Some Key Concepts to be Used

In Tutorial 4

Academic classifications of business strategies

Mintzberg& Waters, 1985Intended strategies• Realised strategies• Unrealised strategies• Deliberate strategies• Emergent strategies

Academic classifications of business strategies

Defending market share

Business Strategy Classification by business behaviour patterns

DEFENDER PROSPECTORANALYSER

Risk Adverse

Risk Taker/ Market Change Market

Proactive Market Player

Behaviour Culture

Miles & Snow (1978)

H M L

H M L

L M H

L M H

Administrator Engineering Opportunistic

Likely deliberate strategy

Likely follower strategy

Likely emergent strategy

Likely nature of strategy

More Comparisons between the 3 types of strategies

Organisation Size Medium to Large Large Small

More comparisons

Financial Performance indicators

Organisation Control Orientation

CENTRALISED ORGANICMIXED

1. Rules & procedures driven coordination

2. Top Down: • decision making• Communications

3. I-centred culture4. Individual based task

specialisation

1. Consensus driven coordination

2. Team based:• decision making• Communications

3. We-centred culture4. Team based task

specialisation

Academic classifications of business strategies

Porter’s Generic Strategies

Types of Strategies

BROAD NICHE

Cost advantageDiff advantage

Cost focusDiff focus

Diagram Source: http://www.mindtools.com/pages/article/newSTR_82.htm

Porter’s Value Chain:Business Strategies can be value creation driven

Primary activities relate to how value is created for a product/service

Secondary activities creates efficacy & coordination value in primary activities

Source: http://www.insemble.com/software-value-chain.html

How powerful / influential are

suppliers?

How powerful / influential are

customers?

How easy / hard to enter the industry?

How easy / hard to switch products/services?

Business Strategies can be industry competition driven

Porter’s Country Competition AnalysisBusiness Strategies are driven by country competition drivers

Factor Conditions

Firm’s Strategy,

Structure & Rivalry

Capacity

Demand Conditions

Related & Supporting Industries

Government Influences

Chance / Luck Drivers

Case Study 1

Warner-Lambert

WL & Partner ProcurementEucalyptus Farm

Supply Chain

Union Carbide Ethanol Division

SPI Corn Sorbid Division

Saudi Arabia GasSupplier

Order 1

Order 2

Order 3

WL Lititz, PennsylvaniaFactory & Warehouse

WL Listerine Production &

Packing

Test Ingredients

Produce Listerine

Bottle & Pack

3 m

6-8 w

1++ m

Worldwide Distribution

RetailSelling

Upstream

Downstream

Warner-Lambert (WL) Supply Chain

http://www.strategy4u.com/assessment_tools/porters_five_forces/five_forces_popup.shtml

Apply to the WL /Listerine case study

How would a CRM system create competitive advantage for WL?

The consultant’s justification is using to profile customers,

hence resulting in better segmenting them

Can you be more strategically savvy in your business case?

Source: https://prezi.com/oblbvynfsjsg/consultant-project-listerine/

Case Study 2

Honda USA

Japan in the 1960s

How the Americans saw Japan in the 1970shttps://www.youtube.com/watch?v=Jqm4dB8kie0 8.04mins

What Japan already was in in the early 1960s https://www.youtube.com/watch?v=t4mbh9cM5zg 7.28 m

Honda in US Case Study

Entered USA in 1959Success hit in 5 years, capturing

50% market share

Product’s Strengths & Weakness

Cultural Influence in DesignBuddha’s eyebrow shaped handle

Supply chainCost advantage

Customisable Components

Significant oil leaks in US use

Sent back to Japan to fix

1960s US Cultural Themes in Marketing

1959 first entry

TODAY

1960s

Case Qs

1. Is Honda’s strategy to enter into the US market deliberate in nature?

2. Can Honda’s strategy be considered an emergent one?

3. What could happen if Honda wanted to promote its bikes in the US by selling the Buddha eyebrow design influence in shaping the bikes’ handles?