PRESENTATION SLIDES T o a ccompany : Contemporary Strategy Analysis ( 6 th edition, Blackwell Publishing, 2008 )

1. PRESENTATION SLIDES To accompany: Contemporary Strategy Analysis (6thedition, Blackwell Publishing, 2008) Robert M. Grant Assisted by Kate Grant

2. The Concept of Strategy OUTLINE • The role of strategy in success • A framework for strategy analysis • The evolution of strategic management • Corporate strategy and business strategy • Strategy making: Design or process? • The role of strategy

3. Components of Success

4. What Makes a Successful Strategy? Successful Strategy EFFECTIVE IMPLEMENTATION Long-term, simple and agreed objectives Profound understanding of the competitive environment Objective appraisal of resources

5. What is Strategy? • Distinguishing strategy from tactics: • Strategy is the overall plan for deploying resources to establish a favorable position. • Tactic is a scheme for a specific maneuver. • Characteristics of strategic decisions: • Important. • Involve a significant commitment of resources. • Not easily reversible.

6. The Evolution of Strategic Management 1950s 1960s-early 70s Mid-70s-mid-80s Late 80s –1990s 2000s Budgetary Corporate Positioning Competitive Strategic planning & planning advantage innovation control Financial Planning Selecting Focusing on Reconciling control growth &- sectors/markets. sources of size with diversificationPositioning for competitive flexibility & leadership advantage agility Capital Forecasting. Industry analysis Resources & Cooperative budgeting. Corporate Segmentation capabilities. strategy. Financial planning. Experience curve Shareholder Complexity. planning Synergy Portfolio analysis value. Owning E-commerce. standards. — Knowledge Management— Coordination Corporate Diversification. Restructuring. Alliances & & control by planning depts. Global strategies. Reengineering. networks Budgeting created. Rise of Matrix structures Refocusing. Self -organiz systems corporate Outsourcing. ation & virtual planning organization DOMINANT THEME MAIN ISSUES KEY CONCEPTS& TOOLS MANAGE-MENT IMPLIC- ATIONS

7. The Basic FrameworkStrategy: the Link between the Firm and its Environment THE FIRM •Goals & Values •Resources & Capabilities •Structure & Systems THE INDUSTRY ENVIRONMENT • Competitors •Customers •Suppliers STRATEGY STRATEGY

8. Sources of Superior Profitability INDUSTRY ATTRACTIVENESS Which businesses should we be in? CORPORATE STRATEGY RATE OF PROFIT ABOVE THE COMPETITIVE LEVEL How do we make money? COMPETITIVE ADVANTAGE How should we compete? BUSINESS STRATEGY

9. Strategy Making : Design or Process? Strategy as Design Strategy as Process Planning and rational choice Many decision makers responding to multitude of external and internal forces INTENDED STRATEGY EMERGENT STRATEGY REALIZED STRATEGY • Mintzberg’s Critique of Formal Strategic Planning: • The fallacy of prediction –the future is unknown • The fallacy of detachment -- impossible to divorce formulation from • implementation • The fallacy of formalization --inhibits flexibility, spontaneity, • intuition andlearning.

10. Strategy Making Processes within the Company: Multiple Roles of Strategy Strategy as Decision Support Improves the quality of decision making Strategy as Coordination and Communication Creates consistency and unity Improves perform- ance by setting high aspirations Strategy as Target

11. The Role of Analysis • Strategy analysis improves decision processes, but doesn’t give answers. • Strategy analysis assists us to identify and understand the main issues. • Strategy analysis helps us to manage complexity. • Strategy analysis can enhance flexibility and innovation by supporting learning.