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Part 1: The Different Schools of Strategy
The document discusses the nature of strategy, emphasizing that it is not just a plan but an interpretative process influenced by various internal and external factors. It briefly outlines different schools of thought regarding strategy, including deliberate planning, emergent patterns, and the role of power dynamics within organizations. Ultimately, the text suggests that effective strategy formulation requires understanding both past patterns and future opportunities while navigating a complex landscape of competing interests.
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Part 1: The Different Schools of Strategy
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- 5. “In truth wehad no strategy other than the idea of seeing if we could sell anything in the United States”
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- 8. WEAKNESSES B.A ain’t goingin no plane STRENGTHS Welding Murdoch’s Mad OPPORTUNITIES Old school bus & some scrap metal THREATS Villagers kidnapped by outlaws INTERNAL CAPABILITIES EXTERNAL CONDITIONSPLAN
- 9. A strategy isa a one of a kind response to a specific situation It is a simple and informal process of conscious thought It is the sole responsibility of the strategist Implementation can only happen after strategy is fully formulated
- 12. The Demand Chain TheMcCann WorldGroup Way Brand Building the Nestlé Way The Virgin Way The Profero Way The Diageo Way of Brand Building The Lowe Institute Toolkit Unilever’s Crafting Brands For Life The VCCP Methodology
- 13. Produce each ofthe component parts, assemble and hey presto: strategy. For clients, often closely linked with budgeting process But analysis is not synthesis
- 15. MASS NICHE UNDIFFERENTIATED DIFFERENTIATED COST FOCUS PIONEER PREMIUMNICHE COST LEADERSHIP FAST FOLLOWER
- 16. Market structure drivesdeliberate positional strategies There are limits to the desirable strategies in any given situation End up with a basic number of “generic” strategies But unable to distinguish getting there from being there
- 18. Long Legs Short Legs Notpowerful Powerful Tortoise Panther Hare
- 20. Searching for newopportunities from doing something new or something in a new way Requires vision: insight / foresight The process is semiconscious at best Deliberate in overall vision, emergent in how details unfold An agile, responsive structure is desirable Dramatic leaps forward are possible in the face of uncertainty
- 21. WHAT IS STRATEGY? APOSITION?A PLAN? A PROCESS? A PERSPECTIVE?
- 22. HOW IS STRATEGYDONE?
- 24. YOU’RE BIASED Search forsupporting evidence Inconsistency Conservatism Recency Availability Anchoring Illusory correlations Selective perception Regression effects Attribution error Wishful thinking & optimism Underestimating uncertainty
- 26. Strategic decision makingis not rational but a vain attempt to be rational Concepts, maps & frames are distortions of the world Strategy is interpretative Information > Shared meaning > Frame > Socialise > Decide > Act
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- 28. THE LEARNING SCHOOL Strategyis the process of learning over time Behaviour stimulates thinking retrospectively Novel strategies emerge At the limit, strategy formation & implementation are indistinguishable Strategies appear first as patterns out of the past, only later as plans for the future, and ultimately perspectives to guide overall behaviour
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- 32. THE POWER SCHOOL Organisationsconsist of individuals with dreams, hopes, jealousies, interests and fears Developing strategy is a political process There are coalitions of interest groups with enduring differences in values, beliefs, interests and perceptions of reality Who gets what Goals and decisions emerge from bargaining, negotiation and jockeying
- 33. HOW IS STRATEGYDONE? POWER GAMES? MENTAL CONCEPTION? EMERGENT PATTERNS?
- 34. IS THERE AGRAND UNIFIED THEORY?
- 37. Purpose of strategyis to maintain stability but to periodically recognise the need for transformation There’s a time and a place for each approach Defend, Prospect, Analyse & React
- 38. STABILITY <> CHANGE PROCESSPOSITIONPLAN PERSPECTIVE POWER GAMES EMERGENT PATTERNS MENTAL CONCEPTION