Beruflich Dokumente
Kultur Dokumente
AND STRATEGIC
MANAGEMENT
G. Tyge Payne, PhD
Strategic Management
Strategy: The unifying theme that gives coherence and
direction to the decisions of an organization
Strategic Management: Consisting of the analysis,
decisions, and actions an organization undertakes in
order to create and sustain competitive advantages.
Or, the Strategic Management Process is:
The full set of commitments, decisions, and actions
required for a firm to create value and earn aboveaverage returns. (Hitt, Hoskinson, & Ireland, 2004, p. 4)
Strategic Management basically seeks to answer the question:
DOMINANT
THEME
MAIN
ISSUES
KEY
CONCEPTS
&
TOOLS
MANAGEMENT
IMPLICATIONS
1950s
1960s-early 70s
Mid-70s-mid-80s
2000s
Budgetary
planning &
control
Corporate
planning
Positioning
Competitive
advantage
Strategic
innovation
Financial
control
Planning
growth &diversification
Selecting
sectors/markets.
Positioning for
leadership
Focusing on
sources of
competitive
advantage
Reconciling
size with
flexibility &
agility
Capital
budgeting.
Financial
planning
Forecasting.
Corporate
planning.
Synergy
Industry analysis
Segmentation
Experience curve
Portfolio analysis
Resources &
Cooperative
capabilities.
strategy.
Shareholder
Complexity.
value.
Owning
E-commerce.
standards.
Knowledge Management
Coordination
& control by
Budgeting
systems
Corporate
planning depts.
created. Rise of
corporate
planning
Diversification.
Restructuring. Alliances &
Global strategies. Reengineering. networks
Matrix structures Refocusing.
Self -organiz
Outsourcing.
ation & virtual
organization
7
Present
Mission
New
Mission
Present
Product
New
Product
Market
Penetration
Product
Development
Market
Diversification
Development
Low
Share
High
Growth
Star
Question
Mark
Slow
Growth
Cash
Cow
Bark!!
Dog
In
St tend
ra ed
te g
y
Forms of Strategy
Mintzbergs
MintzbergsCritique
Critiqueof
ofFormal
FormalStrategic
StrategicPlanning:
Planning:
The
fallacy
of
prediction
the
future
is
The fallacy of prediction the future is
unknown
unknown
The
Thefallacy
fallacyof
ofdetachment
detachment ----impossible
impossibleto
to
divorce
formulation
from
implementation
divorce formulation from implementation
The
Thefallacy
fallacyof
offormalization
formalization--inhibits
--inhibitsflexibility,
flexibility,
spontaneity,
intuition
and
learning.
spontaneity, intuition and learning.
De
lib
era
te
Str
ate
g
Unrealized
Strategy
Emergent
Strategy
Realized
Strategy
Broad
Target
Competitive
Scope
Narrow
Target
Cost
Leadership
Strategy
Strategy3A
3A
Cost
CostFocus
Focus
Strategy
Strategy22
Differentiation
Differentiation
Strategy
Strategy3B
3B
Differentiation
Differentiation
Focus
Focus
11
Thinking Strategically:
The Three Big Strategic Analysis Questions
1. Where are we now? What is our situation?
2. Where do we want to go?
Business(es) we want to be in and market
positions we want to stake out
Buyer needs and groups we want to serve
Outcomes we want to achieve
RBV Model
External Environment
Resources
Industry Attractiveness
Capability
Strategy Formulation
Sustainable CA
Assets/Skills Assessment
Strategy Formulation
Implementation
Implementation
16
StrategicControl
Control(6)
(6)
Strategic
Implementation(5)
(5)
Implementation
Formulating
FormulatingDirections
Directions
--Develop
DevelopVision/Mission
Vision/Mission(1)
(1)
-Set
-SetObjectives
Objectives(2)
(2)
Strategic
StrategicAnalyses
Analyses(3)
(3)
External Environment
Competitor/Stakeholder
Internal Organization
Strategy
StrategyFormulation
Formulation(4)
(4)
-Formulate
-Formulateand
andConsider
Consider
Alternatives
Alternatives
-Make
-MakeStrategy
StrategyChoice
Choice
Organizational Culture
Stakeholder Influence
Values / Ethics
Opportunities and Threats
from Economic, Political,
Technological etc Sources
Opportunities and Threats
from Competition and
Key Stakeholders
Organizational Culture
Stakeholder Influence
Values / Ethics
Context of Strategy
(type of organization, culture, values,
life cycle competitive position)
19
Intellectual Capacity
Processes
Organizational Structures
Technologies
External Relationships
Capital Resources
Strategic
Formulation and
Implementation
Similar to
Internal and
Competitive
Analysis
Similar to
Internal and
Competitive
Analysis
Basic Decision
to Make Major
Change or Not
Related Issues to
Monitor
Implementation
Process
20
21
Corporate
Strategy
How to Compete?
Business
Strategy
How to Contribute?
Functional
Strategy
Choice of Products
Choice of Markets
Choice of Competitors
22
INDUSTRY
ATTRACTIVENESS
RATE OF PROFIT
ABOVE THE
COMPETITIVE
LEVEL
How do we
make
money?
Which
businesses
should we be
in?
CORPORATE
STRATEGY
COMPETITIVE
ADVANTAGE
How should
we compete?
BUSINESS
STRATEGY
23