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Variations on strategic analysis and discourse Doctor of Business Administration London School of Commerce Adapted May 2017. PROFESSOR ROBIN MATTHEWS KINGSTON UNIVERSITY BUSINESS SCHOOL LONDON RANEPA MOSCOW MOSI YOSHKAR-OLA ECONOMIC STRATEGIES
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Variations on strategic analysisand discourseDoctor of Business Administration London School of Commerce Adapted May 2017 PROFESSOR ROBIN MATTHEWS KINGSTON UNIVERSITY BUSINESS SCHOOL LONDON RANEPA MOSCOW MOSI YOSHKAR-OLA ECONOMIC STRATEGIES PRESIDENT OF THE LEAGUE OF CORPORATE STRATEGY AND ACCOUNTING http/www.robindcmatthews.com http://www.tcib.org.uk/about.html http://kpp-russia.ru robindcmatthews.com
Variations on strategic analysisand discourse • Planning • Diversification and portfolio planning • Core businesses • People oriented strategies
Expected net present value of the business/project (NPV) Expected revenues Expected costs Summed over the expected life of the business/project. Discount rate (average cost of capital)
Dynamic capability and critical success factors • Necessary conditions for survival (CSF) • Sources of competitive advantage that it is difficult to copy
Payoffs to stakeholder groups Tangible and intangible Assets (including Reputation) payoffs Competitors and co-operators Outer dynamics Inner dynamics Global macro system grammar Rules, laws, regulations, structures, architectures, routines. Mindsets, culture, norms, values, habits, moods. Intelligence rational and emotional. Formal and Informal, Inner and Outer.
GRAMMAR SYSTEM STATE robindcmatthews.com
The enneagram methodology OUTER DYNAMICS Actual v expected Reflection Monitoring Control, reporting auditing Corporate vision/mission/ strategic intent Principal agent Moral hazard Information Emotional intelligence Incentive compatibility Abilities Attitudes Rewards Motivation Payoffs/Utility Attitudes to risk Tradeoffs/stakeholders Survival/growth Sustainability Corporate responsibility PAYOFFS INNER DYNAMICS Activities/assets capabilities Rational choice Bounded rationality Mind sets/path dependence Decision rules NPV/DCF/ROCE…. Time horizons Search techniques Strategic models and frameworks Meta model The strategic process is embedded in organizational grammar
OUTER DYNAMICS COMPETITIVE DYNAMICS
Old system state S(t - 1) New system state b S(tb) New system state a S(ta) E3 E Current Capabilities E2 Need a jump to new capabilities Can leverage some of the capability set Alternative shifts in the system state Leveraging capabilities Is the shift in the system state from E to E2 or from E to E3?
CostsCapabilities are networks of assets (shadowed by their associated costs, usually market values of assets) UNAVOIDABLE AVOIDABLE F1 Sunk costs; Unavoidable once incurred,includes non recoverable variable costs and change in asset values (True costs) V Variable and only avoidable by cutting down output (marginal costs) F2 Fixed and only avoidable by going out of business
PRIMARY Outbound logistics Operations (manufacturing) Inbound logistics Marketing Sales Service SUPPORT Infrastructure Human resources Purchasing Technology Value chain (Porter)
ELASTICITIES EP = │EP │ = price elasticity Ey = income elasticity
niches Whole market Market segments Market segment