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.