Process

• The Industrial Organization Approach
  • based on economic theory - deals with issues like competitive rivalry, resource allocation, economies of scale
  • assumptions - rationality, self interested behaviour, profit maximization
  • examples - M. Porter's 5 forces model, J. Barney's resource model
• The Sociological Approach
  • deals primarily with human interactions
  • assumptions - bounded rationality, satisficing behaviour, profit sub-optimality
  • examples - the Peter Principle

• Strategy as logical incremental steps
  • formal approach
  • 4 steps:
    • situation analysis including environmental scanning, internal resource assessment, industry or market research, competitor analysis, and customer marketing research
    • strategy development including determining vision, mission, objectives, and strategum generation
    • strategic plan including strategy specification and resource allocation
    • implementation, monitoring, adjustment, and control
• Strategy as revolution
  • more a mind-set than a formal technique
  • not rule or ritual oriented, not reductionist, not reactive, not autocratic
  • identify the unquestioned beliefs in your industry and challenge them - Look for opportunities to re-write the rules of the industry
  • look for major discontinuities in technology, lifestyle, habits, and geopolitics, and embrace the change wholeheartedly - Do not waste time making small incremental adjustments - Be prepared to create a completely new business model at any time

• Environmental scanning
• SWOT (Strengths, Weaknesses, Opportunities, Threats)
• GTSM (Goals, Targets, Strategies, Measures)

• a good fit between the business environment and a companies resources and core competency - It must be feasible and appropriate
• capable of providing the company with a sustainable competitive advantage - It should be unique and sustainable
• dynamic, flexible, and able to adapt to changing situations and value migrations
• sufficient on its own - ie.: profitable without cross-subsidization

• Failure to understand the customer
  • why do they buy
  • is there a real need for the product
  • inadequate or incorrect marketing research
• Inability to predict environmental reaction
  • what will competitors do
    • fighting brands
    • price wars
  • will government intervene
• Over-estimation of resource competence
  • can the staff, equipment, and processes handle the new strategy
  • failure to develop new employee and management skills
• Failure to coordinate
  • reporting and control relationships not adequate
  • organizational structure not flexible enough
• Failure to obtain senior management commitment
  • failure to get management involved right from the start
  • failure to obtain sufficient company resources to accomplish task
• Failure to obtain employee commitment
  • new strategy not well explained to employees
  • no incentives given to workers to embrace the new strategy
• Under-estimation of time requirements
  • no critical path analysis done
• Failure to follow the plan
  • no follow through after initial planning
  • no tracking of progress against plan
  • no consequences for above

• strategic management
• marketing
• marketing plan
• Porter 5 forces analysis
• Porter generic strategies
• scenario planning
• marketing strategies
• business plan

• list of management topics
• list of marketing topics
• list of human resource management topics
• list of economics topics
• list of finance topics
• list of accounting topics
• list of information technology management topics
• list of production topics
• list of business law topics
• list of business ethics, political economy, and philosophy of business topics
• list of business theorists
• list of economists
• list of corporate leaders
• list of companies