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2013 Robert M.

Grant
www.contemporarystrategyanaly

Chapter 1
The Concept of
Strategy

The Concept of
Strategy
OUTLINE

The role of strategy in success


A framework for strategy analysis
The evolution of strategic
management
What is strategy? Who do we describe
it?
How is strategy made?
Strategy and not-for-profit
organizations
2013 Robert M. Grant
www.contemporarystrategyanaly

Ingredients of
Success
Goals

Queen Elizabeth &


The House of
Windsor

Lady Gaga and the


Haus of Gaga

Life-long dedication to
role as head of state and
reigning monarch

Single-minded quest for


stardom through her
Lady Gaga persona

Understanding Alertness to the changing Awareness of the new


political environment
economics of the music
the
Sensitive to the mood
business, the marketing
Environment

Resource
Appraisal

and needs of the British


people

potential of social
networking and needs of
Generation Y

Recognized lack of formal


authority and need to
exploit traditional
loyalties and informal
influence

Exploited her innate


theatricality, eccentricity,
design capability and
musical skills

Implementatio Resolute commitment;


strong self discipline;
n
2013 Robert M. Grant
www.contemporarystrategyanaly

emphasis on building an
effective family team
supported by loyal

Devotion to living the


Lady Gaga character;
wiliness to create new
images on almost a daily
basis 3

What Makes a Successful


Strategy?

2013 Robert M. Grant


www.contemporarystrategyanaly

The Basic Strategy Framework


Strategy as a Link Between the Firm and
its Environment

2013 Robert M. Grant


www.contemporarystrategyanaly

The Evolution of Strategic


Management

2013 Robert M. Grant


www.contemporarystrategyanaly

Ryanairs Activity System

2013 Robert M. Grant


www.contemporarystrategyanaly

What is Strategy?
Distinguishing strategy from
tactics
o Strategy is the overall plan for
deploying resources to establish a
favorable position
o Tactic is a scheme for a specific
manoeuvre

Characteristics of strategic
decisions

o Important
o Involve a significant commitment of
resources
o Not easily reversible

2013 Robert M. Grant


www.contemporarystrategyanaly

Definitions of Strategy
Strategy: a plan, method or series of actions designed to
achieve a specific goal or effect
Wordsmythe Dictionary (http://www.wordsmyth.net)
Strategy is the pattern of objectives, purposes or goals and
the major policies and plans for achieving these goals,
stated in such a way as to define what business the
company is in or is to be in and the kind of company it is or
is to be.
Kenneth Andrews - The Concept of Strategy (Irwin, 1971)
The determination of the long-run goals and objectives of an
enterprise and the adoption of courses of action and the
allocation of resources necessary for carrying out these goals.
Alfred Chandler - Strategy and Structure (MIT Press, 1962)

2013 Robert M. Grant


www.contemporarystrategyanaly

Sources of Superior
Profitability

2013 Robert M. Grant


www.contemporarystrategyanaly

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Describing Strategy
Current Positioning; Future Direction

2013 Robert M. Grant


www.contemporarystrategyanaly

11

Strategy Making: Decision or


Process?
STRATEGY AS
DESIGN

STRATEGY AS
PROCESS

Planning and rational


choice

Many decision makers


responding to multitude
of external and internal
forces

INTENDED STRATEGY

EMERGENT STRATEGY

REALIZED STRATEGY

Mintzbergs Critique of Formal Strategic Planning

The fallacy of prediction The future is unknown


The fallacy of detachment Impossible to divorce formulation from implementation
The fallacy of formalization Inhibits flexibility, spontaneity, intuition and learning

2013 Robert M. Grant


www.contemporarystrategyanaly

12

Sources of Superior
Profitability
Strategy as
Decision
Support
Strategy as
Coordination &
Communication
Strategy as
Target

2013 Robert M. Grant


www.contemporarystrategyanaly

Improves the
quality of
decision making

Creates
consistency and
unity
Improves
performance by
setting high
aspirations

13

The Role of Analysis in


Strategy Making
Strategy analysis improves
decision processes, but
doesnt give answers
Strategy analysis assists us to
identify and understand the
main issues
Strategy analysis helps us to
manage complexity
Strategy analysis can enhance
flexibility and innovation by

2013 Robert M. Grant


www.contemporarystrategyanaly

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Applying Strategy Analysis to


Not-For-Profits

2013 Robert M. Grant


www.contemporarystrategyanaly

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