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Strategy, Strategy Strategy…

Hang on, here we go!
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I was in a warm bed and
suddenly I’m part of a plan
Woody Allen in Shadows and Fog
 Ten schools; 9+1
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 Prescriptive, normative
 How strategies should be
formulated
 The Design school
• informal design
• originated in the 1960s
• basis for the following two
 The Planning school
• systematic process of formal
planning
• originated in the 1970s
 The Positioning school
• selection of strategic
positions
• originated in the 1980s
(Mintzberg’s view!)
 Descriptive
 How strategies do get made
 The Entrepreneurial school
• creation of vision by leaders
 The Cognitive school
• enter into the strategists
mind
 The Learning school
• strategies must emerge in
small steps
 The Power school
• a process of negotiations
 The Cultural school
• strategy rooted in the culture
of an organization
 The Environmental school
• strategy is a reactive
process to the firm’s external
context
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And then there is #10

The Configurational School

combines all above!
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Here is another approach

Courtesy
Brännback&Näsi
ÅA A Cognitive Perspective of Strategy

 Six perspectives which can exist separately or

jointly
 Strategy is an integrated decision-making model of the
firm – can be very simple or extremely complex!
 Strategy enforces the long-term mission of the firm
 Strategy determines the competitive scope of the firm
 Strategy is the operationalisation of the SWOT- analysis
 Strategy provides a system of structures for corporate,
SBU, and functional leadership
 Strategy provides an interactive model between the firm
and its shareholders and stakeholders
ÅA Strategy as a set of techniques
Portfolio planning, agenda, benchmarking,
outsourcing, lean and agile management,
total quality management, business
process reengineering, competence-based
competition, Malcolm Baldrige, quick ratios,
customer relationship management, SBU-
thinking, key or critical success factors,
fortify-and-defend strategies, joint ventures,
strategic alliances, networking, and
balanced scorecard …
How-to tools as opposed to what-to-do
ÅA Logic Concepts in Strategic Thinking

Strategy Concepts

Humane Concepts Logic Concepts

Norm Concepts Business Idea
Strategy Leadership
Business Definition
Mission Managerial Work
Value Chain
Creed Corporate Cultures
Excellence Factors Dominant Logic
Policy
Logic of Action
Budget Vision (I)
Paradigm
Corporate Planning Recipe
Management by Industrial Wisdom
Objectives Activity Systems
Vision (II)
ÅA Norm & Humane
 Norm  Humane
 Seek to prescribe what  Addressed issues like
firms ought to do, what is leadership
accepted, important, and  what is good leadership
relevant.  what kind of
 planning concepts charactersitics a good
• systematic approach to leader should possess
express where the firm
ought to be in the future
 describing the cultures
and what it ought to do to existing in companies
achieve the set of goals.  managerial work
 evolved in the 1960s and
1970s
 widely popular and are
still.
 have been used the most
by business
ÅA Logic concepts (LC)
 Embrace the idea of  Macro and Micro level LC
understanding  Macro
 The notion of intentional strategy  Industry Recipe (Grinyer and
 requires some shared beliefs, Spender, 1979)
values, norms, and objectives  Industry Wisdom (Hellgren and
 Several levels and dimensions Melin, 1993)
 Implicit – expressions of logic  Micro
 business idea (Normann, 1975)  Company paradigm (Spender,
 business definition (Abell, 1980) 1980, Johnson and Scholes,
1988)
 value chain (Porter, 1985)
 Strategic way of thinking
 activity system (Porter, 1996)
 Explicit
 logics of action (Karpik, 1981)
 dominant logic (Prahalad and
Bettis, 1986, von Krogh and
Roos, 1996)
 strategy logic (Näsi et al, 1996)
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The Pharmaceutical Industry
The Agri Industry

The Food Industry

Industry Recipe X
Industry Recipe X
The Pharmaceutical Industry
Company Paradigm Y Industry Recipe X Industry Recipe X
The Biotechnology Industry
Industry Recipe X’’
Strategy Logic Z Industry Recipe X Industry Recipe X

Industry Recipe X X’Company Paradigm Y’’

Industry Recipe

Strategy Logic Z’’

Technological Company Paradigm Y’
Change
Strategy Logic Z’
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The Food Industry
The Agri Industry

The Health Care Service Industry Recipe X

Industry Industry Recipe X
Company Paradigm Y
Company Paradigm Y
Industry Recipe X
Strategy Logic Z
Strategy Logic Z
Company Paradigm Y The Pharmaceutical Industry

Strategy Logic Z The Biotechnology Industry

Industry Recipe X’’

The Materials Industry

Industry Recipe X’ Company Paradigm Y’’

Industry Recipe X Company Paradigm Y’ Strategy Logic Z’’

Company Paradigm Y Strategy Logic Z’

Strategy Logic Z
 The Reality in Logic Concpets in
ÅA Strategic Thinking
ÅA Three layers of ST stakeholders
•CEO, Board of Directors,
Assistant strategists, e.g. SBU
vice presidents)
•Scholars
•Consultants, teachers

•Journalists
•Owners
•Professional Analysts, e.g. stock market analysts, VCs

•The public
ÅA The tension in strategy-making

Planning Machinery
Creative organising
•Creativity •Documents
•Ideas •Formal
•Flexibility •Code of conduct
•Thought •Schedules
•Motivation •Deadlines
•Informal •Manadatory procedures
•Fun •Seriousness
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Just What is Strategy?!!
Write a Key Learning note of Logic
Concepts in Strategic Thinking and of
Strategy as Simulacra–
Max. 5 pages
Turn in No later than Feb 15
They will help you on the path of your
long paper but also in the workshops