B301 Making sense of strategy (Tutorial 4) Tutor: Dr Garry Elliott Reading 4th March 2017 By the end of the tutorial we will have: Thought about the exam Looked back at Block 3 and TMA03 Consolidated learning from start of Block 5 Looked ahead to rest of Block 5 and Block 6 Have a clear understanding of TMAs 05 and 06 2
Exam question Daft word who would deliberately use inappropriate examples?!! Using examples as appropriate, explain the importance of the stakeholder environment to strategists. Is this different from the importance of stakeholders to strategists. Always, always use examples even when they
are not asked for. Interesting word what are we talking about here? Impact? Influence? Salience? Not just anyone to strategists! Need to overtly link to strategic management Exam question Using examples as appropriate, explain the importance of the stakeholder environment to strategists. Not Write a few general points about
stakeholders in organisations Exam question To maximise your mark notice the details (e.g. importance to Strategists) Use the course (Freeman, Hitt, Lynch, Winstanley, Mitchell and Agle, Johnson and Scholes) Intro grab the marker Define stakeholders (Freeman? Diagram) How do they impact on strategy (Johnson and Scholes?) They differ and compete (Lynch, Hitt) and strategist need to prioritise and balance them (Winstanley, Mitchell and Agle) True for all organisations (not just businesses) large/small national international profit making/nfp Examples Conclusion making your view of the importance clear. Simples! Stakeholder environment? Courts Government
Councils Victims Criminals Freeman 1984 Police force Media Public TMA 03 Garrys group TMA 03 Mean = 62 Median = 60 Range 40 80 N = 31
TMA 03 - B301 concepts Part A (27 concepts) Part B (23 concepts) Porter Hitt Grant (drivers of cost) Bourgeois SAFe Ansoff Barney Markides Barney Eisenhardt, STEP, 5F Eisenhardt Simon (rational process) Simon (BR and Satisficing) Gore
Hammond Balogun Whittington Noorderhaven Elbanna Ansoff, Pfeffer, Weick TMA 03 common weaknesses Sharing weaknesses? Answers rooted in an idea of good and bad More effort on the examples than on the theories Not considering the reasons why Porter thought that being stuck in the middle was a problem Not taking sufficient account of strategic decision making TMA 03 Part 1 Common structure Explain/define competitive strategy (Bourgeois)
Explain Porters generic strategies Give examples of cost leaders/differentiators Explain Porters caution against being stuck in the middle Explain Hitts integrated strategy Give examples of integrated strategies Conclude that integrated strategy is possible for some. TMA 03 Part 1 Common structure Explain/define competitive strategy (Bourgeois) Explain Porters generic strategies Give examples of cost leaders/differentiators Explain Porters caution against being stuck in the middle Explain Hitts integrated strategy Give examples of integrated strategies Conclude that integrated strategy is possible for some. Structured focused use of B301 a clear pass about 55/100. Part 1 developed structure
Explain/define competitive strategy (Bourgeois) Explain Porters generic strategies Grants ideas about drivers of cost. Mintzberg about sources of differentation Give examples of cost leaders/differentiators applying Grants or Mintzbergs ideas Explain Porters caution against being stuck in the middle Why did he say this? Focus on competencies (Grant, Hamel) Examples of firms stuck in the middle (Tesco?) Explain Hitts integrated strategy Give examples of integrated strategies Whats changed (sophistication, technology, competition)? Was Porter wrong? If so, in what circumstances? Conclude that integrated strategy is possible except at extremes. Part 2 Possible structure?
Introduction Factors of strategic decision making Explain two approaches Discuss they come from different perspectives Strengths and weaknesses in relation to the factors of strategic decision making Conclusion complementary always present? Remembering Block 3 f f o s An Bal ogu n Eisenh
a r d t s i o e g r Bou SAFe Hitt Grant n . o l m i a
S t e d P u o o G rt e r Hammo nd w e Markides r g i t t e
e P r o G Process Group task How would you categorise the decision process(es) used by the teams in which you were involved during Block 4? What traps of Hammond did you fall into/did you avoid falling into? 10 minutes (possibly 15) Decision making Rational Bounded Rational. Satisficing Political
Sensemaking Hammond traps: Anchoring Sunk costs Status quo Confirming evidence Framing Blocks 2 and 3 Consider the key analysis tools and models which you encountered in Blocks 2 and 3. There are connections between them. In a small group, draft a map of these models and how they relate. Mitchell Salience
Friedman Grant Pfeffer Sull & Escobari Teece DAveni Winstanley Power Shareholders Speed of change STEP McGee CSR
International Freeman Vogul Parenting Where to compete Industry Analysis Choice VRIO etc KBV Spender Grant
Ansoffs matrix Hitt Pearce External KSF Barney Prahalad Penrose Grant Gould Stakeholders Groups Spender Grant
Porter How to compete RBV Generic strategies Porter Hitt Internal Value chain Implement Rationality Process
Porter Bounded rationality Satisficing Simon TMA 05 Selecting concepts from Block 5 as appropriate to your discussion, explain some common barriers to successful strategy implementation and how they may be overcome with regard to the BRF 2015 strategy for Brasil Foods. r u o b h g i
e n your h ? t i e You should write your answer as a report from the perspective of an e w s s
u e t o but y o d minu consultant to the board independent5strategy of directors s l l a f t i p , s
with appropriate academic referencing. Ensure that you make e i t l u c i f f i d relevant and critical m use s,of your selected concepts. e l b o
r p t a 2500 words h W Note this is a question about implementation not about BRF. TMA 05Use 301! Apply the ideas to BRF Selecting concepts from Block 5 as appropriate to your discussion, explain some common barriers to successful strategy implementation and how they may be overcome with regard to the BRF 2015 strategy for Brasil Foods.
Rewriting the question (always dangerous, but) You should write your answer as a report from the perspective of an Using the strategy course,consultant what barriers to implementation independent to the board of directors but could BRF expect how should they avoid/deal with appropriate academicand referencing. Ensure that
you make relevant and critical use of your selected concepts. with them? 2500 words It needs to apply the ideas to BRF but the course is more important than BRF. TMA 05 Guidance This question requires you to make it clear what aspects of the BRF 2015 strategy you think are likely to be problematic in implementation and what recommendations you would make to overcome such implementation problems. You also need to demonstrate how both problems and solutions relate to material in Block 5. The concepts you choose (both to clarify problems and suggest solutions) can be from anywhere in the Block but part of the challenge of the assignment is
to demonstrate your ability to select them appropriately and apply them with critical understanding, and practicality. This is a euphemism for should be from everywhere Block 5 explores Implementation Analysis Choice Implementation Johnson and Scholes (2006) Block 5: Strategic Implementation
Barriers to implementation Strategists as People Structure and Strategy Managing Strategic Change Alexanders five key obstacles to successful implementation 1. Key tasks are not defined in enough detail 2. Problems requiring intervention by top management were not communicated to them fast enough 3. Changes in roles and responsibilities were not clearly defined 4. The key formulators of the strategic decision did not play an active enough role in implementation 5. Major problems surfaced during implementation, which had not been identified beforehand B301 Block 5, Unit 1 Critically assess Alexanders proposition
Two groups to prepare an argument: 1.In support of Alexanders propositions 2.To critically appraise Alexanders propositions Arguments why Alexander may be right or wrong. Examples. Supporting or alternative views. Remember that critical thinking doesnt simply mean negative thinking. The aims of the course include: thinking strategically in the context of a case study (learning outcome 7) critical thinking, analysis and synthesis; including identifying and questioning assumptions, weighing evidence appropriately, identifying and challenging false logic or reasoning, and generalising in a way which recognises the limits of knowledge in strategy (learning outcome 8) evaluation and comparison of competing perspectives from a variety of sources, including some informed by current issues or research developments (learning outcome 9) the ability to argue relevantly and justify a point of view (learning outcome 10).
Facilitating Implementation Gantt Chart January February March April May Agree Terms Of Reference Literature Review Primary Research Consultati on Process Peer Research Production of Report However:
Unfortunately, no GANTT chart survives contact with reality. No plan can anticipate every event that might help or hinder a company trying to achieve its strategic objectives Sull et al. (HBR March 2015 p.61) Control Loop Possible action: Adjust task/resources Possible action: Do nothing People middle managers In a small group Why should middle managers be seen as strategists? 10 minutes
Strategy creation (Traditional view) Top team Strategy Middle Operations Implements Strategy creation Top team Strategy Interprets Middle Operations Implements
alternatives Facilitating adaptability Synthesising information Implementing Deliberate strategy Cognitive Integrative Floyd and Wooldridge 1994 Downwards Strategy creation Top team
Champions Information Strategy Middle Implements Interprets Facilitates Operations Looking ahead Structure Does structure follow strategy? In your group, discuss and decide your argument in favour of one of the axioms below. Structure follows
strategy Strategy follows structure (Chandler) (Mintzberg) If I was a betting man .. I would put an each-way bet on structure being in the exam. Organisation Page 58/59 Block 5 Centralise Collaborate
Strategic Head Middle Management t or pp Su Te ch no st ru ct ur e Standardise
Balkanise Operating core Professionalise Mintzberg Ideology Evangelise Te ch no Strategic Head Middle Management
Operating core Mintzberg Ideology t or pp Su st ru ct ur e Police Force (Machine bureaucracy) Te ch
no Strategic Head Middle Management Operating OperatingCore core Mintzberg Ideology t or pp Su st
ru ct ur e Hospital (Professional bureaucracy) Te ch no Strategic Strategic Apex Head Middle Management Operating core Mintzberg
Ideology t or pp Su st ru ct ur e Entrepreneur (Simple structure) More on structure Chat with your neighbour What are the three sorts of separation discussed by Raisch?
Why is the idea of separation important? Temporal Separation Organisations change back and forth between different corporate structures Decentralisation is used to ignite innovation and change: centralisation to increase coordination and efficiency Exploitation and exploration are emphasized sequentially rather than simultaneously Structural Separation
Organisations are divided into two (or more) separate units with different structures at the same time Flexible innovative units explore new areas for growth, while more formal operational units ensure efficient organisations in the existing businesses Exploitation and exploration are addressed by different employees and organisational units Remember that this is how Xerox set up the Palo Alto Research Centre (the PARC) and failed to take advantage of its innovations. Parallel Structures
Organisations create supplemental network structures to compliment the formal primary structure Employees switch between the two types of structures depending on their respective tasks Exploitation and exploration are addressed by the same employees, but in different structural environments This is what 3M and HP do (allegedly) Block 6: Contemporary directions in Strategy
o t r o , n Strategy and the future a t m a h g t n Forecasting t i t c t
m i e o d r b e f r Quantitative forecasting a n p o e i o t t b
s , e o g t Qualitative forecasting u n i q d n e e n e n a l n
Scenario o planning p t t o s o i n a r e a o l n d t I Newsunderstandings
of. ce be a m a x e l l s e i Strategy u e w h t e r n e
i Complexity h Theory t 6 k c o l Strategy B as discourse Critical management studies TMA 06 To what extent might applying complexity theory enhance the formation and implementation of strategy in an organisation? Use examples drawn from your experience and/or reading to support your argument. 2000 words
TMA 06 To what extent might applying complexity theory enhance the formation and implementation of strategy in an organisation? Use examples drawn from your experience and/or reading to support your argument. 2000 words NOT Explain complexity theory! (Thats just the start) TMA 06 guidance Critical understanding of complexity theory Block 6 Unit 2, including Reading 18, Complex adaptive systems Complexity thinking casts new light on topics from earlier in the course Does complexity thinking challenge or complement other ideas Pascales (1999), Downs et al. (2003) and Carlisle (2010) Balance of points for and against a point of view in this case the extent to which complexity theory might enhance strategy formation and strategy implementation.
People working in the same organisation can have different interpretations of its strategy. Potential sources apart from any personal experience you may be able to draw on include media reports, magazines such as The Economist, and your learning Complexity theory in action? Scenarios are based around a focal question Scenario Planning In groups, critically assess the utility of scenarios such as those provided in the Rockefeller Foundation report Bedrock Principles of Complexity Equilibrium is a precursor to death for complex adaptive systems (so no growth is not an option) Complex adaptive systems have the capacity to organise themselves and generate more complexity (remember Mertons law of unintended consequences)
Complex adaptive systems tend to move towards the edge of chaos You cant direct a living system, only disturb it. Richard Pascale (1999) Surfing the edge of chaos. Other Block 6 Considerations Strategy as discourse Discourse see strategy as existing in talk so strategy is a fiction about the future Strategy and critical management studies Critical theorists see strategy as a way in which a small group expresses and legitimises its power over others CSR as a source of competitive advantage TMA05 6th April TMA06 11th May (Note no extensions) See you again on 6th May for exam preparation
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