describe and analyse how the availability and use of the internet is changing organisations and the scope and range of their activities.
... frequently irrelevant because of environmental turbulence. Markets are dynamic and force choices, firms must evolve or die. (e.g. Nelson & Winter 1982, Henderson 1989) The Processual Approach: Long range planning less relevant but emphasis on the process by which strategy emerges. Involves compromises with other stakeholders, not just top management. Top-down not so effective. (e.g. Mintzberg 1987). The Systemic Approach: See strategy as result of context, social, political, cultural etc. and contingent upon it. E.g. East vs. West differences. (e.g. Granovetter 1985, Shrivasta 1986). The Resource-based Approach: Emphasises firms as bundles of resources & capabilities which they have to build towards achieving their strategic objectives. (e.g. Prahalad & Hamel 1990, Grant 1991). Some Associated ideas: The idea of “Vision & Mission” - distilling an organisation’s guiding purpose. The idea of “Fit” - strategy seen as matching the organisation to the environment. The idea of “Inside-out” vs. “Outside-in” - where is the focus of strategy? The idea of “Levels” - grasping the dynamic nature of strategy. The idea of “Planning” - how rigid or flexible should planning be? The idea of “Competitive Advantage” - distinctive competencies; development & use. The idea of “Strategic Intent”. - Hamel & Prahaled (1989) identify this as a critical strategic ingredient. Company Strategic Intent NASA Apollo Komatsu Canon Toyota NEC Coca-Cola Microsoft To put a man on the moon before the Soviets To “Encircle Caterpillar” To “Beat Xerox” To become a second Ford - a leader in automotive innovation. To achieve convergence of “Computing & Communication” To put a Coke within “arm’s reach of every customer in the world. To put a PC running Microsoft programs on every desktop Corporate Strategy: - organisational success through competitive advantage in a changing environment. The Strategic Context 1950s 2000s Technology A few leaders with a big R&D advantage over a lot of followers Speed of technology transfer shortening lead time and narrowing gaps, many companies sharing same technology. The Internet and other ICTs. Markets Mass markets with moderate growth Mass markets stagnant with aggressive competition Products Simple single runs ~ production stable and relatively simple Segmentation and customisation requiring more complex, flexible manufacturing capabilities Trade Fragmented, weak, dependent on manufacturer Concentrated, powerful control of manufacturer retail brands Media Simple structures and concentrated usage Long period of TV dominance begins. Explosion in all forms individual media use fragmented People Mass tastes, stable traditional values, predictable lifestyles Individualistic tastes, discovered values, eclectic lifestyles Communication Information and persuasion concerning product benefits & rational argument Emotional expression of brand benefits metaphor, symbols Who Controls Markets? Manufacturers Consumers (Retailers?) Key Strategic Management Skills & Techniques To contribute effectively, managers should appreciate:- * STRATEGIC THINKING - developing a style of thinking which incorporates the Context, Process and Content of strategy. Such a skill is eclectic yet highly integrative. * STRATEGIC ISSUES - identifying developments inside or outside the organisation likely to have a key impact on its ability to meet or determine its purposes and objectives. * STRATEGIC CHOICES - generating options amongst competing strategies, testing for suitability, feasibility etc and making choices between them. * STRATEGIC PLANNING - decisions about the process or method to be employed. Whether this be a formal linear model or a less deliberate process. Planning models may be appropriate, but three linked areas begin our look at techniques:- Strategic Analysis Strategic Choice Strategic Implementation • External & internal environment. • Culture & stakeholders • Resources & capabilitie...