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H.

Igor Ansoff
Father of Strategic
Management

If you can see things that are out


of whack, you can also see how
things can be in whack.
Dr. Seuss, The Problem

Who influenced this person?


F. W. Taylor
Elton Mayo
Henri Fayol
Henry Mintzberg

Early Life
Born in Vladivostok, Russia in December
of 1918
His father was American
His mother a Russian
He lived in Russia until 1936 when his
family moved to New York

Early American Life


Convinced that Americas capitalistic system

was corrupt
Department stores with more products than he
could dream of dispeled the propagandainduced myths.

Education
He mastered English and valedictorian of New
Yorks prestigious Stuyvesant High School
He completed his ME and MS with honors at
Stevens Institute of Technology in New Jersey
He completed his Ph.D. at Brown University
Holds at least 4 Honorary Doctorates
Stockholm School of Economics
University of Bath and Helsinki School of Economics

Early Work Life


In 1948, Ansoff joined the Rand
Corporation
In 1957, He began work for Lockheed
Aircraft Corporation
Vice President of Planning and Programs at

Lockheed Electronics
Developed a number of management concepts
related to strategic analysis and planning

Academic Life
Professor of Industrial Administration at CarnegieMellon University
Vanderbuilt University
Founding dean of the Graduate School of Management
Helped the school establish the niche of the management of
change

European Institute of Advanced Studies in


Management
Stockholm University
United States International University in San Diego

Publications
Prolific writer
11 Books
Over 120 articles
Several were reproduced in more than 15

languages

Corporate Strategy (1965)


A model for Strategic Decision
The solution of any decision problem in

business, science, or art can be viewed in four


steps.
Perception of decision need or opportunity.
Formulation of alternative courses of action.
Evaluation of the alternatives for their respective
contributions.
Choice of one or more alternatives for
implementation.

Applied to Marketing
1957 Harvard Business Review

The New Corporate Strategy


Modes of Strategic Management
Type of Change
Incremental
(Product/Service/Marget
Development)
Trial and error reaction to unsatisfactory performance.

Discontinuous
(Diversification/Divestment/
Internationalization/Technology
Substitution)
Panic search for solution in reaction to crisis.

Proactive
Ad Hoc

Bottom-up', episodic, logically


incremental initiatives by R & D
and Marketing

Trial and error search in reaction


to a perceived discontinuity
Episodic, systematic anticipation of
discontinuities (Issue
Management; Crisis
Management).

Proactive
Systematic

Firm-wide periodic extrapolation


of historical trends and
performance (Long-range
planning; R & D Planning;
Strategic Planning).

Firm-wide periodic, systematic


revision of the logic of the firm's
future development (Strategic
Planning; Strategic
Management).

Management
Mode
Reactive

Key Hypothesis of Stategic


Management
1.
2.
3.
4.

Contingency Hypothesis
Environmental Dependence Hypothesis
Requisite Variety Hypothesis
Strategy Capability Performance
Hypothesis
5. Multicomponent Capability Hypothesis
6. Balanced Capability Hypothesis

What is the Difference Between


Strategic Planning and Strategic
Management

1. Strategic planning is focused on optimal


strategy decisions
Stategic management is focused on
producing strategic results

New markets
New products
New technologies

What is the Difference Between


Strategic Planning and Strategic
Management

2. Strategic planning is an analytical


process
Stategic management is an organizational
action process

What is the Difference Between


Strategic Planning and Strategic
Management

3. Strategic planning is focused on business, economic


and technology variables
Stategic management broadens the focus to include

Psychological
Sociological
Political

Thus, strategic planning is about choosing things to


do, while strategic management is about choosing
things to do and also about the people who will do
them.

What is the Difference Between


Strategic Planning and Strategic
Management

4.

Strategic management consists of:


Formulating strategies
Designing the firms capability
Managing implementation of strategies
and capabilities

Lasting Impact
Early 70s he moved from a concept of strategic

planning

He realized that making sound plans was not enough to ensure


strategic success.

Coined the term strategic management, emphasizing a

broader approach including

Individual and group behavior dynamics


Political processes
Organizational culture

Coined the term synergy


One internally generated by a combination of capabilities or
competencies

Lasting Impact
Ansoff Institue was established in co-operation with
the US International University, San Diego
Vision is to be a leading research institute
Purpose is to transfer theoretical strategic research to

practical applications.
Continuing Igors work
Develop into many new and unanticipated directions
Multinational in Scope

Two annual Ansoff Awards


Holland
Japan

Critisisms
Himself
Noel Capon, John U. Farley and James M.
Hulbert in Corporate Strategic Planning
Henry Mintzberg
In 1984, Business Week was quoted as
After more than a decade of near-dictatorial
sway over the future of U.S. corporations, the
reign of the strategic planner may be at an end

'Twas the Night Before Christmas or


Strategy in a Nutshell
By Dr. Richar Z. Gooding
'Twas the night before Christmas and all through the office,
not an employee was stirring, not even the bosses.
The last orders were shipped by FedEx that day,
in hopes that big profits would soon come their way.
The work had been planned to the final detail.
Management was confident that nothing would fail.
They'd examined their strengths and knew how they compared.
The goal was in sight. The team was prepared.
Market research had clearly shown them the way.
Sound strategy would keep them from going astray.
Team work was more than a word to avow.
Everyone had a say in who, what and how.
Competitors reacted the way that they do,
defending their turf and denying the truth.
The team's product was superior, the service first-rate.
One wonders why competitors responded so late.
The customers were savvy, they knew what they wanted.
The team had delivered. Their praise went undaunted.
Financial results proved the merit of their vision.
Revenues soared. They'd accomplished their mission.
Shareholders cheered at the next annual meeting.
The room was so packed there was no extra seating.
When asked to explain how it had all been done,
the President exclaimed, "We all worked as one."