The nature of strategy and planning

Question 1

PERSPECTIVES OF STRATEGY - MINTZBERG (2008) 5 Ps

What does Mintzberg introduce?

What is the purpose of such ‘modular’ thinking?

What are Mintzberg’s 5 Ps?

Explain the McDonalds example for each.

Answer 1

Mintzberg introduces the idea of 5 different ways to view the development of strategy

Purpose = to help the human brain identify differing characteristics within each strategic situation

1. Strategy as PLAN = the plan gives a direction, attempting to define a route to get from here to there

The number and geographical spread of McDonald’s outlets is based around a plan to attract customers

2. Strategy as PATTERN = the pattern describes a manner of behaving across a period of time = humans generally like to work and behave in a comfortable and familiar way

The nature of how McDonald’s outlets work is a pattern and part of the attraction is the familiarity and the known

3. POSITION = the position within strategic planning suggests that there is a right time and right place

McDonald’s menu is similar and familiar globally (pattern), but adapted with special offers and products to attract customers in a particular location

4. PERSPECTIVE = recognises that strategy does not just happen by chance = people developing strategy must be able to look at the organisation and its strategy from 1< perspectives

McDonald’s introduced the Egg McMuffin after recognising the need to introduce vegetarian options to align their strategy to a wider perspective

5. PLOY = the ploy suggests that strategy may often be a deliberate and intended move to thwart the competition and maintain a competitive edge

Setting up a McDonalds in an area where high sales are unlikely to be achieved BUT the strategic ploy will prevent competitors from opening (no alternative for potential customers)

Question 2

PERSPECTIVES OF STRATEGY - SPENDER (2015) 4 PARADIGMS

Spender suggests there are 4 basic paradigms summarised under 4 headings. What are these?

Name an example for each.

How could this theory be perceived in comparison to others?

Answer 2

1. Goals = scientific approach to strategy suggests strategist is considering objectively the nature and context of the organisation and the logical cause and effect of relationships of the people within (allows strategist to focus on the goal while not necessarily recognising the changing environment )

(e.g., Kodak failed to adapt to changing digital environment)

2. Judgement = recognises inevitable change in the environment and people are not always rational (strategist can recognise that gaps do exist in any plan or structure)
3. People = recognising and accepting that people are not always rational allows change to a people-centric approach to strategy (strategist role to persuade others and promote strategic objectives)

(e.g., this is why it is possible to sell diamond-studded mobile phones)

4. Flexibility = recognises that the developers of any strategy are malleable and have the ability to adapt and change the original intentions

(e.g., Microsoft went from creating and selling packaged software to producing everything web-based)

Could be perceived as moving from a static approach to strategy to a more eclectic approach

Question 3

PERSPECTIVES OF STRATEGY - MACCOBY (2017) STRATEGIC INTELLIGENCE

What does Maccoby (2017) suggest?

What are Maccoby’s 4 dimensions?

Answer 3

Suggests that the concept of strategy needs to be aligned with the concept of intelligence and that we need to be able to develop our intelligence to consider strategy from 4 dimensions

1. Foresight = the ability of leaders to understand trends that present threats or opportunities for an organisation
2. Visioning = the ability of leaders to conceive an ideal future state based on foresight and to create a process to engage others to implement it
3. Partnering (customers and suppliers) = the ability of leaders to develop strategic alliances with individuals, groups and organisations
4. Motivating = the need to inspire others to share our vision and therefore to help implement our strategy

Question 4

PERSPECTIVES OF STRATEGY - ARGYRIS (1990) INFERENCE AND CONTROL

What are the 7 steps in the ladder of inference?

How did Argyris use his ladder?

What is a key learning from the use of the ‘ladder of inference’ model?

How can this process be described?

Why is this useful?

Answer 4

(7). Action
(6). Beliefs (arrow down ladder pointing to data = prejudice)
(5). Conclusions
(4). Assumptions
(3). Meanings
(2). Data
(1). Observation

Used to consider how the brain enables us to take any actions = brain moves through a series of stages (the steps in the ladder) enabling us to take a specific action

Key learning = belief stage combined with the result of the action itself, will then inform the earlier stage of ‘data filtration’ = allows us to retain what we perceive as relevant for our ongoing approach to life (our attitude)

Described as the basis of prejudice/bias within the brain

If we are able to recognise these prejudices (positive and negative) within ourselves, this will help us in our development of strategy and reduce the number of iterations required during the development process

Question 5

LEVELS OF STRATEGY AND PLANNING - LEVELS OF PLANNING

The core driver of the level of planning required will be what? (What is this known as?)

What is the horizon?

What are the 3 horizons, how are they each accomplished, and who are they overseen by?

How are these 3 different levels interconnected and rely upon each other?

Answer 5

The immediacy that is required for the anticipated task or change = known as the planning horizon

Horizon = the time that elapses between the making and the executing of the plan (longer horizon = greater uncertainty)

(1) Operational plans = short-term plans concerned with fulfilling today’s production output
(accomplished and overseen by each individual employee at whatever hierarchical level)

(2) Intermediate plans = mid-term plans concerned with the integration of organisational plans to ensure cohesion among the different parts of an organisation
(overseen by management and accomplished through ST operational plans)

(3) Strategic plans = long-term plans to achieve the wider business objectives
(developed by directors and SM and realised through subsequent intermediate and then operational plans)

Interconnectivity and reliance = an effective strategic plan will establish the parameters within which intermediate and then operational plans can be formulated and fulfilled

Question 6

What are the 4 benefits of using strategic modeling such as the models developed by Mintzberg, Spender, or Maccoby?

Answer 6

(1) Expand and challenge the human mind
(2) Allow directors to challenge and reconsider the status quo
(3) Alignment of model to values, stakeholder expectations, and underlying business ethos
(4) Focuses consideration of:
1. the uncertainty of the operational environment
2. dynamic changes in technology
3. intricacies of multinational trade
4. differing styles of leadership
5. the complexity and challenges of human interaction