Strategist Presentation Harvard University Strategic Management
MGMT 5000 April 29th, 2015 Good Strategy Bad Strategy: iTATA
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MAGICAL solution to strategy 2 Myths About Good Strategy
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Be Driven.. Safely Drive Smart, Drive Safe, Drive iTATA 3 iTATA
Strategic Move - Joint Venture - Tata and Apple
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Joe, Board of Director General and Administrative Faisal, Board
of Director Operations Naz, Narrator Pallavi, Board of Director
Marketing and Sales Fredrick, Board of Director Human Resources
Peter, Board of Director Logistics Shelagh, Board of Director
Service Francis, Board of Director Finance 4 Team Strategist
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5 Strategy Gone Bad Four (4) Signs of Bad Strategy 1.Fluff
2.Failure to face the problem 3.Mistaking goals for strategy
4.Fuzzy or overly complex strategic objectives
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6 Heart of a Strategy Rumelts Kernel concept from Good Strategy
Bad Strategy Strategic Management course concept from textbook
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7 Strategy Gone Bad Four (4) Signs of Bad Strategy 1.Fluff
2.Failure to face the problem 3.Mistaking goals for strategy
4.Fuzzy or overly complex strategic objectives
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Template Strategy Poor Planning Quick fixes via Organization
structure Competency Companions Good Strategy is, as Rumelt says -
Rare Coherence coordinating actions, policies Resources to meet
organizational objectives Gathers power from its rareness Difficult
to imitate 8 Good Strategy | Bad Strategy
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Tata Manufacturing Advantages Cost Leadership Strategic
locations provide logistical advantage Operational economies of
scale Vertical integration opportunities 9 Setting up for Good
Strategy Manufacturing Component
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10 Setting up for Good Strategy Designing Component Processes
Driven by Value Chain Analysis
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Three Phases of Strategy Premeditation Focus Target segments
Strategic location Corporate social responsibility Physically
challenged drivers Anticipation Porter Five forces Watch
competitors and substitutes SWOT Analysis Build Differentiation
upon your strengths Coordinated Actions Strategic implementation
Coherent actions Cost Leadership actions 11 Discovering hidden
power in the situation is the best way to compete with your rivals.
Setting up for Good Strategy More on Designing Component
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Identify Growth Opportunities Hump Chart and the BCG Matrix
Measure the Financial Performance Assure strategy, implementation
and execution should contribute to the bottom line Sustainable
Competitive Advantage V (value add) R (rare) I (inimitable) N
(non-substitutable) 12 Setting up for Good Strategy Financial
Component
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A Chain Link System As strong as the weakest subunit Improving
every link via Internal Analysis End-to-end Value Chain deployment
Creating chain linked constellations of strategy Makes competitive
imitation difficult 13 Setting up for Good Strategy Chain Link
Methodology
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A Healthy Growth Fact based financial analysis Competitive
advantage Prosumer - integrating customers value chain Purpose of
Strategy To identify sustainable competitive advantage Value
adding, rare, hard to imitate or substitute Good leadership alone
is not sustainable Create competitive advantage 14 Setting up for
Good Strategy Growth and Sustainability
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Deepening Advantages Increasing value for stakeholder Cost
Leadership advantage Broadening Extent of Advantages Creating
higher demand for advantaged products or services Strengthen the
Channels Blocking easy replication and imitation by competitors 15
Setting up for Good Strategy Competitive Advantage Porters Five
Forces
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16 Setting up for Good Strategy Porters Five Forces
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Navigate Through Uncertainty Comprehensive industry life cycle
analysis Integrate Cost Leadership and Differentiation strategies
Gain Success During Uncertainty Consistent and sustainable
direction - unified vision By maintaining a vision clearer than
rivals Yields Competitive Advantage Managing Innovation 17 Setting
up for Good Strategy Riding the wave of change
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Inertia - Firms Failure to Adapt to Change Understanding rivals
inertia & inefficiencies SWOT External Environment Analysis
Understanding own strengths SWOT Internal Environment Analysis
Inertia could be - Routine, Cultural or by Proxy Entropy - Firms
Regression Over Time Value chain analysis Continued revision of
strategy Capitalize on First mover effect Broadening Extent of
Advantages 18 Setting up for Good Strategy Inertia and Entropy
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Bad Strategy is pervasive in organizations Lack of clear
objectives. coherent actions and choices No focus and too much
fluff Strengths are not the focus Specific components of Good
Strategy Kernel (diagnosis, guiding policy, coherent action)
Measurable goals and objectives Focus and concentrated efforts on
strengths Good Strategy can be sustained over time Focus on
deepening and extending advantages Competitive advantage via
external and internal analysis Strategic advantage is a journey not
a destination 19 Conclusions Boardroom Meeting Takeaways
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Good Strategy | Bad Strategy - Real Life Takeaways Team started
with bad strategy No focus Working with a template Team figured out
what worked for us Started using each other strengths Put piecemeal
process back together for accountability Continued focus until the
end - sustained strategy Broke the law of inertia and looked for
positive change during process Continued momentum to fight entropy
20 Conclusions Team Strategist