The document outlines key concepts in strategic management including the role of strategy, elements of successful strategy, the evolution of strategic management over time, frameworks for analyzing strategy and the industry environment, and debates around strategy as design versus process. It also discusses Mintzberg's critique of formal strategic planning and the multiple roles that strategy can play within a company.

1. PRESENTATION SLIDES
To accompany:
Contemporary Strategy Analysis:
Concepts, Techniques, Applications
(5th edition, Blackwell, 2004)
RRoobbeerrtt MM.. GGrraanntt
Assisted by Kate Grant

2. TThhee CCoonncceepptt ooff SSttrraatteeggyy
OUTLINE
• The role of strategy in success
• A framework for strategy analysis
• The evolution of strategic management
• Corporate strategy and business strategy
• Strategy making: Design or process?
• The role of strategy

3. EElleemmeennttss ooff SSuucccceessss
MADONNA GIAP & NORTH RICHARD WILLIAMS
VIETNAMESE MILITARY (VENUS & SERINA’S DAD)
GOALS Single-minded quest for Reunification of Vietnam Wealth & recognition
stardom. under Communist rule.
UNDERSTANDING Identified emerging trends Intimate knowledge of terrain. Careful diagnosis of
THE in popular culture. Understanding U.S. political the physical and
ENVIRONMENT Recognized power of sex. system. Psychological determinants
Understood showbiz of success in women’s
distribution channels. professional tennis
RESOURSE Recognized limited raw Recognized economic and Systematic developed
APPRAISAL talent. Relied on strengths military weaknesses and key skills and physical,
in self-promotion, image- political strengths. mental and social
creation, relationship attributes from an early age.
management
IMPLEMENT- Commitment to hard work. Tight control. Long-term Careful meshing of
ATION Disciplined, inspirational commitment. Effective roles—father, coach &
Leadership. Attention to propaganda. Inspirational manager. Sustained,
detail. leadership. supportive leadership.

4. Common Common EElleemmeennttss iinn SSuucccceessssffuull SSttrraatteeggyy
Successful
Strategy
Long-term,
simple and
agreed
objectives
Profound
understanding of
the competitive
environment
Objective
appraisal of
resources
EFFECTIVE IMPLEMENTATION

5. WWhhaatt iiss SSttrraatteeggyy??
• Distinguishing strategy from tactics:
– Strategy is the overall plan for deploying
resources to establish a favorable position.
– Tactic is a scheme for a specific maneuver.
• Characteristics of strategic decisions:
– Important.
– Involve a significant commitment of
resources.
– Not easily reversible.

6. The The EEvvoolluuttiioonn ooff SSttrraatteeggiicc MMaannaaggeemmeenntt
DOMINANT
THEME
1950s 1960s-early 70s Mid-70s-mid-80s Late 80s –1990s 2000s
Budgetary Corporate Positioning Competitive Strategic
planning & planning advantage innovation
control
Financial Planning Selecting Focusing on Reconciling
control growth &- sectors/markets. sources of size with
diversification Positioning for competitive flexibility &
leadership advantage agility
Capital Forecasting. Industry analysis Resources & Cooperative
budgeting. Corporate Segmentation capabilities. strategy.
Financial planning. Experience curve Shareholder Complexity.
planning Synergy Portfolio analysis value. Owning
E-commerce. standards.
— Knowledge Management—
Coordination Corporate Diversification. Restructuring. Alliances &
& control by planning depts. Global strategies. Reengineering. networks
Budgeting created. Rise of Matrix structures Refocusing. Self -organiz
systems corporate Outsourcing. ation & virtual
planning organization
MAIN
ISSUES
KEY
CONCEPTS
&
TOOLS
MANAGE-MENT
IMPLIC-ATIONS

7. The Basic Framework
The Basic Framework
Strategy: the Link between the
Firm and its Environment
Strategy: the Link between the
Firm and its Environment
THE FIRM
Goals &
Values
Resources &
Capabilities
Structure &
Systems
THE
INDUSTRY
ENVIRONMENT
Competitors
Customers
Suppliers
STSRTRAATTEEGGYY

8. Sources of Superior Profitability
RATE OF PROFIT
ABOVE THE
COMPETITIVE
LEVEL
How do we
make
money?
INDUSTRY
ATTRACTIVENESS
Which
businesses
should we be
in?
COMPETITIVE
ADVANTAGE
How should
we compete?
CORPORATE
STRATEGY
BUSINESS
STRATEGY

9. Strategy Making Strategy Making :: DDeessiiggnn oorr PPrroocceessss??
Strategy as Design
Planning and
rational choice
INTENDED
STRATEGY
Strategy as Process
Many decision makers
responding to multitude of
external and internal forces
REALIZED STRATEGY
EMERGENT
STRATEGY
Mintzberg’s Critique of Formal Strategic Planning:
Mintzberg’s Critique of Formal Strategic Planning:
•The fallacy of prediction – the future is unknown
•The fallacy of detachment -- impossible to divorce formulation from
implementation
•The fallacy of formalization --inhibits flexibility, spontaneity,
intuition and learning.
•The fallacy of prediction – the future is unknown
•The fallacy of detachment -- impossible to divorce formulation from
implementation
•The fallacy of formalization --inhibits flexibility, spontaneity,
intuition and learning.

10. Strategy Making Processes within the
Company: Multiple Roles of Strategy
Strategy Making Processes within the
Company: Multiple Roles of Strategy
Strategy as Decision
Support
Strategy as Coordination
and Communication
Strategy as Target
Improves the quality
of decision making
Creates consistency
and unity
Improves perform-ance
by setting
high aspirations

11. TThhee RRoollee ooff AAnnaallyyssiiss
• Strategy analysis improves decision processes,
but doesn’t give answers.
• Strategy analysis assists us to identify and
understand the main issues.
• Strategy analysis helps us to manage complexity.
• Strategy analysis can enhance flexibility and
innovation by supporting learning.