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JAPPANJYOT KALRA
LECTURER GNA-IMT
OBJECTIVE
To develop an understanding of strategic management concepts
To develop an understanding of evolution of the field of strategic management and business enterprise perspective
Source: Bracker J (1980) The Historical Development of the Strategic Management Concept, AMR, 5, 2, 219-224
STRATEGIC MANAGEMENT
Set of managerial decisions that determine the long term performance of a firm
Entails the analysis of external and internal environments of a firm to maximize the effective use of resources in relation to its objectives Bracker 2001
CHRONOLOGICAL EVOLUTION
Adapted from Pettigrew et al (2002), Whittington (2002), Gould and Campbell (1993) Descriptor Environment 1950s and 1960s Stable Content Top management 1970s Dynamic complex Content Top management 1980s Dynamic complex Content Top management Rational, participative Distinct Given Cross sectional Cross sectional 1990s Highly dynamic Process, Organisation Context dependent 21st century Hyper competitive Process Organisation Context depende nt Integrated Processual Longitudinal Learning, Organic Dynamic adaptive
Focus
Decision making
Rational, synoptic
Rational synoptic
View of Implementatio n
Research
Distinct Given
STRATEGY DEFINITIONS
Mintzberg 1979 A mediating force between the organization and environment: consistent patterns in streams of organizational decisions to deal with the environment. Andrews(1970)pattern of objectives, purposes, or goals stated in such a way so as to define what business the company is in or is to be in and the kind of company it is or to be Chandler 1962: strategy is the determinator of the basic long term goals of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.
CONCEPTS
Process is
Sequence of events, actions and activities unfolding over time in a context (
Pettigrew 1997)
Content is
matter dealt in a field of study (Merriam Webster dictionary 2007)
Content
Answers question what
Process
Answers question how and why (Van
de ven and Huber 1990)
Resource: is an asset, competency, process, skill or knowledge over which control is maintained ( Wheelen and Hunger 2001, pp81)
COMPONENTS OF STRATEGY
Context (why/where?) Process (how?) Content (what?)
CONCEPTUALIZATION
Environment
Possessions
Environment
Possessions
The Firm
Possessions
The Firm
Possessions
Time t = 0
Time t = 1
STRATEGY -- DEFINITIONS
DECISION MAKING
Strategic
Tactical
Operational
Source: Hambrick and Fredrickson, 2001, Are you sure you have a strategy?, Academy of Management Executive, 15, 4
Source: Hambrick and Fredrickson, 2001, Are you sure you have a strategy?, Academy of Management Executive, 15, 4
COMPONENTS OF STRATEGY
Culture and stakeholder expectations The environment Resources and strategic capabilities
Evaluating options
Selecting strategy
STRATEGY HIERARCHY
PORTFOLIO ANALYSIS
General Electric
Porter M. E, 1980
Porter M. E, 1980
Core Competence
Difficult to Imitate by competition Add value to
the customer
Strategy
Step 3: appraise rent gathering potential in terms their potential for sustained competitive advantage and appropriability
Competitive advantage
Step 5: identify resource gaps. Invest in replenishing, upgrading and augmenting resource base.
Step 2: identify capabilities which are its strengths. Identify resource inputs for it
Capabilities
Step 1: identify and classify firms resources. Assess strengths and weaknesses of these relative to competitors. Identify opportunities
Resources
Grant 1991
SUMMING UP
What is Strategy? Conceptualization Firm & Environment Decision level Content, Process, Context
Stakeholders
Tools Concept of time Flow of initiatives
Outcomes-- SCA
WHAT IS STRATEGY
Competitive strategy is being different- deliberately choosing a different set of activities to deliver a unique mix of value
episodic
Type of change
incremental
individual
different
Locus of analysis
group
Logical Incremen talism
adaptive
configurational Same
cognitive
group political
KEY POINTS
Plan to achieve objectives
THANKS..