PRESENTATION SLIDES

 To accompany:

 

Contemporary Strategy 

Analysis

 (6

th

 edition, Blackwell Publishing, 2008)

Robert M. Grant

Robert M. Grant

Assisted by Kate Grant

 

 

The Concept of 

Strategy

The Concept of 

Strategy

• The role of strategy in success
• A framework for strategy analysis
• The evolution of strategic management
• Corporate strategy and business strategy
• Strategy making: Design or process?
• The role of strategy

OUTLINE

OUTLINE

 

 

Components of 

Success

Components of 

Success

MADONNA

GIAP & NORTH 

VIETNAMESE

LANCE ARMSTRONG

GOALS

Single-minded quest 
for stardom.

Reunification of 
Vietnam under 
Communist rule.

Winning the Tour de 
France

UNDER-
STANDING 
THE 
ENVIRONMEN
T

Identified emerging 
trends in popular 
culture. Understood 
key success factors 
in showbiz 

Intimate 
knowledge of 
terrain 
Understanding 
U.S. political 
system.

Diagnosis of the 
physical,  
psychological and 
strategic 
determinants of 
individual and team 
performance

RESOURCE 
APPRAISAL

Recognized limited 
raw talent. Exploited 
strengths in self-
promotion, product 
development & 
relationship 
management

Recognized 
economic and 
military 
weaknesses and 
core political 
strengths

Systematic 
development of 
individual stamina 
and team 
capabilities 

IMPLEMENT- 
ATION

Commitment and 
discipline. 
Charismatic 
leadership. Team 
building. Attention to 
detail.

Tight control. 
Long-term 
commitment. 
Effective 
propaganda. 
Inspirational 
leadership.

Clear delineation of 
individual roles. 
Alignment of 
incentives with 
team goals. 
Nurturing esprit de 
corp

 

 

Successful

 Strategy

Long-term, 

simple and 

agreed 

objectives

Profound 

understanding 

of the 

competitive 

environment

Objective 

appraisal of 

resources

What Makes a Successful 

Strategy?

What Makes a Successful 

Strategy?

EFFECTIVE IMPLEMENTATION

 

 

What is Strategy?

What is Strategy?

• Distinguishing strategy from tactics

:

– Strategy is the overall plan for deploying 

resources to establish a favorable position.

– Tactic is a scheme for a specific maneuver.

• Characteristics of strategic decisions:

– Important.
– Involve a significant commitment of 

resources.

– Not  easily reversible.

 

 

The Evolution of Strategic 

Management

The Evolution of Strategic 

Management

DOMINANT

THEME

1950s

1960s-early 70s

Mid-70s-mid-80s     Late 80s –1990s

     2000s

Budgetary

Corporate

Positioning

  Competitive Strategic

planning &

planning

  advantage

innovation
control

      

         
Financial

 Planning

Selecting

  Focusing on Reconciling

control

 growth

&-   

sectors/markets.    sources of      

size with

diversification  Positioning for   competitive

flexibility &

leadership

  advantage

agility

Capital 

Forecasting.

Industry analysis

  Resources 

&

Cooperative

budgeting. 

Corporate  

Segmentation   capabilities.  strategy.

Financial 

planning. 

Experience curve

  Shareholder 

Complexity. 
planning 

Synergy

Portfolio analysis

  value.

Owning 

  E-commerce.  standards.
  — Knowledge Management

— 

Coordination

Corporate

Diversification. 

  Restructuring. 

Alliances &

& control by

planning depts.

Global strategies.  Reengineering.

networks

Budgeting

created. Rise of

Matrix structures

  Refocusing.

Self -organiz

systems 

corporate

  Outsourcing.  ation 

& virtual

planning

 

organization

MAIN

ISSUES

KEY 

CONCEPTS

&

TOOLS

MANAGE-

MENT

IMPLIC-

ATIONS

 

 

The Basic Framework

Strategy: the Link between 

the Firm and its 

Environment

The Basic Framework

Strategy: the Link between 

the Firm and its 

Environment

 

THE FIRM

 • Goals & 
   Values

• Resources &
  Capabilities
• Structure & 
  Systems

 

THE FIRM

 • Goals & 
   Values

• Resources &
  Capabilities
• Structure & 
  Systems

         THE 
    INDUSTRY
ENVIRONMENT

• Competitors
• Customers
• Suppliers

         THE 
    INDUSTRY
ENVIRONMENT

• Competitors
• Customers
• Suppliers

STRATEGY

STRATEGY

STRATEGY

 

 

Sources of Superior 

Profitability

RATE OF 

PROFIT ABOVE 

THE 

COMPETITIVE 

LEVEL

How  do 

we make 

money?

INDUSTRY

ATTRACTIVENES

S

Which 

businesses 

should we 

be in?

COMPETITIVE 

ADVANTAGE

How should 

we 

compete?

CORPORATE 

STRATEGY

BUSINESS 

STRATEGY

 

 

Strategy Making : Design or 

Process?

Strategy Making : Design or 

Process?

Strategy as 

Design

Planning and

rational choice

INTENDED
STRATEGY

Many decision makers

responding to multitude of

external and internal forces

REALIZED 

STRATEGY

EMERGEN

T

 

STRATEGY

Strategy as 

Process

Mintzberg’s Critique of Formal Strategic Planning:

•The fallacy of  prediction – the future is unknown

•The fallacy of detachment  -- impossible to divorce 
formulation from
  implementation

•The fallacy of formalization --inhibits flexibility, 
spontaneity,
  intuition and learning.

Mintzberg’s Critique of Formal Strategic Planning:

•The fallacy of  prediction – the future is unknown

•The fallacy of detachment  -- impossible to divorce 
formulation from
  implementation

•The fallacy of formalization --inhibits flexibility, 
spontaneity,
  intuition and learning.

 

 

Strategy Making Processes 

within the Company: Multiple 

Roles of Strategy

Strategy Making Processes 

within the Company: Multiple 

Roles of Strategy

Strategy as Decision
Support

Strategy as Coordination
and Communication

 Strategy as Target

    Improves the 
quality
of decision making

    Creates consistency
and unity

           Improves perform-
      ance by setting 
high aspirations

 

 

The Role of Analysis

The Role of Analysis

• Strategy analysis improves decision 

processes, but doesn’t give answers.

• Strategy analysis assists us to identify 

and understand the main issues.

• Strategy analysis helps us to manage 

complexity.

• Strategy analysis can enhance flexibility 

and innovation by supporting learning.