Many academics question the usefulness of formal strategic planning systems as a means to improve company performance and argue that serendipity plays a critical role in determining competitive advantage MintzbergHartHamel This essay evaluates the claim that strategic planning has a positive influence on company performance.
What does it mean to have a good strategy? Why do some firms perform better than others?
How can firms improve their performance? How can good performance be sustained? Thursday 15 January, 12pm noon Warwick Business School Individual Assignment Conduct an in-depth strategic analysis and comparison of two companies of your choice Choose companies with publicly available information, operating in the same industry or otherwise sufficiently similar for comparison Gather information from publicly available sources e.
The report should include An analysis of the markets that the firms serve and the changes in these An analysis of how the two firms compete in these markets, their sources of competitive advantage, the relationship between the firms and the differences in their strategies and success A statement of the main strategic challenges facing the companies, and an analysis of how the firms might manage these challenges All sources must be properly referenced Falak shaikhaniHighlightWarwick Business School Readings Warwick Business School Warwick Business School Warwick Business School What is Strategy?
It means deliberately choosing a different set of activities to deliver a unique mix of value Michael Porter Warwick Business School Quest for Competitive Advantage Strategy is often seen as a quest for competitive advantage How can the organisation be better than other organisations with the same goal?
Sustainable competitive advantage SCA is the ability to consistently outperform rivals Can competitive advantage be sustainable in a constantly changing business environment?
Warwick Business School Characteristics of Strategic Decisions Major decisions with long-term implications, typically made by the firms top management Significant commitment of organisational resources Aim to improve or maintain the companys position in its business environment Setting long-term organisational objectives and the means to achieve them Warwick Business School Levels of Strategy Corporate strategy Where to compete?
What is the scope of the organisation? What industries and markets does the company compete in? Business strategy How to compete? Business-level competitive strategy How does the company compete in the markets and industries it is in? Draw an outline of your career strategy for the next five years Identify your long-term goals and ambitions Analyse the characteristics of and possible future changes in your career environment Note your personal strengths and weaknesses and how they influence your career strategy Delineate the ways in which you intend to achieve your goals Warwick Business School Strategy Analysis Strategic problems are typically complex and often ill-defined The frameworks of strategic analysis are not algorithms that yield optimal solutions to problems; rather, they offer support for our decision-making by: Helping us to understand and make sense of the complexity of the strategic decisions Guiding us to ask the questions that we need to ask Helping us to organise the relevant information Providing a direction to get us started on the problem Warwick Business School Goal of the Firm: Is the statement correct?
Warwick Business School Shareholder Value Perspective According to the shareholder value perspective, the purpose of the firm is to increase the wealth of the firms owners shareholders Firm should maximise economic value, i.
Create value for its customers that is larger than the firms cost of inputs 2. Appropriate extract some of that value as profits 3. Distribute the profits to the firms owners shareholders Cost of inputs - raw material - wages - interest - taxes - Value of output to customer Price Value created Value captured Warwick Business School Shareholder View: Brief Timeline It is indefensible that a company board could, under whatever pretext, retain anothers money for longer or use it in ways other than the latter wishes, for that would be a kind of tyranny.
Why we exist Vision: What we want to be Company values and principles to guide decisions and actions of organisational members Warwick Business School Goals and Values: Case Boeing Prior toBoeings strategic focus was to build great planes Financial controls were weak Profitability was high One of the worlds most financially successful companies New management team in What strategic decisions is it facing now?
What kinds of strategic trade-offs do these decisions imply?strategy Manufacturing strategy: a pictorial representation John Mills, Andy Neely, Ken Platts and Mike Gregory organization’s manufacturing strategy be identified and documented by “realised” and “intended” (Mintzberg and Waters, ) implementation events.
Case studies of four English universities were developed via a Grounded Theory methodology. Mintzberg and Waters’ [ also highlighted that there is often a gap between an organisation’s realised strategy and its originally intended strategy throughout the strategy implementation process.
Realised strategies that were intended in. If we label the first definition intended strategy and the second realized strategy, as shown in Figure 1, then we can distinguish deliberate strategies, where intentions that existed previously were realized, from emergent strategies, where patterns developed in the absence .
As strategy workshops may be forums for senior executives to make sense of and co-ordinate emergent strategy from lower down in the organisation, realised strategy may be underway anyway and the role of workshops might be to put such realised strategy into more formal, intended shape.
This pattern in decisions and actions defines what Mintzberg called "realized" or emergent strategy. Mintzberg’s typology has support in the earlier writings of others concerned with strategy in the business world, most Over time, the employment of resources yields actual results and these, in light of intended results, shape the future.
between strategy and structure, but with realised European Management Journal Vol. 20, No. 6, pp. – , December strategies, structures and processes become part of.