Business Strategy Review
Business strategy Review
Tutorials
Strategy Formulation: Mintzberg’s View vs Ansloff’s View
Porters 5-forces
Competition & Business Strategy in historical perspective – Ghemwat
Acquisitions – Dryer
Lectures
Business Level strategy
Corporate Level strategy
Ethics & sustainability
Strategy implementation
Tutorials
Strategy formulation
Mintzberg’s View vs Ansloff’s View
Mintzberg’s The Design School (1990)
One of ten schools of thought from Mintzberg
The design school sees strategy formation as a process of conception
• Approach: clear and unique strategies are formulated in a deliberate process. In this process the internal saturation of the organization is matched to the external situation of the environment
• Basis: Architecture as a metaphore
• In short: “Establish a fit”
• The internal state of policy: striving, inhibitions and competences that exist within the company
• External expectations: what must be sought and achieved if the company is to survive.
7 Premises underlying the Design School
1. Strategy formation should be a controlled, conscious process of thought
• Strategies should be formed through a tightly processed of conscious human thought
2. Responsibility that control rests with the chef executive
3. The model of strategy formation must be kept simple and informal
4. Strategies should be unique: the best ones result from a process of creative design
5. Strategies emerge from this design process fully formulated
6. The strategies should be explicit
7. Only once these unique, full-blown, explicit strategies are fully formulated can they be implemented
Ansoff’s View (1991)
• Implicit strategy formation
• Thinking and action must be performed in tandem
• Allow for strategy to evolve organically (trial and error)
• Environmental assessment is critical, but!!!
(not needed information below)
Ansoff argued that within a company’s activities there should be an element of core capability. To establish
Tutorials
Strategy Formulation: Mintzberg’s View vs Ansloff’s View
Porters 5-forces
Competition & Business Strategy in historical perspective – Ghemwat
Acquisitions – Dryer
Lectures
Business Level strategy
Corporate Level strategy
Ethics & sustainability
Strategy implementation
Tutorials
Strategy formulation
Mintzberg’s View vs Ansloff’s View
Mintzberg’s The Design School (1990)
One of ten schools of thought from Mintzberg
The design school sees strategy formation as a process of conception
• Approach: clear and unique strategies are formulated in a deliberate process. In this process the internal saturation of the organization is matched to the external situation of the environment
• Basis: Architecture as a metaphore
• In short: “Establish a fit”
• The internal state of policy: striving, inhibitions and competences that exist within the company
• External expectations: what must be sought and achieved if the company is to survive.
7 Premises underlying the Design School
1. Strategy formation should be a controlled, conscious process of thought
• Strategies should be formed through a tightly processed of conscious human thought
2. Responsibility that control rests with the chef executive
3. The model of strategy formation must be kept simple and informal
4. Strategies should be unique: the best ones result from a process of creative design
5. Strategies emerge from this design process fully formulated
6. The strategies should be explicit
7. Only once these unique, full-blown, explicit strategies are fully formulated can they be implemented
Ansoff’s View (1991)
• Implicit strategy formation
• Thinking and action must be performed in tandem
• Allow for strategy to evolve organically (trial and error)
• Environmental assessment is critical, but!!!
(not needed information below)
Ansoff argued that within a company’s activities there should be an element of core capability. To establish