Lesson objective

1. Undertake a range of planning techniques Understand a range of strategic planning models Understand significance of Stakeholder Analysis Identify a number of Stakeholder Analysis tools Lesson objective

2. BCG Growth Share Matrix – Boston Cow SPACE – Strategic Position and Action Evaluation Directional Policy Matrices PIMS – Profit Impact of Market Share Planning techniques

3. Two main ones: General Electric Business Screen (GEBS) Shell Directional Policy Matrix Both are more complex versions of Boston Matrix Directional policy matrices

4. Also known as GE/McKinsey Matrix Portfolio analysis that assess business in terms of: Attractiveness of the industry/market concerned The strength of the business General electric’s business screen

5. Criteria which makes a market attractive • Market size • Growth rate • Overall returns • Industry profitability • Intensity of competition • Profit margins • Differentiation • Industry fluctuations • Customer / supplier relations • Variability of demand • Rate of technological change • Volatility • Availability of market intelligence • Availability of workforce • Global opportunities • PEST • Government regulation

6. Assessing internal strengths • Production capability • Production flexibility • Unit costs • R&D capabilities • Quality • Reliability • Company image • Product uniqueness • Cost & profitability • Profit margins • Organisational skills • Market share • Marketing capabilities • Management competence • Workforce skills • Distribution network • Service quality • Customer loyalty • Brand recognition

7. GE Business screen diagram

8. Developed by General Electric in 1960’s The PIMS database provides evidence of the impact of various marketing strategies on business success Companies that have high market share tend to have high profits PIMS – Profit Impact of Market Share

9. Suggest 5 ways in which the term ‘Strategy’ can be used Plan Ploy Pattern Position Perspective Mintzberg’s 5 p’s

10. Emergent strategies: Deliberate & emergent strategies Implicit or explicit strategies Crafting emerging strategies Behavioural Approach Incrementalism Competition New strategy models

13. Planned Strategies Entrepreneurial Strategies Ideological Strategies Umbrella Strategies Process Strategies Disconnected Strategies Consensus Strategies Imposed Strategies Mintzberg’s 8 styles of strategic management

15. Henry Mintzberg Based on the believe that strategies are shaped as they develop – both reactive and proactive Why bother crafting? Direction – emergent strategies maybe inappropriate for the long term Resources – implications for resource competition Crafting emerging strategies

16. Johnson & Scholes (2002) “Strategy needs to be understood as an outcome of the social, political and cultural process of management in organisations”. 4 step strategic decision making process Behavioural approach

17. Involves small scale extensions of past practices – in increments Positives It avoids major errors in strategy More likely to be acceptable, as consultation, compromise and accommodation built in Negatives Doesn’t work if radical new approach needed Ignores the influence of corporate culture Only applicable to a stable environment Incrementalism approach to strategy

18. “A good business strategy is one by which a firm can gain significant ground on its competitors at an acceptable costs” Ohmae (1982) Customers Competitors Competition Ohmae’s Strategic Triangle Competition as strategy planning

19. Theory of management and business ethics Growing importance of Corporate Social Responsibility (CRS) R. Edward Freeman 1963 “ those groups without whose support the organisation would cease to exist” Based on the principle of who or what really counts Stakeholder theory

20. Shareholder v stakeholder theory SHAREHOLDER APPROACH • Traditional business approach • Business ( management) acts in the best interests of shareholders / owners • Principal aim is to maximise shareholder returns • Main focus on growth & profit STAKEHOLDER APPROACH • Increasingly popular • Business takes much more account of wider stakeholder interests • Approach based on consultation, agreement, co-operation • E.g. social and environmental concerns become more important

21. Stakeholder classification

22. Primary v Secondary Active v Passive Classification

23. Activity For each of the stakeholders below identify: Their main interests in the organisation How they can exercise power & influence over the organisation Shareholders Banks & other lenders Directors & managers Employees Suppliers Customers Community Government 10 mins Interests, power & influence