Lecture 2: Design school

Question 1

What are different components of strategy?

Answer 1

• Plan = consciously intended direction, guide, or course of action to move from present state to a (desired/imagined) future state)
• Ploy = a maneuver to outwit an opponent
• Pattern = recognizable similar actions that emerge (intended or unintended over time)
• Position = the organizatuon’s location in the imaginary landscape of the competitive environment
• Perspective = The interpretation of managers of the organization and its environment

Question 2

What is the main objective of the design school?

Answer 2

Alignment/fit between what the organization can do and the environment

Question 3

Who is the strategist of the design school?

Answer 3

CEO/head or organization

Question 4

What are the tasks of the strategist in the design school?

Answer 4

• Gather information
• Analyse information
• Organize information
• Formulate strategy

Question 5

What is the design school process?

Answer 5

1. Analysis
   - SWOT analysis - Internal (strengths & weaknesses)& external (treaths & opportunities)
2. Formulation Creation & Evaluation
   - Social responsibility
   - Managerial values
3. Implementation

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Question 6

What are the characteristics of the design school?

Answer 6

• Strategy formation as a deliberate process of conscious thought
• One person develops strategy; CEO/head of organization
• Process of strategy formation should be simple and informal
• Strategies should be one of a kind (unique)
  o Strategy developed to attain match or fit between internal capabilities and external possibilities
  Swot analysis
  Environment needs to be taken into account, navigated through but not interacted with
• The strategy design process is complete when strategy appears fully formulated as a perspective
• This strategy is explicit
• Implementation follows formulation and articulation

Question 7

How is the strategy formed?

Answer 7

Deliberately

Question 8

What is most important; leadership, organization or environment?

Answer 8

Leadership

Question 9

Compex or simple strategies?

Answer 9

Simple

Question 10

How does the organization change?

Answer 10

Occasionally, quantum

Question 11

How is the environment viewed?

Answer 11

stable

Question 12

What are the contributions of the desgin school?

Answer 12

• Vocabulary & tools
• Grand strategy
• Basic notion; fit between external environment and internal capabilities
• Started to promote the relevance of strategy in organizations and as a field of research

Question 13

What are the limitations of the design school?

Answer 13

• Structure follows strategy = unrealistic for most organizations
• Assumption of universality
• The capacity to learn is ignored by analytical assessment of environment and internal capabilities
• Promotion of inflexibility; hierarchical, centralized, and explicit strategy formulation
• Detachment of thinking from acting
• CEO/head or organization os unlikely to have all and perfect information and the capacity to process this information. CEO is seen as a Economic man
• bounded rationality: Rationality is limited, and individuals make imperfect decisions;
  o difficulty of problem
  o boundaries to cognitive capability
  o Limited time

Question 14

What are the different tests to evaluate the strategies (Rumelt)?

Answer 14

1. Consistancy -> strategy must NOT present inconsistant goals
2. Consonance -> strategy must adapt the external environment
3. Advantage -> must create competitive advantage
4. Feasability -> must net=ither overtax resources nor create unsolvable problems

Question 15

What is marketing Myopia?

Answer 15

see yourself as a product seller rather than providing a solution to a need

Question 16

What is marketing hyperopia?

Answer 16

Worry too much about problems that have not occured yet, so it keeps you from your current jobs

Question 17

What is market macropia?

Answer 17

an overly braod view of your industry.

having a too broad segment