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STRATEGIC AND ORGANIZATIONAL
DESIGN
Summary
,Week 1. Introduction to strategic Management
What is strategic management?
Strategic management is all about how to use different models and strategies to achieve your
mission in getting more profits, revenue and market share.
Strategy begins with a current state which evolves in a future state and a vision you have on
that future state. This can be described in the following picture:
A research paper by Rayport & Jaworski (2004) describes strategic management as a
framework, which is the following:
But what is strategy exactly?
Well, strategy is:
A unified, long-term plan that aligns a firm's capabilities with environmental opportunities and
threats to achieve its objectives. It provides a competitive advantage by outlining how the
firm will compete, setting goals, and establishing policies. Strategy involves resource
allocation and decision-making to ensure sustainable success.
,Mintzberg’s five P’s for strategy
Plan
It all begins with a plan, what do you want to achieve and what is the intended course of
actions? It is a plan made before actions.
Ploy
Ploy refers to a specific tactic to outsmart competitors. It involves actions to disrupt or to
discourage rivals, often through short-term competitive moves. Where “Plan” is more long
term, Ploy refers to more short-term
Pattern
Pattern refers to a stream of actions, more (un)intended consistency emergent strategy.
Position
The 4th P is position. This refers to how a company places itself in the competitive
environment relative to competitors and the market. It defines the firms unique place in the
industry and how it differentiates itself to gain an advantage.
Perspective
Lastly, the 5th P, which is perspective. This refers to the mindset of shares beliefs and values
that shape how the organization views its environment and how it responds to challenges
and opportunities. It’s the way the organization perceives its identity, culture and purpose and
it influences long-term strategic decisions.
This is a bit dry don’t you think? Lets spice it up with an example!
Example EcoTech
1. Plan
EcoTech’s Plan is to expand into international markets over the next five years. This involves
conducting market research, establishing partnerships with local distributors, and investing in
marketing to build brand awareness globally. The plan outlines clear steps for entering three
new countries each year.
2. Ploy
To gain a competitive edge in its new international markets, EcoTech uses a Ploy: it
launches a limited-time discount campaign for its flagship product (a smart refrigerator) to
disrupt local competitors and quickly capture market share. The aim is to get customers to
buy the product while competitors hesitate to match the aggressive pricing strategy.
3. Position
EcoTech’s Position in the market is based on being a leader in sustainable, energy-
efficient appliances. It differentiates itself from competitors by offering premium products
that are eco-friendly, emphasizing high performance and cutting-edge technology. Its unique
selling proposition (USP) is the combination of sustainability with modern design, targeting
environmentally-conscious consumers.
4. Perspective
EcoTech’s Perspective is deeply rooted in the belief that sustainability is the future of
technology. The company’s culture is centered around environmental responsibility, and its
employees and leadership share the vision of making the world greener through innovative
products. This mindset influences all strategic decisions, from product development to
marketing to customer engagement.
, 5. Pattern
Over the years, EcoTech has developed a Pattern of consistently launching new, eco-
friendly products that follow an innovative and design-forward approach. This pattern
includes introducing at least one new product each year with enhanced energy efficiency
features, reinforcing the company's commitment to sustainability. Over time, this pattern has
built the brand’s reputation as a leader in the eco-tech space.
Porter’s Five Forces
Porter’s Five Forces is a framework by Michael Porter that analyzes industry competition
and profitability. The five forces are:
1. Competitive Rivalry – The intensity of competition among existing firms. High rivalry
leads to price wars and innovation battles.
2. Threat of New Entrants – How easy it is for new businesses to enter the market.
High barriers (e.g., costs, regulations) limit new competition.
3. Bargaining Power of Suppliers – The influence suppliers have over pricing and
availability. Fewer suppliers = more power.
4. Bargaining Power of Buyers – Customers' ability to demand lower prices or better
quality. More options = higher buyer power.
5. Threat of Substitutes – The risk of customers switching to alternatives. More
substitutes = higher competitive pressure.
Example Porters Five Forces in the Airline industry
In the airline industry, we can see these five powers very clearly. The airline industry has a
high competitive rivalry. This is because many airlines compete on price, services and
flight routes. The price wars and low-profit margins are very common in this business.
The threat of new entrants (new airlines that enter the industry) are relatively low. This is
because new entrants face high startup costs, like aircrafts, and regulatory approvals and
they need a really strong brand loyalty to major airlines.
The bargaining power of suppliers is super high. This is because there are few aircraft
manufacturers (Boeing and Airbus) which give suppliers strong control over prices. Also,
aircrafts use a particular fuel, which is hard to get. That gives fuel suppliers also power over
costs.
The bargaining power of buyers is also very high. This is because customers can compare
prices relatively easily (e.g. Expedia, Google flights). Many budget airlines give travelers
more choices, because of their low-cost operations.
STRATEGIC AND ORGANIZATIONAL
DESIGN
Summary
,Week 1. Introduction to strategic Management
What is strategic management?
Strategic management is all about how to use different models and strategies to achieve your
mission in getting more profits, revenue and market share.
Strategy begins with a current state which evolves in a future state and a vision you have on
that future state. This can be described in the following picture:
A research paper by Rayport & Jaworski (2004) describes strategic management as a
framework, which is the following:
But what is strategy exactly?
Well, strategy is:
A unified, long-term plan that aligns a firm's capabilities with environmental opportunities and
threats to achieve its objectives. It provides a competitive advantage by outlining how the
firm will compete, setting goals, and establishing policies. Strategy involves resource
allocation and decision-making to ensure sustainable success.
,Mintzberg’s five P’s for strategy
Plan
It all begins with a plan, what do you want to achieve and what is the intended course of
actions? It is a plan made before actions.
Ploy
Ploy refers to a specific tactic to outsmart competitors. It involves actions to disrupt or to
discourage rivals, often through short-term competitive moves. Where “Plan” is more long
term, Ploy refers to more short-term
Pattern
Pattern refers to a stream of actions, more (un)intended consistency emergent strategy.
Position
The 4th P is position. This refers to how a company places itself in the competitive
environment relative to competitors and the market. It defines the firms unique place in the
industry and how it differentiates itself to gain an advantage.
Perspective
Lastly, the 5th P, which is perspective. This refers to the mindset of shares beliefs and values
that shape how the organization views its environment and how it responds to challenges
and opportunities. It’s the way the organization perceives its identity, culture and purpose and
it influences long-term strategic decisions.
This is a bit dry don’t you think? Lets spice it up with an example!
Example EcoTech
1. Plan
EcoTech’s Plan is to expand into international markets over the next five years. This involves
conducting market research, establishing partnerships with local distributors, and investing in
marketing to build brand awareness globally. The plan outlines clear steps for entering three
new countries each year.
2. Ploy
To gain a competitive edge in its new international markets, EcoTech uses a Ploy: it
launches a limited-time discount campaign for its flagship product (a smart refrigerator) to
disrupt local competitors and quickly capture market share. The aim is to get customers to
buy the product while competitors hesitate to match the aggressive pricing strategy.
3. Position
EcoTech’s Position in the market is based on being a leader in sustainable, energy-
efficient appliances. It differentiates itself from competitors by offering premium products
that are eco-friendly, emphasizing high performance and cutting-edge technology. Its unique
selling proposition (USP) is the combination of sustainability with modern design, targeting
environmentally-conscious consumers.
4. Perspective
EcoTech’s Perspective is deeply rooted in the belief that sustainability is the future of
technology. The company’s culture is centered around environmental responsibility, and its
employees and leadership share the vision of making the world greener through innovative
products. This mindset influences all strategic decisions, from product development to
marketing to customer engagement.
, 5. Pattern
Over the years, EcoTech has developed a Pattern of consistently launching new, eco-
friendly products that follow an innovative and design-forward approach. This pattern
includes introducing at least one new product each year with enhanced energy efficiency
features, reinforcing the company's commitment to sustainability. Over time, this pattern has
built the brand’s reputation as a leader in the eco-tech space.
Porter’s Five Forces
Porter’s Five Forces is a framework by Michael Porter that analyzes industry competition
and profitability. The five forces are:
1. Competitive Rivalry – The intensity of competition among existing firms. High rivalry
leads to price wars and innovation battles.
2. Threat of New Entrants – How easy it is for new businesses to enter the market.
High barriers (e.g., costs, regulations) limit new competition.
3. Bargaining Power of Suppliers – The influence suppliers have over pricing and
availability. Fewer suppliers = more power.
4. Bargaining Power of Buyers – Customers' ability to demand lower prices or better
quality. More options = higher buyer power.
5. Threat of Substitutes – The risk of customers switching to alternatives. More
substitutes = higher competitive pressure.
Example Porters Five Forces in the Airline industry
In the airline industry, we can see these five powers very clearly. The airline industry has a
high competitive rivalry. This is because many airlines compete on price, services and
flight routes. The price wars and low-profit margins are very common in this business.
The threat of new entrants (new airlines that enter the industry) are relatively low. This is
because new entrants face high startup costs, like aircrafts, and regulatory approvals and
they need a really strong brand loyalty to major airlines.
The bargaining power of suppliers is super high. This is because there are few aircraft
manufacturers (Boeing and Airbus) which give suppliers strong control over prices. Also,
aircrafts use a particular fuel, which is hard to get. That gives fuel suppliers also power over
costs.
The bargaining power of buyers is also very high. This is because customers can compare
prices relatively easily (e.g. Expedia, Google flights). Many budget airlines give travelers
more choices, because of their low-cost operations.
