Strategy, Strategy Strategy Hang on, here we go! I was in a warmbed and suddenly I m part of a plan Woody Allen in Shadows and Fog
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1 Strategy, Strategy Strategy Hang on, here we go! I was in a warmbed and suddenly I m part of a plan Woody Allen in Shadows and Fog Ten schools; 9+1 (Mintzberg s view!) Prescriptive, normative How strategies should be formulated The Design school informal design originated in the 1960s basis for the following two The Planning school systematic process of formal planning originated in the 1970s The Positioning school selection of strategic positions originated in the 1980s Descriptive How strategies do get made The Entrepreneurial school creation of vision by leaders The Cognitive school enter into the strategists mind The Learning school strategies mustemerge in small steps The Power school a process of negotiations The Cultural school strategy rooted in the culture of an organization The Environmental school strategy is a reactive process to the firm s external context 1
2 And then there is #10 The Configurational School combines all above! Here is another approach Courtesy Brännback&Näsi A Cognitive Perspective of Strategy Six perspectives which can exist separately or jointly Strategyis an integrated decision-making model of the firm can be verysimple or extremelycomplex! Strategyenforces the long-termmission of the firm Strategydetermines the competitive scopeof the firm Strategyis the operationalisation of the SWOT- analysis Strategyprovides a systemof structures for corporate, SBU, and functional leadership Strategyprovides an interactive model betweenthe firm and its shareholders and stakeholders 2
3 Strategy as a set of techniques Portfolio planning, agenda, benchmarking, outsourcing, lean and agile management, total quality management, business process reengineering, competence-based competition, Malcolm Baldrige, quick ratios, customer relationship management, SBUthinking, key or critical success factors, fortify-and-defend strategies, joint ventures, strategic alliances, networking, and balanced scorecard How-to tools as opposed to what-to-do Logic Concepts in Strategic Thinking Strategy Concepts Norm Concepts Strategy Mission Creed Policy Budget Corporate Planning Management by Objectives Vision (II) Humane Concepts Leadership Managerial Work Corporate Cultures Excellence Factors Vision (I) Logic Concepts Business Idea Business Definition Value Chain Dominant Logic Logic of Action Paradigm Recipe Industrial Wisdom Activity Systems Norm & Humane Concept Norm Seek to prescribe what firms ought to do, what is accepted, important, and relevant. planning concepts systematic approach to express where the firm ought to be in the future and what it ought to do to achieve the set of goals. evolved in the 1960s and 1970s widely popular and are still. have been used the most by business Humane Addressed issues like leadership what is good leadership what kind of charactersitics a good leader should possess describing the cultures existing in companies managerial work 3
4 Industry Recipe (x, y,.., n) Logic Concepts (LC) Embrace the idea of understanding The notion of intentional strategy requires some shared beliefs, values, norms, and objectives Several levels and dimensions Implicit expressions of logic business idea ( Normann, 1975) business definition ( Abell, 1980) value chain (Porter, 1985) activity system (Porter, 1996) Explicit logics of action ( Karpik, 1981) dominant logic (Prahalad and Bettis, 1986, von Krogh and Roos, 1996) strategy logic (Näsi et al, 1996) Macro and Micro level LC Macro Industry Recipe (Grinyer and Spender, 1979) Industry Wisdom (Hellgren and Melin, 1993) Micro Company paradigm (Spender, 1980, Johnson and Scholes, 1988) Strategic way of thinking Company Paradigm (x, y,.., n) Strategy Logic (x, y,.., n) The Pharmaceutical Industry Industry Recipe X Company Paradigm Y Strategy Logic Z Technological Change The The Food Food Industry Industry The The Agri Agri Industry Industry The The Pharmaceutical Pharmaceutical Industry Industry The Industry Biotechnology Recipe Industry Industry Recipe X Industry Industry Recipe X Industry Recipe Recipe X X Company Company Paradigm Paradigm Y Y Industry Recipe X Company Paradigm Y Strategy Logic Z Strategy Strategy Logic Logic Z Z 4
5 The Health Care Service Industry Industry Recipe X Company Paradigm Y The The Food Food Industry Industry Company Company Paradigm Paradigm Y Strategy Strategy Logic Logic Z The The Agri Agri Industry Industry Company Company Paradigm Paradigm Y Strategy Strategy Logic Logic Z The Pharmaceutical Industry Strategy Logic Z The The Materials Materials Industry Industry The Biotechnology Industry Industry Recipe X Industry Recipe X Company Paradigm Y Company Company Paradigm Paradigm Y Strategy Strategy Logic Logic Z Company Paradigm Y Strategy Logic Z Strategy Logic Z The Reality in Logic Concpets in Strategic Thinking Norm Concepts LogicConcepts Humane Concepts Three Layers of ST stakeholders CEO, CEO, Board Boardof of Directors, Assistant strategists, e.g. e.g. SBU SBU vice vicepresidents) Scholars Consultants, teachers Journalists Owners Professional Analysts, e.g. e.g. stock stockmarket marketanalysts, VCs VCs The The public public 5
6 The Tension in strategy-making Creative organising Creativity Ideas Flexibility Thought Motivation Informal Fun Tension Planning Machinery Documents Formal Codeof conduct Schedules Deadlines Manadatoryprocedures Seriousness Just What is Strategy?!! Write a Key Learning note of -Logic Concepts in Strategic Thinking -Strategy as Simulacra -The Origins of Strategy -What is Strategy? Turn in No later than Feb 15. They will help you on the path of your long paper but also in the workshops 6
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