Summary of Strategy
MODULE 1 – INTRODUCTION TO STRATEGY & LEADERSHIP
Differentiating Strategy
Operational Effectiveness
(Performing similar activities better than rivals perform them) VS
Competitive Strategy
(Performing different activities than rivals or performing similar activities in different ways)
Strategy Planning Process
1. Where are we today?
2. Where are we going by when?
3. How are we going to get there?
4. How do we implement the Strategy?
Approaches To Strategy
Rational Approach – Based on linear & mechanistic model in which the conception and execution of strategy are treated as discrete sequential activities. The process starts with setting the basic, long term goals of an organisation, and proceeds with implementing courses of action & allocating the resources necessary to achieve those goals.
Processual Approach – This approach is a reductionist approach provides an illusion of prediction of accuracy, but excludes the complexity of people issues that occur in strategy process. Strategy formulation & implementation are viewed as entangled activities, and not separate stages as required in rational approach.
Evolutionary Approach – Suggests that organisation’s leaders should work on achieving competitive advantage by improving operational efficiencies in the short term. Long term strategies are too expensive and inappropriate in a unpredictable environment of change and uncertainty.
Systemic Approach – This approach emphasise the importance of culture and politics in the strategy process. Also it related to the processual approach.
Strategy Process
1. Understanding the External Environment
i) Remote and Industry Environment ii) Customers and Markets
Remote Analysis
Political
Economic
Social
Technological
Environment
Legal
2. Understanding the Internal Environment
i) SWOT Analysis
3. Growth options in products & markets
4. Strategic options
5. Implementing strategy
6. Leadership
Differentiating Strategy
Operational Effectiveness
(Performing similar activities better than rivals perform them) VS
Competitive Strategy
(Performing different activities than rivals or performing similar activities in different ways)
Strategy Planning Process
1. Where are we today?
2. Where are we going by when?
3. How are we going to get there?
4. How do we implement the Strategy?
Approaches To Strategy
Rational Approach – Based on linear & mechanistic model in which the conception and execution of strategy are treated as discrete sequential activities. The process starts with setting the basic, long term goals of an organisation, and proceeds with implementing courses of action & allocating the resources necessary to achieve those goals.
Processual Approach – This approach is a reductionist approach provides an illusion of prediction of accuracy, but excludes the complexity of people issues that occur in strategy process. Strategy formulation & implementation are viewed as entangled activities, and not separate stages as required in rational approach.
Evolutionary Approach – Suggests that organisation’s leaders should work on achieving competitive advantage by improving operational efficiencies in the short term. Long term strategies are too expensive and inappropriate in a unpredictable environment of change and uncertainty.
Systemic Approach – This approach emphasise the importance of culture and politics in the strategy process. Also it related to the processual approach.
Strategy Process
1. Understanding the External Environment
i) Remote and Industry Environment ii) Customers and Markets
Remote Analysis
Political
Economic
Social
Technological
Environment
Legal
2. Understanding the Internal Environment
i) SWOT Analysis
3. Growth options in products & markets
4. Strategic options
5. Implementing strategy
6. Leadership