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    The document discusses the strategy process and outlines three main stages: 1) strategic position analysis which involves analyzing the external environment, internal environment, and stakeholders, 2) strategic choices about how to compete and which products/markets to choose, and 3) implementing the strategy through various functions like marketing, HR, and production. It also describes two approaches to strategy - the prescriptive approach which plans strategy in advance, and the emergent approach which is more experimental and develops over time through trial and error. The best approach depends on factors like the nature of the environment - emergent approaches tend to work better for complex, dynamic markets.

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    The document discusses the strategy process and outlines three main stages: 1) strategic position analysis which involves analyzing the external environment, internal environment, and stakeholders, 2) strategic choices about how to compete and which products/markets to choose, and 3) implementing the strategy through various functions like marketing, HR, and production. It also describes two approaches to strategy - the prescriptive approach which plans strategy in advance, and the emergent approach which is more experimental and develops over time through trial and error. The best approach depends on factors like the nature of the environment - emergent approaches tend to work better for complex, dynamic markets.

    Copyright:

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    Download as ppt, pdf, or txt
    80 views16 pages

    The Strategy Process: Strategic Management

    Uploaded by

    Divya Mittal
    The document discusses the strategy process and outlines three main stages: 1) strategic position analysis which involves analyzing the external environment, internal environment, and stakeholders, 2) strategic choices about how to compete and which products/markets to choose, and 3) implementing the strategy through various functions like marketing, HR, and production. It also describes two approaches to strategy - the prescriptive approach which plans strategy in advance, and the emergent approach which is more experimental and develops over time through trial and error. The best approach depends on factors like the nature of the environment - emergent approaches tend to work better for complex, dynamic markets.

    Copyright:

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    Download as PPT, PDF, TXT or read online from Scribd
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    of 16

    Strategic Management

    THE STRATEGY PROCESS

    Strategic Management (GJW 2009-10) 1


    THE STRATEGY PROCESS
    Stages
    1. Strategic Position Analysis
    External Environment
    Internal Environment
    Stakeholder Analysis

    2. Strategic Choices
    How do we compete?
    Which products/markets do we choose?
    How do we get where we want to be?

    3. Strategy into Action (Implementation)


    Change Management Finance
    Marketing HRM
    Technology Structure
    Culture Production
    R&D Project Management

    MBA Strategic Management (GJW 2008-09) 2


    THE STRATEGY PROCESS
    Approaches
    1. Prescriptive – strategy prescribed
    in advance
    Single Long-Term Plan
    Scenario Plans
    2. Emergent – an experimental
    process – trial and error

    MBA Strategic Management (GJW 2008-09) 3


    THE STRATEGY PROCESS
    Influences on Choice of Approach (1)

    Risk of Strategic Drift

    The risk that a logical, incremental implementation of prescribed strategies

    will lead to

    A widening gap between the organisation’s resource capability and market


    conditions

    The risk of this strategic drift is especially strong when the pace of change of market
    conditions is rapid.

    Strategic Drift results in a weakening Strategic Fit, a loss of


    competitive advantage, and companies being left behind
    their rivals

    MBA Strategic Management (GJW 2008-09) 4


    Strategic Drift
    The result of an inappropriate strategic
    management style

    Exhibit 1.4 MBA Strategic Management (GJW 2008-09) 5


    THE STRATEGY PROCESS
    Influences on Choice of Approach (2)
    Nature of Environment
    Simple/Stable Prescriptive
    v
    Complex/Stable v
    v
    Simple/Dynamic v
    v
    Complex Dynamic Emergent
    MBA Strategic Management (GJW 2008-09) 6
    Nature of Business
    Environment
    (Emery and Trist)
    Many Complex Complex
    Stable Dynamic
    NUMBER OF
    INFLUENCES
    Simple Simple
    Stable Dynamic
    Few
    Slow SPEED OF Fast

    MBA Strategic Management (GJW 2008-09)


    CHANGE 7
    THE STRATEGY PROCESS
    Prescriptive Approach
    Intended strategies
    Deliberate management intent

    Three Stages are Linear (sequentially linked) and rational


    • Position (where are we now)?
    • Choice (where do we want to go)?
    • Action (how do we get there)?

    MBA Strategic Management (GJW 2008-09) 8


    THE STRATEGY PROCESS
    Prescriptive Approach
    Position Analysis
    Mission/Objectives
    Environment
    Resources
    Strategic Fit

    MBA Strategic Management (GJW 2008-09) 9


    THE STRATEGY PROCESS
    Prescriptive Approach
    Choices
    Generate Rational Options
    Select from Options

    MBA Strategic Management (GJW 2008-09) 10


    THE STRATEGY PROCESS
    Prescriptive Approach

    Action
    Change Management
    Resource Needs

    MBA Strategic Management (GJW 2008-09) 11


    THE STRATEGY PROCESS
    Emergent Approach
    Develops out of economic, social and political
    processes in and around organisations

    Three Stages are not linear


    (not sequentially linked)

    • Position (where are we now)?


    • Choice (where do we want to go)?
    • Action (how do we get there)?

    MBA Strategic Management (GJW 2008-09) 12


    THE STRATEGY PROCESS
    Emergent Approach
    Analysis, Choice and Action
    Experiment
    Trial and Error
    Crafting/Testing
    Action often comes first
    No Formal/Agreed Strategy

    MBA Strategic Management (GJW 2008-09) 13


    THE STRATEGY PROCESS
    Prescriptive & Emergent Approaches
    Which is the better?

    Complement each other


    Both relevant to strategy process

    MBA Strategic Management (GJW 2008-09) 14


    THE STRATEGY PROCESS
    Prescriptive & Emergent Approaches
    Which is the better?

    Nature of Environment
    Complex/Dynamic Simple/Stable
    = =
    Emergent Prescriptive

    Complex/Stable or Simple Dynamic


    =
    ?????????

    MBA Strategic Management (GJW 2008-09) 15


    THE STRATEGY PROCESS
    Prescriptive & Emergent Approaches
    Which is the better?

    In practice, most companies employ a blend of


    prescriptive and emergent approaches.

    But emergent approaches tend to dominate in


    successful companies that occupy complex/dynamic
    markets

    MBA Strategic Management (GJW 2008-09) 16

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