STRATEGIC BUSINESS LEADERSHIP | THEORIES AND MODELS

Johnson, Scholes and Whittington (JS&W) – defining elements of strategic management

• Strategic position
• Strategic choices
• Strategy into action (implementation)

JS&W three strategy lenses

• Strategy as design
• Strategy as experience
• Strategy as ideas

Pestel

• Political
• Economic
• Socio-cultural
• Technological
• Environmental
• Legal

Johnson and Scholes SAF Model

 Suitability (fit)
 Acceptability (to stakeholders)
 Feasibility (resources available)

1. Mendelow’s Framework

 Key Player (high power, high interest)

 Keep Informed (low power, high interest)
 Keep satisfied (high power, low interest)
 Minimum effort (low power, low interest)

Porter’s Diamond

• Firm strategy, structure, rivalry

• Demand conditions
• Related and supporting industries
• Factor conditions

Porter’s five forces framework

• Barriers to entry
• Substitute products
• The bargaining power of customers
• The bargaining power of suppliers
• Competitive rivalry

Lifecycle model

• Inception
• Growth
• Shakeout
• Maturity
• Decline

Marketing Mix

• Product
• Price
• Place
• Promotion
• People
• Processes
• Physical evidence

Porter’s Value chain

Primary Activities
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service

Support Activities
• Firm infrastructure
• Human resource management
• Technology development
• Procurement

SWOT analysis

• Strengths
• Weaknesses
• Opportunities
• Threats
TOWS Matrix

• SO strategies employ strengths to seize opportunities

• ST strategies employ strengths to counter or avoid threats
• WO strategies address weaknesses so as to be able to exploit opportunities
• WT strategies are defensive, aiming to avoid threats and the impact of weaknesses
Cultural Web (paradigm)

• Stories
• Symbols
• Power structures
• Organisation structures
• Control systems
• Rituals and routines

Integrated Reporting

• Financial capital
• Manufactured capital
• Intellectual capital
• Human capital
• Social and relationship capital
• Natural capital

JS&W’s three strategic rationales for corporate parents

• Envisioning corporate intent

• Intervention to improve performance
• Provision of services, resources and expertise

Boston Consulting Grout Matrix

• Stars
• Question marks
• Cash cows
• Dogs

Public sector portfolio matrix

• Public sector star

• Political hot box
• Golden fleece
• Back drawer issue

Ashridge portfolio matrix

• Heartland businesses
• Ballast businesses
• Value trap businesses
• Alien businesses
The strategy clock

• Price-based strategies (no frills / low price)

• Differentiation strategies (hybrid / focused differentiation)
• Failure strategies

Ansoff’s Matrix (product market mix)

• Market penetration
• Product development
• Market development
• Diversification

Balogun and Hope Hailey’s matrix

• Incremental/Realignment – Adaptation
• Incremental/Transformation – Evolution
• Big bang/Realignment – Reconstruction
• Big bang/Transformation – Revolution

Contextual Features Model

• Time available
• Preservation
• Diversity
• Capability
• Capacity
• Readiness
• Power
• Scope

6 I’s of marketing

• Independence of location
• Industry structure
• Interactivity
• Individualisation
• Integration
• Intelligence
7 p’s of E-marketing

• Product – or customer value

• Price – or customer cost
• Promotion – or customer communication
• Processes
• Physical evidence
• People
• Place – or customer convenience

Job Design

• Scientific management
• Human relations / job enrichment
• Japanese model
• Re-design

Objectives (SMART)

• Specific
• Measurable
• Achievable
• Relevant
• Time-limited

Balanced Scorecard
• Financial perspective
• Customer perspective
• Internal business perspective
• Innovation and learning perspective

Types of diversification

• Backward vertical integration

• Conglomerates
• Horizontal
• Forward vertical integration

Four Views Model (POPIT)

• People
• Organisation
• Processes
• Information Technology
Harmon’s Grid

• Low complexity/low strategic importance – automate/outsource

• High complexity/low strategic importance – outsource
• Low complexity/high strategic importance – automate
• High complexity/high strategic importance – BPR and improvement

Projects and Strategic Plans

• Start date
• Duration
• Finish date
• A relationship to other projects: after some, before others etc
• A cost
• A person responsible
• A closely defined set of outcomes

Stages of a Project

• Initiation/initial screening
• Risk assessment
• Business case
• Project plan
• Executing
• Monitoring and controlling/project milestones
• Closing: delivery/review

Project Initiation Document

• Defines the project, its scope and its deliverables

• Justifies the project: cost/benefit analysis; risk analysis
• Secures funding for the project, if necessary
• Defines the roles and responsibilities of project participants: sponsor, manager team
• Gives people the information they need to be productive and effective right from the
start: assignments, schedule, human resources, project control, quality control

The Project Manager

• Leadership abilities, including the ability to motivate
• Technical ability in running projects and in the subject matter
• Negotiation ability to negotiate with project sponsors (those who are paying), project
team members and suppliers
• Reporting on progress and difficulties
• The ability to stay calm in a crisis
• Excellent communication
• Ability to delegate to team members
The Project Team
• Are fairly small
• Are united in what they want out of the project
• Have the right mix of complementary skills
• Have the right mix of personalities

Scenarios
1 Decide on the drivers for change
2 Bring drivers together into a viable framework
3 Produce seven to nice mini-scenarios
4 Group mini-scenarios into two or three larger scenarios
5 Write the scenarios
6 Identify issues arising

Mintzberg’s Steriotypical Configurations

1 Simple (entrepreneurial) structure
2 Machine bureaucracy
3 Professional bureaucracy
4 Divisional form
5 Adhocracy
6 Missionary organisation

Project Benefits
• Observable
• Measurable
• Quantifiable
• Financial

Methods of Growth
• Organic growth
• Acquisitions and mergers
• Joint ventures
• Franchising
• Alliances

Procurement
Involves locating items of the right
• Price
• Time
• Quality
• Quantity
• Source
Tannenbaum and Schmidt Managerial Style
Authoritarian/task orientation ———————————Democratic/relationship orientation

Blake and Mouton’s Managerial Grid (concern for people/concern for production)
1.1 impoverished
1.9 country club
9.1 task orientated
9.9 team
5.5 middle of the road

Theory X and Theory Y

X Dislike work, need to be coerced, controlled, directed and/or threatened. Close
supervision, carrot and stick
Y Physical and mental effort is as natural as play or rest. Motivated to seek challenge and
responsibility. Manager consultative, facilitating, positive feedback, challenge and
responsibility as motivators