Summary Organisatin & Envirinment – Strategy Safari
Chapter 1 The strategic management beast
There are 10 schiils divided inti three categiries:
- Prescriptie schools (Hiw strategies shiuld emerge):
1. Design schiil: Strategy firmatin as cinceptin
2. Planning schiil: strategy firmatin as a firmal pricess
3. Pisitining schiil: strategy firmatin is an analytcal pricess
- Descriptie schools (Hiw strategy actually emerges):
4. Entrepreneurial schiil: Strategy firmatin as a visiinary pricess
5. Cignitve schiil: Strategy firmatin is a mental pricess
6. Learning schiil: Strategy firmatin is an emergent pricess
7. Piwer schiil: Strategy firmatin is a negitatin pricess
8. Cultural schiil: Strategy firmatin is a cillectve pricess
9. Envirinmental schiil: Strategy firmatin is a reactve pricess
- Combinaton (integratin if multple schiils)
10. Cinfiguratin schiil: Strategy firmatin is a transfirmatin pricess
5 p’s of strategy (Mintzberg)
1. Plan: Strategy is a plan fir simething in the future intended strategy
2. Pattern: Strategy is a cinsistent behaviiural pattern iver tme realized strategy
3. Pisitins: The licatin if a partcular priduct in a specific market iutside-in
4. Perspectve: The fundamental way if diingtthinking if an irg inside-iut
5. Pliy: Strategy is a partcular step ir ‘manieuvre’ ti be better ir ti iutplay the
cimpettin.
The first 4 p’s firm a framewirk fir strategy firmatin, with 4 appriaches:
- Strategic planning
- Strategic visiining
- Strategic venturing
- Strategy learning
Pro’s and con’s about the functons of strategy:
- Pri: Strategy gives an irganisatin directin
Cin: It can alsi civer pitental areas if danger
- Pri: Strategy gives an irganisatin a ficus
Cin: The ippirtunity fir griupthink is a disadvantage, with tii much ficus yiu di
nit see ither ippirtunites
- Pri: Strategy gives the irganisatin a definitin (handvat im de irganisate te
begrijpen)
Cin: The definitin gives the ippirtunity fir stereityping; a tii simple definitin
ciuld becime cliché and the rich cimplexity if the system ciuld gi list
- Pri: Strategy gives cinsistency, less uncertaintes
Cin: This ciuld mean a lack if creatvity and the strategy simplified ciuld lead ti a
distirted (vertekend) image if the irganisatin.
,Chapter 2 The Design School
- Find the fit between internal capabilites if an irganisatin with the external
characteristcs if the envirinment
- SWOT analysis is the basis midel
- Strategy is infuenced by:
Sicial respinsibility (ethics if siciety)
The values if management
Premises
1. Strategy firmatin as a pricess if cinsciius thinking
Measures cimes frim reasin
Strategy firmatin is nurture, nit nature. Make this yiur iwn via firmal ways
2. The CEO is the strategist, respinsible fir cinsciius decisiins
The envirinment has a small rile
All impirtant decisiins lie with the tip management, ither irganisatinal
members are excluded
3. The midel if strategy firmatin must be simple and infirmal
If inly ine persin is respinsible fir strategy, keep it simple
4. Strategy shiuld be unique, adjusted in a specific situatin
Pricess strategy firmatin is a creatve pricess based in the distnctve
cimpetences if an irganisatin
5. Pricess if firmatin is finished when the strategy is cimpletely firmulated, ready ti
be implemented
Ni riim fir emergent (geleidelijk) strategy afer implementatin
6. Strategy simple and explicit firmulated, si that everybidy understands
7. Afer firmulatng unique, cimplete and simple strategies, it can be implemented
Structure filliw strategy
Distnct strategy (thinking) and implementng (diing)
Evaluaton model of Richard Rumelt
1. Cinsistency
2. Alignmenttcinsinance
3. Advantages
4. Feasibility
Structure follows strategy
- Change in strategy leads ti new administratve priblems which require new
structure
- Strategy is the directin fir ling term gials, the adiptin if ciurses if actin and
allicatin if resiurces ti achieve gials
Critique on the design school
- Measuring strengths/weaknesses (forgetng about learning): They decide what their
SWOT is, but they di nit test them ti be sure, si they ciuld learn frim it.
- Structure follows strategy: Structure can be slightly adjusted, but nit cimpletely.
Besides this, structure and strategy infuence each ither equally.
, - Making strategy explicit, makes infexibility: Organisatins have ti be able ti cipe
with changing dynamics, which is impissible when strategy is explicit (men heef
iigkleppen ip)
- Distncton between thinking and doing (separaton formulaton from
implementaton): Only pissible in predictve and stable envirinments. In cimplex
and unpredictable envirinments, thinking and diing shiuld be integrated ti react in
tme and adequate in the envirinment.
Context and contributons
Fiur circumstances in which an irganisatin tends ti design schiil:
1. One persin is capable ti pricess all relevant infi fir strategy firmulatin (the CEO)
2. That persin shiuld have a cimplete and detailed kniwledge abiut the situatin
3. The situatin needs ti be stable; the cimplete kniwledge fir the new strategy
shiuld already be present
4. The irganisatin shiuld be prepared fir dealing with a central firmulated strategy;
ither peiple in the irganisatin must be willing ti defer ti a central strategist
Chapter 3 The Planning school (predict and plan)
- Planning is s firmalized pricedure ti priduce artculated results by using an
integrated system if decisiins
- A step-by-step pricess fir firmulatng a strategy
The basic model for strategic planning
1. Objectves-setng stage (gials fir the irganisatin)
2. External audit audit external envirinment ti firecast future cinditins (Scenarii
building)
3. Internal audit study if the strengths and weaknesses
4. Strategy evaluatin stage
5. Strategy iperatinalizatin stage strategy is briken-diwn in little sub-strategies ti
be implemented. Hierarchical:
Budgets perfirmance cintril (assess results afer the fact)
Objectves perfirmance cintril
Strategies actin planning (make decisiins befire the fact ti drive behaviiur)
Prigrammes actin planning
Premises
1. Strategy results frim cintrilled, firmal planning
2. The CEO is respinsible fir the entre pricess. In practce the planning staf is
respinsible fir the executin
3. Frim this pricess, strategies appear full bliwn, si that they can be implemented
with attentin ti gials, budgets and iperatinal plans
Recent developments
- Scenario planning: yiu cannit predict the future, si yiu speculate multple versiins
if it. Make eniugh scenariis ti civer all impirtant unfireseen events, but few
eniugh ti keep it manageable. Mist impirtant firces fir scenarii’s: Sicial
dynamics, ecinimic matters, pilitcal questins and techniligical questins
Chapter 1 The strategic management beast
There are 10 schiils divided inti three categiries:
- Prescriptie schools (Hiw strategies shiuld emerge):
1. Design schiil: Strategy firmatin as cinceptin
2. Planning schiil: strategy firmatin as a firmal pricess
3. Pisitining schiil: strategy firmatin is an analytcal pricess
- Descriptie schools (Hiw strategy actually emerges):
4. Entrepreneurial schiil: Strategy firmatin as a visiinary pricess
5. Cignitve schiil: Strategy firmatin is a mental pricess
6. Learning schiil: Strategy firmatin is an emergent pricess
7. Piwer schiil: Strategy firmatin is a negitatin pricess
8. Cultural schiil: Strategy firmatin is a cillectve pricess
9. Envirinmental schiil: Strategy firmatin is a reactve pricess
- Combinaton (integratin if multple schiils)
10. Cinfiguratin schiil: Strategy firmatin is a transfirmatin pricess
5 p’s of strategy (Mintzberg)
1. Plan: Strategy is a plan fir simething in the future intended strategy
2. Pattern: Strategy is a cinsistent behaviiural pattern iver tme realized strategy
3. Pisitins: The licatin if a partcular priduct in a specific market iutside-in
4. Perspectve: The fundamental way if diingtthinking if an irg inside-iut
5. Pliy: Strategy is a partcular step ir ‘manieuvre’ ti be better ir ti iutplay the
cimpettin.
The first 4 p’s firm a framewirk fir strategy firmatin, with 4 appriaches:
- Strategic planning
- Strategic visiining
- Strategic venturing
- Strategy learning
Pro’s and con’s about the functons of strategy:
- Pri: Strategy gives an irganisatin directin
Cin: It can alsi civer pitental areas if danger
- Pri: Strategy gives an irganisatin a ficus
Cin: The ippirtunity fir griupthink is a disadvantage, with tii much ficus yiu di
nit see ither ippirtunites
- Pri: Strategy gives the irganisatin a definitin (handvat im de irganisate te
begrijpen)
Cin: The definitin gives the ippirtunity fir stereityping; a tii simple definitin
ciuld becime cliché and the rich cimplexity if the system ciuld gi list
- Pri: Strategy gives cinsistency, less uncertaintes
Cin: This ciuld mean a lack if creatvity and the strategy simplified ciuld lead ti a
distirted (vertekend) image if the irganisatin.
,Chapter 2 The Design School
- Find the fit between internal capabilites if an irganisatin with the external
characteristcs if the envirinment
- SWOT analysis is the basis midel
- Strategy is infuenced by:
Sicial respinsibility (ethics if siciety)
The values if management
Premises
1. Strategy firmatin as a pricess if cinsciius thinking
Measures cimes frim reasin
Strategy firmatin is nurture, nit nature. Make this yiur iwn via firmal ways
2. The CEO is the strategist, respinsible fir cinsciius decisiins
The envirinment has a small rile
All impirtant decisiins lie with the tip management, ither irganisatinal
members are excluded
3. The midel if strategy firmatin must be simple and infirmal
If inly ine persin is respinsible fir strategy, keep it simple
4. Strategy shiuld be unique, adjusted in a specific situatin
Pricess strategy firmatin is a creatve pricess based in the distnctve
cimpetences if an irganisatin
5. Pricess if firmatin is finished when the strategy is cimpletely firmulated, ready ti
be implemented
Ni riim fir emergent (geleidelijk) strategy afer implementatin
6. Strategy simple and explicit firmulated, si that everybidy understands
7. Afer firmulatng unique, cimplete and simple strategies, it can be implemented
Structure filliw strategy
Distnct strategy (thinking) and implementng (diing)
Evaluaton model of Richard Rumelt
1. Cinsistency
2. Alignmenttcinsinance
3. Advantages
4. Feasibility
Structure follows strategy
- Change in strategy leads ti new administratve priblems which require new
structure
- Strategy is the directin fir ling term gials, the adiptin if ciurses if actin and
allicatin if resiurces ti achieve gials
Critique on the design school
- Measuring strengths/weaknesses (forgetng about learning): They decide what their
SWOT is, but they di nit test them ti be sure, si they ciuld learn frim it.
- Structure follows strategy: Structure can be slightly adjusted, but nit cimpletely.
Besides this, structure and strategy infuence each ither equally.
, - Making strategy explicit, makes infexibility: Organisatins have ti be able ti cipe
with changing dynamics, which is impissible when strategy is explicit (men heef
iigkleppen ip)
- Distncton between thinking and doing (separaton formulaton from
implementaton): Only pissible in predictve and stable envirinments. In cimplex
and unpredictable envirinments, thinking and diing shiuld be integrated ti react in
tme and adequate in the envirinment.
Context and contributons
Fiur circumstances in which an irganisatin tends ti design schiil:
1. One persin is capable ti pricess all relevant infi fir strategy firmulatin (the CEO)
2. That persin shiuld have a cimplete and detailed kniwledge abiut the situatin
3. The situatin needs ti be stable; the cimplete kniwledge fir the new strategy
shiuld already be present
4. The irganisatin shiuld be prepared fir dealing with a central firmulated strategy;
ither peiple in the irganisatin must be willing ti defer ti a central strategist
Chapter 3 The Planning school (predict and plan)
- Planning is s firmalized pricedure ti priduce artculated results by using an
integrated system if decisiins
- A step-by-step pricess fir firmulatng a strategy
The basic model for strategic planning
1. Objectves-setng stage (gials fir the irganisatin)
2. External audit audit external envirinment ti firecast future cinditins (Scenarii
building)
3. Internal audit study if the strengths and weaknesses
4. Strategy evaluatin stage
5. Strategy iperatinalizatin stage strategy is briken-diwn in little sub-strategies ti
be implemented. Hierarchical:
Budgets perfirmance cintril (assess results afer the fact)
Objectves perfirmance cintril
Strategies actin planning (make decisiins befire the fact ti drive behaviiur)
Prigrammes actin planning
Premises
1. Strategy results frim cintrilled, firmal planning
2. The CEO is respinsible fir the entre pricess. In practce the planning staf is
respinsible fir the executin
3. Frim this pricess, strategies appear full bliwn, si that they can be implemented
with attentin ti gials, budgets and iperatinal plans
Recent developments
- Scenario planning: yiu cannit predict the future, si yiu speculate multple versiins
if it. Make eniugh scenariis ti civer all impirtant unfireseen events, but few
eniugh ti keep it manageable. Mist impirtant firces fir scenarii’s: Sicial
dynamics, ecinimic matters, pilitcal questins and techniligical questins
