3.0 managing strategies 2019 neo

1 3.0 Managing strategies 2019 neo - 18 September BE 2562

3 เสาร์ 17 พ.ย. 61 09.00 - 17.00 น.
3.Managing strategy

3.1 Strategic Decision-Making
Sense-making Theory

Upper Echelon Theory

Image Theory

Business model and Design Thinking

3.2 Information
Information processing theory

Social Capital Theory

3.3 Capability
The Resource-based View of the Firm

Dynamic Capabilities Theory

3.4 Competitive Dynamics
Game Theory

Value Chain Theory

Theory of Behavioral Inter-action

Competition in Two-Sided Markets

1.Topic – 3.Managing strategy

3.2 Information.

3.3 Capability.


2.Before class –
You need to read all Week 3
readings PRIOR to attending the class.
Do assigned readings.
Consider your responses to the questions in the left
column. Develop a definition in your own words of
what Managing strategy is.
4. Assigned Readings
3.1.1 Elbanna, Said. "Strategic decision‐making: Process perspectives." International Journal of Management Reviews 8.1
(2006): 1-20.

3.1.2 Daft, Richard L., and Karl E. Weick. "Toward a model of organizations as interpretation systems." Academy of
management review 9.2 (1984): 284-295

3.1.3 Thomas, James B., Shawn M. Clark, and Dennis A. Gioia. "Strategic sensemaking and organizational performance:
Linkages among scanning, interpretation, action, and outcomes." Academy of Management journal 36.2 (1993): 239-270.

3.1.4 Hambrick, Donald C., and Phyllis A. Mason. "Upper echelons: The organization as a reflection of its top managers."
Academy of management review 9.2 (1984): 193-206.

3.1.5 Lipshitz, Raanan, and Orna Strauss. "Coping with uncertainty: A naturalistic decision-making analysis." Organizational
behavior and human decision processes 69.2 (1997): 149-163.

3.1.6 Lipshitz, Raanan, et al. "Taking stock of naturalistic decision making." Journal of behavioral decision making 14.5
(2001): 331-352.

3.1.7Johansson‐Sköldberg, Ulla, Jill Woodilla, and Mehves Çetinkaya. "Design thinking: past, present and possible
futures." Creativity and Innovation Management 22.2 (2013): 121-146.

3.1.8 Buchanan, Richard. "Wicked problems in design thinking." Design issues 8.2 (1992): 5-21.

3.2.1 Hult, G. Thomas M., David J. Ketchen, and Stanley F. Slater. "Information processing, knowledge development, and
strategic supply chain performance." Academy of management journal 47.2 (2004): 241-253.

3.2.2 Nonaka, Ikujiro, Katsuhiro Umemoto, and Dai Senoo. "From information processing to knowledge creation: a
paradigm shift in business management." Technology in society 18.2 (1996): 203-218

3.2.3 Nonaka, Ikujiro. "A dynamic theory of organizational knowledge creation." Organization science 5.1 (1994): 14-37.

3.2.4 Adler, Paul S., and Seok-Woo Kwon. "Social capital: Prospects for a new concept." Academy of management review
27.1 (2002): 17-40.

3.2.5 Walker, Gordon, Bruce Kogut, and Weijian Shan. "Social capital, structural holes and the formation of an industry
network." Organization science 8.2 (1997): 109-125.

3.3.1 Peteraf, Margaret A. "The cornerstones of competitive advantage: A resource‐based view." Strategic
management journal 14.3 (1993): 179-191.

3.3.2 Barney, Jay B. "Resource-based theories of competitive advantage: A ten-year retrospective on the
resource-based view." Journal of management 27.6 (2001): 643-650.

3.3.3 Helfat, Constance E., and Margaret A. Peteraf. "The dynamic resource‐based view: Capability lifecycles."
Strategic management journal 24.10 (2003): 997-1010.

3.3.4 Barney, Jay B. "Is the resource-based “view” a useful perspective for strategic management research?
Yes." Academy of management review 26.1 (2001): 41-56.

3.3.5 Lavie, Dovev. "The competitive advantage of interconnected firms: An extension of the resource-based
view." Academy of management review 31.3 (2006): 638-658.

3.3.6 Lieberman, Marvin B., and David B. Montgomery. "First-mover (dis) advantages: Retrospective and link
with the resource-based view." Strategic management journal (1998): 1111-1125.

3.3.7 Teece, David J., Gary Pisano, and Amy Shuen. "Dynamic capabilities and strategic management." Strategic
management journal (1997): 509-533.

3.3.8 Eisenhardt, Kathleen M., and Jeffrey A. Martin. "Dynamic capabilities: what are they?." Strategic
management journal (2000): 1105-1121.

3.4.1 Ketchen Jr, David J., Charles C. Snow, and Vera L. Hoover. "Research on competitive dynamics: Recent
accomplishments and future challenges." Journal of Management 30.6 (2004): 779-804.

3.4.2 Shapiro, Carl. "The theory of business strategy." The Rand journal of economics 20.1 (1989): 125-137.

3.4.3 Suarez, Fernando F., and Gianvito Lanzolla. "The role of environmental dynamics in building a first mover
advantage theory." Academy of Management Review 32.2 (2007): 377-392.

3.4.4 Rochet, Jean‐Charles, and Jean Tirole. "Platform competition in two‐sided markets." Journal of the
european economic association 1.4 (2003): 990-1029.

3.4.5 Baldwin, Carliss Y., and C. Jason Woodard. "The architecture of platforms: A unified view." (2008).


Sense-making Theory

Strategic navigation is a collaborative conversation that weaves between speciﬁc episodes and local or micro stories, the networks and coalitions of
governance processes, and the macro of governance cultures (Healey 2007, p. 21-23).
Hames (2007a) depicts this conversation as a strategic-learning spiral (adapted here as a more open rhizome) of sensing, making sense and designing
and enacting

Strategy Under Uncertainty Hugh CourtneyJane KirklandPatrick Viguerie

The Cynefin framework (/ˈkʌnɪvɪn/ KUN-iv-in) is a conceptual framework used to help managers, policy-makers and others reach
decisions.[2] Developed in the early 2000s within IBM, it has been described as a "sense-making device".[3] Cynefin is a Welsh word for
habitat.[4]
Cynefin offers five decision-making contexts or "domains"—simple, complicated, complex, chaotic, and disorder—that enable managers to
identify how they perceive situations, and to make sense of their own and other people's behaviour.[a] The framework draws on research
into systems theory, complexity theory, network theory and learning theories.[5]
Cynefin

Cyneﬁn

Upper Echelon Theory

upper echelon theory

Image Theory

Ward Edwards, (retired
Bayesian)
Rev. Thomas Bayes
1702-1761
Daniel Kahneman Princeton
University
Amos Tversky
(deceased)
Baruch Fischoff Carnegie
Mellon University
Gary Klein
Nobel Laureates 2002
Decision Making
• Normative
– Signal detection theory
– Expected value
– Bayesian models
– Multi-attribute theory
• Information processing
– Attention and working
memory
– Heuristics and biases
• “Naturalistic” decision making
– Recognition-primed decision
making
Decision Making Models

Decision Making

3. Image Theory

3. Image Theory
• Decision Makers (DMs) code their knowledge into three
images.
• The value image contains principles of behavior.
• The trajectory image is the agenda of goals.
• The strategic image contains the plans for implementing
the goals.

3. Image Theory
• Following your gut instinct.
• This model says we make decisions
intuitively, by going through a two-step
process.
• Step one is the compatibility test. Does the
alternative feel right?
• Step 2: Profitability test - Which of the
alternatives that feel right is best?

A.) Images Images of one's goals and one's self are considered:
these are the schemata: organized knowledge structures of each
individual person’s LTM. They are made up of several types of images:
• 1.) Value Image: Beliefs and values
which influence goal selection.
• 2.) Trajectory Image: Future
agenda--where one is going to
• 3.) Strategic Image: Plans and
actions to achieve these--sequences
of activities for achieving a goal.
3. Image Theory
B.) Images as they Influence two Types of
Decisions:
• 1.) Adoption Decision: refers to which decision is
selected--affected by:
– a.) compatibility - degree of consistency between a course of
action and one’s personal values and beliefs.
– b.) profitability - comes into play when several alternatives are
equally good--can be achieved by other decision making
strategies (i.e., additive models).
• 2.) Progress Decision: reevaluation of an initial
decision to monitor its progress. This is much like
an assessment of subgoals in means/ends analysis.

Business model and Design Thinking

Design Thinking

Business Model

3.2 Information

3.2 Information
Social Network Theory

3.3 Capability
The Resource-based View of the Firm

The Resource-based View

3.3 Capability



Value Theory

Theory of Behavioral Interﬁrm action

Value Theory

The Dynamic Capabilities View of Coopetition: The Case of Intel, Apple and Microsoft


Game Theory

Network Effects
Types of network effects
Direct
Indirect
Two-sided
Where does value come from?
Connection
Content
Clout
Data
What network effects are not
Supply-side economies of scale
Virality
Application
Network Effects as a business model
Requirements
Network effects need to be big enough to matter
Critical Mass

Figure 2: Pricing for network effects
Adobe initially used the approach above when it launched PDF and charged for both reader and writer software. But, demand curves are not ﬁxed: with positive network effects, demand curves
shift outward in response to growth in the user base on the network's other side. When Adobe gave consumers a free reader, this created demand for the document writer, the network's "money
side",

Pricing: Who pays?
Choose a subsidy-side
*Fix one side of the platform
Value add as an initial subsidy
Attract users with value adds
Choosing a subsidy-side examples
One side often pays
How should you apply pricing?
Access or usage based pricing?
Strategy: Should you lower price or add value?
Strategy: Acquire very high value users a.k.a Marquee Users

Network Effects as a business model
Requirements Network effects need to be big enough to matter
Critical Mass

Strategy: Should you lower price or add value?

4 Types of Direct Beneﬁt Eﬀects

“demand side economies of scale” popularized by
Carl Shapiro and Hal Varian

Important questions
What type of network effect is your product trying to generate?
(direct/indirect/two-sided)
What user base are you trying to generate a network effect for?
(customer segment/side of market/3rd party users/3rd party developers)
What is the source of value? (connections, content, clout, data)
What are the critical drivers of irregularities in your network topology?
What is your strategy for reaching critical mass?
What is your strategy for reaching critical mass?

3.0 managing strategies 2019 neo

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