The Art

of War
 "THERE IS NOTHING NEW UNDER THE SUN"

TANTO MONTA
CATHOLICS KINGS

1400

333 B.C 2022

Quintus Curtius Rufus DISRUPTIVE
INNOVATION
Gordian knot
THE END JUSTIFY THE
MEANS"
ALEXANDER
MAQUIAVELO*

INNOVATION IS STRATEGY?
 STRATEGY Concept Evolution

ANDREWS(65) WHAT TO DO AND WHAT

DON´T

PATTERN OF GOALS
(VISION) AND THE PLANS
PORTER(80)
TO GET IT

CHANDLER ANDREWS MITZBERG(94)

(62)AND
STRATEGY (71) PLAN, PATTERN, POSITION, PERSPECTIVE
AND A PLAY
STRUCTURE
 STRATEGY
It is a “pattern of the objectives,
purposes or goals, and the essential
policies and plans to achieve the
goals (…) the corporate strategy
serves as a guide for long periods
of time for the development of the
company and achieve superior
results without depriving it of its
ability to respond quickly to
changing conditions ”
Andrews, K. (1971). In: The Concept of Corporate Strategy. Homewood III. DowJones
Irwin., P. 18-54.
 ASPIRATIONAL
WHAT DO WE STAND FOR?
STRATEGIC VALUES
Ethics, Principles, Beliefs

PLANNING
ALIGNMENT
VISION
WHERE ARE WE GOING?
WHO DO WE ASPIRE TO ACHIEVE?
ACHIEVABL Hope, Ambition
E

WHAT DO WE DO?
WHO DO WE DO IT FOR?
SPECIFIC & MISSION Motivation, Purpose
TANGIBLE

HOW ARE WE GONG TO PROGRESS?

STRATEGIC OBJECTIVES Plan, Goal, Sequencing

WHAT DO WE HAVE TO DO?

HOW DO WE KNOW?
ACTIONS & KPI´S ACTIONS, OWNERS, TIMEFRAMES,
RESOURCES, OUTCOMES
 4 LEVELS OF STRATEGY
(HIERARCHY)

Where to compete? Strategic thinking, planning

and management
Corporate
What unique value do we bring?

Business Level
What resources/ (SBU: Business Unit)
capabilities do we utilize?
Functional Level
(Administrative, Operations, Marketing,
HR, Finance)
How do we sustain
unique value? Operational Level
 HOW

TACTIC STRATEG
EXECUTION OF THE
Y STRATEGY FORMULATION
STRATEGY AND EVALUATION

HOW TO OPERATE COMPETITIVE APPROACH

• SHORT TERM (ST)
• EASY TO IMPLEMENT AND • LONG TERM (LT)
• HARD/LONG TO IMPLEMENT
REVERSE
• FEW RESOURCES AND REVERSE
⚬ TIME • MORE RESOURCES
⚬ PEOPLE ⚬ TIME
⚬ MONEY ⚬ PEOPLE
⚬ BRAND REPUTATION ⚬ MONEY
⚬ BRAND REPUTATION

WHEN
WHEN
CONJUNCTURAl
STRUCTURAL

DEPENDS ON THE
 PLANNED, DELIBERATE, EMERGENT, AND REALIZED
STRATEGIES

Deliberate Strategy

Planned Strategy Unpredictable Change Realized Strategy

Uncertanty

• Unplanned Shift by Top-

Level Managers
• Autonomous action by
Emergent Strategy lower level managers
• Serendipity

Unrealized Strategy
Source: Adapted from H. Mitzberg and A. McGugh, Administrative Science Quarterly, Vol 30 No. 2, June 1985
GLOBAL STRATEGY

LOCAL STRATEGY
1. DEVELOP A VISION
2. DETERMINE OBJECTIVES
3. CREATE A STRATEGY
FORMULATION

3 PHASES OF
STRATEGY
By Fred David

4. PUT IN ACTION

EXECUTION

EVALUATION

5 TASKS
5. MESURE, CHECK AND ADJUST
 STRATEGY OF THOMPSON
(3 QUESTIONS)

IN WHAT
BUSINESS WE
WANT TO BE?

IN WHAT
BUSINESS ARE
WE IN?

HOW ARE WE
GOING TO
DO IT?
 Movement for create or maintain your
(CA) Competitive Advantage or improve COMPETITIVE
your market position
ACTION
ACTION

REPLY

Movement for reduce the

effects of a competitive
action
 COMPETITIVE DYNAMICS
SET OF ACTIONS AND COMPETITIVE REPLY THAT

RIVALITY
COMPETITIVE
BEHAVIOR

DEVELOP BY A COMPANY IN
WHEN THE COMPETITORS
ORDER TO CREATE OR DEFEND
FIGHT BETWEEN THEM TO
ITS COMPETITIVE
PLACE AN ADVANTAGE
ADVANTAGES AND TO
POSITION
IMPROVE ITS MARKET
POSITION
 RIVALITY

LACK OF DECREASED
STRATEGY PROFITABILITY

INDUSTRIAL
CONVERGENCE
OVERCROWDING
 Competitive Advantage Identification

2 3 4

CHARACTERISTICS Equal Temporal Susteinable

VALUABLE (For the customers)

SINGULAR (Just few

competitors have it or none)

COSTLY TO IMITATE (By

history, ambiguous cause social
complexity)

IRREPLACEABLE

1 OR 0: DISADVANTAGE
 E S E C TOR
T
E N TR A
1.COnN
• Ma
C ors?
y compe
tit RIVALITY
get in?
• Easy to

2. DEnM
AND G R O WTH s that is
dy thi nk
so every
bo the
SOURCES
d is g ro w i n g
d ecr easing for
a is d
The dem s o r th e deman
usine s
a g o od b s ec t o r/produc
t
of th e
maturity
T I AT ION
D E R EN
IFF ower of negotiatio n is
3. N O p )
ue so the
val by price
No extra u st o m er (choise
c
d to the
transfere

D CO ST
LF I X E
T OR I A
4. S E C o r y o r f ixed cos
t, th e
ent
i ty of inv ?
High q u an t
m o n ey i n t he S T
es needs
compani

A R R I ERS ical,
5. E XI T B s
for econ
must sta
om
y
p an i e ?
The com o ti o n al reasons
al or em
strategic
 PORTER´S 5
FORCES
BARGAINING THREAT OF
POWER OF NEW
SUPPLIERS ENTRANTS

THREAT OF
SUBSTITUTE
PRODUCTS BARGAINING
RIVALITY AMONG POWER OF
COMPETITORS BUYERS
 CENTRAL Sources of Competitive Advantage

COMPETENCES
CAPABILITIES
•Set of resources that can perform an activity
in an integral way

Tangible Mix of Resources Intangible

Inputs that are part of the production
process of a company

In the finantial Superior and more powerful

source of core competencies
Statement
finantial
are Humans like
Technolohical

Phisical Innovations
Organizationals Reputation
 COST ADVANTAGE
SIMILAR PRODUCTS
AT LOWER COST

COMPETITIVE
ADVANTAGE

DIFFERENTIATION
ADVANTAGE
PRICE PREMIUM FROM UNIQUE PRODUCT
BUSINESS
HOW?
MODEL HOW ARE THE NEEDS OF
CUSTOMERS BE
SATISFIED?

WHAT? WHO?
WHAT IS BEING WHO IS BEING
SATISFIED? SATISFIED?
CUSTOMER CUSTOMERS
NEEDS
" I N G O D W E T R U S T, E V E R Y O N E E L S E B R I N G S D ATA " E D U A R D D E M I N G

Do
• Research for the project
• Read Management. En L.
W. J. Stewart Black,
Management (Third Edition
ed., págs. 80 - 105). New
Jersey: Prentice Hall .