Transcript Slide 1

London Centre of Marketing ( LCM)
Level: Postgraduate Diploma in Business Management & Marketing
Module – Corporate and Business Management
Lecturer : Dr. SAMTA RAI
Dated – 24th Jan, 2011
Dr. Samta Rai
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A model of the elements of strategic management
The
Environment
Corporate
Level Strategies
Expectations
& Purposes
Resources
& competencies
The
Strategic
Position
Strategy
Into
Action
Strategic
Choices
Business
Level Strategies
Development
Directions &
Methods
Dr. Samta Rai
Managing
Change
Organising
Enabling
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LO3: Explain and assess the managerial processes needed to transform strategy
into action and to evaluate strategy effectiveness
• Intended versus emergent strategy development and other patterns of strategy
development
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There are two broad explanations of strategy development, though
they are not mutually exclusive.
The first is associated with the idea of intended strategy: that strategies come
about
as a result of
careful deliberation typically associated with top
management decisions. This is sometimes known as the rational/analytic view
of strategy development.
The second view is that of emergent strategy: that strategies do not develop
on the basis of some grand plan but tend to emerge in organisations over
time.
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Strategy Development Processes
Processes of intended
strategy development
Processes of emergent
strategy development
• Strategy vision,
leadership and command
• Strategic planning
• Externally imposed
strategies
• Logical incrementalism
• Resource allocation
routines
• Cultural processes
• Political processes
Challenges & implications
• Intended & realised
strategy
• The learning organisation
• Uncertain and complex
conditions
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Strategy development through resource allocation processes
Corporate Level
Discrepancy
to be
resolved
Proposals in
line with
RAP
Business Level
Discrepancy
to be
resolved
Proposals in
line with
RAP
Operating Level
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WHY CULTURE MATTERS/ The relationship between strategy and culture
•A company’s culture can contribute - or hinder - successful strategy execution.
•Beliefs & practices of a strategy may - or may not - be compatible with firm’s
culture
•Close match between culture & strategy adds significantly to effectiveness of
strategy execution.
A strong strategy-supportive culture •Provides system of informal rules & peer pressure
•Motivates people to do their best
•Provides structure, standards, & value system
•Promotes strong company identification
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WAL-MART’S CULTURE
•Dedication to customer satisfaction
•Zealous pursuit of low costs
•Belief in treating employees as partners
•Sam Walton’s ( founder) legendary frugality
•Ritualistic Saturday morning meetings
•Commitment of executives to visit stores, talk to customers, and solicit & act on
employee suggestions
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Cultural Web
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Strategy development in environmental contexts
Complex
Simple
Static
• Historical
analysis
• Forecasting
Scenario
Planning
Dynamic
Decentralisation
of organisations
Experience &
Learning
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Some of the important terms –
Intended strategy – is an expression of a desired strategy as
deliberately formulated or planned by managers
Emergent strategy - comes about through everyday routines, activities
and processes in organisations leading to decisions that become the
long-term direction of an organisation.
Realised Strategy – the strategy actually being followed by an
organisation in practice.
Strategic planning – may take the form of systematised, step-by-step,
chronological procedures to develop
strategy.
or coordinate an organisation’s
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Some of the important terms –
Resource allocation processes – explanation of strategy development is
that realised strategies emerge as a result of the way resources are
allocated in organisations.
The political view of strategy development is that strategies develop as the
outcome of processes of bargaining and negotiation among powerful
internal or external interest groups ( or stakeholders).
A cultural explanation of strategy development is that it occurs as the
outcome
of
the
taken-for-granted
assumptions
and
behaviors
in
organisations.
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Logical incrementalism – is the deliberate development of strategy by
experimentation and learning from partial commitments.
The Learning Organisation – is capable of continual regeneration from the
variety of knowledge, experience and skills of individuals within a culture which
encourages mutual questioning and challenge around a shared purpose or vision.
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Case study –
Boardroom Battles at Vodafone
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