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Strategic management practices MBA

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Strategic management practices MBA

Strategic management practices MBA

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  • This session will be a review of key points of the first two semesters subject matter, as a lead into this semesters strategy themes.
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  • Transcript

    • 1. Strategic Management in Practice
    • 2. Strategy Development
      • The Three Strategy Lenses
      • Strategy as Design
      • Strategy as Experience
      • Strategy as Ideas
    • 3. Exhibit 2.2 Patterns of strategy development Continuity Incremental Flux Transformational
    • 4. Exhibit 2.3 Strategic evolution and consolidation . Product launch Acquisition Divestment Overseas expansion Strategies evolve and inform strategic decisions, which in turn consolidate strategic direction Evolving strategic direction Strategic decisions e.g.
    • 5. Exhibit 2.4 Strategy development routes Unrealised strategy Intended strategy 3 5 Planned implementation 1 2 5 Realised strategy Strategy as outcome (of cultural and political processes) Imposed strategy 4
    • 6. Exhibit 2.7 The role of the paradigm in strategy formulation Opportunities and threats Strengths and weaknesses Performance Environmental forces Organisational capabilities THE PARADIGM Strategy
    • 7. Strategy development dimensions
      • Planning
      • Incremental
      • Cultural
      • Enforced choice
    • 8. The 6 key planning questions
      • Where are we now?
      • How did we get there?
      • Where are we heading?
      • Where would we like to be?
      • How do we get there?
      • Are we on course?
    • 9. STRATEGY DEVELOPMENT DIMENSIONS (1)
      • The Planning Dimension
      • strategies are the outcome of rational, sequential, planned and methodical procedures
      • definite and precise strategic objectives are set
      • the organisation and environment are analysed
      • potential strategic options are generated and the optimum solution chosen
      • defined procedures for implementation and the achievement of the strategic objectives are developed
      • the strategy is made explicit in the form of detailed plans
    • 10. STRATEGY DEVELOPMENT DIMENSIONS (2)
      • The Incremental Dimension
      • evolutionary but purposeful strategy development
      • strategy is developed as issues arise
      • strategy is continually adjusted to match changes in the operating environment
      • early commitment to a strategy is tentative and subject to review
      • strategic options are continually assessed for fit
      • successful options gain additional resources
      • strategic options are developed from existing strategies by experimentation and through gradual implementation
    • 11. STRATEGY DEVELOPMENT DIMENSIONS (3)
      • The Cultural Dimension
      • a “way of doing things” in the organisation guides strategic direction
      • strategies evolve in terms of a core set of shared assumptions based on past experience, values and beliefs held by the organisation’s members
      • - the selection of goals and objectives
        • the identification of strategic issues
        • the selection of information
        • the selection of strategies
    • 12. STRATEGY DEVELOPMENT DIMENSIONS (4)
      • The Enforced Choice Dimension
      • strategic choice is prescribed or limited by external forces which the organisation is unable to control or influence.
      • organisations respond to environmental imperatives.
      • strategic change is instigated from outside the organisation.
      • barriers in the environment severely restrict strategic mobility.
    • 13. Exhibit 2.6 Cultural frames of reference Functional/ divisional Organisational Professional (or institutional) National (or regional) Industrial/ sector (recipe) The individual
    • 14. Implications for strategy development
      • Intended & realised strategy
      • Strategic drift
      • Strategic management in uncertainty & complexity
    • 15. Exhibit 2.5 Incremental change Environmental change Incremental strategic change Time Amount of change
    • 16. THE PARADIGM
      • ... The beliefs and assumption held in common
      • and taken for granted in an organisation.
      • Edgar Schien ****
      • W. Williams ****
    • 17. Exhibit 2.8 Phases of strategic decision making Issue awareness Selection of solutions Solution development Issue formulation
    • 18. Exhibit 2.10 The cultural web Control systems Stories Symbols Rituals and routines The Paradigm Power structures Organisational structures
    • 19. Exhibit 2.11 The dynamics of paradigm change Source: Adapted from P. Grinyer and J-C. Spender, Turnaround: Managerial recipes for strategic success , Associated Business Press, 1979, p. 203 The paradigm Development of strategy Implementation Corporate performance Step 1 Tighter control Step 2 Reconstruct or develop new strategy if unsatisfactory Step 3 Abandon paradigm and adopt a new one
    • 20. Exhibit 2.13 Different approaches to strategic management Strategic Strategic intent Planning Incremental Encouraging ‘intrapreneurship’ Simple ‘Product’ Complex Product Unpredictable environment Predictable environment
    • 21. Exhibit 2.12 The risk of strategic drift Time Amount of change Phase 1 Phase 2 Phase 3/4 Incremental change Flux Transformational change or demise Strategic change Environmental change 1 5 2 3 4
    • 22. The Learning Organisation
      • Organisations where people are continually learning how to learn together
      • People who function together in an extraordinary way - trust one another -complement each others strengths – compensate for each others limitations – common goals larger than individual goals – produce extraordinary results
      • The Fifth Discipline., the Art & Practice of the Learning Organisation, by Peter Senge
    • 23. The Learning Organisation
      • The Systems Approach
      • Systems Thinking
      • Team Learning
      • Personal Mastery
      • Mental Models
      • Building a Shared Vision
    • 24. THE BENEFITS OF FORMAL PLANNING SYSTEMS
      • A structured means of analysis and thinking about strategic problems.
      • Encouraging questioning and challenging of the taken for granted.
      • The involvement of people in strategy development.
      • Contributing to ownership and co-ordination of strategy.
      • A means of communication of intended strategy.
      • A means of control against agreed objectives .
    • 25. DANGERS AND PROBLEMS OF FORMAL PLANNING SYSTEMS
      • The neglect of cultural and political dimensions of organisations.
      • Delegating responsibility to specialists
      • Failure to achieve ownership of plans
      • Individuals understanding parts rather than the whole of plans
      • Detail rather than vision
      • Information overload
      • Strategy as ‘the plan’
      • The search for the mythical ‘right strategy’.
    • 26. STRATEGIC MANAGEMENT PROCESSES
      • Different organisations develop strategies according to their culture to suit their environment
      • We need to understand how strategies are developed and managed in our organisations and relate it to the learning on this subject.
    • 27. Summary - Understanding Strategic Development
      • Three lenses for making sense of strategy, Design, experience & ideas
      • Most often the process of strategy development is described as a result of analysis evaluation & planning systems carried out by top management objectively & dispassionately
      • The experience lens shows how the organisational culture tends to lead to being adapted from strategies of the past
      • The ideas lens is useful to develop really innovative strategies that can cope with rapidly changing & unpredictable environments & emerge where the emphasis is on diversity & variety
      • These lenses can be helpful in providing insight into strategy development , considering the argument for/against strategic planning, how strategic leaders influence strategy in their organisations, the way political activity plays a part, how organisations may proactively try to cope with dynamic & uncertain environments through the emergent process of logical incrementalism, or more open learning systems in which diversity o f views is encouraged, or how strategies might be imposed on organisations by external agencies
      • It is likely that a mixture of these strategy development processes is employed, known as the configuration of process
      • Important to differentiate between realised strategy, that evolves incrementally, over time, interrupted by periods of punctuated equilibrium during which transformational change occurs & the intended strategy an organisation ought to follow
      • Historical data my be useful in stable environment s, but less useful in dynamic environments & complex environments in which more attention needs to be given to responding throughout the organisation to change,.

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