CORPORATE STRATEGY

Presentation Notes
Date: 4 Oct 2021
Lecture No: 6

Topic: Strategy as practice

Unique competing space

Value proposition

Strategic options

Resources and Capablities

Brand promise

Specific Points Covered

Deeper Strategy as Practice dives into the concept of what goes around in
understanding of making the strategy.it talks about micromanagement and micro
Strategy and processes involvement in setting strategy.
Strategy as Deliberate practices-autocratic organization
Practice
Emergent practices- Emergent practices requires adaptability as per the
changes in different factors.

Emergent practices can be linked with Strategy as practice (SAP) as SAP

is a continuous process hence when you come from deliberate to
emerging you are building on the idea of SAP. Eg: ceos discussing
strategy at the lower management level to address problems. This is
what Mintzberg also states.

Strategy has 2 parts- one is evidence (economic centric through

hypothesis) second is through experience (refer strategic thinking from
the rise and fall of strategy article). Mintzberg says that 50-50% of both
is among best practices.
 CORPORATE STRATEGY

Mintzberg defines strategy as a series of action or a pattern of decision

making, it is a pattern of thinking.

Value bundling: optimistic attributes and needs of each value

Each bundle may have a competitive relevance (CR) and composition

factor that may include brand style and environmental friendly
attributes.

Once strategy is implemented, there may be problems (such as

advertisements) or external triggers (breakthrough in technological
field). These triggers however are different from evolving changes.

While developing strategy one needs to link the problems and triggers
to issues and then further work on the issues

For eg: southwest had a certain positioning of low cost, reliability ,time
and culture. Their positioning was connected with going to la guardia
or not. But why they even wanted to enter was to grow revenues and
expand their market despite the challenges it offered. The problem of
congestion was an issue but it was affecting the time , there was a
domino affect. They tried to be efficient at first and address their
issues.

Core value for They offer value for citizens

Non-Profit Public infrastructure, healthcare, alleviation of poverty
organization
Eg: KE is subsidized as the generation cost is higher than the selling
price

They value outcomes.

Value proposition (linking with apple) comes from sense making

1. Why do you want to have a certain feature- it could be

aspiration as it is not offered in cheaper phones.
2. How do we do it? Do we have the technology or resource or
capability.
3. Where is your competing spaces or customer leads?
Opportunities
4. What is the firms competitive basis? Is it technology ,
competence etc.
 CORPORATE STRATEGY

Unique
competing
space-UCS-
differentiati competitors
offering

firm's
customer
competitive
needs
basis

Sony special picture was ucs

Philips-better sound was ucs

Strategic options
Triggers

external internal

potential impact on firms

ucs

strategic response

primarily expansionary
primarily defensiven(what
(customer needs
firm is offering
expending on whats
eg:windows)
ooffering eg apple ipad
 CORPORATE STRATEGY

Constituents of Customer need is basis

strategic options Motivating employees

Keeping stakeholders interest in mind and combining all to align and

mobilize resources to fulfill customer and stakeholders needs

One needs to develop N options, then criteria for selection than

choose the best UCS

Evaluating Strategic impact (must be sustainable)

strategic Stakeholders perspectives (goals)
response
External competitive fasctors (capablities)

Internal basis (processes +risk)

Organizational ability to execute (abilities)

One must determine if company needs to change strategyafter market

analysis

UCS You need to analyze What should be the UCS and how sustainable it is
in competitive space?

After analyses, capablities must be improved, risk must be analyzed

and reassesment on execution ability must be performed. Residual risk
must be mitigated during the process

Resources vs Resources is what we currently have like material, labor, skills, tangible
capabilities intangible means, etc

Capablities is a heterogenous combination of the resources and allows

you to understand what you can achieve with that amalgamation.

Brand promise Brand promise is often seen in the tag lines.

It is the value proposition reflected in the brand promise