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Introduction to
Learning Objectives


I.What is strategy?
    i.          Examine the concept of strategy through the lens of the:

           i.        Planning school

           ii.       Configuration school

           iii.      Positioning school

           iv.       Emergent school (Mintzberg’s 5 Ps)

    ii.         What are the implications of each conceptual frame to business planning in today’s global
                environment?


   © 2013 Berlin Asong. All rights reserved.                                                                2
Learning Objectives
II. Examine the nature of strategy in:
    i.       Profit organisations

    ii.      Not-for-profit organisations

    iii.     Single product or service organisations

    iv.      Multiproduct organisations

    v.       Social media organisations with respect to influences such as organisational goals, stakeholders’
             expectations, competitive environment and challenges.
III. Analyse different levels of organisational strategy.
    i.       Distinguish between corporate strategy, business unit strategy, functional strategy and tactic.

    ii.      Evaluate the degree of strategic alignment between them, whether such alignment improves or
             hinders organisational effectiveness.
   © 2013 Berlin Asong. All rights reserved.                                                                   3
You are now doing a business course.
 Why a business course? Why do the
course with XYZ University? How will
your grades fit with your aspirations?


© 2013 Berlin Asong. All rights reserved.   4
Describe your life? What
makes your life different from
your peers’? Is it the same as it
     was five years ago?


© 2013 Berlin Asong. All rights reserved.   5
How do I become a
                    successful person?


© 2013 Berlin Asong. All rights reserved.   6
How do I
                   become this person
                     or that person?

© 2013 Berlin Asong. All rights reserved.   7
Your answers to the
preceding questions border
 on the subject of strategy.

© 2013 Berlin Asong. All rights reserved.   8
© 2013 Berlin Asong. All rights reserved.   9
Pause for a moment…



                               What is
                              strategy?
© 2013 Berlin Asong. All rights reserved.                         10
…compare your
                definition with the
               following definitions.

© 2013 Berlin Asong. All rights reserved.   11
© 2013 Berlin Asong. All rights reserved.   12
Strategy is the determination
of the basic long-term goals and
 objectives of an organization…

                                            Alfred Chandler, 1962



© 2013 Berlin Asong. All rights reserved.                13
…and the adoption
              of courses of action…

                                            Alfred Chandler, 1962



© 2013 Berlin Asong. All rights reserved.                14
…and the allocation of
      resources necessary for
      carrying out these goals.

                                            Alfred Chandler, 1962



© 2013 Berlin Asong. All rights reserved.                15
Managers determine the firm’s long-term goals…
                                            Strategy analysis
© 2013 Berlin Asong. All rights reserved.                                             16
Taking stock of the…

                                PESTEL forces.




© 2013 Berlin Asong. All rights reserved.                          17
© 2013 Berlin Asong. All rights reserved.   18
…enables managers to spot
                   market opportunities & threats.




© 2013 Berlin Asong. All rights reserved.      19
Managers design how to achieve the firm’s goals…
                                            Strategy formulation
© 2013 Berlin Asong. All rights reserved.                                                  20
Managers allocate resources for achieving the firm’s goals…
Strategy execution




   © 2013 Berlin Asong. All rights reserved.                  21
© 2013 Berlin Asong. All rights reserved.   22
Strategy is
                                            the direction
                                            & scope of an
                                            organisation
                                            over the long
                                               term…



© 2013 Berlin Asong. All rights reserved.             23
…through its configuration of
resources and competences with
 the aim of fulfilling stakeholder
          expectations.
                                             Johnson, Scholes & Whittington; Exploring Corporate Strategyy; 2008




 © 2013 Berlin Asong. All rights reserved.                                                             24
Employees                        Investors

                                                                         Suppliers/distributors

Consumers




                                              Organisation



Government/Regulators
                                                                    Communities



  © 2013 Berlin Asong. All rights reserved.                                             25
© 2013 Berlin Asong. All rights reserved.   26
Strategy is about being
             unique…choosing a
                            unique position.
                                               Michael E. Porter




© 2013 Berlin Asong. All rights reserved.                          27
Strategy involves performing different activities than rivals’, or
performing similar activities in a different way, defining a unique
       position, making clear trade-offs and tightening fit.
                                                      Michael E. Porter




 © 2013 Berlin Asong. All rights reserved.                                28
© 2013 Berlin Asong. All rights reserved.   29
Strategy is a pattern
                in a stream of decisions
                       and actions.
                                            Henry Mintzberg, 1979




© 2013 Berlin Asong. All rights reserved.                           30
2003




                                                                  2013



                                               …shaped by forces
                                              within and out of the
                                              control of managers.
  © 2013 Berlin Asong. All rights reserved.                      31
© 2013 Berlin Asong. All rights reserved.   32
Why is there
                                            no standard
                                            meaning of
                                             strategy?

© 2013 Berlin Asong. All rights reserved.              33
1




             It’s a vocabulary
         that is tritely misused.


    © 2013 Berlin Asong. All rights reserved.   34
Examples



                     “Our strategy
                 is to deliver top line
                and margin growth”.

© 2013 Berlin Asong. All rights reserved.
Examples



                                             Our strategy is
                                            to “be the best.”


© 2013 Berlin Asong. All rights reserved.
Examples


    “Our strategy is to create
sustainable shareholder value by
     growing our operations
    organically and through
         acquisitions.”

 © 2013 Berlin Asong. All rights reserved.
Examples


   “Our strategy is to transform the
company from a traditional, high-volume
product wholesaler, to a next generation
 communications products wholesaler
   and managed solutions provider.”


 © 2013 Berlin Asong. All rights reserved.
2




 It’s a vocabulary connoted
by researchers & practitioners
     to satisfy an agenda.


    © 2013 Berlin Asong. All rights reserved.   39
3




                   Strategy is a
              borrowed vocabulary…


    © 2013 Berlin Asong. All rights reserved.
Comes from the Greek word...


                       strategia
© 2013 Berlin Asong. All rights reserved.
…meaning


                 art of war.
© 2013 Berlin Asong. All rights reserved.
…which is

    to cleverly win a war.


© 2013 Berlin Asong. All rights reserved.
Therefore…

     Strategy is the means
    by which an organisation
       achieves its goals.                               Berlin Asong, 2008




© 2013 Berlin Asong. All rights reserved.
The Planning, Configuration, Positioning, & Emergent
            schools’ definitions are distinct parts of the same subject called…


           STRATEGY                                                                   .
                                                                       Henry Mintzberg, 1979




© 2013 Berlin Asong. All rights reserved.                                                      45
Mintzberg’s 5Ps for                                                                                     Plan
    explaining strategy.
                                                                                         Perspective                         Ploy




Henry Mintzberg, "Five Ps for Strategy" in The Strategy Process, pp 12-19, H Mintzberg
and JB Quinn eds., 1992, Prentice-Hall International Editions, Englewood Cliffs NJ.
                                                                                                 Position          Pattern



        © 2013 Berlin Asong. All rights reserved.                                                                                   46
Plan


  Designed intentions
for achieving articulated
       outcomes.



 © 2013 Berlin Asong. All rights reserved.   47
© 2013 Berlin Asong. All rights reserved.   48
Ploy


                                              Specific actions
                                             used to outrun the
                                               competition.



 © 2013 Berlin Asong. All rights reserved.                  49
VRIN-(ORK) Framework
                                              Valuable


                       Renewable                              Rare




Resources
                                            Organisation


                     Knowledgeable                          Inimitable




                                               Non-
                                            substitutable
© 2013 Berlin Asong. All rights reserved.                                50
Increasing the barrier
                                           of industry entry as
                                          did Ryanair between
                                            2002 and 2004.




ERE O’Higgins, (2005), “Ryanair : The Low Fares Airline”, Case no. 305-066-1, University
College Dublin, Ireland, p. 14




        © 2013 Berlin Asong. All rights reserved.                                          51
It could be a
                                            strategic
© 2013 Berlin Asong. All rights reserved.
                                            alliance.        52
What’s the ploy behind
                     Google’s acquisition of
                     Motorola Mobility (Aug 2011)?




© 2013 Berlin Asong. All rights reserved.            53
Pattern

        Intended
         Strategy
                                             Deliberate          Realized
                                              Strategy           Strategy




                Unrealized                           Emergent
                 Strategy                             Strategy         Henry Mintzberg, 1979


 © 2013 Berlin Asong. All rights reserved.                                           54
1976




                                                                     2013




                                               A pattern in a stream
                                              of actions and decisions.
  © 2013 Berlin Asong. All rights reserved.                         55
© 2013 Berlin Asong. All rights reserved.   56
Position



              A unique position that
  aligns the firm’s competences
      with its environment.


 © 2013 Berlin Asong. All rights reserved.   57
…it’s about not doing
   everything for everybody.


© 2013 Berlin Asong. All rights reserved.   58
Take Apple’s
iPhone. There are
  50 reasons to
dislike the iPhone
 yet it trumps the
  competition in
   many ways.

© 2013 Berlin Asong. All rights reserved.   59
Perspective



    How the firm perceives
 itself and the world, and the
influence of that on strategy.

 © 2013 Berlin Asong. All rights reserved.   60
Is Apple a software or
  hardware company? Does
     it see itself as such?


© 2013 Berlin Asong. All rights reserved.   61
From Apple Computer to
Apple. Why? How does that
  redefine the culture and
 direction of the company?

© 2013 Berlin Asong. All rights reserved.   62
Perspective
gives personality
   to strategy.



 © 2013 Berlin Asong. All rights reserved.   63
Features of Strategy
                                           It has a direction & scope
                                        It operates in an environment
                                   Has short-term & long-term orientations
                               It involves seeking “competitive” advantage
                               It could (and may not) be known in advance
                                 Configuration of resources | competences
                                      Driven by the attainment of goals
                                             It’s an ongoing process
                                              Stakeholders’ benefits
                                                 Noticeable pattern

© 2013 Berlin Asong. All rights reserved.                                    64
© 2013 Berlin Asong. All rights reserved.   65
STRATEGY IN DIFFERENT
ORGANISATION TYPES

© 2013 Berlin Asong. All rights reserved.   66
© 2013 Berlin Asong. All rights reserved.   67
Discuss the nature of
             strategy in these organisations:
                                                  Home Office
                                                   Facebook
                                                Goldman Sachs
                                            MacMillan Cancer Support
                                            Your university or college
                                             Small family-sized firm
                                               News Corporation
                                                  McDonald’s
                                                    Apple Inc.
                                                     L’Oreal
© 2013 Berlin Asong. All rights reserved.                                68
Use the framework below
                    to focus your discussion:

           Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                69
Public Service Organisation
© 2013 Berlin Asong. All rights reserved.                                 70
Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                71
Publicly traded organisation
© 2013 Berlin Asong. All rights reserved.                                  72
Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                73
Tourism Company
© 2013 Berlin Asong. All rights reserved.                     74
Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                75
Charity Organisation
© 2013 Berlin Asong. All rights reserved.                          76
Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                77
Social media Organisation
© 2013 Berlin Asong. All rights reserved.                               78
Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                79
Multi-products organisation
© 2013 Berlin Asong. All rights reserved.                                 80
Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                81
Small family-sized firm



© 2013 Berlin Asong. All rights reserved.   82
Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                83
Multi-national organisation
© 2013 Berlin Asong. All rights reserved.                                 84
Purpose                          Stakeholder(s)   Competitive    Challenges
                                                             Environment.




© 2013 Berlin Asong. All rights reserved.                                                85
© 2013 Berlin Asong. All rights reserved.   86
LEVELS OF STRATEGY
IN ORGANISATIONS

© 2013 Berlin Asong. All rights reserved.   87
Corporate Strategy


         Business Level
           Strategy


     Functional Strategy



   Other sub-strategies


© 2013 Berlin Asong. All rights reserved.   88
Corporate Strategy


        A term used to describe the long-term
   plan of a large organisation.

© 2013 Berlin Asong. All rights reserved.                  89
© 2013 Berlin Asong. All rights reserved.   90
Characteristics of Corporate strategy:




             Long-term planning efforts.
          May affect the entire organisation.
         Made by top or mid-level executives.
          Involve huge capital investment.
            May take years to get results.
© 2013 Berlin Asong. All rights reserved.                                      91
Examples
                            Entering a new market
                               Exiting a market
                             Opening new stores
                             Acquiring other firms
                           Partnering with suppliers
                             Leadership change
                                      Etc.
© 2013 Berlin Asong. All rights reserved.              92
Ford’s 2005 Turnaround Plan Affects the Entire Organisation.
                               Six year on, the benefits of the plan is yet to materialise fully.




© 2013 Berlin Asong. All rights reserved.                                                           93
Business unit Strategy


         A term used to describe
the long-term plan of a                            subsidiary
           division of an organisation.

 © 2013 Berlin Asong. All rights reserved.                      94
Corporate Strategy


         Business Level
           Strategy


     Functional Strategy



   Other sub-strategies


© 2013 Berlin Asong. All rights reserved.   95
Corporate Strategy



 Business units Strategy



     Functional Strategy



   Other sub-strategies


© 2013 Berlin Asong. All rights reserved.   96
Corporate Strategy


    Business units Strategy                 Americas   Europe   Asia-Africa

   S-Business units Strategy



      Operational Strategy



      Other sub-strategies


© 2013 Berlin Asong. All rights reserved.                                 97
Characteristics of Business unit strategy:


                                    Long-termplanningefforts.
                                      Affectstheentiredivision.
                           Madebydivisional-levelexecutives.
                    Maybeaffectedbycorporate-levelstrategy
                               Involvehugecapitalinvestment.
                                  Maytakeyearstogetresults.
© 2013 Berlin Asong. All rights reserved.                                        98
Functional Strategy


    A term used to describe
plans designed & carried out by
 functional departments of an
         organisation.

© 2013 Berlin Asong. All rights reserved.                   99
Marketing                                      Finance   Operations


Manufacturing                                    HRM        R&D


Administration                                     IT        PR

    © 2013 Berlin Asong. All rights reserved.                     100
Corporate Strategy


         Business Level
           Strategy


     Functional Strategy



   Other sub-strategies


© 2013 Berlin Asong. All rights reserved.   101
Characteristics of Functional unit strategy:

                 Affectstheentiredepartment&division.
                 Short-termtolong-termplanningefforts.
             Madebydivisional&functionallevelexecutives.
            Affectedbycorporate-level&divisionalstrategies.
           Maybereactivetochangingbusinessenvironment.
                  Mayinvolvehugecapitalinvestment.
                        Takemonthstogetresults.
                         Maybereactiveinnature.
© 2013 Berlin Asong. All rights reserved.                                         102
Tactics


 The daily actions & decisions
 that drive the organisations
towards its short-term, medium & long-term goals.


© 2013 Berlin Asong. All rights reserved.      103
Characteristics of Tactics:




                            Dailyorweeklydecisions.
                           Areusuallyreactiveinnature.
                          Aimstogetimmediateresults.
                      Takeweeksormonthstogetresults.
                    Usually,madebymid-/lowlevelmanagers.
                                Reactiveinnature.

© 2013 Berlin Asong. All rights reserved.                                 104
Corporate level Tactics


  Business level Tactics

     Marketing Tactics


  HRM Tactics


     Production Tactics


    R&D Tactics

 © 2013 Berlin Asong. All rights reserved.   105
Modifying
the package
of products.


© 2013 Berlin Asong. All rights reserved.   106
Sales promotions




© 2013 Berlin Asong. All rights reserved.     107
How are these
                                            tiers of strategies
                                               interrelated?


© 2013 Berlin Asong. All rights reserved.                   108
Corporate Plan



Business units Plan



  Functional Plan



 Other sub-plans


 © 2013 Berlin Asong. All rights reserved.   109
Functional
                                                        strategy




                                              SBU
                                            strategy

                                                             Corporate
                                                              strategy




© 2013 Berlin Asong. All rights reserved.                                110
Functional
                                                             strategy


                                                                              Tactics

                                              SBU
                                            strategy                                              Tactics


                                                                      Corporate
                                                                       strategy
                                                 Tactics

                                                           Tactics

                                                                     Tactics Tactics              Tactics
                                                                                        Tactics


© 2013 Berlin Asong. All rights reserved.                                                                   111
Must these tiers of
strategies be aligned
  with each other?


© 2013 Berlin Asong. All rights reserved.   112
In principle, various
organisational plans                          ought to
be aligned with one another.

  © 2013 Berlin Asong. All rights reserved.         113
…in practice, not always the
case. Misalignment can cause
  problems in the long-term.
                                             Browne, S. & Cuddihy, L. (2011), “Questioning the Currency of Marketing Planning Today”.
                                             Irish Marketing Review, vol. 21, no. 1/2, p. 49




 © 2013 Berlin Asong. All rights reserved.                                                                            114
Corporate Plan



Business units Plan



  Marketing Plan



 Other sub-plans


 © 2013 Berlin Asong. All rights reserved.   115
© 2013 Berlin Asong. All rights reserved.   116

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Introduction to Strategy

  • 2. Learning Objectives I.What is strategy? i. Examine the concept of strategy through the lens of the: i. Planning school ii. Configuration school iii. Positioning school iv. Emergent school (Mintzberg’s 5 Ps) ii. What are the implications of each conceptual frame to business planning in today’s global environment? © 2013 Berlin Asong. All rights reserved. 2
  • 3. Learning Objectives II. Examine the nature of strategy in: i. Profit organisations ii. Not-for-profit organisations iii. Single product or service organisations iv. Multiproduct organisations v. Social media organisations with respect to influences such as organisational goals, stakeholders’ expectations, competitive environment and challenges. III. Analyse different levels of organisational strategy. i. Distinguish between corporate strategy, business unit strategy, functional strategy and tactic. ii. Evaluate the degree of strategic alignment between them, whether such alignment improves or hinders organisational effectiveness. © 2013 Berlin Asong. All rights reserved. 3
  • 4. You are now doing a business course. Why a business course? Why do the course with XYZ University? How will your grades fit with your aspirations? © 2013 Berlin Asong. All rights reserved. 4
  • 5. Describe your life? What makes your life different from your peers’? Is it the same as it was five years ago? © 2013 Berlin Asong. All rights reserved. 5
  • 6. How do I become a successful person? © 2013 Berlin Asong. All rights reserved. 6
  • 7. How do I become this person or that person? © 2013 Berlin Asong. All rights reserved. 7
  • 8. Your answers to the preceding questions border on the subject of strategy. © 2013 Berlin Asong. All rights reserved. 8
  • 9. © 2013 Berlin Asong. All rights reserved. 9
  • 10. Pause for a moment… What is strategy? © 2013 Berlin Asong. All rights reserved. 10
  • 11. …compare your definition with the following definitions. © 2013 Berlin Asong. All rights reserved. 11
  • 12. © 2013 Berlin Asong. All rights reserved. 12
  • 13. Strategy is the determination of the basic long-term goals and objectives of an organization… Alfred Chandler, 1962 © 2013 Berlin Asong. All rights reserved. 13
  • 14. …and the adoption of courses of action… Alfred Chandler, 1962 © 2013 Berlin Asong. All rights reserved. 14
  • 15. …and the allocation of resources necessary for carrying out these goals. Alfred Chandler, 1962 © 2013 Berlin Asong. All rights reserved. 15
  • 16. Managers determine the firm’s long-term goals… Strategy analysis © 2013 Berlin Asong. All rights reserved. 16
  • 17. Taking stock of the… PESTEL forces. © 2013 Berlin Asong. All rights reserved. 17
  • 18. © 2013 Berlin Asong. All rights reserved. 18
  • 19. …enables managers to spot market opportunities & threats. © 2013 Berlin Asong. All rights reserved. 19
  • 20. Managers design how to achieve the firm’s goals… Strategy formulation © 2013 Berlin Asong. All rights reserved. 20
  • 21. Managers allocate resources for achieving the firm’s goals… Strategy execution © 2013 Berlin Asong. All rights reserved. 21
  • 22. © 2013 Berlin Asong. All rights reserved. 22
  • 23. Strategy is the direction & scope of an organisation over the long term… © 2013 Berlin Asong. All rights reserved. 23
  • 24. …through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. Johnson, Scholes & Whittington; Exploring Corporate Strategyy; 2008 © 2013 Berlin Asong. All rights reserved. 24
  • 25. Employees Investors Suppliers/distributors Consumers Organisation Government/Regulators Communities © 2013 Berlin Asong. All rights reserved. 25
  • 26. © 2013 Berlin Asong. All rights reserved. 26
  • 27. Strategy is about being unique…choosing a unique position. Michael E. Porter © 2013 Berlin Asong. All rights reserved. 27
  • 28. Strategy involves performing different activities than rivals’, or performing similar activities in a different way, defining a unique position, making clear trade-offs and tightening fit. Michael E. Porter © 2013 Berlin Asong. All rights reserved. 28
  • 29. © 2013 Berlin Asong. All rights reserved. 29
  • 30. Strategy is a pattern in a stream of decisions and actions. Henry Mintzberg, 1979 © 2013 Berlin Asong. All rights reserved. 30
  • 31. 2003 2013 …shaped by forces within and out of the control of managers. © 2013 Berlin Asong. All rights reserved. 31
  • 32. © 2013 Berlin Asong. All rights reserved. 32
  • 33. Why is there no standard meaning of strategy? © 2013 Berlin Asong. All rights reserved. 33
  • 34. 1 It’s a vocabulary that is tritely misused. © 2013 Berlin Asong. All rights reserved. 34
  • 35. Examples “Our strategy is to deliver top line and margin growth”. © 2013 Berlin Asong. All rights reserved.
  • 36. Examples Our strategy is to “be the best.” © 2013 Berlin Asong. All rights reserved.
  • 37. Examples “Our strategy is to create sustainable shareholder value by growing our operations organically and through acquisitions.” © 2013 Berlin Asong. All rights reserved.
  • 38. Examples “Our strategy is to transform the company from a traditional, high-volume product wholesaler, to a next generation communications products wholesaler and managed solutions provider.” © 2013 Berlin Asong. All rights reserved.
  • 39. 2 It’s a vocabulary connoted by researchers & practitioners to satisfy an agenda. © 2013 Berlin Asong. All rights reserved. 39
  • 40. 3 Strategy is a borrowed vocabulary… © 2013 Berlin Asong. All rights reserved.
  • 41. Comes from the Greek word... strategia © 2013 Berlin Asong. All rights reserved.
  • 42. …meaning art of war. © 2013 Berlin Asong. All rights reserved.
  • 43. …which is to cleverly win a war. © 2013 Berlin Asong. All rights reserved.
  • 44. Therefore… Strategy is the means by which an organisation achieves its goals. Berlin Asong, 2008 © 2013 Berlin Asong. All rights reserved.
  • 45. The Planning, Configuration, Positioning, & Emergent schools’ definitions are distinct parts of the same subject called… STRATEGY . Henry Mintzberg, 1979 © 2013 Berlin Asong. All rights reserved. 45
  • 46. Mintzberg’s 5Ps for Plan explaining strategy. Perspective Ploy Henry Mintzberg, "Five Ps for Strategy" in The Strategy Process, pp 12-19, H Mintzberg and JB Quinn eds., 1992, Prentice-Hall International Editions, Englewood Cliffs NJ. Position Pattern © 2013 Berlin Asong. All rights reserved. 46
  • 47. Plan Designed intentions for achieving articulated outcomes. © 2013 Berlin Asong. All rights reserved. 47
  • 48. © 2013 Berlin Asong. All rights reserved. 48
  • 49. Ploy Specific actions used to outrun the competition. © 2013 Berlin Asong. All rights reserved. 49
  • 50. VRIN-(ORK) Framework Valuable Renewable Rare Resources Organisation Knowledgeable Inimitable Non- substitutable © 2013 Berlin Asong. All rights reserved. 50
  • 51. Increasing the barrier of industry entry as did Ryanair between 2002 and 2004. ERE O’Higgins, (2005), “Ryanair : The Low Fares Airline”, Case no. 305-066-1, University College Dublin, Ireland, p. 14 © 2013 Berlin Asong. All rights reserved. 51
  • 52. It could be a strategic © 2013 Berlin Asong. All rights reserved. alliance. 52
  • 53. What’s the ploy behind Google’s acquisition of Motorola Mobility (Aug 2011)? © 2013 Berlin Asong. All rights reserved. 53
  • 54. Pattern Intended Strategy Deliberate Realized Strategy Strategy Unrealized Emergent Strategy Strategy Henry Mintzberg, 1979 © 2013 Berlin Asong. All rights reserved. 54
  • 55. 1976 2013 A pattern in a stream of actions and decisions. © 2013 Berlin Asong. All rights reserved. 55
  • 56. © 2013 Berlin Asong. All rights reserved. 56
  • 57. Position A unique position that aligns the firm’s competences with its environment. © 2013 Berlin Asong. All rights reserved. 57
  • 58. …it’s about not doing everything for everybody. © 2013 Berlin Asong. All rights reserved. 58
  • 59. Take Apple’s iPhone. There are 50 reasons to dislike the iPhone yet it trumps the competition in many ways. © 2013 Berlin Asong. All rights reserved. 59
  • 60. Perspective How the firm perceives itself and the world, and the influence of that on strategy. © 2013 Berlin Asong. All rights reserved. 60
  • 61. Is Apple a software or hardware company? Does it see itself as such? © 2013 Berlin Asong. All rights reserved. 61
  • 62. From Apple Computer to Apple. Why? How does that redefine the culture and direction of the company? © 2013 Berlin Asong. All rights reserved. 62
  • 63. Perspective gives personality to strategy. © 2013 Berlin Asong. All rights reserved. 63
  • 64. Features of Strategy It has a direction & scope It operates in an environment Has short-term & long-term orientations It involves seeking “competitive” advantage It could (and may not) be known in advance Configuration of resources | competences Driven by the attainment of goals It’s an ongoing process Stakeholders’ benefits Noticeable pattern © 2013 Berlin Asong. All rights reserved. 64
  • 65. © 2013 Berlin Asong. All rights reserved. 65
  • 66. STRATEGY IN DIFFERENT ORGANISATION TYPES © 2013 Berlin Asong. All rights reserved. 66
  • 67. © 2013 Berlin Asong. All rights reserved. 67
  • 68. Discuss the nature of strategy in these organisations: Home Office Facebook Goldman Sachs MacMillan Cancer Support Your university or college Small family-sized firm News Corporation McDonald’s Apple Inc. L’Oreal © 2013 Berlin Asong. All rights reserved. 68
  • 69. Use the framework below to focus your discussion: Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 69
  • 70. Public Service Organisation © 2013 Berlin Asong. All rights reserved. 70
  • 71. Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 71
  • 72. Publicly traded organisation © 2013 Berlin Asong. All rights reserved. 72
  • 73. Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 73
  • 74. Tourism Company © 2013 Berlin Asong. All rights reserved. 74
  • 75. Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 75
  • 76. Charity Organisation © 2013 Berlin Asong. All rights reserved. 76
  • 77. Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 77
  • 78. Social media Organisation © 2013 Berlin Asong. All rights reserved. 78
  • 79. Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 79
  • 80. Multi-products organisation © 2013 Berlin Asong. All rights reserved. 80
  • 81. Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 81
  • 82. Small family-sized firm © 2013 Berlin Asong. All rights reserved. 82
  • 83. Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 83
  • 84. Multi-national organisation © 2013 Berlin Asong. All rights reserved. 84
  • 85. Purpose Stakeholder(s) Competitive Challenges Environment. © 2013 Berlin Asong. All rights reserved. 85
  • 86. © 2013 Berlin Asong. All rights reserved. 86
  • 87. LEVELS OF STRATEGY IN ORGANISATIONS © 2013 Berlin Asong. All rights reserved. 87
  • 88. Corporate Strategy Business Level Strategy Functional Strategy Other sub-strategies © 2013 Berlin Asong. All rights reserved. 88
  • 89. Corporate Strategy A term used to describe the long-term plan of a large organisation. © 2013 Berlin Asong. All rights reserved. 89
  • 90. © 2013 Berlin Asong. All rights reserved. 90
  • 91. Characteristics of Corporate strategy: Long-term planning efforts. May affect the entire organisation. Made by top or mid-level executives. Involve huge capital investment. May take years to get results. © 2013 Berlin Asong. All rights reserved. 91
  • 92. Examples Entering a new market Exiting a market Opening new stores Acquiring other firms Partnering with suppliers Leadership change Etc. © 2013 Berlin Asong. All rights reserved. 92
  • 93. Ford’s 2005 Turnaround Plan Affects the Entire Organisation. Six year on, the benefits of the plan is yet to materialise fully. © 2013 Berlin Asong. All rights reserved. 93
  • 94. Business unit Strategy A term used to describe the long-term plan of a subsidiary division of an organisation. © 2013 Berlin Asong. All rights reserved. 94
  • 95. Corporate Strategy Business Level Strategy Functional Strategy Other sub-strategies © 2013 Berlin Asong. All rights reserved. 95
  • 96. Corporate Strategy Business units Strategy Functional Strategy Other sub-strategies © 2013 Berlin Asong. All rights reserved. 96
  • 97. Corporate Strategy Business units Strategy Americas Europe Asia-Africa S-Business units Strategy Operational Strategy Other sub-strategies © 2013 Berlin Asong. All rights reserved. 97
  • 98. Characteristics of Business unit strategy: Long-termplanningefforts. Affectstheentiredivision. Madebydivisional-levelexecutives. Maybeaffectedbycorporate-levelstrategy Involvehugecapitalinvestment. Maytakeyearstogetresults. © 2013 Berlin Asong. All rights reserved. 98
  • 99. Functional Strategy A term used to describe plans designed & carried out by functional departments of an organisation. © 2013 Berlin Asong. All rights reserved. 99
  • 100. Marketing Finance Operations Manufacturing HRM R&D Administration IT PR © 2013 Berlin Asong. All rights reserved. 100
  • 101. Corporate Strategy Business Level Strategy Functional Strategy Other sub-strategies © 2013 Berlin Asong. All rights reserved. 101
  • 102. Characteristics of Functional unit strategy: Affectstheentiredepartment&division. Short-termtolong-termplanningefforts. Madebydivisional&functionallevelexecutives. Affectedbycorporate-level&divisionalstrategies. Maybereactivetochangingbusinessenvironment. Mayinvolvehugecapitalinvestment. Takemonthstogetresults. Maybereactiveinnature. © 2013 Berlin Asong. All rights reserved. 102
  • 103. Tactics The daily actions & decisions that drive the organisations towards its short-term, medium & long-term goals. © 2013 Berlin Asong. All rights reserved. 103
  • 104. Characteristics of Tactics: Dailyorweeklydecisions. Areusuallyreactiveinnature. Aimstogetimmediateresults. Takeweeksormonthstogetresults. Usually,madebymid-/lowlevelmanagers. Reactiveinnature. © 2013 Berlin Asong. All rights reserved. 104
  • 105. Corporate level Tactics Business level Tactics Marketing Tactics HRM Tactics Production Tactics R&D Tactics © 2013 Berlin Asong. All rights reserved. 105
  • 106. Modifying the package of products. © 2013 Berlin Asong. All rights reserved. 106
  • 107. Sales promotions © 2013 Berlin Asong. All rights reserved. 107
  • 108. How are these tiers of strategies interrelated? © 2013 Berlin Asong. All rights reserved. 108
  • 109. Corporate Plan Business units Plan Functional Plan Other sub-plans © 2013 Berlin Asong. All rights reserved. 109
  • 110. Functional strategy SBU strategy Corporate strategy © 2013 Berlin Asong. All rights reserved. 110
  • 111. Functional strategy Tactics SBU strategy Tactics Corporate strategy Tactics Tactics Tactics Tactics Tactics Tactics © 2013 Berlin Asong. All rights reserved. 111
  • 112. Must these tiers of strategies be aligned with each other? © 2013 Berlin Asong. All rights reserved. 112
  • 113. In principle, various organisational plans ought to be aligned with one another. © 2013 Berlin Asong. All rights reserved. 113
  • 114. …in practice, not always the case. Misalignment can cause problems in the long-term. Browne, S. & Cuddihy, L. (2011), “Questioning the Currency of Marketing Planning Today”. Irish Marketing Review, vol. 21, no. 1/2, p. 49 © 2013 Berlin Asong. All rights reserved. 114
  • 115. Corporate Plan Business units Plan Marketing Plan Other sub-plans © 2013 Berlin Asong. All rights reserved. 115
  • 116. © 2013 Berlin Asong. All rights reserved. 116