LO 3

Question 1

What are the tools and techniques of corporate strategy? (Approaches to strategy)

Answer 1

• Rational models of strategy

* Emergent models

Question 2

What are the tools and processes of environmental analysis?

Answer 2

• Forecasting
• Delphi Forecasting
• Cross impact matrices
• Scenarios

Question 3

What is the Mintzberg’s 5Ps categorisation of strategy?

Answer 3

1. Plan.
2. Ploy.
3. Pattern.
4. Position.
5. Perspective.

As a Plan, strategy needs to be developed in advance and with purpose. As a Ploy, strategy is a means of outsmarting the competition.

With strategy as a Pattern, we learn to appreciate that what was successful in the past can lead to success in the future.

With Position, strategy is about how the organization relates to its competitive environment, and what it can do to make its products unique in the marketplace.

Question 4

FACT

Answer 4

Instead of trying to use the 5 Ps as a process to follow while developing strategy, think of them as a variety of viewpoints that you should consider while developing a robust and successful strategy.

As such, there are three points in the strategic planning process where it’s particularly helpful to use the 5 Ps:

• When you’re gathering information and conducting the analysis needed for strategy development, as a way of ensuring that you’ve considered everything relevant.
• When you’ve come up with initial ideas, as a way of testing that that they’re realistic, practical and robust.
• As a final check on the strategy that you’ve developed, to flush out inconsistencies and things that may not have been fully considered.

Using Mintzberg’s 5 Ps at these points will highlight problems that would otherwise undermine the implementation of your strategy.

Question 5

What are the main features of the emergent approach to strategy?

Answer 5

Emergent strategy is a “realized pattern” of behavior and action that “was not expressly intended” and develops over time in spite of the original strategic plan.

Emergent strategy is strategy that is created over time as your plan makes contact with an ever-changing reality.

When a deliberate strategy goes according to plan, it resembles a factory machine. The input goes in and out pops the expected product. Deliberate strategies give you a sense of certainty and predictability.

Emergent strategy doesn’t do that. Emergent strategy is about learning what works in practice and changing to meet those needs.

Emergent strategy is setting out to build a playing card company and getting Nintendo instead.

It’s Katy Hudson pivoting away from a Christian audience to a broader, more mainstream market.

It’s Paypal going from a way to beam money from one Palm Pilot to another to the web’s checkout merchant of choice.

It’s Flickr changing from a multiplayer online game to a $40 million dollar photo-sharing site.

In short, it’s deviating from the plan when the plan no longer makes sense.

Question 6

FACT

Answer 6

Emergent approach to strategy can be flexible to enter all factors contingent upon external factors more flexible and innovative.

Question 7

What are the models of HR strategy?

Answer 7

• Best fit
• Best practice (argues only one approach to HR strategy)
• higher performance workplace model (suitable in nearly all organisational and environmental settings)
• resource-based model ( argues the resources, particularly human capital and core competencies, are much more important for HR strategy than the environment.