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Mintzberg's Positioning School
1. Naomi Angel O. Caparal
Nicole Jasmine O. Nacilla
BA 190 - Strategic Management
University of the Philippines
Prof. Mita Angela M. Dimalanta
2.
3. Strategies are generic
Marketplace is economic and competitive
Strategy formation process is one of selection
of generic positions based on analytical
calculation
Analysts play a major role in this process
Thus, market structure drives deliberate
positional strategies that drive organizational
structure
4. - An analytical process
- Places business within its industry context and looks at how
organization can improve its strategic positioning within that
industry
- Based on industrial organization and military strategy
- Strategic management as a science
- Neglects power, politics, culture and other social factors
- Biased toward large firms
- Number-oriented
5. Porter’s Five Forces Model
Porter’s Value Chain Model
Competitive Advantage
BCG Matrix
Game Theory
Sun Tzu’s The Art of War
6. Focus is to narrow
Bias on big, traditional business
Process that this school uses
Strategy seems to be more generic and not
individualistic
7. Bhasin, H. (2016). 10 school of thought by Mintzberg for strategy formulation.
Marketing91.com. Retrieved 21 September 2016,
from http://www.marketing 91.com/10-schools-thoughts/
Carlton, D.W. and Perloff, J.M. (2005). Modern Industrial Organization. Pearson/Addison
Wesley.
Different schools of thought on Strategy. (2016). Academia.edu. Retrieved 21 September 2016,
from http://www.academia.edu/4493694/Different_schools_of_thought_on_Strategy
Mintzberg, H., Lampal, J. and Ahlstrand, B. (1998). Strategy Safari: A Guided Tour through the
Wilds of Strategic Management. The Free Press.
The Positioning School. (2010). Strategology. Retrieved 21 September 2016, from
http://www.strategologybyquattro.com/book-review/strategy-safari/the-positioning-school/
The Positioning School. (2016). Scribd. Retrieved 21 September 2016, from
https://www.scribd.com/doc/97360104/The-Positioning-School
Editor's Notes
1996
The Arch Deluxe was a quarter pound of beef, on a split-top potato flour sesame seed bun topped with a circular piece of pepperedbacon, leaf-lettuce, tomato, American cheese, onions, ketchup, and a "secret" mustard and mayonnaise sauce
In response to the demographic trend of longer lifespans and an expanding older market
child-centered image
more sophisticated ingredients
Deluxe line of burgers including the Fish Filet Deluxe, Grilled Chicken Deluxe, Crispy Chicken Deluxe and the flagship Arch Deluxe.
It is estimated that McDonald's spent over $300 million on the research, production, and marketing for the Arch Deluxe
One of the biggest flops of all time
http://www.marketing91.com/brand-failure-mcdonalds-arch-deluxe/
-Analysts play a major role in this process, feeding the results of their calculations to managers who officially control the choices
-the marketplace is economic and competitive. Strategies are generic, specifically common, identifiable positions in the marketplace
-
von Neuman and Morgenstern
five forces of market structure where business strategy should be based upon.
threat of new entrants
2) bargaining power of firm’s suppliers
3) bargaining power of firm’s customers,
4) threat of substitute products
5) intensity of rivalry among competing firms.
BCG
comprehensive snapshot of the positions of a company’s various business concerns.
It classifies products with respect to the various growth rates and market shares of each product.
cash cows – products with high market share and slow growth
2) dogs – those with low market share and slow growth
3) stars – strong relative market share and high growth rate
4) question mark – low market share and high-growth products.
Value chain
a firm can be disaggregated into primary and support activities.
The first criticism of this model is that the focus is too narrow. There is a fear that the focus is too concentrated on the more quantifiable side of things, therefore not given enough attention to the non-quantifiable things such as society, culture, or politics.
Another concern is with regards to the bias that the positioning school has on big, traditional business. Not all businesses fall into that category and so there is the worry that this school would not be applicable to smaller, more independent models.
The third concern is about the process that this school uses – which tends to be more thoughtful and calculating than most would prefer. A lot of time, the only way a person learns is by getting out there and doing, so this method would not be as effective.
, which makes it harder to apply to other types of business. This, of course, is a problem for any one type of strategy.