15 to 20 minutes ppt
ash003
Week6lecture.pdf
STRATEGIC MANAGEMENT
DEFINITION, THEORIES & PRACTICES – SESSION - 3
MEANS END
Strategy
STRATEGIC MANAGEMENT MODEL
2
Objectives of this session:
1. Advanced Frameworks
2. Business-Level Strategy
3. Managing Implementation
sanits591.wordpress.com/2014/09/11/strategic-decisions-thinking-planning-move-act/
STRATEGY – INTENDED, EMERGENT, REALISED
3
Intended Strategy to Realised Strategy?
Most organisations create and aim to achieve an intended strategy. However, changes be they internal or external forces respond to emergent strategies eventually leading to an all new REALISED strategy.
Question Is your PG strategy an intended or emergent strategy?
https://2012books.lardbucket.org/books/strategic-management-evaluation-and-execution/
BUSINESS-LEVEL STRATEGY
Business-Level Strategy
Addresses the question of how a firm will compete in a particular industry
4
Porter’s-Two Competitive Dimensions
First – Source of Competitive Advantage
Second – Firm’s scope of operations
Original Source: M.E. Porter, 1998. Competitive Advantage: Creating and Sustaining Superior Performance, New York https://2012books.lardbucket.org/books/strategic-management-evaluation-and-execution/
Four Strategies emerge: 1. Cost Leadership 2. Differentiation 3. Focused Cost Leadership 4. Focused Differentiation
Generic Strategies are Mutually Exclusive
BUSINESS-LEVEL STRATEGY – HYBRID STRATEGY
Hybrid Generic Strategy
Japanese offer both: 1. Lower Costs & 2. Differentiation
5Original Source: M.E. Porter, 1998. Competitive Advantage: Creating and Sustaining Superior Performance, New York https://2012books.lardbucket.org/books/strategic-management-evaluation-and-execution/
Offers: 1. Superior Value – exceed
customer expectations on a. Product & b. Service 2. Extends - ‘Value for money’
Best-cost differentiation
hybrid
HOW? Superior Organisation Capabilities 1. Lean Techniques 2. Advanced Core Competences 3. Business Process Management 4. JIT 5. Efficiency & Effectiveness –
equally important 6. Hoshin Kanri
MANAGING THE IMPLEMENTATION PROCESS
Framework – managing implementation
FAIR FRAMEWORK
1. FOCUS – Short-term objectives
2. ALIGN – plans to deliver the objectives
3. INTEGRATE – Daily management with the plans
4. REVIEW - Performance review, corrective measures
6Strategic Management: Principles and Practice, 2 nd edition. Barry Witcher & Vinh Sum Chau
https://www.slideshare.net/karpagam93/strategy-implementation-53420785
…is the translation of chosen strategy into organisational action so as to achieve strategic goals and objectives
Basic Activities:
a. Establishment of annual objectives
b. Formulation of policies for execution of strategies
c. Allocation of resources
d. Actual performance of tasks and activities
e. Leading and controlling the performance of activities or tactics in various levels of the organization
EFFICIENCY & EFFECTIVENESS
Efficiency is the ability to get things done correctly. It is measurable and is the ratio of output to input.
Effectiveness is the ability to do the right things or to get the right things done.
Construction Management: Principles and Practice, A.Griffith, P.Watson. Red Globe Press https://emersonsuite.com/insights/
HARD & SOFT STRATEGIC MANAGEMENT
HARD & Soft Ball – Variables Pascale & Athos
HARD - Strategy- Structure-Systems
SOFT – People - Friendly & Emotions
Examples: Pepsi & Apple
8 Strategic Management: Principles and Practice, 2nd edition. Barry Witcher & Vinh Sum Chau https://www.slideshare.net/tutor2u/introduction-to-hr-objectives-strategies
McKinsey 7S Framework
McKinsey 7S – common uses
1. To facilitate organisational change.
2. To help implement new strategy.
3. To identify how each area may
change in a future.
4. To facilitate the merger of
organisations.
SOFT BASED APPROACH:
i. Purpose - Direction
ii. Process – Self-directing teams - PDCA
iii. People – facilitate commitment,
involvement & self-manage
HARD & Soft Ball – Variables Ghoshal & Bartlett
https://www.youtube.com/watch?v=yGceFEDmtIM
BCG PRODUCT PORTFOLIO MATRIX
BCG Growth Share Matrix
-provides a framework for analysing products according to growth and market share. Helps analyse the business units Bruce D. Henderson, BCG.1970
9Strategic Case Analysis, Sam Mishra, Franteractive Inc, USA https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-matrix/
FOUR ACTION FRAMEWORK
BCG Matrix is designed to: 1. Help with long-term Strategic
planning 2. Help consider growth
opportunities 3. Review its portfolio of
products or businesses 4. Decide where to invest, or to
discontinue or develop
ADDITIONAL FRAMEWORKS
i. Dogs: These are products with low growth or market share
ii. Question marks or Problem Child: Products in high growth markets with low market share
iii. Stars: Products in high growth markets with high market share
iv. Cash cows: Products in low growth markets with high market share
ANSOFF MATRIX
Ansoff Matrix
“The Ansoff growth matrix assists organizations to map strategic product market growth” H. Igor Ansoff, 1957
Very useful in placing new product development and market activities in proper context
1 0
Strategic Case Analysis, Sam Mishra, Franteractive Inc, USA https://slideplayer.com/slide/4980812/
“paralysis by analysis” H.Igor Ansoff
ADDITIONAL FRAMEWORKS
The Ansoff Matrix has four alternatives of marketing strategies:
1. Market Penetration,
2. Product development,
3. Market development
4. Diversification
ADDITIONAL FRAMEWORKS
Other Frameworks
1 1
Strategic Case Analysis, Sam Mishra, Franteractive Inc, USA https://slideplayer.com/slide/4980812/
“paralysis by analysis” H.Igor Ansoff
1. Four P’s: Product, Price, Place, Promotion
2. Five C’s: Company, Customer, Competition, Costs, Channels
3. PLC: Product Life Cycle
BLUE OCEAN STRATEGY
Blue Ocean Strategy
Blue ocean strategy is the simultaneous pursuit
of differentiation and low cost to open up a new
market space and create new demand.
W. Chan Kim & Renée Mauborgne
1 2
Strategic Management: Principles and Practice, 2nd edition. Barry Witcher & Vinh Sum Chau https://www.slideshare.net/tutor2u/introduction-to-hr-objectives-strategies
https://www.youtube.com/watch?v=5Xd5lvyWMe8
FOUR ACTION FRAMEWORK
COST TO VALUE CURVE
BUSINESS-LEVEL STRATEGY – HOSHIN KANRI
Hoshin Kanri
Hoshin Kanri Variants: 1. Hoshin Planning (Bank of America) 2. Policy Deployment (Proctor &
Gamble)
3. Policy Function Deployment (Mars)
4. Strategy into action (Unilever)
13Strategic Management: Principles and Practice, 2 nd edition. Barry Witcher & Vinh Sum Chau
www.bmgi.org
Hoshin: a brief statement about
a desired organisation-wide policy
to achieve a specific strategic
objective
Kanri: translates as management
or control
Hoshin Kanri aka Hoshin Planning is a Strategic Objective Delivery System
https://www.youtube.com/watch?time_continue=34&v=qCbSos76_Io
BUSINESS-LEVEL STRATEGY – HOSHIN KANRI
Hoshin Kanri
Hoshin Kanri Variants: 1. Hoshin Planning (Bank of America) 2. Policy Deployment (Proctor &
Gamble)
3. Policy Function Deployment (Mars)
4. Strategy into action (Unilever)
14Strategic Management: Principles and Practice, 2 nd edition. Barry Witcher & Vinh Sum Chau
www.bmgi.org
Hoshin Kanri aka Hoshin Planning is a Strategic Objective Delivery System
Common Principles of Hoshin Kanri: 1. Individual senior executives take responsibility for a
hoshin 2. Hoshins are strategic 3. Very few Hoshins (less than five) 4. Senior level Hoshins are translated to take account
of the organisation’s medium-term plan to derive annual hoshins for local levels
5. Senior level managers verse the periodic strategic reviews of the annual hoshins at the daily management level
6. Participate in and tale responsibility for an annual top executive audit (capability review) to evaluate management practices (including hoshin kanri itself)
7. PDCA-TQM used to facilitate bottom-up management
8. EFQM – European Foundation for Quality Management
9. QCDE – Quality, Cost, Delivery, Education used in daily management to drive progress
https://www.youtube.com/watch?v=7v9yHL8thIU
KAIZEN
15
KAIZEN WITH PDCA
16
LEADERSHIP 1. Transformational Leadership
2. Transactional Leadership
3. Visionary Leadership
4. Entrepreneurial Leadership
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Strategic Leaders
Strategic Management: Principles and Practice, 2nd edition. Barry Witcher & Vinh Sum Chau https://www.pinterest.co.uk/everydaylines/
“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” Jack Welch, former CEO of General Electric
“The more successful you are, the more likely you are to lose sight of the things that made you successful…” Michael O’Leary, Chief Executive, Ryanair
END OF SESSION - 3
18https://www.khorus.com
"Vision without action is a daydream. Action without vision is a nightmare.”
Japanese proverb
THANK YOU
ab6937@coventry,.ac.uk
