Professional Documents
Culture Documents
Figures
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Assessing Performance
General Manager
Creating Strategy
determining the way forward
making it happen
Implementing Change
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Quadrant 1
desired state tomorrow? today
crisis
troubled organization
Quadrant 4
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Guiding Philosophy
Tangible Image
Purpose
Mission
Environment
Core Beliefs & Values
Vivid Description
Source: Copyright 1991, by The Regents of the University of California. Reprinted from the California Management Review, Vol. 34, No. 1. By permission of The Regents.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Goals
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
PRODUCT EXISTING EXISTING MARKET NEW Market development Diversification Market penetration NEW Product development
Source: Ansoff, I., The New Corporate Strategy. Copyright 1987, John Wiley & Sons, Inc. Reprinted by permission of John Wiley & Sons, Inc.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Goals
Branded general merchandise Value-oriented customers Develop easier markets first: work from regional hubs
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Apples Strategy
Change the world through technology
Goals
Differentiation on product and service through a user-friendly graphic interface and integrated products
Core Activities
Complete desktop solution 50% US; 50% foreign Education (50%MS); home Hardware, software, peripherals High end
R&D
Mnfg
Distn
Fully integrated
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Industry A
Industry B
Industry C
Business Strategy A
Business Strategy B
Business Strategy C
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Management Preferences
Organization
Strategy
Environment
Resources
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Strategic Risks
TIME HORIZON SHORT-TERM Errors in reading the environment cause strategic failure LONG-TERM Environmental changes make the strategy obsolete
Strategic demands exceed Internal capabilities develop the capacity to execute inconsistently with strategy
Source: Ansoff, I., The New Corporate Strategy. Copyright 1987, John Wiley & Sons, Inc. Reprinted by permission of John Wiley & Sons, Inc.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Management Preferences
WANT
Individual
Strategic Tension
CAN
Environment
NEED
Firm
Industry
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
1. Decide on proposal(s) to implement. 2. Move to build commitment and develop required capabilities. 3. Implement.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
SUPPLIERS
SUBSTITUTES
Source: Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc., from COMPETITIVE STRATEGY: Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright 1980, 1998 by The Free Press.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
FIRM TWO Strategy A I: $6,000 II: $6,000 I: $0 II: $10,000 Strategy B I: $10,000 II: $0 I: $2,000 II: $2,000
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
PEST Forces
Macro Forces
Political
Economic
Social
Technological
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Internalization: Global/Local
High
Multidomestic
Locally tailored products Benefits of being local outweigh added costs
Low
High
Source: Reprinted with the permission of The Free Press, a Division of Simon & Schuster,Inc., from THE MULTINATIONAL MISSION by C.K. Prahalad and Yves L. Doz. Copyright 1987 by The Free Press.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Internalization: Global/Local
Step 1: Focus the Environment Analysis Work from the strategic proposal to define the boundaries of the relevant environment, highlight the questions that need to be asked about demand, supply, competition, and government. Establish a time horizon for analysis. Step 2: Test the Strategy-Environment Linkage How well does the strategic proposal anticipate the opportunities and challenges in demand, supply, competition, and government? For serious misfits, recycle to develop a more attractive proposal. Step 3: Forecast Performance Decide if the strategic proposal, implemented as planned, will meet its goals. For clearly failing proposals, recycle to develop a more attractive proposal. Step 4: Rank Against Other Proposals Consider the strategic proposal in the light of alternative proposals. If it is competitive, proceed with the Diamond-E drill. If not, consider dropping it and recycle to develop a more attractive proposal. Step 5: Move to Next Step in Diamond-E Drill Assess the strategy-resource linkage. GENERATE NEW STRATEGIC PROPOSAL(S) Recycle
Recycle
Recycle
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
E.G., Industry support programs Economic and trade policy Regulation of structure and conduct
Government
E.G., Customer needs and performance Market growth Buyer bargaining power
Supply
E.G., Advances in product, process technology Supplier competence and bargaining power Competition for raw materials and people
Demand
Competition
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Resource Analysis
Step 1: Identify Resource Requirements Work from the strategic proposal to clarify and project the resources required for implementation and ongoing success. Prepare at a level of detail that will facilitate analysis and management action. Step 2: Test the Strategy-Resource Linkage Compare the resource requirements with the counterpart resources in the business or readily available to it. Identify current and anticipated gaps between the two. For serious misfits, recycle to develop a more attractive proposal. Step 3: Develop Gap-Closing Analysis Assess the feasibility of closing any material gaps. If the costs, chances of success, and consequences of failure are acceptable, carry the proposal forward. If not, recycle to develop a more attractive proposal. Step 4: Move to Next Step in Diamond-E Drill Assess the strategy-management preference linkage. GENERATE NEW STRATEGIC PROPOSAL(S)
Recycle
Recycle
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Strategic Choices
Environment
Indirect Role
Organization, Resources & Capabilities
A management preferences filter through which the environment and resources are assessed.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Strategy-Organization Analysis
Step 1: Identify Required Organizational Capabilities Identify the key organizational capabilities that will be required to successfully implement the strategic proposal. Step 2: Identify Capability Gap Compare the required organizational capabilities with those currently in the business. Identify the most important capability gaps. If the gaps are clearly too large to close, reject the proposal and recycle to develop a more attractive one. Step 3: Identify Required Organizational Changes Identify the changes in organization structure, management processes, and leadership behaviour that would be needed to develop the missing capabilities identified in Step 2. Step 4: Assess Feasibility Assess the probability that the proposed organizational changes will in fact result in the creation of the required new capabilities, in the time available. Identify the major areas of risk. Step 5: Move to Next Step in Diamond-E Drill Decide which of the strategic proposals you have been examining to adopt, based on an analysis of risk and expected performance. RETURN TO FIRST STEPS OF DIAMOND-E DRILL
Recycle
Recycle
Recycle
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Leverage Point
Organization Structure
Organizational Capabilities
Behaviour Culture Behaviour Culture
Leverage Point
Management Processes
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Books Editorial
etc.
etc.
Production Marketing
etc.
etc.
Asia Books
Europe
Asia
etc.
etc.
Magazines Newspapers
two boss managers etc.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Unrealized Strategy
Source: Mintzberg, H.; Ahlstrand, B.; Lampel, J.;Strategy Safari, New York: The Free Press, 1998.
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Analysis of Starting Conditions Urgency Are you dealing with anticipatory, reactive, or crisis change? Organizational Readiness Who will be most affected by the proposed change? How ready are they? Personal Readiness How ready are you to lead the change process?
Establishing Guidelines for Action Priority Objective What do you need to accomplish first? Priority Targets and Actions Who are your priorty targets? What will your first steps be? Leadership Style How are you going to manage the change process? Pace How fast do you need to move?
Creating an Action Plan Period 1, etc. Objectives 1. 2. . . Targets .. .. First Steps . . Style .. .. Timing .. ..
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Good
Anticipatory Change
Reactive Change
Strategic Performance
Crisis Change
Poor
Time
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Strategic Performance
Crisis Change
Poor
Strategic Capability
Time
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada
Proactive Resistors
Change Agents
Bystanders
Defensive Resistors Change Agents in Waiting
Actively Opposed
Strongly Supportive
Strategic Analysis and Action (5th edition) 2002 Pearson Education Canada