class 9 strategy formulation in japanese...
TRANSCRIPT
![Page 1: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/1.jpg)
Copyright © 2007 Keio University
Strategy Formulation in Japanese Management
Class 9
![Page 2: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/2.jpg)
Class 9Copyright © 2007 Keio University | 2
Quote of the Day
“Cheshire Puss,“ she (Alice) began…“would you tell me, please,
which way to got from there?““That depends a good deal on where you want
to get to,“ said the Cat.Alice‘s Adventures in Wonderland, Lewis Carroll
![Page 3: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/3.jpg)
Class 9Copyright © 2007 Keio University | 3
This Lecture
• Theoretical overview of strategicmanagement
• Strategic planning in Japan• Japanese competitive advantages in the
world market• Japan`s drive for high quality and low cost
![Page 4: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/4.jpg)
Class 9Copyright © 2007 Keio University | 4
What is a Strategy??
• According to Hitt et al. (2003) a strategy
„is an integrated and coordinated set of commitments and actions designed to exploitcore competencies and gain competitiveadvantage“.
![Page 5: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/5.jpg)
Class 9Copyright © 2007 Keio University | 5
Strategic Management
• The same people say that strategicmanagement
„is the full set of commitments, decisions, and actions required for a firm to achieve strategiccompetitiveness and earn above-averagereturns.“
![Page 6: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/6.jpg)
Class 9Copyright © 2007 Keio University | 6
Strategy Dimensions
• Context• Content• Process
But where doesknowledge come in??
![Page 7: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/7.jpg)
Class 9Copyright © 2007 Keio University | 7
Strategic Context
• Every strategy context is unique, multidimensional and heterogenous and in recent years is strongly influenced by– Globalization– Innovation – Customers as drivers of corporational change
![Page 8: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/8.jpg)
Class 9Copyright © 2007 Keio University | 8
Strategic Process
• Environmental analysis• Strategy analysis• Strategy formulation• Strategy implementation• Strategy change
![Page 9: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/9.jpg)
Class 9Copyright © 2007 Keio University | 9
Step 1:Developing a
StrategicVision and BusinessMission
Step 2:SettingObjectives
Step 3:Crafting aStrategy
Step 4:ImplementingandExecutingtheStrategy
EvaluatingPerformance,
Monitoring New Developments
andInitiatingCorrective
Adjustments
Revise as needed
Revise as needed
Improve orChange
Improve orChange
EnvironmentalAnalysis
![Page 10: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/10.jpg)
Class 9Copyright © 2007 Keio University | 10
Levels of Strategy
Corporate Strategy
Business Strategy 1
Business Strategy 2
Business Strategy 3
OperationsManagement
StrategyR&D Strategy
Financial/AccountingStrategy Marketing Strategy
Corporate Level
Business Level
Functional Level
![Page 11: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/11.jpg)
Class 9Copyright © 2007 Keio University | 11
Strategic Content• Functional level
– Strategies for activities within organizations• Business level
– Bundling a number of functional strategies to achieve a competitive advantage by exploitingcore competencies in specific productmarkets
• Corporate level– Strategies to gain a competitive advantage by
managing the corporations business(es) in various industries and markets
![Page 12: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/12.jpg)
Class 9Copyright © 2007 Keio University | 12
Network Level Strategies
Creating strategies for networks in form of joint ventures or strategic alliances betweencorporations (often also includes thecorporate, business or functional level)
![Page 13: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/13.jpg)
Class 9Copyright © 2007 Keio University | 13
Important Definitions• Strategic Competitiveness
– When a firm successfully formulates and implements a value-creating strategy.
• Strategy– An integrated and coordinated set of commitments
and actions designed to exploit core competencies and gain a competitive advantage.
• Competitive Advantage– When a firm implements a strategy that its
competitors are unable to duplicate or find too costly to try to imitate.
![Page 14: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/14.jpg)
Class 9Copyright © 2007 Keio University | 14
Important Definitions (cont’d)
• Risk– An investor’s uncertainty about the economic
gains or losses that will result from a particular investment.
• Average Returns– Returns equal to those an investor expects to earn
from other investments with a similar amount of risk.
• Above-average Returns– Returns in excess of what an investor expects to
earn from other investments with a similar amount of risk.
![Page 15: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/15.jpg)
Class 9Copyright © 2007 Keio University | 15
![Page 16: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/16.jpg)
Class 9Copyright © 2007 Keio University | 16
Phase 1: Establishing Premises
• Corporate goals and philosophy areconstructed and revised
• Information gathering• Evaluation of past performance• Comparison with competitors• Future competitive positions of the
company are projected, opportunities and threats are clearly identified
![Page 17: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/17.jpg)
Class 9Copyright © 2007 Keio University | 17
Phase II: Clarifying Issues
• Goals, e.g. growth rate are determined• Future performance is forecast• Comparisons between the forecast future
performance and goals are made to discover any gaps
• New strategies are sought to close thesegaps
![Page 18: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/18.jpg)
Class 9Copyright © 2007 Keio University | 18
Phase III: Long-Term Strategy
• New product-market strategies arepursued for closing the gaps betweenforecast and aspiration
• Various issues are studied (e.g. costreduction)
• Development of a long-term plan (goals, projects and strategic policy)
![Page 19: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/19.jpg)
Class 9Copyright © 2007 Keio University | 19
Phase IV: Medium-Term Planning
• After the decision about long-term strategyis decided, medium-term goals and guidelines are established and medium-term plans are made– Medium-term project planning– Planning by product groups (change of
product mix and the competition strategy foreach product group)
– Corporate functional planning (by thecorporate functional department)
![Page 20: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/20.jpg)
Class 9Copyright © 2007 Keio University | 20
Phase V: Short-Term Planning
• The last step is short-term planning as well as implementation and control
• The whole process starts from generaldecisions and moves down to detaileddecisions
![Page 21: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/21.jpg)
Class 9Copyright © 2007 Keio University | 21
Policy Deployment-Hoshin kanri
![Page 22: Class 9 Strategy Formulation in Japanese Managementkeio-ocw.sfc.keio.ac.jp/International_Center/09B-016_e/lecture... · Copyright © 2007 Keio University | 3 Class 9 This Lecture](https://reader034.vdocument.in/reader034/viewer/2022042801/5ab865657f8b9ad5338cc3dc/html5/thumbnails/22.jpg)
Class 9Copyright © 2007 Keio University | 22
Competitive Activities of JapaneseFirms
• Low cost production• High quality products• Strong R&D• Skilled adaptation of innovative ideas