manoj.ghadge_otpr.course [session 6]

7/23/2019 Manoj.ghadge_OTPR.course [Session 6]

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0TPR

Session 6 : Organization Strategy

COORDINATOR & FACILITATOR

Prof. Manoj Ghadge


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Contents

1. Strategy

2. Strategic Intent

3. Strategy Imperative

4. Porters Competitive Strategy

5. Miles and Snows Strategy Typology

6. Strategic Choice & Organization Design

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Strategy

Strategy is a plan for interacting with the competitive

environment to achieve organizational goals (Daft, 2013).

Two views on Strategy

1. Planning mode: well-thought-out and systematic plan

developed in advanced.

2. Emerging mode: evolving over time as a pattern in a stream

of significant decisions.

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Strategy

Specific pattern of decision and actions that managers take to use core

competencies to achieve competitive advantages and outperform

competitors

1. Core Competencies: The skill and abilities in value-creation

activities that allow a company to achieve superior efficiency,

quality, innovation or customer responsiveness.

2. Competitive Advantage: Refers to what set the organization apart

from others and provide it with a distinctive edge for meeting

customer and client needs in the marketplace.

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Sources of Core Competencies

Specialized Resources

Functional Resources

Organizational Resources

Coordination Abilities

Abilities to coordinate its functional and

organizational resources to create maximum value

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Strategic Intent

Strategic intent - organizations energies and resources are

directed toward a focused, unifying, and compelling goal

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Mission

Competitive Advantage

Core Competence

Strategic

Intent


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Strategy Imperative

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Environmental

Factors

and

Organizational

Capabilities

StrategyStructure


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Framework Strategy and Design

Formulating strategies is choosing whether the organization

will perform different activities than its competitors or will

execute similar activities more efficiently than its

competitors do.

Two models for formulating strategies;

1. Porters model of competitive strategies

2. Miles and Snow strategy typology

Each provides a framework for competitive action.

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Porters Competitive Strategies

1. Differentiation : Eg. Apple - its attempt to

distinguish its products and services from others in

the industry.

2. Low Cost Leadership: Eg. Ryanair efficiency and

lower operating costs can cut competitors pricesand still earn profits.

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Porters Five Forces

Managers should understand forces in industry and

environment

The Threat of New Entrants

The Power of Suppliers

The Power of Buyers

The Threat of Substitutes

Rivalry among Existing Competitors

Porter suggests that companies adopt strategies based on five

forces analysis

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Miles and Snow Strategy Typology

Seek to formulate strategy that will be congruent with the external

environment. Organizations strive for a fit among internal

organization characteristics, strategy, and the external

environment. The four strategies that can be developed are;

1. Prospector

2. Defender

3. Analyzer

4. Reactor

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Miles and Snow Strategy Typology

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Strategy affects Organization Design

Strategy is one of the important factor that affects

organization design.

Organization design characteristics need to support

the firms competitive approach.

Refer to Exhibit 3.6 (Daft, 2013, p. 138)

Read HBR Article How Strategy Shapes Structure

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