2 - Corporate Strategy 2012
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Transcript of 2 - Corporate Strategy 2012
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7/28/2019 2 - Corporate Strategy 2012
1/22
LEARN. PERFORM. GROW.
2. Introducing Strategy (II)
Corporate StrategyMaster Degree
The Faculty of International Business and Economics,
ASE Bucharest
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1. The General Strategy Process
2. Strategic Management
3. Evolution of Strategic Approach
4. 2 Main Types of Strategic Approach
AGENDA for Today
2. Introducing Strategy (II)
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What is the Strategy Process?
The Five Phases of Strategy
Phase One
Strategic
Intel l igence
Gathering
and
Analys is
Phase Two
StrategyFormulat ion
PhaseThreeStrategy
Implementa
t ion
Planning
Phase Four
Strategy
Implementa
t ion
Phase FiveStrategy
Moni tor ing
and
Updat ing
(source: Kepner-Tregoe, Inc)
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The Outputs ofPhase 1:Strategic Intelligence Gathering and Analysis
The Five Phases of Strategy
Phase One
Strategic
Intel l igence
Gathering
and
Analys is
Phase Two
StrategyFormulat ion
PhaseThreeStrategy
Implementa
t ion
Planning
Phase Four
Strategy
Implementa
t ion
Phase FiveStrategy
Moni tor ingand
Updat ing
Yourassumptions about the external business environment
An assessment of your strategic situation, externally and internally
A set ofBasic Beliefs that guide your strategic and operational decision-
making
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The Outputs ofPhase 2:Strategy Formulation
The Five Phases of Strategy
Yourspecific decisions regarding:
Product/service definition andemphasis
Market definition and emphasis
Sources of growth
Competitive advantages
Supporting infrastructure
Metrics
Critical issues
Phase One
Strategic
Intel l igence
Gathering
and
Analys is
Phase Two
StrategyFormulat ion
PhaseThreeStrategy
Implementat ion
Planning
Phase Four
Strategy
Implementa
t ion
Phase FiveStrategy
Moni tor ingand
Updat ing
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The Outputs ofPhase 3:Strategy Implementation Planning
The Five Phases of Strategy
Phase One
Strategic
Intel l igence
Gathering
and
Analys is
Phase Two
StrategyFormulat ion
PhaseThreeStrategy
Implementat ion
Planning
Phase Four
Strategy
Implementa
t ion
Phase FiveStrategy
Moni tor ingand
Updat ing
A Strategic Master Project Plan that contains all of the initiatives that
need to be launched or continued to implement the strategy:> Initiative
> Executive Sponsor
> Start date
> Completion date
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The Outputs ofPhase 4:Strategy Implementation
The Five Phases of Strategy
Phase One
Strategic
Intel l igence
Gathering
and
Analys is
Phase Two
StrategyFormulat ion
PhaseThreeStrategy
Implementa
t ion
Planning
Phase Four
Strategy
Implementa
t ion
Phase FiveStrategy
Moni tor ingand
Updat ing
A strategy that has taken root
> Guiding decisions
> Motivating to all stakeholders
> Winning in the marketplace
Execution
> On time
> On budget
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The Outputs ofPhase 5:Strategy Monitoring and Updating
The Five Phases of Strategy
Phase One
Strategic
Intel l igence
Gatheringand
Analys is
Phase Two
StrategyFormulat ion
PhaseThreeStrategy
Implementat ion
Planning
Phase Four
Strategy
Implementat ion
Phase FiveStrategy
Moni tor ingand
Updat ing
A strategy that reflects the current reality of:
> The marketplace
> The competitive landscape
> The economic and regulatory environment
> Technology
A set ofassumptions that reflects your best
current thinking
A strategy that continues
to be a winner
Two triggers for a strategy
update:1) Passage of time
2) A significant change in
the internal or external
environment
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Assessment
The Five Phases of Strategy
Phase One
Strategic
Intel l igence
Gatheringand
Analys is
Phase Two
StrategyFormulat ion
PhaseThreeStrategy
Implementat ion
Planning
Phase Four
Strategy
Implementat ion
Phase FiveStrategy
Monitor ing
andUpdat ing
On a scale from 1 to 10, how would you rate yourorganizations strategy and itsimplementation?
10: We are world-class
9: This is a formidable competitive advantage for us
8: This is one of our strengths, but we have room for improvement
5: We are average in our industry
2: This is one of our significant weaknesses
1: This is a crippling competitive disadvantage for us
0: We dont have a strategy as it has been defined today
What questions do you have?
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1. The General Strategy Proc ess
2. Strategic Management
3. Evolution of Strategic Approach
4. 2 Main Types of Strategic Approach
AGENDA for Today
2. Introducing Strategy (II)
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Strategic Management
Includes understanding the strategic position of an
organization, strategic choices for the future and turning
strategy into action
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1. The General Strategy Proc ess
2. Strategic Managemen t
3. Evolution of Strategic Approach
4. 2 Main Types of Strategic Approach
AGENDA for Today
Course 2: Introducing Strategy (II)
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Perspectives on Corporate Strategy (I)
Perspective 1. Concept of
Corporate Strategy
2. Organization
Structure
Representative
author(s)
Ansoff 1965
Andrews 1971
Chandler 1962
Bower 1970Vancil 1978
CONCERN General management role Organization structure
CONTRIBUTION Early statement of corporate
and competitive strategy
Structure follows
strategy, fit,decentralization
OUTPUT Corporate vision
Distinctive competence
SWOT Analysis
Multidivisional
structure
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Perspectives on Corporate Strategy (II)
Perspective 3. Diversification 4. Portfolio
Planning
Representative
author(s)
Wrigley 1970
Rumelt 1974Montgomerz 1985
Hill 1988
BCG 1968
Haspeshaslagh 1982
CONCERN Extent and mode of
diversification
Resource allocation
CONTRIBUTION Set of business as strategicvariable, sinergy
Portfolio management
OUTPUT Measure of relatedness,
analysis of performance
Grow/share matrix
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Perspectives on Corporate Strategy (III)
Perspective 5. Value-Based Strategy 6. Generic
Corporate
Strategies
Representativeauthor(s) Jensen 1985Schmalensee 1985
Copeland 1990
Rumelt 1991
Porter 1987Goold & Campbell
1987
McKinsey 1989
CONCERN Corporate contribution to SBU
performance
Source of corporate
advantage
CONTRIBUTION Limited evidence of corporate value;
Market for corporate control
Typology of
corporate advantage
OUTPUT Free cash flow
Value-based strategy
Corporate role
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Perspectives on Corporate Strategy (IV)
Perspective 7. Resource-Based View
Representative author(s) Wernerfelt 1984
Dierickx and Cool 1989
Barney 1991
CONCERN Firm idiosyncracy and growth
CONTRIBUTION Tangible and intangible assets and capabilities
OUTPUT Characteristics of valuable resources
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1. The General Strategy Proc ess
2. Strategic Managemen t
3. Evolut ion o f Strategic A ppro ach
4. 2 Main Types of Strategic Approach
AGENDA for Today
2. Introducing Strategy (II)
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2 Main Types of Strategic Approach
PRESCRIPTIVE (DESIGN) vs. EMERGENT
Strategic approach -> refers to the 3 main areas of strategic
management
Strategic position Strategic choices (strategy selection)
Strategy into action
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PRESCRIPTIVE strategy
Authors Jauch, Glueck, Argenti
the 3 main areas of strategic management -> CORRELATEDCONSEQUENTLY
Corporate strategy = directed & rational planned process
Where we are? -> Where we want to be? -> new strategies
Final goals defined from the beginning
Key strategic elements defined before the strategy implementation
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EMERGENT strategy
Authors Mintsberg, Cyert, March
the 3 main areas of strategic management -> INDEPENDENT & MIXED
Corporate strategy = clarified step by step, adapted to the people needs,
developed in time
Final goals not clear
Key strategic elements elaborated during implementation
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PRESCRIPTIVE vs. EMERGENT
PRESCRIPTIVE vs. EMERGENT
Common way?
Different way?
Advantages & challenges
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For more information:
Cosmin Jolde
cosmin. jo ldes@achieveglobal . ro
Thank you!
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