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Strategy by Mind Map: Strategy

1. Choices (Content) - Directions & Methods

1.1. 7. Business Strategy and models

1.1.1. What strategy and what business model should a company use to compete? Generic competitive strategies Cost-leadership strategy Differentiation strategy Focus Strategy Hybrid Strategy The strategy clock Interactive Strategies Interactive price and quality strategy Cooperative strategy Game Theory Business Models Value creation, configuration and capture Business model patterns

1.2. 8. Corporate Strategy and diversification

1.2.1. Scope - which businesses to include in portfolio?

1.2.2. Degree of diversification, products offered, markets served Strategy Directions Market penetration Product development Market development Conglomerate diversification Diversification Drivers

1.2.3. Diversification and Performance

1.2.4. Vertical Integration Integrate or Outsource

1.2.5. Value Creation and The Corporate Parent Value-adding and value-destroying activities of corporate parents Value-adding activities Value-destroying activities The portfolio manager The synergy manager The parental developer Portfolio Matrices BCG, Growth/Share Matrix Directional policy (GE-McKinsey) Matrix Parenting Matrix

1.3. 9. Internationalisation

1.3.1. Where internationally should the organisation compete? Internationalisation Drivers Geographic Sources of Advantage Locational Advantage (Porter's Diamond) The International value system International Strategies Export strategy Multi-domestic strategy Global strategy Transnational strategy Market selection and entry Country and market characteristics Competitive characteristics Entry mode strategies Subsidiary Roles in an International Portfolio Strategic leaders Contributors Implementors Black holes Internationalisation and Performance An inverted U-curve Service-sector disadvantages Internationalisation and product diversity

1.4. 10. Entrepreneurship

1.4.1. Is the organisation innovating appropriately? Entrepreneurship Opportunity recognition Steps in the Entrepreneurial process Stages of Entrepreneurial growth Social Entrepreneurship Innovation Dilemmas Technology push or market pull Product or process innovation Open or closed innovation Innovation Diffusion The pace of diffusion Diffusion S-curve Innovators and Imitators First-mover advantages and disadvantages The Incumbent's response

1.5. 11. Mergers, Acquisitions & alliances

1.5.1. Whether to buy, ally, or go it alone? Organic development Knowledge and learning Spreading investment over time No availability constraints Strategic independence Culture Management Mergers and Acquisitions Types of M&A Timing of M&A Motives for M&A M&A processes Strategic Alliances

2. Position (context)

2.1. 2. Macro-environment

2.1.1. What are the macro-environmental opportunities and threats? Forecasting Alternative Futures Forecasting (Numeric probabilities) Scenario Analysis (plausible alternatives)

2.2. 3. Industry environment

2.2.1. How can an organisation manage industry forces? Industry Analysis 1. Define Industry clearly 2. Identify the actors of each of the five forces and, if relevant define different groups within them and the basis for this 3. Determine the underlying factors and total strength of each force 4. Assess the overall industry structure and attractiveness 5. Assess recent and expected future changes for each force 6. Determine how to position your business in relation to the five forces

2.2.2. Senior stakeholders would view this with suspicion because of fears over extended integration issues and challenges of data protection with the existing sensitive government customers.

2.3. 4. Strategic Capability

2.3.1. Are the organisations capabilities adequate to the challenges of its environment and the demands of its goals? What resources and capabilities support the strategy? Resources and capabilities Threshold and distinctive resources and capabilities Diagnosing Resources and Capabilities VRIO The value chain and value system Activity systems Benchmarking SWOT Dynamic Capabilities Sensing Seizing Reconfiguring

2.4. 5. Stakeholders

2.4.1. How are stakeholders aligned to the organisational purpose? Stakholders Stakeholder groups Stakeholder mapping Owners Corporate Governance Governance chain Different governance models How boards of directors influence strategy Social Responsibility and Ethics Corporate social responsibility The ethics of individuals and managers

2.5. 6. Culture

2.5.1. How does culture fit with the required strategy? Analysing History Look for the 'policy path' dependency History as a resource Historical analysis Analysing Culture Geographically-based cultures Organisational fields Organisational culture (Needs to be aligned) Culture's influence on strategy Undertaking cultural anaysis Strategic drift - failure to create necessary change. Stages Reasons for drift

3. Action (Process) - how formed & implemented

3.1. 12. Performance & Evaluating (financial / Non-financial)

3.1.1. Organisational Performance Performance Measures Economic performance Effectiveness Performance comparisons Organisation targets Trends over time Comparative organisations Gap Analysis Actual/projected performance Desired performance Size of the gap (measure vs time) which strategy needs to be changed?

3.1.2. SAFe Suitability Are the options suitable in terms of matching opportunities and threats? Acceptability Are they acceptable in the eyes of significant stakeholders? Feasibility Are they feasible given the capabilities available?

3.1.3. Evaluation Criteria Conflicting conclusions and management judgement Consistency between different elements of a strategy Implementation and development of strategies Strategy development in practice

3.2. 13. Strategy development Processes

3.2.1. What kind of strategy process should an organisation have? Deliberate Strategy Development Role of the strategic leader Strategic planning systems Externally imposed strategy Emergent Strategy Development Logical incrementalism (most deliberate) Political processes (medium deliberate) Product of structures and systems (least deliberate) Implications for managing strategy Development Strategy development in different contexts Managing deliberate and emergent strategy

3.3. 14. Organising

3.3.1. What kinds of structures and systems are required for the chosen strategy? Structural Types Functional structure Divisional structure Matrix structure Multinational/transnational structures Project-based structures Strategy and structure fit Systems Planning systems (influence vs accountability) Cultural systems Performance targeting systems (KPIs) Market systems Configurations and Adaptability The Mckinsey 7-Ss Agility and resilience

3.4. 15. Leadership and Strategic Change

3.4.1. How should the organisation manage necessary changes entailed by the strategy? 1. Identify leaders and styles Strategic leadership roles Leadership styles 2. Diagnosing the change context The change Kaleidoscope (identifying context) Forcefield analysis (identify who is for and against) 3. Choose Levers Kotter's 8 steps for change Challenging the status quo Changing operational processes and routines Symbolic Management Power and political systems Timing Visible short-term wins Types of strategic change (Speed vs Extent) Revolution (Big bang transformation) Evolution (Incremental transformation) Adaptation (Incremental Realignment) Reconstruction (turnaround) (Big bang realignment) Problems of Formal Change Programmes Problems in the process What formal programmes forget

3.5. 16. Strategy Practice

3.5.1. Who should do what in the strategy process?

3.5.2. Which people to include?

3.5.3. What activities they should do?

3.5.4. Which methodologies can help them do it?

4. Strategy Overview

4.1. Organisational Context

4.1.1. Small

4.1.2. Multinational

4.1.3. Public / Not for Profit

4.2. Levels of Strategy

4.2.1. Corporate-level geographical scope diversity of products acquisitions allocation of resources

4.2.2. Business-level (competitive strategy) innovation appropriate scale competitors moves

4.2.3. Functional resources processes people

4.3. Definitions

4.3.1. Johnson et al. "long term direction"

4.3.2. Chandler - Goals/objectives -> allocation of resources

4.3.3. Porter - Choices, differences, competition

4.3.4. Drucker - theory of how to gain competitive advantage

4.3.5. Mintberg - emergent pattern

4.4. Lenses

4.4.1. design (analytical/logical) organisations are hierarchies organisations work mechanically Strategy is more than gueswork Important to stakeholders: banks, analysts, investors, employees Gaining support and confidence NOT important to customers, media, activists Weaknesses underestimate intuition and experience underestimate scope for unplanned bottom up initiatives Application consider all options ensure fit between choice and purpose maximise returns (money/effort)

4.4.2. experience (heuristics/gut feeling) Application Challenge standard responses Respect cultural differences Adjust competitor analysis

4.4.3. variety (emergent/bottom up innovation) Application Look beyond top management Learn from acquisitions Expect surprises

4.4.4. discourse (talk/self interest) Application Watch your language Distrust others' language Look out for managerial interests

5. Strategy Statements

5.1. Mission Statement

5.1.1. What business are we in? Why do we do this?

5.1.2. What would be lost if the organisation did not exist?

5.2. Vision Statement

5.2.1. If we were sitting here in twenty years what do we want to have created or achieved?

5.3. Values Statement

5.3.1. Would these values change with circumstances? (The answer should be no)

5.4. Objectives (SMART?)

5.4.1. Precisely Financial Sales Profits Share Value

5.4.2. Time bound 1/2/3 yrs

5.4.3. Triple Bottom Line Economic, Environmental, Social

5.5. Strategic Statement <35 words)

5.5.1. 1. Mission / Vision / Goals / Objectives Triple bottom line: economic, environmental, social

5.5.2. 2. Scope Customers Geographic location Internal activities

5.5.3. 3. Advantages How is it unique?