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  • Strateški Management 1 - ČLANKI: Porter, Michael E.: What Is Strategy

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    This document summarizes several articles related to strategic management: 1. Michael Porter's article "What is Strategy" discusses the differences between operational effectiveness, which focuses on improving individual activities, and strategic positioning, which involves performing different activities or activities in different ways to deliver unique value. 2. Gary Hamel's article "Strategy as Revolution" argues that strategy should involve subversive thinking and engaging employees as activists to discover revolutionary strategies. 3. W. Chan Kim and Renee Mauborgne's article "Blue Ocean Strategy" introduces the concept of creating "blue oceans" of uncontested market space by making the competition irrelevant and creating new demand. It provides examples of how Cirque du S

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    This document summarizes several articles related to strategic management: 1. Michael Porter's article "What is Strategy" discusses the differences between operational effectiveness, which focuses on improving individual activities, and strategic positioning, which involves performing different activities or activities in different ways to deliver unique value. 2. Gary Hamel's article "Strategy as Revolution" argues that strategy should involve subversive thinking and engaging employees as activists to discover revolutionary strategies. 3. W. Chan Kim and Renee Mauborgne's article "Blue Ocean Strategy" introduces the concept of creating "blue oceans" of uncontested market space by making the competition irrelevant and creating new demand. It provides examples of how Cirque du S

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    43 views16 pages

    Strateški Management 1 - ČLANKI: Porter, Michael E.: What Is Strategy

    Uploaded by

    nagham22
    This document summarizes several articles related to strategic management: 1. Michael Porter's article "What is Strategy" discusses the differences between operational effectiveness, which focuses on improving individual activities, and strategic positioning, which involves performing different activities or activities in different ways to deliver unique value. 2. Gary Hamel's article "Strategy as Revolution" argues that strategy should involve subversive thinking and engaging employees as activists to discover revolutionary strategies. 3. W. Chan Kim and Renee Mauborgne's article "Blue Ocean Strategy" introduces the concept of creating "blue oceans" of uncontested market space by making the competition irrelevant and creating new demand. It provides examples of how Cirque du S

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 16

    Strateki management 1 - LANKI

    Porter, Michael E.: What Is Strategy

    Hamel, Gary: Stategy as Revolution


    Kim, W. Chan and Mauborgne, Renee: Blue Ocean Strategy
    Mojca Peri

    WHAT IS STRATEGY?
    Quest for productivity a number of management tools: TQM, partnering, reengineering. Companies must be flexible to respond benchmark, outsource, nurture core competencies. Inability to translate those gains into sustainable profitability rivals can soon copy any competitive advantage. Failure to distinguish between operational effectiveness and strategy Management tools are not strategy

    WHAT IS STRATEGY?
    OPERATIONAL EFFECTIVENESS perform similar activities better, important for cost position and levels of differentiation. (Japanese low cost, high quality) Absolute improvement in OE, relative improvement to no one Benchmark look alike? Productivity gains are being captured by customers and suppliers, not retained in superior profitability Lack of vision STRATEGIC POSITIONING perform different activities or perform activities in different ways UNIQUE ACTIVITIES Goal is to deliver a unique mix of value (Southwest A.C., IKEA)

    WHAT IS STRATEGY?
    VARIETY-BASED POSITIONING company can best produce particular products/services using distinctive sets of activities. Only subset of customers needs (liffy Lube International automotive lubricants) NEEDS-BASED POSITIONING a segment of customers (IKEA young people home furnishing needs) ACCESS-BASED POSITIONING needs are similar, the configuration of activities to reach them is different (Carmike Cinemas in towns with population under 200.000)

    WHAT IS STRATEGY?
    TRADE-OFFS More of one thing necessitates less of another what to do and what not to. (Neutrogena hard to imitate) THREE BASES OF TRADE-OFFS: 1. inconsistencies in image or reputation 2. trade-offs from activities themselves different equipment, skills, employee behavior, management systems 3. Limits on internal coordination and control clearly choosing to compete in one way, management makes organizational priorities clear. THE ESSENCE OF STRATEGY IS CHOOSING WHAT NOT TO DO.

    WHAT IS STRATEGY?
    OPERATIONAL EFFECTIVENESS achieving excellence in individual activities or functions STATEGY is about combining activities. System of activities competitive advantage comes from the way the activities FIT, combine and reinforce one another. Activities affect one another, competitive advantage is a whole system, fit locks out imitators. First order fit simple consistency between each activity and the overall strategy (all activities within low-cost strategy) Second order fit activities are reinforcing (Neutrogena medical and hotel marketing) Third order fit optimization of effort substantially reduces costs or increases differentiation STRATEGY IS CREATING FIT AMONG A COMPANYS ACTIVITIES

    WHAT IS STRATEGY?
    Why companies fail to have a strategy? Management fails to choose what to do and what not to do. The growth trap (Neutrogena shampoo) Competing in several ways at once creates confusion and undermine organizational motivation and focus many times resulting in a merger or downsizing to the original positioning Instead: Deepening strategic position globalization opening up larger markets for a focused strategy The role of leadership in important

    STRATEGY AS REVOLUTION
    Rule makers - industrial lords (IBM), rule takers (Fujitsu), rule breakers - industry revolutionaries (Dell Computer, IKEA) Strategy is revolution; everything else is tactics. Ten principles to help company liberate revolutionary spirit and increase chances to discover revolutionary strategy. 1.STATEGIC PLANING ISNT STRATEGIC Strategy making is easy? Is the goal inovation? Organizations fail to distinguish planning from strategizing. Planning programming, for technocrats; strategizing discovering, new ideas, dreamers. Strategy is not a procedure but a quest.

    STRATEGY AS REVOLUTION
    2. STRATEGY MAKING MUST BE SUBVERSIVE Subversiveness or enlightment? 3. THE BOTTLENECK IS AT THE TOP OF THE BOTTLE Senior management aktivna inercija In every industry the terrain is chainging fast how relevant are the experiences? (Trimo) 4. REVOLUTIONARIES EXIST IN EVERY COMPANY Revolutionaries must be let to challenge the company from within or they will eventually challenge the company from without the marketplace.

    STRATEGY AS REVOLUTION
    5. CHANGE IS NOT THE PROBLEM, ENGAGEMENT IS Assumption: People are against change comparison with a nonskier give him ability to influence speed and direction The objective is not to get people to support change, but to give them responsibility for engendering change, some control over their destiny. Engage the revolutionaries in a dialog about the future Change restructuring, reorganization or opening new opportunities 6. STRATEGY MAKING MUST BE DEMOCRATIC Ideas must be exchanged between young and senior management new voices Fiasco of a young manager in front of senior management (Trimo fasadni sistem)

    STRATEGY AS REVOLUTION
    7. ANYONE CAN BE A STRATEGY ACTIVIST Are the employees victims or activists? 8. PERSPECTIVE IS WORTH 50 IQ POINTS Look at the world through new lens 9. TOP-DOWN AND BOTTOM-UP ARE NOT THE ALTERNATIVES The revolution doesnt need to start at the top but must be understood and endorsed by the top. Strategy-making process must achieve diversity and unity. (HIT razlini predlogi in poenotenje) 10. YOU CANT SEE THE END FROM THE BEGINNING It can be predicted where the strategy-making process will lead.

    BLUE OCEAN STRATEGY


    Two ways to create blue ocean: 1. Give rise to completely new industry (eBay online auction industry), 2. from within red ocean, company alters the boundaries of an existing industry Blue oceans are not about technology innovation (link technology to what buyers value) Incumbents often create blue oceans-and usually within their core businesses (Ford model T in 1908) Company and industry are the wrong units of analysis strategic move Creating blue oceans builds brands CIRQUE DU SOLEIL

    BLUE OCEAN STRATEGY


    Red ocean strategy
    Compete in existing market space

    Blue ocean strategy


    Create uncontested market space

    Beat the competition


    Exploit existing demand Make the value/cost trade-off Align the whole system of companys activities with its strategic choice of differentiation or low cost

    Make the competition irrevalant


    Create and capture new demand Break the value/cost trade-off Align the whole system of a companys activities in pursuit of differentiation and low costs

    BLUE OCEAN STRATEGY


    Reconstruct Market Boundaries overcome believes.
    COST

    Reach beyond existing Demand go for Non-Customers. Get the strategic sequence right value [innovation] first.

    Cirque

    VALUE

    BLUE OCEAN STRATEGY


    Mrea tirih ukrepov Cirque du Soleil

    BLUE OCEAN STRATEGY


    Strateki kanvas Cirque du Soleil

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