The document discusses strategic management and strategic planning. It defines strategic management and contrasts strategic, administrative, and operational decisions. Strategic decisions consider the whole firm, have long time spans, involve significant assets, are difficult to reverse and risky, require vision, and are infrequent. Examples of strategic decisions include Disney's scope, BP's long time span, the iPhone's high level, and Airbus' large fixed assets. The document contrasts rule makers, rule takers, and rule breakers in industries and provides examples of each.

1. Creating and Presenting Strategic Plans
What is Strategic Management?

2. The ‘Parable’ of John Smith

3. The ‘Parable’ of John Smith

4. The ‘Parable’ of John Smith

5. The ‘Parable’ of John Smith

6. The ‘Parable’ of John Smith

7. The ‘Parable’ of John Smith

8. The ‘Parable’ of John Smith

9. Clearly all have a Strategy
Actually ‘What is strategy?’

10. The Economist’s view
Structure Conduct Performance Equilibrium
The Strategist’s view
Conduct Structure Performance Competitive
advantage
Two views on Firm Behaviour

11. Rule makers or Barons
Largest and most profitable: GE, Toyota, Apple, Vodaphone
Rule takers or Serfs
Smaller and less profitable: Suzuki, Volvo
Rule breakers or revolutionaries
Initially small rebels who wreck the rules: Ryanair, Amazon
Source: Hamel and Prahalad
How firms influence industry structures

12. Organisational Decisions
• Strategic
•Administrative
• Operational

13. Characteristics of firms’ decisions
Strategic Administrative Operational
Whole firm Department wide
Long run < 1 year
Highest level Department Level
Fixed Assets Current Assets
Difficult to reverse Easily changed
Very risky Low risk
Visionary No vision
Infrequent Frequent
Unique Repetitive
Key Where managers spend time

14. Examples of Strategic Decisions
Characteristic Example
Scope Whole firm: Disney
Time span Long run: BP
Level Highest - iPhone
Assets used Large and fixed: Airbus
Reversability Difficult: Channel Tunnel
Riskiness High: Bet the firm:Boeing
Visionary Yes: iPhone
Frequency Rare: Takeover:PayPal
Uniqueness Yes: Spotify

15. The end