Topics: Strategic management, Strategic planning, Porter five forces analysis Pages: 15 (3818 words) Published: January 15, 2013
= There is no singual, universal accepted definition – WILLIS 1998 found 54 widely used definition = Long term direction of an organisation eg. Disney Cartoons  Diversed entertainement SCHOLES + JOHNSON 2011 Chandler emphases logical flow from determination of goals/objectives to allocation of reousrces Porter focuses on deliberate chpises, difference and competition Mintzberg uses pattern to allow for fact strategys do not follow deliberste chosen and logical plan Strategy

Irerative, ongoing process; coherent process; not one-off; involving constant change; development; reviewing Disconnection between theory/practice: Porter says cant be stuck in middle  generate common debates Common debates: art/science; emergent/deliberate; enviroment/organisations; innovation/optimisation In practice must more grey; blurred areasl messy theorys but theory neat Blurring between industries and the forices which influences the nature of those industries Debates

Multiple definitions = reflects diversity; complex; different examinations; MINTZEBERG 1998 3 assumpsion: about future; how organisation fits together; relationships of organisation/enviroment MINTZBERG 5PS: plan; ploy; pattern; position; perspective At fundermental decision strategy is: what to achieve and how to achieve WHITTINGTON 2002 PORTER 1996 expanded this and proositions how strategy can be views: Race to 1 ideal position;creation of unique/valuable position involving different activities; requires trade-offs Strategy involvs the creation of a unique; valuable position – why buy product; how its valuable/profit Art vs Science

Art: View of world; interreltates; unpredictable; creativity of strategic leader; feel vs analysis; crafted Science: enviroment rational place; predictablel planning; analysis; understand opportunities; linear; logic Usuaully comincation of both; if all art = trial and error; all science = no distinct competitive advantage If strategy not working  Change; create valuable unique position Ali vs Foreman  deliberate  Emerged

How company makes strategy = interal/extenral determined; often conflicin; often being inbetween strategys Imporant relationship between organisation and enviroment; involves whole organisation WHITTINGTON MODEL

Objectives are outcomes: profit maximiser or pluralist collection of stakeholders Complex; quire frameworkd; stakeholders important to setting objectives [priorisie internal/external] Competing claims  finit resources; must priorisie stakeholders – indentification and categoriation STRUCTURE OF STRATEGY

Porter argues that second step in strategic process = Strategic choice. Organisation take two decisions 1. Competitive scope [broad/narrow] 2. Competitive Advantae [Price/Non-Price] Generic corporate strategis: Cost leadership; differentiation; cost focus; differentiastion focus Arguments

Classical School: THOMPSON + STRICKLAND in compet markets; must compete on price and non price can be middle Add: broad best cost; narro best cost
Evolutionary school: HENDERSON impractical; assumers makes leaps; organisations make small adjustments Systematic School: THUROW rejects choicel price/non price – its process/knowledge; socioeconomic influences main Processual School: MINTZBERG: rejects deliberate choice – combines internal/external factors past +-; predictions Theories of strategic decisions dominated by classical school and rational approaches VIEW OF ORGANISATIONS

Appearnce = Outcomes of a business [Tangible: products;finance] - Superstructure Personality = Processes of a business [ Intangibles: knowledgel experiencel culture] – Infrastructure Personality is more important than appearancel but appearance is easier to change and manage

= strategy having a distinct; clear planning dimension [ organisational pull] LYNCH 2009 Develop...
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