Summary all chapters
Contemporary strategy analysis
12th edition / 9781394251599
Robert Grant
Language: English
Pages: 61
Reading time: 180 min.
(With some personal (Dutch) college notes throughout)
,
,H1 Introduction
Role of strategy in success (fig 1.1)
1. Goals that are consistent and long term
2. Profound understanding of the competitive environment
3. Objective appraisal of resources
4. Effective implementation
Basis framework for Strategy Analysis
Strategy is a link between the firm and its external environment, fundamental is the notion of
strategic fit. This refers to the consistency of a firm’s strategy with the internal and external
environment.
The concept of strategic fit is one component of a set of ideas known as contingency theory.
This theory postulates that there is no single best way of organizing or managing, it depends
upon circumstances.
Strategy today: What is Strategy?
Strategy is the means by which individuals or organizations achieve their objectives. Why do
we need strategy?
- Strategy as decision support
- Strategy as a coordinating device
- Strategy as target
Corporate and Business Strategy
Two major area’s of a firm’s strategy:
- Where to compete? Corporate Strategy
- How to compete? Business Strategy
Corporate Strategy: defines the scope of the firm in terms of the industries and markets in
which it competes. Corporate strategy decisions include choice over diversification, vertical
integration, new ventures and the allocation of resources between different businesses of the
firm. Responsibility of the top management team and the corporate strategy staff.
Business Strategy: concerned with how the firm competes within a particular industry of
market. If the firm is to prosper within the market, it must establish a competitive advantage
over its rivals. This area of strategy is also referred to as competitive strategy.
Design versus Emergence
Mintzberg (critic of rational approaches) distinguishes intended, realized and emergent
strategies.
Intended strategy: as conceived of by the top management team. More an outcome of negotiation and
compromise among the many groups involved in the making process.
, Realized strategy: the actual strategy that is implemented, is only partly related to that which
was intended. Only 10-30% of intended strategy is realized. The primary determinant of realized
strategy is
Emergent strategy: the decisions that emerge from the complex processes in which individual
managers interpret the intended strategy and adapt to changing circumstances.
Strategic Management of Not-for-Profit Organizations
Ook voor nonprofit organisaties is strategie belangrijk. Zie
fig. 1.2 op blz 26!
Summary
- Strategy is a key ingredient of success. Successful strategies embody four elements: clear,
long-term goals, profound understanding of external environment, appraisal of internal
resources and capabilities and effective implementation.
- Strategy is no longer concerned with detailed planning based upon forecasts; it is
increasingly about direction, identity and exploiting the sources of superior profitability.
- Developing a strategy for an organization requires a combination of purpose-led
planning (rational design) and a flexible response to changing circumstances
(emergence).
- The principles and tools of strategic management have been developed primarily for
business enterprises; however they are also applicable to guiding the development of non-
profit organizations, especially those that inhabit competitive environments.
1
Contemporary strategy analysis
12th edition / 9781394251599
Robert Grant
Language: English
Pages: 61
Reading time: 180 min.
(With some personal (Dutch) college notes throughout)
,
,H1 Introduction
Role of strategy in success (fig 1.1)
1. Goals that are consistent and long term
2. Profound understanding of the competitive environment
3. Objective appraisal of resources
4. Effective implementation
Basis framework for Strategy Analysis
Strategy is a link between the firm and its external environment, fundamental is the notion of
strategic fit. This refers to the consistency of a firm’s strategy with the internal and external
environment.
The concept of strategic fit is one component of a set of ideas known as contingency theory.
This theory postulates that there is no single best way of organizing or managing, it depends
upon circumstances.
Strategy today: What is Strategy?
Strategy is the means by which individuals or organizations achieve their objectives. Why do
we need strategy?
- Strategy as decision support
- Strategy as a coordinating device
- Strategy as target
Corporate and Business Strategy
Two major area’s of a firm’s strategy:
- Where to compete? Corporate Strategy
- How to compete? Business Strategy
Corporate Strategy: defines the scope of the firm in terms of the industries and markets in
which it competes. Corporate strategy decisions include choice over diversification, vertical
integration, new ventures and the allocation of resources between different businesses of the
firm. Responsibility of the top management team and the corporate strategy staff.
Business Strategy: concerned with how the firm competes within a particular industry of
market. If the firm is to prosper within the market, it must establish a competitive advantage
over its rivals. This area of strategy is also referred to as competitive strategy.
Design versus Emergence
Mintzberg (critic of rational approaches) distinguishes intended, realized and emergent
strategies.
Intended strategy: as conceived of by the top management team. More an outcome of negotiation and
compromise among the many groups involved in the making process.
, Realized strategy: the actual strategy that is implemented, is only partly related to that which
was intended. Only 10-30% of intended strategy is realized. The primary determinant of realized
strategy is
Emergent strategy: the decisions that emerge from the complex processes in which individual
managers interpret the intended strategy and adapt to changing circumstances.
Strategic Management of Not-for-Profit Organizations
Ook voor nonprofit organisaties is strategie belangrijk. Zie
fig. 1.2 op blz 26!
Summary
- Strategy is a key ingredient of success. Successful strategies embody four elements: clear,
long-term goals, profound understanding of external environment, appraisal of internal
resources and capabilities and effective implementation.
- Strategy is no longer concerned with detailed planning based upon forecasts; it is
increasingly about direction, identity and exploiting the sources of superior profitability.
- Developing a strategy for an organization requires a combination of purpose-led
planning (rational design) and a flexible response to changing circumstances
(emergence).
- The principles and tools of strategic management have been developed primarily for
business enterprises; however they are also applicable to guiding the development of non-
profit organizations, especially those that inhabit competitive environments.
1
