logging in or signing up An introduction to business strategy - Updated gksaxena Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 199 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: February 01, 2011 This Presentation is Public Favorites: 0 Presentation Description Outlines th development of business strategy leading to its present state. An introduction for MBA students that can be expanded to cover different strategies and provoke debate on the future Comments Posting comment... By: callmadhu (10 month(s) ago) great presentation! wonderful as an introduction to students of strategy. would you please enable downloads? Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript An Introduction to : Feb 2011 Prof Gopal Saxena Business Strategy - I 1 An Introduction to Business Strategy Prof. Gopal Saxena Every major industry was once a growth industry. : Feb 2011 Prof Gopal Saxena Business Strategy - I 2 Every major industry was once a growth industry. Theodore Levitt, 1960 The failure is at the top. Historical Perspective : Feb 2011 Prof Gopal Saxena Business Strategy - I 3 Historical Perspective Early Man BHAG – “Built to Last’ – Collins and Porras Middle Ages Blue Ocean Strategy – Kim & Maubourgne, First Mover Advantage Market share – BCG Matrix Colonial Period Historical Perspective : Feb 2011 Prof Gopal Saxena Business Strategy - I 4 Historical Perspective Business Strategy is a post-WWII concept Coincided with emergence of US as dominant economic power from the 1950’s Overwhelmingly set in the US context. Primarily concerned with the way US companies operate in the US marketspace The Early Gurus (~1950) : Feb 2011 Prof Gopal Saxena Business Strategy - I 5 The Early Gurus (~1950) ALFRED D CHANDLER Jr. – (1919 – 2007) “Strategy and Structure”(1962), “The Visible Hand”(1977), “Scale and Scope”(1990) “Structure follows Strategy” The “Visible Hand” of Managers played a key role in shaping the economy Showed that long-term coordinated strategy necessary to give company structure, direction, & focus. Giant Corporations arose from integration of mass production & mass distribution The Early Gurus (~1957) : Feb 2011 Prof Gopal Saxena Business Strategy - I 6 The Early Gurus (~1957) PHILIP SELZNICK – (1919 - ) “Foundations of the Theory of Organization” (1948), “The Moral Commonwealth”, “TVA and the Grass Roots”, and “Leadership in Administration”. Introduced the idea of matching the organization's internal factors with external environmental circumstances. Precursor of what we now call SWOT analysis The Early Gurus (~1960) : Feb 2011 Prof Gopal Saxena Business Strategy - I 7 The Early Gurus (~1960) IGOR ANSOFF. – (1918 - 2002) “Corporate Strategy” (1965) etc Developed a new classification of decision-making. Built on Chandler’s ideas. Ansoff’s Grid Gap analysis The Early Gurus (~1970) : Feb 2011 Prof Gopal Saxena Business Strategy - I 8 The Early Gurus (~1970) Peter Drucker – (1909 - 2005) “The Practice of Management) (1954) “The Effective Executive” (1966) et al Management by Objectives – a management without clear objectives is like a ship without a rudder Coined the term Knowledge Worker. Predicted the Knowledge Society One of the most influential Management thinkers of the 20th century Rise of Business Strategy : Feb 2011 Prof Gopal Saxena Business Strategy - I 9 Rise of Business Strategy The PIMS Study – Study of the impact of marketing strategies on profitability (1970) Greater % of Profit Greater Market share volume & economies of scale experience and learning curve advantages. Rise of Business Strategy : Feb 2011 Prof Gopal Saxena Business Strategy - I 10 Rise of Business Strategy The PIMS Study Growth Strategies Horizontal and Vertical Integration, Diversification, Franchising, Mergers and Acquisitions, Joint Ventures. Market Dominance strategies Golden Era of US Business : Feb 2011 Prof Gopal Saxena Business Strategy - I 11 Golden Era of US Business The 60’s and 70’s saw emergence of Diversified Conglomerates and Multi- Divisional Companies Quest for Market Share led to a Marketing revolution Need for new, more formal approach to strategy Strategies of the Seventies : Feb 2011 Prof Gopal Saxena Business Strategy - I 12 Strategies of the Seventies Portfolio Theory Further research revealed problems BCG Analysis GE Multifactoral Model Flaws in the Framework : Feb 2011 Prof Gopal Saxena Business Strategy - I 13 Flaws in the Framework Independent companies were worth more than the portfolio And a new, unexpected danger was threatening to spoil the party Companies with smaller market share could also be profitable A New Guru : Feb 2011 Prof Gopal Saxena Business Strategy - I 14 A New Guru Michael Porter (1947 - ) “Competitive Strategy Techniques for Analyzing Industries and Competitors” (1980)“Comparative Advantage” (1985)“The Competitive Advantage of Nations” (1990)“Can Japan Compete?” (1999) Offered a framework for analysis of a firm’s strategic alternatives His “Five Forces” Theory became one of the cornerstones of business strategy Suggested 3 generic strategies – Cost Leadership, Differentiation and Focus The Japanese Challenge : Feb 2011 Prof Gopal Saxena Business Strategy - I 15 The Japanese Challenge US corporations were unprepared for the Japanese of 70’s & 80’s. McKinsey’s 7S framework Led to a reassessment of American approach to business In search of Excellence! : Feb 2011 Prof Gopal Saxena Business Strategy - I 16 In search of Excellence! Tom Peters (1942 - ) “In Search of Excellence” (1982) with Robert Waterman Released study suggesting strategy to respond to Japanese threat Other studies suggested problem lay in release of technology The Japanese Challenge : Feb 2011 Prof Gopal Saxena Business Strategy - I 17 The Japanese Challenge Kenichi Ohmae (1943 - ) “The Mind of the Strategist” (1991) “The Borderless World” (1990) “Triad Power (1985) US was too analytical US was strategy was constrained by mechanical, fast decision making Ohmae’s 3 C’s Model Quest for Competitive Advantage : Feb 2011 Prof Gopal Saxena Business Strategy - I 18 Quest for Competitive Advantage From “Diversified Conglomerates” to “Mass Customisation we had turned a full circle Prahlad and Hamel – Core Competence Ries & Trout – Positioning Hammer & Champy – Re-engineering Lester – Best Practices/Benchmarking Sewell & Reichheld – Customer Relationship Mgt Collins & Porras – Core Ideology Kim & Maubourgne – Blue Ocean Living Company, Learning Organisation etc. The Innovator’s Dilemma : Feb 2011 Prof Gopal Saxena Business Strategy - I 19 The Innovator’s Dilemma Excellent firms fail because of their “good management” They fail to recognise disruptive Innovation Accepted principles of management are only situationally appropriate. Failure to espouse “principles of disruptive innovation” Clayton M Christensen Why good companies fail Disruptive Technologies : Feb 2011 Prof Gopal Saxena Business Strategy - I 20 Disruptive Technologies The Google Android strategy v/s Microsoft is a perfect example Disruptive Technologies : Feb 2011 Prof Gopal Saxena Business Strategy - I 21 Disruptive Technologies Norman, Donald A., (1999)The Invisible Computer. (chapter 2). M.I.T. Press A Reordered Globe : Feb 2011 Prof Gopal Saxena Business Strategy - I 22 A Reordered Globe The 2008 financial crisis has shaken economic dominance of the developed world Topsy Turvy World Order : Feb 2011 Prof Gopal Saxena Business Strategy - I 23 Topsy Turvy World Order Globalisation, outsourcing and rise of the emerging markets have once again changed the rules of business strategy A Flat World – Rise of the Internet : Feb 2011 Prof Gopal Saxena Business Strategy - I 24 A Flat World – Rise of the Internet Social Networking Online Commerce Online Marketing Online advertising Free Email Blogging … and the Internet continues to transform the way business is conducted. Is Business Strategy ripe for a total makeover ? : Feb 2011 Prof Gopal Saxena Business Strategy - I 25 Is Business Strategy ripe for a total makeover ? You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
An introduction to business strategy - Updated gksaxena Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 199 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: February 01, 2011 This Presentation is Public Favorites: 0 Presentation Description Outlines th development of business strategy leading to its present state. An introduction for MBA students that can be expanded to cover different strategies and provoke debate on the future Comments Posting comment... By: callmadhu (10 month(s) ago) great presentation! wonderful as an introduction to students of strategy. would you please enable downloads? Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript An Introduction to : Feb 2011 Prof Gopal Saxena Business Strategy - I 1 An Introduction to Business Strategy Prof. Gopal Saxena Every major industry was once a growth industry. : Feb 2011 Prof Gopal Saxena Business Strategy - I 2 Every major industry was once a growth industry. Theodore Levitt, 1960 The failure is at the top. Historical Perspective : Feb 2011 Prof Gopal Saxena Business Strategy - I 3 Historical Perspective Early Man BHAG – “Built to Last’ – Collins and Porras Middle Ages Blue Ocean Strategy – Kim & Maubourgne, First Mover Advantage Market share – BCG Matrix Colonial Period Historical Perspective : Feb 2011 Prof Gopal Saxena Business Strategy - I 4 Historical Perspective Business Strategy is a post-WWII concept Coincided with emergence of US as dominant economic power from the 1950’s Overwhelmingly set in the US context. Primarily concerned with the way US companies operate in the US marketspace The Early Gurus (~1950) : Feb 2011 Prof Gopal Saxena Business Strategy - I 5 The Early Gurus (~1950) ALFRED D CHANDLER Jr. – (1919 – 2007) “Strategy and Structure”(1962), “The Visible Hand”(1977), “Scale and Scope”(1990) “Structure follows Strategy” The “Visible Hand” of Managers played a key role in shaping the economy Showed that long-term coordinated strategy necessary to give company structure, direction, & focus. Giant Corporations arose from integration of mass production & mass distribution The Early Gurus (~1957) : Feb 2011 Prof Gopal Saxena Business Strategy - I 6 The Early Gurus (~1957) PHILIP SELZNICK – (1919 - ) “Foundations of the Theory of Organization” (1948), “The Moral Commonwealth”, “TVA and the Grass Roots”, and “Leadership in Administration”. Introduced the idea of matching the organization's internal factors with external environmental circumstances. Precursor of what we now call SWOT analysis The Early Gurus (~1960) : Feb 2011 Prof Gopal Saxena Business Strategy - I 7 The Early Gurus (~1960) IGOR ANSOFF. – (1918 - 2002) “Corporate Strategy” (1965) etc Developed a new classification of decision-making. Built on Chandler’s ideas. Ansoff’s Grid Gap analysis The Early Gurus (~1970) : Feb 2011 Prof Gopal Saxena Business Strategy - I 8 The Early Gurus (~1970) Peter Drucker – (1909 - 2005) “The Practice of Management) (1954) “The Effective Executive” (1966) et al Management by Objectives – a management without clear objectives is like a ship without a rudder Coined the term Knowledge Worker. Predicted the Knowledge Society One of the most influential Management thinkers of the 20th century Rise of Business Strategy : Feb 2011 Prof Gopal Saxena Business Strategy - I 9 Rise of Business Strategy The PIMS Study – Study of the impact of marketing strategies on profitability (1970) Greater % of Profit Greater Market share volume & economies of scale experience and learning curve advantages. Rise of Business Strategy : Feb 2011 Prof Gopal Saxena Business Strategy - I 10 Rise of Business Strategy The PIMS Study Growth Strategies Horizontal and Vertical Integration, Diversification, Franchising, Mergers and Acquisitions, Joint Ventures. Market Dominance strategies Golden Era of US Business : Feb 2011 Prof Gopal Saxena Business Strategy - I 11 Golden Era of US Business The 60’s and 70’s saw emergence of Diversified Conglomerates and Multi- Divisional Companies Quest for Market Share led to a Marketing revolution Need for new, more formal approach to strategy Strategies of the Seventies : Feb 2011 Prof Gopal Saxena Business Strategy - I 12 Strategies of the Seventies Portfolio Theory Further research revealed problems BCG Analysis GE Multifactoral Model Flaws in the Framework : Feb 2011 Prof Gopal Saxena Business Strategy - I 13 Flaws in the Framework Independent companies were worth more than the portfolio And a new, unexpected danger was threatening to spoil the party Companies with smaller market share could also be profitable A New Guru : Feb 2011 Prof Gopal Saxena Business Strategy - I 14 A New Guru Michael Porter (1947 - ) “Competitive Strategy Techniques for Analyzing Industries and Competitors” (1980)“Comparative Advantage” (1985)“The Competitive Advantage of Nations” (1990)“Can Japan Compete?” (1999) Offered a framework for analysis of a firm’s strategic alternatives His “Five Forces” Theory became one of the cornerstones of business strategy Suggested 3 generic strategies – Cost Leadership, Differentiation and Focus The Japanese Challenge : Feb 2011 Prof Gopal Saxena Business Strategy - I 15 The Japanese Challenge US corporations were unprepared for the Japanese of 70’s & 80’s. McKinsey’s 7S framework Led to a reassessment of American approach to business In search of Excellence! : Feb 2011 Prof Gopal Saxena Business Strategy - I 16 In search of Excellence! Tom Peters (1942 - ) “In Search of Excellence” (1982) with Robert Waterman Released study suggesting strategy to respond to Japanese threat Other studies suggested problem lay in release of technology The Japanese Challenge : Feb 2011 Prof Gopal Saxena Business Strategy - I 17 The Japanese Challenge Kenichi Ohmae (1943 - ) “The Mind of the Strategist” (1991) “The Borderless World” (1990) “Triad Power (1985) US was too analytical US was strategy was constrained by mechanical, fast decision making Ohmae’s 3 C’s Model Quest for Competitive Advantage : Feb 2011 Prof Gopal Saxena Business Strategy - I 18 Quest for Competitive Advantage From “Diversified Conglomerates” to “Mass Customisation we had turned a full circle Prahlad and Hamel – Core Competence Ries & Trout – Positioning Hammer & Champy – Re-engineering Lester – Best Practices/Benchmarking Sewell & Reichheld – Customer Relationship Mgt Collins & Porras – Core Ideology Kim & Maubourgne – Blue Ocean Living Company, Learning Organisation etc. The Innovator’s Dilemma : Feb 2011 Prof Gopal Saxena Business Strategy - I 19 The Innovator’s Dilemma Excellent firms fail because of their “good management” They fail to recognise disruptive Innovation Accepted principles of management are only situationally appropriate. Failure to espouse “principles of disruptive innovation” Clayton M Christensen Why good companies fail Disruptive Technologies : Feb 2011 Prof Gopal Saxena Business Strategy - I 20 Disruptive Technologies The Google Android strategy v/s Microsoft is a perfect example Disruptive Technologies : Feb 2011 Prof Gopal Saxena Business Strategy - I 21 Disruptive Technologies Norman, Donald A., (1999)The Invisible Computer. (chapter 2). M.I.T. Press A Reordered Globe : Feb 2011 Prof Gopal Saxena Business Strategy - I 22 A Reordered Globe The 2008 financial crisis has shaken economic dominance of the developed world Topsy Turvy World Order : Feb 2011 Prof Gopal Saxena Business Strategy - I 23 Topsy Turvy World Order Globalisation, outsourcing and rise of the emerging markets have once again changed the rules of business strategy A Flat World – Rise of the Internet : Feb 2011 Prof Gopal Saxena Business Strategy - I 24 A Flat World – Rise of the Internet Social Networking Online Commerce Online Marketing Online advertising Free Email Blogging … and the Internet continues to transform the way business is conducted. Is Business Strategy ripe for a total makeover ? : Feb 2011 Prof Gopal Saxena Business Strategy - I 25 Is Business Strategy ripe for a total makeover ?