Strategic Management report
➢An Actionable Strategy Implementation
Plan (Achievable & Realistic)
✓ Focus On Integrating The Findings &
Feedback From Your FIRST Assignment &
Building Upon To Create:
➢Clearly Demonstrate What The Strategic
Initiative Is, Why The Plan Can Help
Estia Health Achieve & Maintain
Sustainable Competitive Advantage &
How The Plan Can Be Implemented
1. Identify/Discuss The CURRENT Generic
Business Strategy
✓ Examine Its Strategy Statement And/Or
✓ Its Value Chain;
4 Porter’s Generic Business Strategies
Integrated Cost Leadership/Differentiation Strategy
Uniqueness Perceived
By The Customer
Low Cost Position
Competitive Advantage
S tr
a te
g ic
T a r g e t
Industry Wide
Particular
Segment Only
Overall Cost
Leadership
Differentiation
Focus
Integrated Cost
Leadership/Differentiation
Strategy
5
➢Cost Leadership
➢Differentiation
➢Focused Cost Leadership
➢Focused Differentiation
➢Integrated Cost Leadership/Differentiation.
6Types Of Business-Level Strategy
To Position The Firm, Management May
Choose From Five Business-Level Strategies:
7 The Basic Value Chain
Primary Activities
Relate To A Product’s Design, Creation, Delivery,
Marketing, Support, & After-Sales Service
➢ Research & Development
✓ Helps Lower Cost Structure & Leads To
Differentiation
➢ Production
✓ Superior Product Design Increases A Product’s
Functionality & Add Value
✓ Creation Process Of A Good Or Service
✓ Design Of Products & Production Processes
Primary Activities
➢Marketing & Sales
✓ Brand Positioning & Advertising - Increase
Customers’ Perceived Value Of A Product
✓ Marketing & Sales - Help Create Value By
Discovering Customers’ Needs
➢Customer Service
✓ Create Superior Utility By Solving Customer
Problems & Supporting Customers After A
Purchase
✓ Provide After-Sales Service & Support
Support Activities
Provide Inputs That Allow The Primary
Activities To Take Place
➢ Materials Management
✓ Controls The Transmission Of Physical
Materials Through The Value Chain
✓ Lowers Cost & Creates More Profit
➢ Human Resources
✓ Ensures Value Creation By Making Sure That
The Company Has The Right Combination Of
Skilled People
Support Activities
➢ Information Systems
✓ Electronic Systems To Improve Efficiency &
Effectiveness Of A Company’s Value Creation
Activities
➢ Company Infrastructure
✓ Companywide Context Within Which All The
Other Value Creation Activities Occur
✓ Organizational Structure, Control System &
Company Culture
12
SOURCE: Adapted With The Permission Of The Free Press, An Imprint Of Simon & Schuster Adult
Publishing Group, From Competitive Advantage: Creating And Sustaining Superior Performance, By
Michael E. Porter, P 47. Copyright © 1985, 1998 By Michael E. Porter.
Value-Creating Activities Associated With The Cost Leadership
Strategy
13
SOURCE: Adapted With The Permission Of The Free Press, An Imprint Of Simon & Schuster Adult Publishing Group, From Competitive
Advantage: Creating And Sustaining Superior Performance, By Michael E. Porter, P 47. Copyright © 1985, 1998 By Michael E. Porter.
Value-Creating Activities Associated With The Differentiation Strategy
Building Blocks Of Competitive Advantage
Business
Level
Strategies
2. Propose ONE NEW Strategic Initiative For
Estia Health To Implement. This Initiative
✓ A Major Functional Initiative, Such As
Marketing, Use Of Technology, Product
(Service) Innovation/Development, And
M&A.
✓Describe Its Contents In Details & Justify
Why It Is Strategic.
3. Evaluate The Suitability Of The Strategic
Initiative
✓ By Referring To The Findings Of
ASSIGNMENT 01; i.e. The Environment & Strategic Capabilities Of Estia & Its Current
Business Strategy
4. Develop A Strategy Implementation Plan
That Primarily Focuses On:
✓ What Needs To Be Change To Implement
The Strategy? And Why?
✓ How Will The Changes Proposed Be
Managed & Implemented
The Change Kaleidoscope
Figure 14.2 Types Of Change
Source: J. Balogun & V. Hope Hailey, Exploring Strategic Change, 3rd edition, Prentice Hall, 2007
Types Of Strategic Change
Types Of Strategic Change
Four Types Of Strategic Change:
➢Evolution – Cultural Change Is Required But This Can Be Accomplished Over Time.
➢Revolution – Fundamental Changes In Both Strategy & Culture.
➢Adaptation – Can Be Accommodated With The Existing Culture & Can Occur Incrementally.
➢Reconstruction – Rapid Change But Without Fundamentally Changing The Culture.
Four Key Premises:
Managing Change – Key Issues
➢ Strategy Matters – In Identifying The Need For Change & The Direction Of Change.
➢Context Matters – The Right Approach To Change Depends On The Circumstances.
➢Inertia & Resistance – Getting People To Change From Existing Ways Of Doing Things Is Essential.
➢Leadership Matters – Good Leadership Of Change At All Levels Is Needed.
5. Explain How Estia Can Measure Your
Proposed Strategic Initiative. Focus On:
✓A Set Of Key Success Measures For The Strategic
Initiative, Using The Balanced Scorecard.
✓Draw A STRATEGY MAP That Indicates The
Key Success Measures & Their Hierarchical
Relationships
23Establishing Balanced Organisational Controls
The Balanced Scorecard
➢The Balanced Scorecard Is A Framework Used To Verify That The Firm Has Established Both Strategic & Financial Controls To Assess Its Performance.
➢It Prevents An Over-Emphasis On Financial Controls At The Expense Of Strategic Controls.
24 The Four Perspectives Of The Balanced Scorecard
25 Strategic Controls & Financial Controls In A
Balanced Scorecard Framework
26 Balanced Scorecard
Strategy Map
Visually Represent In
A Compelling Manner
The Important
Elements & Their
Interrelationships
Within The Strategy
Diagrams, Tables, Statistics, Graphs, Pictures,
Questionnaires, Drawings, Tabulations, Surveys,
Data, etc. Must Be Inserted In The Appendix
Page
Appendix Page
Reference List - Academic References
Academic Papers From Peer Reviewed
Academic Journals
Examples – Peer Reviewed Academic Journals
30
Hollender, J. (2004) “ What Matters Most: Corporate
Values & Social Responsibility", California
Management Review, Vol 46, Issue 4, pp 111-119
Examples - Peer Reviewed Academic Journal Articles
Rowley, T.J. & Moldoveanu, M. (2003) “When Will
Stakeholder Act? An Interesting Identity-Based
Model Of Stakeholder Group Mobilization", Academy
Of Management Review, Vol 28, Issue 2, pp 204-219
Sull D.N (2005) “Strategy As Active Waiting”,
International Harvard Business Review, Vol 83, Issue 9,
pp 120-130
31
References From Books/Textbooks, Periodicals, Magazines, Newsprints, Websites,
& Other Non-Academic Literature.
Reference List - Non-Academic Journal Articles
32 Harvard Referencing
Citation – In The Report
To Analyze Competitive Forces In An Industry Environment And In Order To
Identify The Opportunities & Threats Confronting A Company, (Porter 1979) 5
Forces Model Is Used In The Analysis. This Model Focuses On Five Forces That
Shape Competition Within An Industry:
1. The Risk Of New Entry Of Potential Competitors,
2. The Degree Of Rivalry Among Established Companies Within An Industry,
3. The Bargaining Power Of Buyers,
4. The Bargaining Power Of Suppliers, And
5. The Closeness Of Substitutes To An Industry’s Products.
Porters Argues That The Stronger Each Of These Forces, The More Limited Is
The Ability Of Established Companies To Raise Prices And Earn Greater
Profits.
References List
Porter, M. E. (1979). "How Competitive Forces Shape Strategy."
Harvard Business Review 57(2): 137-145.