PRESENTATION SLIDES

To accompany:
Contemporary Strategy Analysis:
Concepts, Techniques, Applications
(5
th
edition, Blackwell, 2004)
Robert M. Grant
Assisted by Kate Grant
The Concept of Strategy
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
OUTLINE
Elements of Success
MADONNA GIAP & NORTH RICHARD WILLIAMS
VIETNAMESE MILITARY (VENUS & SERINAS DAD)

GOALS Single-minded quest for Reunification of Vietnam Wealth & recognition
stardom. under Communist rule.

UNDERSTANDING Identified emerging trends Intimate knowledge of terrain. Careful diagnosis of
THE in popular culture. Understanding U.S. political the physical and
ENVIRONMENT Recognized power of sex. system. Psychological determinants
Understood showbiz of success in womens
distribution channels. professional tennis

RESOURSE Recognized limited raw Recognized economic and Systematic developed
APPRAISAL talent. Relied on strengths military weaknesses and key skills and physical,
in self-promotion, image- political strengths. mental and social
creation, relationship attributes from an early age.
management

IMPLEMENT- Commitment to hard work. Tight control. Long-term Careful meshing of
ATION Disciplined, inspirational commitment. Effective rolesfather, coach &
Leadership. Attention to propaganda. Inspirational manager. Sustained,
detail. leadership. supportive leadership.
Successful
Strategy
Long-term,
simple and
agreed
objectives
Profound
understanding of
the competitive
environment
Objective
appraisal of
resources
Common Elements in Successful Strategy
EFFECTIVE IMPLEMENTATION
What is 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 Evolution of Strategic Management
DOMINANT
THEME
1950s 1960s-early 70s Mid-70s-mid-80s Late 80s 1990s 2000s

Budgetary Corporate Positioning Competitive Strategic
planning & planning advantage innovation
control

Financial Planning Selecting Focusing on Reconciling
control growth &- sectors/markets. sources of size with
diversification Positioning for competitive flexibility &
leadership advantage agility

Capital Forecasting. Industry analysis Resources & Cooperative
budgeting. Corporate Segmentation capabilities. strategy.
Financial planning. Experience curve Shareholder Complexity.
planning Synergy Portfolio analysis value. Owning
E-commerce. standards.
Knowledge Management

Coordination Corporate Diversification. Restructuring. Alliances &
& control by planning depts. Global strategies. Reengineering. networks
Budgeting created. Rise of Matrix structures Refocusing. Self -organiz
systems corporate Outsourcing. ation & virtual
planning organization
MAIN
ISSUES
KEY
CONCEPTS
&
TOOLS
MANAGE-
MENT
IMPLIC-
ATIONS
The Basic Framework
Strategy: the Link between the
Firm and its Environment
THE FIRM

Goals &
Values

Resources &
Capabilities

Structure &
Systems
THE
INDUSTRY
ENVIRONMENT

Competitors
Customers
Suppliers
STRATEGY
STRATEGY
Sources of Superior Profitability
RATE OF PROFIT
ABOVE THE
COMPETITIVE
LEVEL
How do we
make
money?
INDUSTRY
ATTRACTIVENESS
Which
businesses
should we be
in?
COMPETITIVE
ADVANTAGE
How should
we compete?
CORPORATE
STRATEGY
BUSINESS
STRATEGY
Strategy Making : Design or Process?
Strategy as Design
Planning and
rational choice
INTENDED
STRATEGY
Many decision makers
responding to multitude of
external and internal forces
REALIZED STRATEGY
EMERGENT
STRATEGY
Strategy as Process
Mintzbergs Critique of Formal Strategic Planning:
The fallacy of prediction the future is unknown
The fallacy of detachment -- impossible to divorce formulation from
implementation
The fallacy of formalization --inhibits flexibility, spontaneity,
intuition and learning.
Strategy Making Processes within the
Company: Multiple Roles of Strategy
Strategy as Decision
Support
Strategy as Coordination
and Communication
Strategy as Target
Improves the quality
of decision making
Creates consistency
and unity
Improves perform-
ance by setting
high aspirations
The Role of 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.