PRESENTATION SLIDES

To accompany:

Contemporary Strategy Analysis

(6th edition, Blackwell Publishing, 2008)

Robert
Robert M.
M. Grant
Grant
Assisted by Kate Grant

The
The Concept
Concept of
of Strategy
Strategy
OUTLINE
OUTLINE
The role of strategy in success
A framework for strategy analysis
The evolution of strategic management
Corporate strategy and business strategy
Strategy making: Design or process?
The role of strategy

Components
Components of
of Success
Success
MADONNA
GOALS

Single-minded quest for

stardom.

GIAP & NORTH

VIETNAMESE
Reunification of
Vietnam under
Communist rule.

LANCE ARMSTRONG
Winning the Tour de
France

UNDERIdentified emerging
Intimate knowledge of
STANDING THE trends in popular culture. terrain Understanding
ENVIRONMENT Understood key success U.S. political system.
factors in showbiz

Diagnosis of the
physical, psychological
and strategic
determinants of
individual and team
performance

RESOURCE
APPRAISAL

Recognized limited raw

talent. Exploited
strengths in selfpromotion, product
development &
relationship management

Recognized economic
and military
weaknesses and core
political strengths

Systematic
development of
individual stamina and
team capabilities

IMPLEMENTATION

Commitment and
discipline. Charismatic
leadership. Team
building. Attention to
detail.

Tight control. Longterm commitment.

Effective propaganda.
Inspirational
leadership.

Clear delineation of
individual roles.
Alignment of incentives
with team goals.
Nurturing esprit de corp

What
What Makes
Makes aa Successful
Successful Strategy?
Strategy?
Successful
Strategy

EFFECTIVE IMPLEMENTATION
Long-term,
simple and
agreed
objectives

Profound
understanding of
the competitive
environment

Objective
appraisal of
resources

What
What is
is Strategy?
Strategy?
Distinguishing strategy from tactics:
Strategy is the overall plan for deploying
resources to establish a favorable position.
Tactic is a scheme for a specific maneuver.

Characteristics of strategic decisions:

Important.
Involve a significant commitment of resources.
Not easily reversible.

The
The Evolution
Evolution of
of Strategic
Strategic Management
Management

DOMINANT
THEME

MAIN
ISSUES

KEY
CONCEPTS
&
TOOLS

MANAGEMENT
IMPLICATIONS

1950s

1960s-early 70s

Mid-70s-mid-80s

Late 80s 1990s

2000s

Budgetary
planning &
control

Corporate
planning

Positioning

Competitive
advantage

Strategic
innovation

Financial
control

Planning
growth &diversification

Selecting
sectors/markets.
Positioning for
leadership

Focusing on
sources of
competitive
advantage

Reconciling
size with
flexibility &
agility

Capital
budgeting.
Financial
planning

Forecasting.
Corporate
planning.
Synergy

Industry analysis
Segmentation
Experience curve
Portfolio analysis

Resources &
Cooperative
capabilities.
strategy.
Shareholder
Complexity.
value.
Owning
E-commerce.
standards.
Knowledge Management

Coordination
& control by
Budgeting
systems

Corporate
planning depts.
created. Rise of
corporate
planning

Diversification.
Restructuring. Alliances &
Global strategies. Reengineering. networks
Matrix structures Refocusing.
Self -organiz
Outsourcing.
ation & virtual
organization

The
The Basic
Basic Framework
Framework
Strategy:
Strategy: the
the Link
Link between
between the
the
Firm
Firm and
and its
its Environment
Environment
THE
THEFIRM
FIRM
Goals
Goals&&
Values
Values
Resources
Resources&&
Capabilities
Capabilities
Structure
Structure&&
Systems
Systems

STRATEGY
STRATEGY
STRATEGY

THE
THE
INDUSTRY
INDUSTRY
ENVIRONMENT
ENVIRONMENT
Competitors
Competitors
Customers
Customers
Suppliers
Suppliers

Sources of Superior Profitability

INDUSTRY
ATTRACTIVENESS
RATE OF PROFIT
ABOVE THE
COMPETITIVE
LEVEL

How do we
make
money?

Which
businesses
should we be
in?

CORPORATE
STRATEGY

COMPETITIVE
ADVANTAGE

How should
we compete?

BUSINESS
STRATEGY

Strategy
Strategy Making
Making :: Design
Design or
or Process?
Process?
Strategy as Design

Strategy as Process

Planning and
rational choice

Many decision makers

responding to multitude of
external and internal forces

INTENDED
STRATEGY

EMERGENT
STRATEGY

REALIZED STRATEGY
Mintzbergs
MintzbergsCritique
Critiqueof
ofFormal
FormalStrategic
StrategicPlanning:
Planning:
The
Thefallacy
fallacyof
of prediction
predictionthe
thefuture
futureisisunknown
unknown
The
fallacy
of
detachment
-impossible
The fallacy of detachment -- impossibleto
todivorce
divorceformulation
formulationfrom
from
implementation
implementation
The
Thefallacy
fallacyof
offormalization
formalization--inhibits
--inhibitsflexibility,
flexibility,spontaneity,
spontaneity,
intuition
and
learning.
intuition and learning.

Strategy
Strategy Making
Making Processes
Processes within
within the
the
Company:
Company: Multiple
Multiple Roles
Roles of
of Strategy
Strategy
Strategy as Decision
Support

Improves the quality

of decision making

Strategy as Coordination
and Communication

Creates consistency
and unity

Strategy as Target

Improves performance by setting

high aspirations

The
The Role
Role of
of Analysis
Analysis
Strategy analysis improves decision processes,
but doesnt give answers.
Strategy analysis assists us to identify and
understand the main issues.
Strategy analysis helps us to manage complexity.
Strategy analysis can enhance flexibility and
innovation by supporting learning.