NEIL RITSON STRATEGIC MANAGEMENT Download free eBooks at bookboon.com Strategic Management 2nd edition © 2017 Neil Ritson & bookboon.com ISBN 978-87-403-0506-7 Download free eBooks at bookboon.com STRATEGIC MANAGEMENT Contents CONTENTS 1 Introduction Why Strategy? The Formulation of Strategy Schools of strategy 11 Levels of strategy 14 Process of strategy 17 Types of Strategy 25 Stakeholder theory 30 External Analysis 34 10 Internal Analysis 41 www.sylvania.com We not reinvent the wheel we reinvent light Fascinating lighting offers an infinite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges An environment in which your expertise is in high demand Enjoy the supportive working atmosphere within our global group and benefit from international career paths Implement sustainable ideas in close cooperation with other specialists and contribute to influencing our future Come and join us in reinventing light every day Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more STRATEGIC MANAGEMENT Contents 11 Integration 46 12 Human resources management HRM 49 13 Culture 54 14 SWOT Analysis 67 15 Generic Strategy 71 16 Managing change 76 17 Growth and Decline 86 18 Globalization and International Strategy 96 19 The Basis of Strategy: Structure 104 20 References 119 Download free eBooks at bookboon.com STRATEGIC MANAGEMENT Introduction 1 INTRODUCTION This compendium provides a comprehensive overview of the most important topics covered in a strategict course at the Bachelor, Masters or MBA level The intention is to supplement renowned strategy textbooks This compendium is designed such that it follows the structure of a typical strategy course Throughout this compendium theory is supplemented with examples and illustrations Download free eBooks at bookboon.com STRATEGIC MANAGEMENT Why Strategy? WHY STRATEGY? In ancient Greek, ‘stratos’ was the term for the army and so in military terms, ‘strategy’ referred to ‘the act of the general’ So, the origins of ‘strategy’ – the ‘art of the general’ – comes from the military arena – from China came “The Art of War” by Sun Tzu, from Prussia came “On War’ by Carl von Clausewitz In recent times the defeat of the Nazi regime in Germany was arguably due to a dire strategy by the leader of fighting a war on two fronts – West (USA, UK) and East (Russia) – so while the armed forces were highly skilled and had technological superiority the strategy was a huge mistake Strategy nowadays is ‘big stuff’ – the top levels of the organisation are generally involved in preparing plans for the future – for finance, and growth by acquisitions, innovation in products, developing new markets and increasing internal efficiency The recent rise of Apple is due to a combination of these factors Download free eBooks at bookboon.com STRATEGIC MANAGEMENT The Formulation of Strategy THE FORMULATION OF STRATEGY Introduction There is a need in modern times for strategies to achieve agreed goals and objectives, giving a sense of purpose and direction to the organisation, because of recent technological and social changes and competition from rival organisations So a strategy is some sort of future plan of action, usually understood as being undertaken by senior management at a high level of abstraction Note this is not always the best definition of strategy, as we will see later when we discuss levels of strategy Different Definitions A strategy is “The art of war*, especially the planning of movements of troops and ships etc., into favourable positions; plan of action or policy in business or politics etc.” – Oxford Pocket Dictionary We don’t usually use dictionaries in academic work – but this is the history of the word *You can refer to The Art of War by Sun Tzu Here are some alternative definitions: Hofer and Schendel define it as “the mediating force or ‘match’ between the organisation and the environment.” – Hofer and Schendel 1979 Download free eBooks at bookboon.com STRATEGIC MANAGEMENT The Formulation of Strategy Alfred Chandler Jr suggests: “the determination of the basic-long term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals” – Chandler (1962) (Alfred Chandler Jr is one of the most famous researchers in strategy) Porter relates strategy to the success or failure of a company “obtaining a competitive position or series of competitive positions that lead to superior and sustainable financial performance” – Michael E Porter (1991) (Porter is even more famous than Chandler now – see “Positioning School” later) Quinn stresses integration: “the pattern or plan that integrates an organization’s major goals, policies and action sequences into a cohesive whole…strategy helps marshal and allocate an organization’s resources into a unique and viable posture.” – James Brian Quinn, Strategies for Change: Logical Incrementalism (1980) Andrews stresses the “raison d’être”, the reason for being: “the pattern of objectives, purposes, or goals and the major policies and plans for achieving these goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be.” – Kenneth Andrews, The Concept of Corporate Strategy (1971) Download free eBooks at bookboon.com STRATEGIC MANAGEMENT The Formulation of Strategy Walt Disney’s Peter Pan • • • • Lost Boy: “Injuns! Let’s go get ’em!” John Darling: “Hold on a minute First we must have a strategy.” Lost Boy: “Uhh? What’s a strategy?” John Darling: “It’s, er…It’s a plan of attack.” – (from Grant 2004) (Robert Grant is famous for the “Resource-based school” and for his work on the oil industry He quotes Peter Pan in a lighter vein!) Mintzberg and Waters (1985) suggested there are several major ways to look at strategy, and identified nine types of strategy Mintzberg and others increased these by one to 10 in later books We don’t need to bother about them now However, a major distinction Mintzberg and Waters made is that strategies can ‘emerge’ over time by a series of actions which are related by some internal managerial culture or paradigm This is not about strategy being flexible, but invisible! This is discussed later Download free eBooks at bookboon.com 10 ... RITSON STRATEGIC MANAGEMENT Download free eBooks at bookboon.com Strategic Management 2nd edition © 2017 Neil Ritson & bookboon.com ISBN 978-87-403-0506-7 Download free eBooks at bookboon.com STRATEGIC. .. turnover & absenteeism Download free eBooks at bookboon.com 16 STRATEGIC MANAGEMENT Process of strategy PROCESS OF STRATEGY Strategic management is the organised development of the resources of... free eBooks at bookboon.com STRATEGIC MANAGEMENT Introduction 1 INTRODUCTION This compendium provides a comprehensive overview of the most important topics covered in a strategict course at the