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To accompany:

Contemporary Strategy Analysis: Concepts, Techniques, Applications
(5th edition, Blackwell, 2004)

Robert M. Grant
Assisted by Kate Grant

The Concept of Strategy 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 .

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

Common Elements in Successful Strategy Successful Strategy EFFECTIVE IMPLEMENTATION Long-term. simple and agreed objectives Profound understanding of the competitive environment Objective appraisal of resources .

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

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

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

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

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

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

The Role of Analysis • Strategy analysis improves decision processes. • Strategy analysis can enhance flexibility and innovation by supporting learning. . but doesn’t give answers. • Strategy analysis helps us to manage complexity. • Strategy analysis assists us to identify and understand the main issues.