topic strategy and the external environment主題策略與外部環(huán)境

OverviewofSemester1ExternalEnvironmentandPorteronStrategyIndustryanalysis,competitiveadvantage,andlimitations.Porteronstrategicpositioning.Thevaluenet–better?TheInternalEnvironmentTheCapabilititiesApproach,TheResource-BasedViewPeteraf,Penrose,Barney,limitationsBlueOcean/RedOceanApproachMBS(BusinessEconomics)DepartmentofEconomicsCollegeofBusinessandLawTopic1TheExternalEnvironment:SWOT,PESTELandPorteronStrategyDr.CatherineKavanaghProgrammeDirectorButfirst….Whatisstrategy??

Concernedwithmeetingexistingmarketneedsaswellasexploitingopportunitiesforpotentialmarketsegments(KimandMauborgne2002,NunesandCespedes2003)Aboutmakingthebestuseofresources,andtoleveragetheseresourceseitheraloneorwithpartners(Wernerfelt1984,Barney1991,Dierickx,andCool1989,Lamming,1993,Hines,1994,Stumpetal2002,Irelandetal2002).Theultimateresponsibilityofsenior-levelmanagerswithinthefirm-ofcoursewerecognisethevitalofimportanceofarangeofstakeholdersintheprocessbothwithinthefirmandwitheternallinkagestotheenterprise(Frambachetal2003,HaxandMajluf1991,DoughertyandCorse1995).Aboutdevisingandimplementingprocessesthatwillenabletheenterprisetocompeteand,ideally,tocreatecompetitiveadvantage(Whittington2001,Hamiltonetal1998).Concernedwithdevelopingcapabilitieswithinthefirm’sOperationsthataresuperiortoothercompetitorsandwhichothercompetitorseithercannotcopy,orwillfinditextremelydifficult,tocopy(Teeceetal1997,EisenhardtandMartin2000).TheNatureofStrategy

Wherethecompanyiscurrently–intermsofmarkets,productsandothercorporategoalsWheretheorganisationwantstobe–intermsofmarkets,productsandothercorporategoals–plugginggapsbetweenplannedstrategyandactualesTheChangeProcessMISSIONFUTURESTATESTRATEGYKeyPoints

Whatisstrategy?abizarregame(Stacey,1993);aplan,amasterplan,apattern,aposition,aploy,aperspective(Mintzberg,1994;WheelenandHunger,1992);anintegrativeblueprint(Hax,1990);awayofthinkingorstateofmind(DixitandNalebuff,1991;Ohmae,1982);innovation(Baden-FullerandPitt,1996);ablackart(Hax,1990);language(GoddardandHoulder,1995);andalearningprocess(Senge,1990).

Whatisstrategy?dependence,independenceandinterdependence(BartlettandGhoshal,1987);marketcoverage(Daems,1990);intent(HamelandPrahalad,1989);developingcorecompetencies(PrahaladandHamel,1990);anticipatingchange(PetersandWaterman,1982);vision(Mintzberg,1995);respondingtoexternalopportunitiesandthreats,establishingpurposeandtheeconomicandnon-economiccontributionmadetostakeholders(Hax,1990);proconfiguringthinking(Pascale,1984);developingdistinctivecapabilitiesthataddvalue(Kay,1994);parentingadvantageandaddingvalue(GooldandCampbell,1991);

Strategyisalsoconsideredtobeabout:standardisation(DouglasandWind,1987);differentiationandcostleadership(Porter,1985);stickingtotheknitting(PetersandWaterman,1982);fitandscope(JohnsonandScholes,1997);stretchandleverage(HamelandPrahalad,1994);differentiatingmanagerialtasksandassertingvitalcontinuity(Hax,1990);exploitingleverage(Lele,1992);survival(Booth,1993);winning(EllisandWilliams,1995);globalco-ordination(PrahaladandDoz,1986);Etc.etc.etc.etcWhatisstrategy?

ALSO: TheImportanceofOperationstoBusiness&MarketNeeds:

Theroleofoperationshaseincreasinglyimportantinrecenttimes.Thisisbecausetheneedsandwantsofcustomersandclientshaveincreasedinrecenttimes.Thiswasdescribedinabookcalled,FunkyBusiness:"Letustellyouwhatallcustomerswant.Anycustomer,inanyindustry,inanymarketwantsstuffthatisbothcheaperandbetter,andtheywantityesterday"RidderstraleandNordstrom,p157

TacticalandStrategicConcernsinOperationsButnow….Let’sgobacktoaspectsofthefirm’senvironment….TheDifferentAspectsofaFirm’sEnvironmentSomeWaystoExaminetheEnvironment…SWOT:usefulforenvironmentalscanningPESTEL:alsoenvironment,butmoreusefulasalistthatfirmshouldbeawareof–itsstrengthisits’brevityPorter’snationaldiamond–focusesonhowcountriescanobtainacompetitiveadvantagePorter’s5ForcesFrameworkfocusesonindustryanalysiswhichisasubsetofthestrategicenvironmentPositioninginvolvesconsideringPorter’sgenericstrategies(wewillreturntopositioninglater)WhatisaSWOT?UsesofSWOT?SWOTisthebeginning…WhataretheelementsofaSWOT?Whatarestrengths?Weaknesses?OpportunitiesThreats?SWOTandExternalAnalysis?WhatisaPESTELAnalysis?PESTELStandsfor….PESTELStandsfor….PorterandStrategyPorteronStrategyExternalEnvironmentFiveForcesFrameworkGenericStrategiesPositioningPorter’s5ForcesFrameworkOverviewofTodayOverviewofTodayPorteronStrategyPorter’s5forcesapproach(industryattractiveness)seesindustryperformanceasafunctionofindustrystructure/conduct.BUTwithinindustriesfirmperformancevariesSowhatdeterminesrelativefirmperformance?In‘CompetitiveAdvantage’hetriedtoanswerthisquestion‘C