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Source of ppt
ppt:: Exploring Corporate Strategy
7th Edition
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Definition of Strategy
I. Strategy is the direction and scope of an
organisation over the long term, which achieves
advantage in a changing environment through
its configuration of resources and competences
with the aim of fulfilling stakeholder expectations.
II. Strategy is the art and science of how one
company outperforms its competitors and itself, as
measured by its profitability.
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Strategic decisions
Exhibit 1.1
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Be complex in nature
Be made in situations of uncertainty
Affect operational decisions
Require an integrated approach (both inside and
outside an organisation)
Involve considerable change
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LEVELS OF STRATEGY
Corporate level
Operational
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Exhibit 1.2
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Routinised
Conceptualisation of issues
Ambiguous/uncertain
Operationally specific
Long term
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Exhibit 1.3
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Strategic Choices
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Intended strategies
Deliberate management intent
Emergent strategies
Develop out of social and political processes in and
around organisations
60/70s
Corporate planning
1980s
Adaptive processes
(Quinn)
1980s
Market positioning
(Porter)
1980s
Resource based
theory (Hamel,
Prahalad)
1990s
Firms as organisms
(Eisenhardt,
Stacey)
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Multinational
Corporation
Diverse products/markets/businesses.
Structure/control/parenting. Competitive strategy. Portfolio
management. Resource coordination.
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Voluntary
and NotNot-for
for-Profit
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Exhibit 1.4
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Internationalisation
Size of market
Range of competitors
Relationships overseas
Institutional/cultural
orientation to strategy
and profit orientation
E-Commerce
Speed and direction of
technology change
Expectations about
how to do business
E-commerce capability
Service small markets
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Changing purposes
Change from pure
profit driven
Corporate scandals
Corporate social
responsibility
AND drive for
shareholder value
Public sector more
business-like target
setting and service
orientation
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Simple rules
Source: Reprinted with permission from Harvard Business Review. Adapted from K.M. Eisenhardt and D.N. Sull, Strategy as simple rules,
rules, January 2001,
Copyright
2001 by the Harvard Business School Publishing Corporation, all rights reserved.
Exhibit I.iii
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Thank You !
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