FORMULATING STRATEGY br TomMeGovern EVOLUTION OF STRATEGY Hs saet {th /unbet i docnp (ee soma 80 Math (oe 2 Chandler wrote teategy and caudge structure chaps inthe wid 4 J history of american industrial ome ee GM fowl 16s igor Ana compre by Sue Sit tops exp in geet ten 9708 LONG RANGE PLANNING (TEAMS IN| bl Csit toy oli frac HEAD OFFICE) ttt tae ae snes dae pe Heavy on analysis and ~ Forecasting fn en SR Light on implementation 1 woe = What fo manage {portolio planing) muh Post Ge "9808, STRATEGIC MANAGEMENT (ALL pres bot MANAGEMENT TEAM INVOLVED) 7 s haston pack , apusls conte eee enebe rite rapa cath >, « Onmeesip of strategy “ee pe y Strategy synonymous with habe befos unde we cure Spe bees oot Goal congruence and systems . Congruenes Geo te RESOURCE-BASED/HRM. belly sedeiy emma tyucets DECLINE. OF CORPORATE PLANNING AND EMERGENCE OF StRATEGIC MANAGEMENT uit Tet etn apes pete mee ) + copii on bing compte advange © rejection of risity of corporate pans hansn ¢ Ba foal bees thay ston toe + disilusion wi copocae planning dopariments ames Sa SOURCE: GRANT (1995) epreatyecy gvtssl seal gen phon DEFINITIONS OF STRATEGY ecat “the determination of te base tong term gods and objectives fan ener, and th adoption of couses of aston an the allocation ef resis necessary for cating ou Ise goles terol 196213) ene oo dpe ot toht a) | pt "State is he dzton and sehen oetsation ove the lon tm ideal, which mat ‘sources to it changing enionmen, and in pata ts takes stoned or ln es stakeholder expectations Johnson and Scholes, 1993, p. 10). ‘One of the most commonly used definitions is dat given by Hofer and Schendel (1978). ‘he fundamental pater of present and planned resource deployments and envitonmental interactions that indicates how dhe organisation will achieve is objecives” on tpt (Hofer and Schendel, 1978, p. 25) .Hofer and Selendel goon to identi four components: “Scope, that i, the extent of the organisation's present and planned interactions with its environment “This component will sometimes be refered ( a the organisation's domain, Resource deployments, tat i, the level and pattems of the organisations past and preset resource and sill deployments that will hep it achieve its goals and objectives, Sometimes, thie component will be ‘referred to as the organisations distinctive comporences Compattive Advantages, that is, the unique postions an organisation develops vis-a-vis its competitors through its pattem of resource deployments and/or scope decisions. ‘Symorgy that the joint effects that are sought ftom the organisation's resource deplayments and/or scope decisions, (Hofer and Schendel, 1978, p25). CHARACTERISTICS OF STRATEGIC DECISIONS ‘Scope ofan organisation’ activities Matching ofthe activites of an organisation tothe environment in which it operates ‘Matching ofthe organisation’ activities to its resouros capability ‘Major resource implications Alfect operational decisions Values and expectations of stakeholders ASfet long-term direction STRATEGIC DECISIONS ARE: Complex in nature = integrated approach + involve major change KEY ELEMENTS OF A SUCCESSFUL STRATEGY Goals that are simple, consistent and longterm Understanding ofthe exieral envionment Objective appraisal of resources Esctive implementation S task, A ‘THE FIVETASKS OF STRATEGIC MANAGEMENT Pale of spor centre L 3. 4 Defining the business and developing a mission Setting objectives r Crafting a strategy to achieve the performance objectives acd shes Implementing and executing the strategy shy repent» [Evaluating performance, reviewing the situation, and initiating corrective adjustments we eee 1 loop jh a sobay ab by OY 0 aypunel by fet shod meds 15 thoes haliees Sk py ede. ot fe pos wc thes de rehers te thre te Beep anes aflout 2 hen thy ‘ugh wh ney ly ten oe yr yeeModeee Hyp Haan Seaver Le Is}, { brn anane tof, comps oad flo? Poetibée abe dys Teint” ese tape, fa ter Learning Schoo! emergent process Power School proces of negotstion Cultural Schoo! collective process Environmental Schoo reactive process Configuration School process of transformation clans {> euusepes Te shruytt ath gtr Scoot Source: Mintzberg sal (1998) 1 RATE STRAY “The three cove areas of corporate strategy are 1 Strategic analysis che | ag 2 Strategic development spose 3. Strategic implementation Stuy fo celnan MAIN APPROACHES TO CORPORATE STRATEGY DEVELOPMENT. 1. Prescriptive approach YS seypundrd , Sch heat Re ieplnk 2 rrp appoach son fot pul, tha, (earn by eng) coe MINTZBERG (1987) suggests that strategy may be viewed in five diferent ways ‘+ “Strategy (a)sa plan ~ some sort of consciously intended course of action, a guideline .. to deal witha situation” — rtkaul tapet, lbhade. “Strategy can be ploy... specific manceuvre to outwit an opponent or competitor,” {suse Strategy (as a pattern - specifically, a pattern in asiream of actions.” titel e-unwhinbal, cencioas 17 Uaneonowy ‘+ ‘Strategy (@)s a postion ~ specifically, a means of locaing an organisation in. An + “Skater (sa peapcte, .. An ingined way ofprsving the weld” >~phal slaely «) ontop Inkrelctronslay btw “the S PREMISES OF THE ‘DESIGN SCHOOL? yy yo eabstvn Strategy formation shouldbe a controlled, conscious process of though, esponiilit for tht conol and eonsconenese must rest wv the chief executive ofcer tht person is THE strep «fy 3. The modelo strategy formation must be ep simple and informa i es should De unigue the bes ones esl fom proces of creative esgn. 5. Suto emee frm his design proces fly frlated. & These stratesies shouldbe expt an. posibl, articustd, which also favour har being psn 7. Fay, ony aftr these unique, fll-biown,explisit, and simple strategies ae fl formulated can ths then be memset leat ins 6 eaulan [nm Hh pe Rae at g all Sous: Minh, 199, 2 fe poh Fl LE ey ey ee ee) qunys, we ’ or Ine tow fe ROLE OF PLANNIN F ma PLANNING meals Fi + States planning in eli sateic programming ~ tly fe Ht oh + Stsepie programming insoles tres steps Ceaieaton Ise prot [homer Eboraton selmston | Tink Conversion of strategies Noe weed e \ ony tle Bb Aaaer ert of, obi 6 hea Cte = Bldenper sevrenl firm thos tied b over ~ bps ely im any i wih thr