ÅA Strategy, Strategy Strategy … Hang on, here we go!

ÅA

Strategy, Strategy Strategy…Hang on, here we go!

ÅA

I was in a warm bed and suddenly I’m part of a plan

Woody Allen in Shadows and Fog

ÅA Ten schools; 9+1(Mintzberg’s view!)

Prescriptive, normative How strategies should be

formulated

The Design school• informal design• originated in the 1960s• basis for the following two

The Planning school• systematic process of formal

planning• originated in the 1970s

The Positioning school• selection of strategic

positions• originated in the 1980s

Descriptive How strategies do get made The Entrepreneurial school

• creation of vision by leaders The Cognitive school

• enter into the strategists mind

The Learning school• strategies must emerge in

small steps The Power school

• a process of negotiations The Cultural school

• strategy rooted in the culture of an organization

The Environmental school• strategy is a reactive

process to the firm’s external context

ÅA

And then there is #10

The Configurational Schoolcombines all above!

ÅA

Here is another approach

Courtesy

Brännback&Näsi

ÅA A Cognitive Perspective of Strategy

Six perspectives which can exist separately or jointly Strategy is an integrated decision-making model of the

firm – can be very simple or extremely complex! Strategy enforces the long-term mission of the firm Strategy determines the competitive scope of the firm Strategy is the operationalisation of the SWOT- analysis Strategy provides a system of structures for corporate,

SBU, and functional leadership Strategy provides an interactive model between the firm

and its shareholders and stakeholders

ÅA Strategy as a set of techniques

Portfolio planning, agenda, benchmarking, outsourcing, lean and agile management, total quality management, business process reengineering, competence-based competition, Malcolm Baldrige, quick ratios, customer relationship management, SBU-thinking, key or critical success factors, fortify-and-defend strategies, joint ventures, strategic alliances, networking, and balanced scorecard …

How-to tools as opposed to what-to-do

ÅAStrategy Concepts

Norm ConceptsStrategyMissionCreedPolicyBudgetCorporate PlanningManagement byObjectivesVision (II)

Humane ConceptsLeadershipManagerial WorkCorporate CulturesExcellence FactorsVision (I)

Logic ConceptsBusiness IdeaBusiness DefinitionValue ChainDominant LogicLogic of ActionParadigmRecipeIndustrial WisdomActivity Systems

Logic Concepts in Strategic Thinking

ÅA Norm & Humane

Norm Seek to prescribe what

firms ought to do, what is accepted, important, and relevant.

planning concepts• systematic approach to

express where the firm ought to be in the future and what it ought to do to achieve the set of goals.

evolved in the 1960s and 1970s

widely popular and are still.

have been used the most by business

Humane Addressed issues like

leadership what is good leadership what kind of

charactersitics a good leader should possess

describing the cultures existing in companies

managerial work

ÅA Logic concepts (LC) Embrace the idea of

understanding The notion of intentional strategy

requires some shared beliefs, values, norms, and objectives

Several levels and dimensions Implicit – expressions of logic

business idea (Normann, 1975) business definition (Abell, 1980) value chain (Porter, 1985) activity system (Porter, 1996)

Explicit logics of action (Karpik, 1981) dominant logic (Prahalad and

Bettis, 1986, von Krogh and Roos, 1996)

strategy logic (Näsi et al, 1996)

Macro and Micro level LC Macro

Industry Recipe (Grinyer and Spender, 1979)

Industry Wisdom (Hellgren and Melin, 1993)

Micro Company paradigm (Spender,

1980, Johnson and Scholes, 1988)

Strategic way of thinking

ÅA

Industry Recipe (x, y, .., n)

Company Paradigm (x, y, .., n)

Strategy Logic (x, y, .., n)

ÅA

The Pharmaceutical Industry

Industry Recipe X

Company Paradigm Y

Strategy Logic Z

The Agri IndustryThe Agri Industry

Industry Recipe XIndustry Recipe X



The Food IndustryThe Food Industry




The Pharmaceutical IndustryThe Pharmaceutical Industry

Industry Recipe X’’Industry Recipe X’’

Company Paradigm Y’’Company Paradigm Y’’

Strategy Logic Z’’Strategy Logic Z’’

The Biotechnology Industry

Industry Recipe X’

Company Paradigm Y’

Strategy Logic Z’

TechnologicalChange

ÅAThe Food IndustryThe Food Industry


Company Paradigm YCompany Paradigm Y

Strategy Logic ZStrategy Logic Z

The Health Care Service Industry

Industry Recipe X

Company Paradigm Y

Strategy Logic Z

The Agri IndustryThe Agri Industry



Strategy Logic ZStrategy Logic ZThe Pharmaceutical Industry

Industry Recipe X’’

Company Paradigm Y’’

Strategy Logic Z’’

The Biotechnology Industry

Industry Recipe X’

Company Paradigm Y’

Strategy Logic Z’

The Materials IndustryThe Materials Industry



Strategy Logic ZStrategy Logic Z

ÅA The Reality in Logic Concpets in Strategic Thinking

Norm Conce

pts

Humane

Concepts

Logic Concepts

ÅA Three layers of ST stakeholders

•The public•The public

•Journalists•Owners•Professional Analysts, e.g. stock market analysts, VCs

•Journalists•Owners•Professional Analysts, e.g. stock market analysts, VCs

•CEO, Board of Directors,Assistant strategists, e.g. SBU vice presidents)•Scholars•Consultants, teachers

•CEO, Board of Directors,Assistant strategists, e.g. SBU vice presidents)•Scholars•Consultants, teachers

ÅA The tension in strategy-making

Planning Machinery

•Documents•Formal

•Code of conduct•Schedules•Deadlines

•Manadatory procedures•Seriousness

Creative organising

•Creativity•Ideas•Flexibility•Thought•Motivation•Informal•Fun

Tension

ÅAJust What is Strategy?!!

Write a Key Learning note of Logic Concepts in Strategic Thinking and of

Strategy as Simulacra– Max. 5 pages

Turn in No later than Feb 15

They will help you on the path of your long paper but also in the workshops

ÅA Strategy, Strategy Strategy … Hang on, here we go!

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