Strategic Choice

Miles & Snow Framework

Varun Joshi (10FN-117)

Vidu Rastogi (10HR044)
Srikanth Konduri (10FN109)
Saurabh Thadani (10FN102)
Vishal Aggarwal (10DM-

Agenda
Item 1

Miles & Snow Strategic Human Resource Systems

Item 2

Prospector

Item 3

Defender

Item 4

Analyzer

Item 5

Reactor

Item 6

Strategic Orientation & Application

Evolution of the framework

Critical analysis

Raymond E. Miles

Professor of Business administration and dean of

the School of Business Administration at the
University of California, Berkeley
His early work focused on the effects of
alternative theories of management on
relationships and performance within the
superior/subordinate work team

Charles C. Snow

Associate Professor of Organizational Behavior in

the College of Business Administration at
The Pennsylvania State University
He has written many articles on strategic
management and organization design.
Written the book Organizational Structure,
Strategy and Process with Raymond E. Miles
(McGraw-Hill, 1978)

Strive for excellence : US v/s

Japan

During 1970s, many US corporations started giving renewed

attention & added status to human resource functions and
specialists

Japanese challenge
prompted US
managers to focus on
HRM as a means of
restoring their
competitive position in
challenging global
market place

As US moved further
into the complex &
new world of a hightechnology, service
based economy,
farsighted managers
recognized crucial role
of HRM

Started to learn language and techniques of

strategic planning, assumed a proactive chance in
strategic thinking

Historical evolution of
Business Strategies
Investigated
competitive
strategies of
several
companies in
widely
different
industries

Encountered
impressive &
dramatic
competitive
tactics &
strategies

Convinced
that these
approaches
revolve
around few
fundamental
business
strategies

Observed 3
basic types of
strategic
behavioral
characteristic
s: Defender,
Prospector &
Analyzer

Adaptive Cycle
Based on Study of
84 firms in :
1. College text
book
publishing
2. Electronics
3. Food
processing
4. Hospitals

The
Entrepreneurial
Problem
(Product/Market
domain)

The
Administrative
Problem
(Leading/Laggin
g)

The
Engineering
Problem
(Technology for
production)

Snows take on adaptive cycle

PROSPECT
OR

DEFEND
ER

ANALYSE
R

REACTO
R

Prospector
Creators of
change &
uncertainty to
which their
competitors
must respond

Search for
product &
market
opportunities

Regularly
experiment with
potential
responses to
emerging
environmental
trends

Micros
oft
Fedex
3M

Concern for
market &
product
innovation so,
usually not
completely
efficient

Adobe Systems

Adobe Cues from CEO

$3.4bn acquisition of Macromedia, a multimedia
software firm
Diversification & growth by adding Flash to its
product line
Meeting a broader set of customer needs &
expanding its current market
They valued first mover advantage to gain
premium pricing opportunity
Confidence to coordinate challenges among
cross functional teams

PROSPEC
TOR

DEFENDE
R

ANALYSE
R

REACTO
R

Defender
Ignore
developments
outside of this
domain

Aggressively
maintain
prominence
within its
chosen market
segment

Penetrate
deeper into
current markets

Philips
Paramou
nt
pictures
Dell

Normally,
growth occurs
cautiously and
incrementally
due to seldom
technology
adjustments

Ryanair Airlines

Ryanair Cues from

Conversation
It keeps costs at rock bottom, lower than anyone
else in Europe companys mantra is cheap tickets
and not customer care
Staff costs are kept low too. Offers no business
class, maximizes seating space, doesnt offer travel
agent commissions
Instead of giving away snacks or food, Ryanair sells
it with a strategy: Pile em high and sell em
cheap
Turns around an aircraft in 25 minutes compared to
45 or so required by traditional carriers
Although expanding by adding new routes,
primarily concerned with stability rather than risk
taking & seeking growth

PROSPEC
TOR

DEFEND
ER

ANALYSE
R

REACTO
R

Analyzer
Successful
imitation
through
extensive
market
surveillance

Mixture of
products &
markets, some
stable, others
changing

Growth
normally occurs
through market
penetration

Sony
P&G
Starbu
cks

Growth may
also occur
through product
& market
development

Texas Instruments

Texas Instruments Cues from

Operations
Views itself as a leader in product design &
development-also competitive as the most efficient
mass producer
Mature products human resources play
maintenance and training role
Innovative products human resources play a more
developmental role
Their development is closely planned and the
process of allocating resources to such
developments is closely monitored
Prides itself on its ability to shift organization
structures

PROSPEC
TOR

DEFEND
ER

ANALYSE
R

REACTOR

Reactor

Management
adheres to a
StrategyStructure
relationship
that is not
relevant to the
environment

Technology,
Structure and
Process are not
linked to
strategy
appropriately
Management
fails to
articulate a
viable
organizational
strategy

Kodak
Kellog
g
Xerox

Except in highly
regulated
industries, they
perform less
well than the
other three
types

Atari Inc.

Atari Inc. Cues from E.Ts

Game Over
In Lieu of increasing their sales, accepted developing
E.T in just 6 weeks, based on the huge success of the
movie E.T
Result one of the worst video games ever releaseddull design, boring & monotonous game-play &
chaotic product development
Had no prior experience of making an action game
out of a movie. Hence was a dumb idea
Had a articulated strategy to develop the game but
technology, structure & process not linked to it
appropriately
Unable to react efficiently to the changing market
needs Nintendo ultimately took over

Strategic Orientation &

Application - Entrepreneurial
1
Problem
Organizatio
n

ProductMarket Domain

Success
Posture

Sureveillance

Adobe
Systems

Broad,
continuously
expanding

Active
initiation of
change
through M&A

Environment
oriented,
aggressive
search

Ryanair
Airlines

Narrow,
carefully
focused

Prominence
in Low cost
airlines

Strong
organizationa
l monitoring

Texas
Instrument
s

Segmented,
carefully
adjusted

Calculated
followers of
change

Competitive
oriented and
thorough

Uneven,
transient

Opportunistic
thrust,
coping
posture

Sporadic,
issue
dominated

Atari Inc.

Growth
Enhancing
product
market
development
,
diversificatio
n
Cautious
penetration,
advances in
productivity
Assertive
penetration,
careful
product
market
development
Hasty
Change

Strategic Orientation &

Application Engineering
-2
Problem
Organizat
ion

Technological
Goal

Adobe
Systems

Flexibility and
innovation

Ryanair
Airlines

Cost
efficiencies

Texas
Instrume
nts

Technological
Synergism

Atari
Inc.

Product
development,
completion

Technological Breadth

Technologic
al Depth

Technical
Multiple technologies,
personal
pushing the edge
skills,divers
ity
Standardisa
Focal, core
tion,mainte
technology, basic
nance
expertise
programs
Inter-related
technologies,at the
edge

Incremental
ism,
synergism

Shifting technological
applications,fluidity

Ability to
experiment
& rig
solutions

Strategic Orientation &

Application - 3
Organiza
tion

Administrative Problem
Dominant
Coalition

Planning

Structure

Control

Adobe
Systems

Marketing
& R&D

Problem &
opportunity
finding

Product/
market
oriented

Sales
Volumes,
performance

Ryanair
Airlines

Finance &
Production

Inside/Out..
Control
dominated

Functionality,
line authority

Centralised &
formal/financi
ally anchored

Texas
Instrume
nts

Planning
Staffs

Comprehens
ive with
incremental
changes

Staff
dominated/
matrix
oriented

Multiple
method,
careful risk
calculation

Atari
Inc.

Trouble
Shooters

Crisis
oriented,
disjointed

Tight
formal/loose
operating

Avoid
problems/rem
ain solvent

Critics & Convergence

Pros.
Cons.

Assesses relationships
between organizations
& their environments
Emphasized the great
influence of topmanagement in the
adaptation process
Led to Porters
strategic positioning
framework

Optimizing Analyzer
behavior not explained
in detail
Should not be applied
to conglomerates that
span multiple
industries
Defender & Prospector
were similar to Burns
& Stalkers Organic &
Mechanic forms

New Product Development

Ansoff Sheth and Morrison

Study

Miles and Snow Porter

Typology

Bibliography

www.provenmodels.com
Strategic Choice Typology
www.kulzick.com/milesot.htm Miles & Snow Organizational
Types
www.globalnpsolutions.com
A Review of Innovation
Strategy Types
Organization Theory & Design Richard L. Draft
Designing Strategic Human Resource Systems by

& Snow

Miles