1、omotes the vision single-mindedly, maintained close personal control of implementation The strategic vision is thus malleable, the strategy can be deliberate and emergent, deliberate in vision and emergent is how it unfolds. The organisation is equally malleable, responsive to the leaders directives
2、, many of the procedures and power relationships are suspended to allow leader to manoeuvre Entrepreneurial strategy tends to form of a niche, one or more positions in market protected form the forces of outright competition Richard Branson CEO Virgin Corporation classic Entrepreneur Strategy Format
3、ion Key Points Strategy formulation is primarily concerned with the how question, with process: How are strategies formed, implemented and changed? We have discussed several ways of thinking about strategies a broad perspective would suggest the process is seen variously: Rational, Intentional, Goal
4、- directed , as well as Intuitive. What is clear is that their in not one unifying theory of how it is. Not necessarily a problem FOUR PHASES OF FORMULATION Identification, Mission Setting, Agenda Setting Diagnosis: External Assessment Internal Assessment Conception: Option Generation, Option select
5、ion Realisation : Action taking, Performance control ( SEE PYRAMID DIAGRAM) Main strategy formation activities External assessment Agenda Setting Internal Assessment Mission Setting Option Generation Option Selection Action Taking Performance Control Identifying Diagnosing Realising Conceiving Strat
6、egy Formation Four Kinds of Strategy Dynamic Improving/Imitating; Migrating, Consolidating; Innovating. These apply to products and services A firm must always seek to exploit external opportunities and internal competencies, but also endeavour to strengthen its business context by exploring new opp
7、ortunities and renewing competencies. Whether strategies formation is formal or informal, deliberate or emergent, systematic analysis is a vital input into the strategy process. Without analysis and thinking, strategic decisions are susceptible to organisational politics, opinions rather than eviden
8、ce, passing fashion. Remember that concepts, theories and tools are there to be helpful, they will not substitute for experience, commitment and creativity. The reason we engage in a strategy formation process is so that we gain a deeper understanding of the issue among stakeholders. In addition we
9、seek to identify the key factors relevant to our strategy. Such thinking approaches help to increase the flexibility among all managers and the organisation as a whole. Common Elements in Successful Strategies Successful Strategy Effective Impl ementation Simple Consistent Long terms Goals Profound
10、understanding of the competitive environment Objective appraisal of resources Basic Framework strategy as a link between the firm and its environment Strategic Fit Fundamental to this view is the idea of strategic fit. For the strategy to be successful, it must be consistent with the firms external
11、environment and with its internal environment, its goals, and values, resources and capabilities, and structure and systems. For example General Motors (USA) long term decline associated with failure to break away from multi-brand market segmentation and to adapt to changing automobile market. THE F
12、IRM Goals and Values Resources and Capabilities Structure and Systems THE INDUSTRY ENVIRONMENT Competitors Customers Suppliers STRATEGY Strategy Example: Nokia VISION Our vision is a world where everyone is connected. Everyone has a need to communicate and share. Nokia helps people to fulfill this n
13、eed and we help people feel close to what matters to them. We focus on technology that is intuitive, a joy to use, and beautiful. We are living in an era where connectivity is becoming ubiquitous. The communications industry continues to change and the internet is at the centre of this transformatio
14、n. Today the internet is Nokias quest. Nokias strategy relies on growing, transforming and building the Nokias business to ensure future success. STRATEGY We seek to grow, transform and build Nokia business based on our business strategies and strategic capabilities. Our business strategies reflect
15、the primary focus of each of Nokias business areas as follows: Lead and win in mobile devices Grow consumer internet services Accelerate the adoption of business solutions Leverage scale and transform solutions in infrastructure. Our strategic capabilities are the priority areas where we are investi
16、ng with the aim of gaining competitive advantage. The following capabilities can be shared among our several business areas. consumer understanding Brand Technology and architecture Channels and supply chain. Source www.nokia/comA4126317 (July2009) Remember to always check what companies say about t
17、hemselves against the internal reality of the company and the perceptions in the external environment. Roles of Strategy Strategy as a planning tool which gives direction to the organisation- a plan of what to do and aim for. Strategy as a support to decision making , strategy gives coherence to the
18、 decisions of an individual and the organisation. Bounded Rationality of our decisions. We are limited by the amount of information the human brain can handle. Strategy helps in several ways: Simplifies decision by constraining the range of decision alternatives By acting as a heuristic rule of thum
19、b that reduces the search for suitable solutions A strategy making process permits the knowledge of different people to be polled and integrated A strategy making process facilitates the use of analytic tools and frameworks ( SWOT, PEST) Strategy as a co-ordinating device: The greatest challenge of
20、managing an organisation is co- ordinating the actions of different organisational members. Communicating the vision, goals, objectives and position of the company is an important role of the CEO and Top Management Team. The strategic planning process can provide a forum for this to take place. Here
21、 it is important that all groups in the organisation take part. Once this is implemented then the next phase is to ensure that all organisation members are working and moving forward in the same direction. The name for this is performance management, which is a series of goals, targets, and performa
22、nce measures for individuals and groups, divisions, department , throughout the organisations. PERFORMANCE MANAGEMENT FRAMEWORK SERVICE/BUSINESS PLANS DIRECTORATE PLANS they sell some wine through own tasting rooms, but most through independent distributors. The value chain for steel cans IRON ORE MINING STEEL PRODUCTION STEEL STRIP PRODUCTION CAN MAKING CANNING OF FOOD, DRINK, OIL ETC. Market CONTRACTS VERTICAL INTEGRATION MARKET CONTRACTS VERTICAL INTEGRATION AND MARKET CONTRACTS
