BUSN 789

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BUSN 789

• Dr. Karen A. Froelich
• WELCOME BACK!!

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Tonights agenda

• Administrative details
• Class introductions
• Starbucks discussion
• Introduction to strategic management
• Syllabus
• Term project

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Independent Study Project (3 cr)Contact me if
interested

• Business plan
• for dental implant innovation
• being developed by
• NDSU engineering team
• Participate in InnovateND
• business plan competition.

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Strategy at Starbucks

• What explains the success of Starbucks?
• What strategic challenges do they face?
• What strategic advice would you give?

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What is strategic management?
Important topics/issues/tasks Distinguishing
attributes
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Definitions of Strategy

• . . . how to build a sustainable competitive
  advantage in an identifiable market - Collis and
  Montgomery
• . . . an overall plan for deploying resources to
  establish a favorable position - Grant

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strategy definitions - continued

• . . . basic choices among products and markets,
  accompanied by resource allocation accordingly -
  Bower
• . . . a comprehensive master plan (?) to maximize
  competitive advantage and minimize competitive
  disadvantage - Hunger and Wheelen

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even more strategy definitions

• . . . an integrated and coordinated set of
  actions and commitments designed to exploit core
  competencies and gain a competitive advantage -
  Hitt, Ireland, and Hoskisson
• a game plan to beat the competition - Froelich

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and, finally, a favorite definition

• Strategy
• . . . shooting at a moving target of coalignment
  . . . - JD Thompson

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Mintzbergs 5Ps of Strategy(Reading 1.1)

• Plan - consciously intended course of action
• Ploy - maneuver to outwit competitors
• Position - location in product-market space
• Pattern - consistent stream of behavior
• Perspective - ingrained way of thinking and
  acting
• SO WHAT? WHY?

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Deliberate and Emergent Strategies

• (text page 5)
• intended ? deliberate ? realized
• strategy strategy strategy
• ? ? ? ?
• unrealized emergent
• strategy strategy

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Intended (Deliberate) Strategy

• mission
• situation analysis
• intended strategy
• implementation

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Emergent (Realized) Strategy

• mission
• situation analysis
• emergent strategy
• grass roots implementation

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?Deliberate vs. Emergent Strategy?? / - ?
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Quinn, text pg. 10

• A strategy is the pattern or plan that
• integrates major goals, policies, and
• actions into a cohesive whole.

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Strategic management vs. . . .

• Strategic planning/strategic plan
• SWOT analysis
• Benchmarking
• TQM, six sigma, etc.
• Operational effectiveness

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Reading 1.3, byMichael Porter

• Operational effectiveness
• Performing similar activities better than
• rivals perform them this includes but is
• not limited to efficiency.

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Good strategy . . .

• Rests on deliberately choosing a different
• set of activities to deliver a unique mix of
• value.
• operational strategy superior
• effectiveness performance

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Porters assertions

• Operational effectiveness is necessary but not
  sufficient for superior performance.
• Hypercompetition is a self-inflicted wound caused
  by replacing competitive strategy with
  operational effectiveness tools.

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Porter, continued

• Pressures for growth and profit result in
  homogeneous strategies - being all things to
  all people - and efficiency mechanisms that
  compromise long-term investment.
• The essence of strategy is choosing what NOT to
  do.

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Porter . . .

• Companies must choose a UNIQUE POSITION that is
  difficult to duplicate.
• Effective strategy requires continuity.
• Long-term vision (formulated/implemented)
  requires leadership that is increasing rare.

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Insights from Quinn(Reading 1.2)

• A well-formulated strategy helps to marshal
• and allocate resources into a unique and
• viable posture based on an organizations
• relative competencies and shortcomings,
• anticipated changes in environment, and
• contingent moves by intelligent opponents.

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Quinns Criteria for Effective (Military?)
Strategies

• 1. Clear, decisive objectives fast maneuvers
• 2. Maintaining the initiative
• 3. Concentration attacking rivals weaknesses
• 4. Flexibility
• 5. Coordinated and committed leadership
  utilizing morale and nerve
• 6. Surprise cunning
• 7. Security amassing competitive information

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Perspectives on Strategy(Mintzbergs Reading
1.4)

• Content models
• design
• planning
• positioning
• entrepreneurial
• environmental
• deliberate/M. Porter

• Process models
• cognitive
• learning
• power
• cultural
• configuration
• emergent/Mintzberg

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• Business schools train people to sit in their
  offices and look for case studies.
• The more Harvard succeeds, the more business
  fails. --
• Henry Mintzberg (!!)

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Strategy Bites Back It Is Far More, and Less,
than You Ever Imagined

• Beware of strategy
• Are strategies real things?
• Swoted by strategy
• Strategy as a little black dress
• The seven deadly sins of planning
• The soft underbelly of hard data
• Strategic thinking as seeing --
• seeing a symphony
• Five easy steps to destroying a rich culture
• Mintzberg, 2005

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Todays challenge - to effectively utilize BOTH
strategy content and strategy process. The
strategy process is becoming part of the
strategy content!
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SYLLABUS

• Objectives
• Contact info
• Grade determination
• General information
• - pop quizzes
• - classic cases
• - exams February 27, April 16
• - team project
• Schedule

built-in flexibility
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TERM PROJECT

• A team effort
• SEND PREFERENCES BY FRIDAY
• 20-minute presentation
• - analysis, intellect, sophistication
• - relevant strategic situation
• - interesting, lively FRESH
• - topics need to be pre-approved

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Suggested topics

• 1. Actual process of strategy making in a firm
  description, prescription.
• 2. Does the structure fit the strategy?
• 3. Strategic positions in an industry (locally).
• 4. Full strategic analysis for local player.
• 5. Development of core competency in a firm.
• 6. Use of strategic management in not-for-profit
  context.