Topic2.StrategyRevisited

Corporate strategy diversification vertical

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ns of the company •  Which industries should we be in? → Corporate strategy •  diversification, vertical integration, acquisitions, new ventures, divestments, allocation of scarce resources between business units •  Competitive position within an industry also matters •  How should we compete? → Business strategy •  cost leadership, differentiation, and their variations •  The detailed deployment of resources •  How to make the overall strategy work at the operational level → Functional strategy •  E.g. marketing strategy 12 UPF - International Strategic Management 2012 Implementing the Strategy Emergent vs intended!! •  Intended strategy: a strategy a firm thought it was going to pursue •  Deliberate strategy: an intended strategy a firm actually implements •  Unrealized strategy: an intended strategy a firm does not actually implement •  Emergent strategy: a strategy that emerges over time or that has been radically reshaped once implemented. •  Realized strategy: the strategy a firm is actually pursuing Henry Mintzberg 6 28/04/12 13 UPF - International Strategic Management 2012 Implementing the Strategy Intended strategy Realized strategy Deliberate strategy Unrealized strategy Emergent strategy UPF - International Strategic Management 2012 14 Implementing the Strategy You want to make the strategy as ‘intended’, BUT… “U.S. managers spend more than $10 billion annually on strategic analysis and strategy formulation. Managers themselves report that less than half the plans resulting from these efforts are ever implemented. Outside observers put the success rate even lower: less than 10%.” (Source: http://www.1000ventures.com) 7 28/04/12 UPF - International Strategic Management 2012 15 Implementing the Strategy Factors impeding strategy implementation: •  The organizational immune system •  Numerous complex variables •  The interconnectedness of elements affecting change >> Need to change everything at once UPF - International Strategic Management 2012 16 Implementing the Strategy What needs to be done to implement a strategy:   Build a firm capable of carrying out strategy successfully   Allocating sufficient resources to strategically critical activities   Institute best practices for continuous improvement   Establish reward structures   Create a strategy-supporting organizational culture   Enforce strategic leadership 8 28/04/12 GENERAL ENVIRONMENT VS INDUSTRY ENVIRONMENT UPF - International Strategic Management 2012 18 Opportunities &Threats: (SWOT - EXTERNAL) •  By examining opportunities, you can discover untapped markets, and new products or technologies, or identify potential avenues for diversification. •  By examining threats, you can identify unfavorable market shifts or changes in technology, and create a defensive posture aimed at preserving your competitive position. 9 28/04/12 19 UPF - International Strategic Management 2012 From Environmental Analysis to Industry Analysis Economic Political Social THE INDUSTRY ENVIRONMENT Technological * Suppliers * Competitors * Customers 20 UPF - International Strategic Management 2012 From Environmental Analysis to Industry Analysis Environmental Political Economic Technological Social Legal Ethical THE INDUSTRY ENVIRONME...
View Full Document

This note was uploaded on 10/18/2012 for the course BUSI 102 taught by Professor X during the Spring '12 term at Universitat Pompeu Fabra.

Ask a homework question - tutors are online