Lecture 2 - Design school + Planning school + Positioning school Flashcards
(!) Describe the design school in general
General:
- Prescriptive
- Strategy formation: Process of conception: Dansk: Forestilling
- Deliberate: Control
- Match internal capabilities & external possibilities
- VRIO + PESTEL = SWOT
- Strategies as clear, simple & specific
- Focus on formulation
- Unique, tailormade strategy
- Done by TM
Include:
- Criteria: C-C-A-F
- Assumptions: D-O-E-S-F-I
Conditions:
- Stable & predictable environment
- Organization accept centralized strategy
- New organizations
- All knowledge handleable by one brain
(.) Describe the basic design school model
- External appraisal: PESTEL
- Internal appraisal: VRIO
- Social responsibility: Function or perception of ethics by managers
- Managerial values: Values & beliefs of those formally leading firm
(.) Describe the environmental variables
General:
- Ref. PESTEL
Societal changes:
- Customer preferences
- Population trends
Governmental changes:
- New legislation
- New enforcement priorities
Economic changes:
- Interest rate
- Exchange rate
- Real personal income changes:
Competitive changes:
- New technologies
- New competitors
- Changed price
- New products
Supplier changes:
- Changed input costs
- Changed supply
- Changed amount of suppliers
Market changes:
- New use of products
- New markets
(!) What are the criteria for evaluating strategies in the design school?
Consistency:
- No mutually inconsistent goals or policies
- May lack info
Consonance: Dansk: Samklang
- Require adaptive response to internal & external changes
- Yet complex
Advantage:
- Create and/or sustain competitive advantage
- May lack info on competitors
Feasibility: Dansk: Gennemførlighed
- No overtax of resources or create unsolvable subproblems
(!) Describe the different assumptions of the design school
Formulation should be deliberate process of conscious thought:
General
- Reasoning actions
- Tight controlled thinking process: Deliberate
- Strategy formally learned, not natural skill or intuitive
Critique:
- Overlook learning
- Overlook new things
- Debatable extend of knowledge
___________
CEO responsible for strategi:
General:
- Top-down
- Minor interactions & inputs
___________
One of a kind strategies:
General:
- Strategy tailored to case
- Build on competence
___________
Explicit strategies:
General:
- Simplicity despite complexity
- Understandability by communication
Critique:
- Inflexible: Danger if uncertainty
- Act as blinder
___________
Simple & informal strategy formation:
General:
- Strategy is a working conceptual scheme
- Avoid elaboration & formalization
- Balance non-conscious intuition & formal analysis
___________
Process complete when strategy fully formulated:
General:
- Little emergent strategies during or after implementation
- Strategy as ultimative choice: “Big picture”
Critique:
- No “one best way” making strategies
___________
Implementation only when full strategy formulation:
General:
- Structure follow strategy
Critique:
- Assume stable & known environment
- Separate formulation & implementation detach thinking from acting
- Organization handle what strategy propose
(!) Describe the advantages & disadvantages of the design school
Advantages:
- Introduced vocabulary for strategy
- Introduced strategy as guiding concept
- Introduced importance of fit between strategy & environment
- Created foundation to other prescriptive schools
Disadvantages:
- Overlooks incremental or emergent part of strategy
- Overlooks existing structure
- Overlook participation
- Overlooks learning: Instead conception
(!) Describe the planning school in general & conditions
General:
- Prescriptive
- Strategy formation: Formal process
- Deliberate: Controlled & conscious
- Detached & systematic, step-wise process of strategy making
- Strategy supported by checklists & analytical techniques
- Strategies into objectives, budgets, programs & operating plans
- Disaggregate through units: CEO supervise, Staff drive it
Conditions:
- Stable, controllable environment
- If incremental steps not possible
(.) Describe the root dimensions of the planning school
Base discipline:
- Systems Thinking
- Cybernetics
- Urban Planning
Champions:
- Professional Managers
- Staff Experts
- Consultants
Intended message:
- Formalize
Realized message:
- Program
(.) Describe the strategic planning model
Set objectives:
- Staff planners
Begin SWOT model:
- Analyse/study
- (Would be improved if prioritized order)
Divide into neatly
delineated steps:
- Market data
- Consumer trends
- Demographic trends
- Economic conditions
- Social trends
- New technology
- Political trends
- Competitor behaviour
Checklists & techniques:
- Crunch the numbers
- Build models
- Forecast the future
Operating plans & budgets:
- Develop optimal strategy
(.) Describe the different stages in the planning process
Objective-setting:
- Quantify goals to objectives: For control
External audit:
- Forecast future conditions
- (Moving average, Scenario analysis, competitor analysis)
Internal audit:
- Strengths & weakness checklist
Evaluation:
- Formal measures
- (Competitive strategy valuation, risk analysis, value curve, value creation)
Operationalization:
- Decompose into sub strategies
Scheduling:
- Planning plan
(!) Describe the strengths, weaknesses & fallacies of planning school
Strengths:
- Encourage examination of strategic issues
- Useful datainput in beginning of strategic process
- Analytical investigate of current strategies
Weaknesses:
- Low pay-off
- Calculation > Commitment
- Inflexible
- Treat people as resources
- Often just ritual exercise
- Challenge when unplanned troubles
- Tools steal focus
- Complex to change: Yet IT may give it a come-back
- No learning
Fallacies:
- Strategi planning not equal strategy making
- Planning is feasible if future is known
- Detachment: Let system think since people is unreliable
- Formalization: Info processing will produce understandability
(!) Describe the positioning school in general
General:
- Prescriptive
- Deliberate: Control
- Strategy formation: Analytical process
- Assume one best strategy given conditions: Based on all info
- Strategies as generic options
- Strategy process: Select position based on analytical calculations
- Analysts play major role: Make models to managers decisions
- Market drive strategy which drive organizational structure
- Done by TM
- (Strategy content > Strategy formation)
- (Marketplace is economic & competitive)
Key words:
- Porters five forces
- Generic strategy
- Strategy group
- Competitive analysis
- Portfolio
- Experience curve
(.) Describe the root dimensions of the positioning school
Base discipline:
- Economics
- Military history
Champions:
- Analytical staff
- Consulting Boutiques
- Military writers
Intended message:
- Analyze
Realized message:
- Calculate
(!) Describe the difference between strategic & tactical choices
Strategic choices:
- Long-term impact
- Changes in equipment & personnel: Major
- Impact on competitive position: Significant
Tactical choices:
- Short-term impact
- Changes in equipment & personnel: Incremental
- Impact on competitive position: Minor
(.) Describe the BCG growth-share matrix
(General:)
- Allocation of funds to different businesses
- Systematic framework
- Succes if portfolio with different growth rate & market shares
(Types:)
- Stars: Assure future
- Cash cows: Supply funds for future growth
- Problem child: Can be stars if added funds
- Dogs: Not necessary
(.) Describe strategic groups
(.) Describe prisoners dilemma
(.) Describe the matrix of strategy content research in the positioning school
Single static research:
- Generic strategy
Cluster static research:
- Strategic group
Single dynamic research:
- Turnaround strategy
- Mover advantages
- Game theory
- Eg. breakthrough in technology
- Eg. New competitive attack
Cluster dynamics research:
- Most difficult
- Life cycle
