The Concept of Strategy

Strategy is the common thread among the organizations activities & product markets that defines the essential nature of business that the organization was or planned to be in future. Igor Ansoff A strategy is, therefore, a declaration of intent. IT defines what the organization wants to become in the longer term. Overall aim of strategy at corporate level will be to match or fit the organization to its environment in the most advantageous way possible. Key Elements in Strategy Strategic management is concerned with the following vital business decisions; I. II. What business to be in ? What markets to serve?

III. IV. V.

Which needs to meet? What products to offer? Where to locate facilities?

Operating environmental factors such as competition, customers, suppliers, & channels.

Factors Influencing Strategy Formations

Remote environmental factors such as PEST

Strategy formation

Internal Environmental factors such as manpower, policies, business ambitions, personal ambitions, strategies & weakness.

Opportunities & threats

The Components of Strategy I. Scope

II. Goals & Objectives III. Resource deployments IV. V. Identification of a sustainable competitive advantage Synergy

The Hierarchy of Strategies The 3 major levels of strategy in most large multiproduct organizations are: 1. Corporate strategy 2. Business-level 3. Functional strategies
Environmental Factors Corporate Mission C. Level

Corporate Goals & objectives

Corporate development strategy

Deployment of Resources

B.Strategy S.B.U.1 S.B.U.2 S.B.U.3

Business unit objective

Competitive strategy

Deployment of resources across product-markets & function

Marketing strategy for product market entry x

R&D strategy & Plan

H.R. Strategy & plans

Operations Strategy & plans

Tactical Marketing Plan for Product entry X

The Hierarchy of Strategy

F. Strategy

An Overview of the Process

External Environment
Corporate objective & Strategy

Business level Objective & strategy

Market opportunity Analysis

Understanding Mkt opportunity Forecasting & Mkt Knowledge Customer Analysis, Segmentation, targeting Decision Positioning decision

Formulating Strategies For Sp Mkt Situation

Strategies for new Mkt entries Strategies for growth Mkt Strategies for Mature & declining Mkt Strategies for new economy

Implementation & Control

Implementation business & Marketing Strategy Controlling marketing strategies & programe

Corporate Level Strategy

Alternate 1: single- Business Firms

Corporate Business Strategy

C. Level

POM / R&D

Financial Accounting Strategies

Marketing Strategies

H. R. Strategies

Functional Level

Alternate 2: Multi-business Firms

Corporate Strategy

Corporate Level

Business 1

Business 2

Business 3
B. Level

POM / R&D Strategies

F. Accounting Strategies

Marketing Strategies Functional. Level

H.R strategies

Are basically about decisions related to allocating resources among the different businesses of a firm , transferring resources from one set of businesses to others and managing and nurturing a portfolio of businesses in such a way that the overall corporate objectives are achieved

Mintzberg 5 Ps For Strategies

In the game of chess all of the pieces are designed to move in a specific pattern and by moving these pieces you then develop your strategy. This is similar to three of Mintzbergs five Ps of strategy.. The strategy is a plan because you are always considering future moves, the strategy can be a ploy by trying to trick your opponent into making a move, and as well strategy can be a pattern because for many chess players, they have certain sequences that they play in every game which becomes their strategy.

PlanIt is a set of consciously intended course of action, a guideline ( set of guideline) to deal with the situation. By this definition strategies have two essential characteristics 1. They are made in advance of the action to which they apply 2. They are develop consciously & purposefully

Part 1: Ready Phase Gather Information Survey team regarding positions and specific tasks they do on a day to day basis, Discovery Session Gather preliminary information brainstorm and manage expectations, Review the basic components of a Strategic Plan, Review the notes/themes/and build a template based on your needs, Create or refine your Mission, Vision, Values, and Competitive Advantage Compile information and data, provide feedback, and provide initial draft. Part 2: Set Phase Develop the Strategy and Build the Plan Develop long-term strategic goals and objectives (5 year plan), and annual goals for the 2 years, Create SMART Goals, objectives and action steps for the next year, Develop a S.M.A.R.T. Money Plan to track your revenue progress, Build and refine the Plan, Develop a detailed 90 day Calendar Develop measurement and accountability tool.

Ploy
Manipulative decisions which are intended to outwit an opponent or competitor, It include plotting disrupt, dissuade, discourage or otherwise influence them, this is where strategy can be ploy, as well as plan, for example telecom company might buy patent that competitor may use to launch rival product.

Pattern
Consistency in behavior, whether or not intended, for example a manager who makes decision that further enhances an already high responsive customer support process.

Pattern- Emergent Strategy

Emergent Strategy is defined as: A pattern is realized that is not expressly intended. Actions were taken, one by one, which converged over time to some sort of consistency, or pattern (Mintzberg, Ahlstrand, Lampel, [2009]) When to use an Emergent Strategy Emergent strategies are a good option when companies are not sure which approach to take. Its particularly valuable when companies are entering new markets as research shows that companies in this situation tend to start with the wrong strategy (Anthony et al. [2008]). An Emergent Strategy is about taking small tentative steps, testing the ground until you discover the right path. Social Media experimentation is a good example where companies are deploying an Emergent Strategy

Position
How you decide position yourself in market place, In this way strategy help you explore the fit between your organization & your environment, Here we use Porter 5 force analyses, Diamond theory, & PEST analyses. Example:- Honda

Honda entered U.S. Market with 2 Variants 50 cc & Larger On Entering US Market Honda Planned strategy was to compete with larger European & Us Bikes of 250 cc & over. These bike had dedicated market sold through dealership Disaster Struck When Honda Larger Machine develop Faults, they have not being design for hard wear & tear condition imposed by US motorcyclist. Honda had to recall Larger Machine, Honda made hardly any effort to sell its 50cc bike- Its staff rode them across Loss Angeles Sports goods shop ordinary bicycle & department store has develop an interest, but Honda did not want to confuse its image in its target market of men who bought larger bikes.

 Fault in Larger Honda Machine meant that reluctantly that Honda had no alternative but to sell small 50 cc bikes to raise money The 50 cc Bike become very popular with people who has never bought bike before. Eventually the company adopted this new market with Enthusiasm & new slogan You meet nicest people on a Honda The strategy has emerged the agents, managers conscious intentions but they eventually responded to the new situation, By 1965 Honda had Covered 63 % of US market.

1) PLAN:- The company identified and target the untapped market in US for 50cc bikes. 2) PLOY:- These bike had a defined market, & sold through dedicated motor bike dealership, Compete with larger European & US bikes 0f 250cc & over. 3) PATTERN:- They prove very popular with people who would never have bought motorbike before. 4) ) POSITION:- The company adopted the new slogan to present itself to the customers,

5) You meet nicest people on Honda, Did not want to confuse its image in its target market of men who bought larger bikes.