manoj.ghadge_otpr.course [session 6]
TRANSCRIPT
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7/23/2019 Manoj.ghadge_OTPR.course [Session 6]
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0TPR
Session 6 : Organization Strategy
COORDINATOR & FACILITATOR
Prof. Manoj Ghadge
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Contents
1. Strategy
2. Strategic Intent
3. Strategy Imperative
4. Porters Competitive Strategy
5. Miles and Snows Strategy Typology
6. Strategic Choice & Organization Design
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Strategy
Strategy is a plan for interacting with the competitive
environment to achieve organizational goals (Daft, 2013).
Two views on Strategy
1. Planning mode: well-thought-out and systematic plan
developed in advanced.
2. Emerging mode: evolving over time as a pattern in a stream
of significant decisions.
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Strategy
Specific pattern of decision and actions that managers take to use core
competencies to achieve competitive advantages and outperform
competitors
1. Core Competencies: The skill and abilities in value-creation
activities that allow a company to achieve superior efficiency,
quality, innovation or customer responsiveness.
2. Competitive Advantage: Refers to what set the organization apart
from others and provide it with a distinctive edge for meeting
customer and client needs in the marketplace.
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Sources of Core Competencies
Specialized Resources
Functional Resources
Organizational Resources
Coordination Abilities
Abilities to coordinate its functional and
organizational resources to create maximum value
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Strategic Intent
Strategic intent - organizations energies and resources are
directed toward a focused, unifying, and compelling goal
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Mission
Competitive Advantage
Core Competence
Strategic
Intent
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Strategy Imperative
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Environmental
Factors
and
Organizational
Capabilities
StrategyStructure
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Framework Strategy and Design
Formulating strategies is choosing whether the organization
will perform different activities than its competitors or will
execute similar activities more efficiently than its
competitors do.
Two models for formulating strategies;
1. Porters model of competitive strategies
2. Miles and Snow strategy typology
Each provides a framework for competitive action.
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Porters Competitive Strategies
1. Differentiation : Eg. Apple - its attempt to
distinguish its products and services from others in
the industry.
2. Low Cost Leadership: Eg. Ryanair efficiency and
lower operating costs can cut competitors pricesand still earn profits.
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Porters Five Forces
Managers should understand forces in industry and
environment
The Threat of New Entrants
The Power of Suppliers
The Power of Buyers
The Threat of Substitutes
Rivalry among Existing Competitors
Porter suggests that companies adopt strategies based on five
forces analysis
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Miles and Snow Strategy Typology
Seek to formulate strategy that will be congruent with the external
environment. Organizations strive for a fit among internal
organization characteristics, strategy, and the external
environment. The four strategies that can be developed are;
1. Prospector
2. Defender
3. Analyzer
4. Reactor
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Miles and Snow Strategy Typology
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Strategy affects Organization Design
Strategy is one of the important factor that affects
organization design.
Organization design characteristics need to support
the firms competitive approach.
Refer to Exhibit 3.6 (Daft, 2013, p. 138)
Read HBR Article How Strategy Shapes Structure
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