline. Charismatic leadership. Team building. Attention to detail. Tight control. Long- term commitment. Effective propaganda. Inspirational leadership. Clear delineation of individual roles. Alignment of incentives with team goals. Nurturing esprit de corp

4. Successful Strategy Long-term, simple and agreed objectives Profound understanding of the competitive environment Objective appraisal of resources What Makes a Successful Strategy? EFFECTIVE IMPLEMENTATION

5. 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.

6. 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

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

8. 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

9. 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.

10. 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

11. 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.