Strategy
3
STRATEGY
In this section, we separate strategy into two components: the content of the strategy and the process of developing the strategy. The content describes how an organization will achieve its vision or strategic intent, i.e. it is a blueprint for winning. As such there is no one best strategy. A firm’s strategy ties together the different functional areas of the organization (e.g. marketing and finance) so that there is a consistency in action over time. It also drives implementation and measures results so that there is strategic control. The process refers to how the strategy is actually developed by the individuals in an organization. It starts with a definition of strategy, and then describes each of the following areas: vision, external analysis, internal analysis, evaluation, implementation and control. All of these areas except for implementation can be well illustrated within the Mike 's Bikes environment. This chapter goes through these different steps in the context of Mike 's Bikes to illustrate the concepts.
1.
Learning Outcomes
In this chapter we explore some of the theory related to strategy. The main learning objectives are to understand the following issues: • • • • • • • • • • • • • The strategy cycle. Vision and values. External analysis. Environmental analysis – PESTEL. SWOT analysis. Competitor analysis. Stakeholder analysis. Internal analysis. Capabilities including resources and core competencies. Developing a strategy – including the Contingency Model, BCG Growth Matrix and Porter 's generic strategies. Evaluating a strategy. The importance Scorecard. of measurement and the Balanced
The relationship of strategy to the marketing plan, operations plan, financial plan and product development plan.
2.
The Objective for Strategy
A strategy is a set of actions.
A good strategy is …
a set of actions that leads to sustainable competitive advantage for an organization – it is all about winning.
In most business
STRATEGY
In this section, we separate strategy into two components: the content of the strategy and the process of developing the strategy. The content describes how an organization will achieve its vision or strategic intent, i.e. it is a blueprint for winning. As such there is no one best strategy. A firm’s strategy ties together the different functional areas of the organization (e.g. marketing and finance) so that there is a consistency in action over time. It also drives implementation and measures results so that there is strategic control. The process refers to how the strategy is actually developed by the individuals in an organization. It starts with a definition of strategy, and then describes each of the following areas: vision, external analysis, internal analysis, evaluation, implementation and control. All of these areas except for implementation can be well illustrated within the Mike 's Bikes environment. This chapter goes through these different steps in the context of Mike 's Bikes to illustrate the concepts.
1.
Learning Outcomes
In this chapter we explore some of the theory related to strategy. The main learning objectives are to understand the following issues: • • • • • • • • • • • • • The strategy cycle. Vision and values. External analysis. Environmental analysis – PESTEL. SWOT analysis. Competitor analysis. Stakeholder analysis. Internal analysis. Capabilities including resources and core competencies. Developing a strategy – including the Contingency Model, BCG Growth Matrix and Porter 's generic strategies. Evaluating a strategy. The importance Scorecard. of measurement and the Balanced
The relationship of strategy to the marketing plan, operations plan, financial plan and product development plan.
2.
The Objective for Strategy
A strategy is a set of actions.
A good strategy is …
a set of actions that leads to sustainable competitive advantage for an organization – it is all about winning.
In most business
References: Vision 1. Campbell, A., Yeung, S., "Creating a Sense of Mission", Long Range Planning, Vol 24, no14, pp10-20, 1991 2. Jones, P., Kahaner, L., "Say It and Live It", Kane Associates, 1995 3. Hamel, G., Prahalad, C.K. "Strategic Intent", HBR, May-June 1989 External Analysis 4. Kahaner, L. "Competitive Intelligence", Kane Associates, 1996 Chapter 11: How the Japanese Perform Competitive Intelligence 5. Porter M., "Competitive Strategy", The Free Press, 1980 Internal Analysis 6. Hamel, G., Prahalad, C.K "The Corporation", HBR, May-June, 1990 Strategy 7. Grant, Robert, M., "Contemporary Strategy Analysis" (3rd Edition), Blackwell Publishers Inc, 1998 – Chapter 2 8. Porter M., "Competitive Advantage", The Free Press, 1985 9. Hamel, G., Prahalad, C.K, "Strategy as Stretch and Leverage", HBR, March-April, 1993 10. Hamel and Prahalad, "Competing for the Future", Harvard Business School Press, 1994 11. Stern, C.W., and Stalk, G., "Perspectives on Strategy from the Boston Consulting Group", John Wiley & Sons, 1998 12. Grant, Robert, M., "Contemporary Strategy Analysis" (3rd Edition), Blackwell Publishers Inc, 1998 Core Competence of the 14 Kaplan, R. S., & Norton, D. P. (1992). "The Balanced Scorecard - Measures that Drive Performance" Harvard Business Review,January - February, pp71–79. Page 3-38 The MiniMBA l Strategy 13. Johnson, G., Scholes, K., "Exploring Corporate Strategy - Text and Cases" (4th ed) Prentice Hall International (UK) Ltd, 1997 14. Williamson, P. J., "Strategy as Options on the Future", Sloan Management Review, Spring 1999 15. Abell, D.F., "Competing Today While Preparing for Tomorrow", Sloan Management Review, Spring 1999 16. Mintzberg, H., "Crafting Strategy", HBR, July-Aug, 1987 Evaluation and Control 17. Kaplan, R.S., Norton, D.P., "Using the Balanced Scorecard as a Strategic Management System", HBR, Jan-Feb, 1996 18. Johnson, G., Scholes, K., "Exploring Corporate Strategy - Text and Cases" (4th ed) Prentice Hall International (UK) Ltd, 1997 – Chapter 7 19. Ireland, G., "EVA Demystified", New Management Summer, 1994, pp 43-47 Zealand Strategic Page 3-39