What do we mean by strategy?
Long term plan to achieve the goal and objectives matching internal strengths and external opportunities and Sense of purpose also organization try to Change customers’ behavior and Standard pattern of behavior over a period of time in order to achieve objectives. 5 P’s for Strategy (Henry Mintzberg,1996).
* Plan:long term plan action to deal with a situation.They are made in advance of the actions to which they apply. * Ploy: specific “maneuver” to win competitor.Use of threats&Actions to not allow competitive response. * Pattern: style of working or way of working stream of actions. Consistency in behavior. * Position : Locating an organization in an environment (n-person games) * Perspective: Rightway or strong& stable wayto know the world.H-P way (Engineering culture)&Perspective is shared&Collective mind A different set of P’s (jarzabkowski, 2007)
* Practitioners : people who perform strategy related activities * Practices:tools,methods,frameworks and routines thatpeople utilize to do strategy. * Praxis: Purposive action to change things.
Block 2 (1.5) : The impact of economics
Industrial Organization Economics
How can company position themselves in industries to got big profits? Competitive advantage
* Innovation and making deferent than other
* Understanding positioning industry environment.
* Managers need to develop understanding of direction and Industry structures to present the company opportunities and Threats.Contributors lead. Competitive advantage: grows out of company value is able to create Value more than cost, cost leadership also competitive advantage. Abilities you have resource and you able to do it. Four requirements:value, rare, hard to imitate, organizational structure Strategy on unique activities
* Different set of activities to deliver a unique& mix of value. * Southwest airlines &IKEA
* Essence of strategy in activities: choosing to perform activities different than other. Strategic positions come from three distinct sources.
تَشْكِيلةVariety based positioning: Producing a sub-set of products or services Needs based positioning (Targeting type of customers)
Access based positioning (Customer geography or customer scale) Strategy is the creation of unique and valuable position, involving a different set of activities To sustaincompany A internal resource must
1) Add value of firm: add value to company by give opportunities in many consumer electronics market 2) Be Rare : be unique in market have access to capable or resources 3) Be hard imitate : have access to capable difficult
4) Interact with appropriate organization structure to be flexible Fourth Presentation
Unit 2: Telling the Story of Strategy
* Ten Schools of Strategy formation
* Three prescriptive (or “ought” ) and Seven descriptive ( or “is”) 1) Design School : A Process of Conception (Selznick, Chandler and Andrews) * Strategy as achieving between internal strengths and weaknesses and external threats and opportunities.Senior management making unique strategies and easy to be use it for everyone. 2) Planning School : A formal ProcessGrew with the design school come big end of 70’s Accepts most of the assumptions of design school.
Strategy supported by techniques (objectives,budgets,programs,and operating plans). Staff planners are key players in the process
3) Positioning School: An analytical process in 1980Michael Porter (military strategy). Strategy reduces positions through analyses of industry situations. Planners become analysts.
4) تجاريEntrepreneurial School : A visionary process Process on the CEO & strategy making in the mysteries of intuitionالحدس. Shifted strategies from precise designs, plans or positions to value visions or broad perspectives, to be seen.This focused the process on...