Ideas importance of promoting diversity to promote

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Ideas: importance of promoting diversity, to promote new ideas which solve uncertainty and problems as they arise Discourse: language to shape strategy/ guide via influence, power, legitimacy Hambrick and Fredrickson Framework Strategy is ubiquitous Problems of piecemeal strategies - Service strategy, branding strategy, acquisition strategy etc. “When executives call everything a strategy and end up with a collection of strategies, they create confusion and undermine their own credibility” Putting strategy in its place
BUSS1000 | Future of Business Strategy Diamond (Hambrick and Fredrickson) “If a business must have a single, unified strategy, then it must necessarily have parts Diamond presents a framework for strategy design that has five elements: - Arenas : Where will we be active? Which product categories? Which product segments? Which geographical areas? Which core technologies? Which value creation changes? - Vehicles : How will we get there? Internal development? Joint ventures? Licensing/ franchising? Acquisitions? - Differentiators : How will we win the marketplace? Image? Customisation? Price? Styling? Price reliability? - Staging : What will be our speed and sequence of moves? Speed of expansion? Sequence of initiatives? - Economic logic : How will we obtain our returns? Lowest cost through scale advantages? Lowest costs through scope and replication advantages? Premium price due to unmatchable service? Premium prices due to proprietary product features? Testing the quality of your strategy: Does your strategy fit with what’s going on in the environment? Does your strategy exploit your key resources? Will your envisioned differentiators be sustainable? Are the elements of your strategy internally consistent? Do you have enough resources to pursue the strategy? Is your strategy implementable? Things to remember: Integrated, mutually reinforcing set of choices that form a coherent whole Can make sense retrospectively but real power is looking at current shifts - Be wary of “outcome bias” “it turned out fine in the end” Past performance should not be used as an indicator for future performance - Context is key - Critically evaluating whether this is the best decision, right now Contexts, organisations or strategy are not static Feedback loops and performance measurements must be built into the strategy itself: - Not enough to measure at the end - You need to purposely create processes for evaluation - How quickly can we know what is working or not working - Make sure you know what to do in case your strategy is not working - Sometimes you get it wrong - Be aware of sunk cost fallacy Limitations and critiques of Strategic Diamond Correct use of each and every other analysis must be done Produces only a snapshot - Only constant, is change - Strategy must evolve and be dynamic Can lead to excessive rigidity Think carefully about how long your strategy is valid for and whether it is industry dependent
BUSS1000 | Future of Business Feedback loops and revision are not embedded in the model

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