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Different Approaches To Strategic Planning - PDF Chap 7
Different Approaches To Strategic Planning - PDF Chap 7
COMPETENCIES
The distinctive competence of an organisation is what
it does well, uniquely better than its rivals.
Strategic opportunities must be related to the firm's
resources.
A strategic approach involves identifying a firm's
competencies & core competencies. These
competencies may come in a variety of ways;
Strategic Planning
Experience in making and marketing a product or service
The talents and potential of individuals in the organisation
1. A Planning Framework The quality of co-ordination
2. Different Approaches to Strategic Planning
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INCREMENTALISM INCREMENTALISM
Incrementalism involves small scale extensions of past BOUNDED RATIONALITY (Herbert Simon)
practices. In practice, managers are limited by time, by the information
It is more likely to be acceptable, because they have and by their own skills, habits and reflexes.
consultation, compromise and accommodation are Strategic managers do not evaluate all the possible
built into the process. options, but choose from a small number of possibilities.
Strategy making necessitates compromises with interested
groups through bargaining.
The manager does not optimise.
Instead the manager satisfices. The manager carries on
searching until finds an option which appears satisfactory, and
adopts it, even though it may be less than perfect.
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COMPETITION COMPETITION
GAINING GROUND ON COMPETITORS Creating a sustainable strategic position
'A good business strategy' is where a firm can gain
significant ground on its competitors at an acceptable cost. o Operational effectiveness : doing the same things better
o Re-adjust current resources allocate on core competence than other firms
o Relative superiority - exploiting competitors weaknesses o Strategy rests on unique activities : different than rivals
o Challenge assumptions
o Strategy is about combining activities : hard to imitate
o Degrees of freedom - finding new ways of exploit markets
o Strategy is about choices, not blindly imitating competitors
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