Strategy: Strategic Management

Topics: Strategic management, Strategic planning, Management Pages: 6 (1652 words) Published: November 21, 2013
CBL Case 1 – Brown Bag Films
Core Issue: Strategic Planning/ Management
Problem Statement: How can Brown bag develop a strategic plan for the coming 3-5 years?

Based on the gathered information below it can be stated that Brown Bag films have to set new goals and objectives. Afterwards, an internal and external analysis should be made. Next, new strategies should be made and implemented. In this step it is important for Brown Bag films to keep the scenario planning into their mind. This means that Brown bag film should choose for the best strategy, but prepares other scenarios as well.

Although strategic planning is costly, complex and not always successfully implemented the process of strategic planning still has a lot to offer to Brown bag films. With strategic planning the goals of the company are more visible and it leads to better communication between the managers. Moreover, strategic planning decreases resistance to change, increases resource distribution. But, most importantly it leads to a better competitive advantage.

Another good idea for Brown Bag films can be to take a look at the strong points of their competitors and adopt them into their own strategy or to become more innovative. Learning Goals:

1. What is a strategy? And what is the relation to vision / mission and goals?

According to Robbins, Judge and Campbell (2010) state that the most recent strategy frameworks are focused on three strategy dimensions, namely innovation, cost-minimisation and imitation. Moreover, an organisation should make changes into their organisational structure in order to fit it with the strategy. Strategy and structure are strongly linked to each other and with a structure an organisations tries to reach their goals .

Their three main strategies are as follows:

Innovation strategy: Accentuates the introduction of major new products and services. An example can be Apple, because they introduced technologies such as the I-pad and I-pod which changed a lot. Cost-minimisation strategy: has its focus on tight cost controls, price cutting, and avoids needless innovations or marketing costs. Imitation Strategy: has its focus on producing new products or markets after the viability has been proven. They basically copy the successful formula of the innovators. An example can be that the company Sony introduced digital photography already in the eighties, but when Nikon entered the market in the nineties digital photography it became booming. But, Nikon first waited on the reactions of the Sony consumers.

The relation between the strategy and structure is as follows: Strategy
Structural Option
Innovation
Organic:
A loose structure; low specialisation, low formalisation, decentralised Cost-minimisation
Mechanistic:
Tight control; extensive work specialisation, high formalisation, high centralisation Imitation
Mechanistic and organic:
Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings Source: Robbins, Judge, & Campbell, 2010, p.443

However, Slack, Chambers and Johnston (2007) have a different opinion about the definition of an operations strategy. They mention that there are several views about this, which are as follows:

Operation strategy is a top-down reflection of what a whole group or business wants to do; Operations strategy is a bottom-up activity where operations improvements cumulatively build strategy; Operations strategy involves translating market requirements into operations decisions; Operations strategy involves exploiting the capabilities of operations resources in chosen markets.

The process of operations strategy

According to Slack, Chambers and Johnston (2007) several elements are always included in a strategy, these are as follows:

A process which associates the overall organisation’s strategic objectives to resource-level objectives. To translate the business strategy and the operations...
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