H1:: What is strategy

Question 1

What is strategy? + origin of strategy

Answer 1

Plan that is intended to achieve particular purpose
Origin:
comes from warfare –> victory tactics

Question 2

MINTZBERG STRATEGY AS AN EMERGENT PROCESS
Mintzbergs critique of formal strategic planning:

Give the 3 fallacy’s

Answer 2

1) fallacy of prediction
2) fallacy of detachment
3) fallacy of formalization

Question 3

MINTZBERG STRATEGY AS AN EMERGENT PROCESS
Mintzbergs critique of formal strategic planning:

Explain fallacy of predicition

Answer 3

The future is unkown: we don’t know what is gonna happen
Accidental discoveries can have dramatic effects on strategic direction –> most succesfull business have had succes with accedental discoveries

Question 4

MINTZBERG STRATEGY AS AN EMERGENT PROCESS
Mintzbergs critique of formal strategic planning:

Fallacy of detachment

Answer 4

Assumes that strategist sits behind desk and plans it all out:
strategists sits behind desk and plans it out and the lower people will just do it without faults
–> disconnection between formalization and implementation
- there will be people that act differently than planned

Question 5

MINTZBERG STRATEGY AS AN EMERGENT PROCESS
Mintzbergs critique of formal strategic planning:

Fallacy of formalization

Answer 5

has to do with if you sit behind desk and you develop strategy:
–> you are simplifying the reality
–> the reality is more complicated than this simple picture
inhibits flexibility, spontaneity, intuition and learning

Question 6

Strategy evolves through …x..

Answer 6

autonomous action, a pattern in a stream of decisions:
een bedrijfs strategie die veranderd doorheen de tijd  ge past die constant aan door nieuwe dingen enzo die op uw pad komen.

Question 7

EISENHARDT: STRATEGY AS SIMPLE RULES

kritiek op wat?

Answer 7

critized of design and positioning schools:

Bv internet:
- intense rivalry
- intant imitation: easy for other people to copy
- few barriers to entry
- WTP (willingness to pay) is extremely low

Question 8

EISENHARDT: STRATEGY AS SIMPLE RULES

explain

Answer 8

Eisenhardt wants managers to not have a strategy but to apply a couple of simple ‘rules’ –> quick and constant decision

• strategy is then the craft of knowing wich fleeting opportunities to seize –> how?
  by identifying a small number of strategically significant processes, and crafting a few simple rules to guide them.

Question 9

EISENHARDT: STRATEGY AS SIMPLE RULES

Give the 5 rules

Answer 9

1) how-to rules= key features of how process is executed- what makes process unique

2) boundry rules= focus on wich opportunities can be persued and wich are outside the pale

3) priority rules= help managers rank the accepted opportunities

4) timing rules= synchronize managers with the pace of emerging opportunities and other parts of the company

5) exit rules= help managers decide when to pull out of yesterday’s opportunities

Question 10

EISENHARDT: STRATEGY AS SIMPLE RULES

where do the rules come from?

Answer 10

• own experience
• imported experience of management
• rules exist in some implicit form

Question 11

PORTER POSITIONING SCHOOL

explain how to compete

Answer 11

Porter begins with differentiating with: strategy and operational efficiency

competing to be the best is not strategy –> strategy is to be competing to be unique/different:

Problem: market keeps catching up: the better you get the more cost effective you get, the market gets there quickly –> people will quickly immitate what you do

–> SOLUTION: COMPETING TO BE DIFFERENT= unique value proposition + distinctive, different activities
–> POSITIONING FOR PORTER= offering unique value using unique activities

–> STRATEGIC POSITION= PREFORMING DIFFERENT ACTIVITIES THAN RIVALS OR PROFORMING SIMILAR ACTIVITIES IN DIFFERENT WAYS

–> porter is not about selecting industries and segments

Question 12

PORTER POSITION SCHOOL

3 types of positioning

Answer 12

variety based positioning

needs based positioning

access based positioning

Question 13

PORTER POSITION SCHOOL

variaty based positioning

Answer 13

Produce particular products or services using distinctive sets of activities

Bv: specializing in a narrow range or serving basic service at a reasonable cost. Jiffy lube is an example.  product, looking at wide market. We will only produce one partical type of product or service

Question 14

PORTER POSITION SCHOOL

needs based positioning

Answer 14

Meeting unique customer needs using unique activities. Bessemer Trust Company and Ikea are examples.

Question 15

PORTER POSITION SCHOOL

access based positioning

Answer 15

This is to segment customer according to how to reach them in a different way (i.e. access). Carmike Cinemas is an example.  look at geography: offer same products to customer

Question 16

PORTER POSITION SCHOOL

what is key to achieve sustainable competitive advantage?

Answer 16

Deterring imitations (de imitatie afschrikken/bedrijven die willen kopiëren moet ge afschrikken en buiten houden)

Competitor repositioning or straddling  vanaf het moment dat ge alleen de ‘linker kant’ (foto hierboven) offert wordt het heel makkelijk om te kopiëren voor concurrenten.

Question 17

PORTER POSITION SCHOOL

strategic fit

Answer 17

Strategic fit drives both competitive advantage and sustainability:
3 types of fit:
1) First-order fit is simple consistency between each activity and the overall strategy e.g. Vanguard
2) Second-order fit occurs when activities are reinforcing e.g. Neutrogena
3) Third-order fit occurs when coordination and information exchange across activities to eliminate redundancy and minimise wasted effort e.g. Gap stores

• Implications of greater strategic fit:
  Rivals have a hard time imitating a total system because it is a blend of too many variables in action that enforces internal effectiveness.

Question 18

In sum porter positioning school

Answer 18

• strategy is about being different, increasing differentiation from competitors
• activities are the unit if strategic differentiation, strategy then is to preform activities differently from rivals
• strategic fit makes it imperative that organizational structure, systems and proceesses are strategic- specific (create system that is difficult to imitate by competitors)

Question 19

DESIGN SCHOOL

leg uit

Answer 19

looks at inside (!) and outside, swot analyse

core competenties= recourse and capabilities –> serves as source of comp adv

Question 20

DESIGN SCHOOL

explain sustainable competitive advantages

Answer 20

occurs when firm implements a value-creating strategy of wich other companies are unable to duplicate the benefits or find it too costly to imitate

important basis for sustainable competitive adv= development of recources and capabillities

Question 21

DESIGN SCHOOL

3 horizons for strategy

Answer 21

• first horizon= extend and defend core business
• second horizon= build emerging business
• third horizon= building options for the future

Question 22

Categorizing strategy: levels of strategy/categorizing different schools of thought

Give the 3 levels

Answer 22

• CORPORATE-LEVEL STRATEGY: where to compete? –> concerned with the overall purpose and scope of the organisation and how to add value
• BUSINESS-LEVEL STRATEGY: how to compete? –> concerned with the way a business seek to compete
• OPERATIONAL LEVEL STRATEGY: how to implement –> directed at improving the effectiveness of functional operations