Strategy

Prof. Debapratim Purkayastha

Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations.
Johnson, Scholes and Whittington

Characteristics of Strategy
Long-term direction Scope of organizational activities Advantage vis--vis competitors Strategic fit with the environment Strategic Capability (Resources and competences) Stakeholder values and expectations

Characteristics of Strategy
Complex Deals with uncertainty Affect operational decisions Requires integrated approach Involves change

Levels of Strategy
Corporate-level strategy Business-level strategy Operational strategy

A Model of Strategic Management

Strategy Subject (Evolution)

1960s 1960s-1970s Post 1970s 1980s 1980s 1990s More recently Common-sense experience (Business Policy) Analytic approach, opportunities/threats (Corporate Planning) Analytic approach, but based on evidence Understanding managerial processes of decision making (Quinn/Mintzberg) Competitive advantage (Porter) Resource-based theories (Hamel/Prahlad) Ecosystem framework (Stacey, Brown and Eisenhardt)

Strategy Development
Strategy Development Process Strategic planning systems Strategic leadership Implications for strategy development Strategic management in uncertain and complex conditions.

Strategic Position
Environmental analysis the PESTEL framework Industry analysis the five forces framework Competition SWOT.

Strategic Capability
Critical success factors The strategic importance of resources available resources threshold resources unique resources.

Communicating Strategy
Purpose Vision (Strategic Intent) Mission Objectives

Strategic choice
Corporate level/ Business level strategies Grand/ Alternate strategies Strategies Competition & Collaboration Competitive strategies Competitive advantage

Challenges of Strategic Management

Preventing strategic drift failure to address the strategic position Need to understand and address contemporary issues the poses challenge (Globalization, ecommerce, changing purposes and knowledge learning)

Analyzing a Strategy Case

Be clear about what question you are trying to answer Analyze the history and development of the company and the situation Evaluate the companys internal capabilities (strengths and weaknesses) Analyze the companys external environment (opportunities and threats) Evaluate your SWOT analysis Analyze the companys strategy and business model Identify strategic options Evaluate strategic options Make recommendations Present your action plan (outlining activities in each area)