A HISTORICAL PERSPECTIVE ON STRATEGIC MANAGEMENT.ppt

a perspective on strategic management

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A HISTORICAL
PERSPECTIVE ON
STRATEGIC MANAGEMENT
Elisa MUPENZI

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1. WHY HISTORICAL PERSPECTIVE?
To gain a better understanding of the conflicting
views of strategic management.
To appreciate how changes in the environment have led
to new problems and new concepts of strategy
development.
To help us better understand the subject matter to be
presented in this course.

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2. MAJOR INFLUENCES ON STUDY AND
TEACHING OF STRATEGIC MANAGEMENT
1960’S – HARVARD UNIVERSITY

“Business Policy” courses positioned
strategy as the responsibility of the
General Manager or Chief Executive
Officer.

Typical question asked – “What would you
do if you were appointed CEO of an
organisation?”

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
Reliance on experience and “common
sense” not as much on theory or research.

Originated and popularised use of Case
studies as a tool for learning

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1960’s/1970’s – LITERATURE ON
CORPORATE PLANNING
Emphasized analysis of various influences on
organisations’ well being so as to identify
opportunities and threats to its future development.
Adopted analytic approach to planning assuming
that managers can and should understand as
much as they can about their organisations so as
to make optimal decisions about their future.
This was a highly influential approach hence the
mushrooming of “Corporate Planning”
Departments in Organisations.

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The planning School: Igo Ansoff

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1980,s
Wide criticism of the 1960,s/70’s thinking.
Growing body of research led to analysing
evidence between financial performance and
strategies followed by an organisation.
It was argued that strategic decisions should be
informed by analysis and evaluation.
Others argued that it was not possible to predict
with certainty all aspects of an organisation.
Instead, it was better to concentrate on
managerial processes and decision making.

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1980’s
However, still others questioned the
above assertions adding that
organisations were like living
organisms.
They live, experience, interpret
events- thereby changing, innovating
and adapting to change.

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
SO WHERE DOES ALL THIS LEAVE THE
STUDENT OF STRATEGY?

BEST ADVICE – LEARN FROM ALL
ABOVE APPROACHES. EACH HAS
SOME MERITS!

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3. LANDMARK CONTRIBUTIONS TO THE
DEVELOPMENT OF STRATEGIC
MANAGEMENT
TIME ORIGINATOR CONCEPT
1963-70 Stanford Research Structured thinking
Instituteabout planning systems
1965 Igor Ansoff Analytical approach to corporate strategy
1972 Igor Ansoff Strategic Management Concept
1980 James Quinn Logical Incrementalism

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3. LANDMARK CONTRIBUTIONS TO THE
DEVELOPMENT OF STRATEGIC
MANAGEMENT
TIME ORIGINATOR CONCEPT
1982 Kenichi Ohmae Strategic Thinking

1982 Thomas PetersIn Search of Excellence and Robert
Waterman
1985 Henry MintzbergDeliberate and Emergent Strategies
1985 Igor Ansoff Contigency Approach Environmental
Turbulence

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LANDMARK
CONTRIBUTIONS
1986 Noel Tichy -Transformational &Mary
Leadership
Devanna
1987 Michael Porter- From Competitive
Advantage to Corporate Strategy.
1994 Gary Hamel
& C.K.Prahad – Reshaping Industries
(Competing for the Future)

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SOME LANDMARKS IN THE DEVELOPMENT
OF ANALYTICAL METHOD
TIME ORIGINATOR CONCEPT
1980Michael PorterSeminal work an Industry
Analysis and Competitor
Analysis
1980McKinsey 7 S framework.
1985Michael PorterThe Value Chain

1986 Hayes, Wheelwright World Class
and Clark Manufacturing

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SOME LANDMARKS IN THE DEVELOPMENT
OF ANALYTICAL METHOD
TIME ORIGINATOR CONCEPT
1987 C.K. Prahalad and Global strategy
Y. Doz.
1990 Gary Hemel and Core Competences
G.K Prahad
1992 George Yip Global Strategy

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4. STRATEGIC MANAGEMENT
The dynamic management tasks and
activities undertaken which include
understanding the strategic position
an organisation, strategic choices, for
the future and turning strategy into
action.
.

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THE STRATEGIC
MANAGEMENT TRIANGLE

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THE STRATEGIC POSITION
The strategic position is concerned
with the impact of the external
environment, internal resources and
competencies and the expectations
and influence of stakeholders

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STRATEGIC CHOICE
Strategic choices involves
understanding the underlying bases
for future strategy at the corporate
and business unit levels and the
options for developing strategy in
terms of both the direction and
methods of development.

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STRATEGY INTO ACTION
Strategy into Action – ensuring that
strategies are working in practice.

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5. WHY STRATEGY MATTERS
An organisation’s strategy answers the
following critical questions:
How do we satisfy customers?
How do we grow the business?
How do we respond to changing industry and
market demands?
How best do we capitalise on new opportunities?
How do we manage each functional piece of
business?
How do we achieve strategic and financial
objectives?

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5. WHY STRATEGY MATTERS
Therefore powerful execution of a powerful
strategy is a proven recipe for success.
Crafting and Implementing strategy are
core management functions.
To qualify as a well managed and excellent
organisation, it is imperative to have:

An attractive strategy

Demonstrate proficiency in executing the
strategy.

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5. WHY STRATEGY MATTERS
A good strategy is strong enough to
overpower bureaucracy and flexible
enough to overcome obstacles.
Without a proficiently executed strategy,
an organisation can not achieve peak
performance.
Helps Managers to avoid the trap of trying
to move in many directions at the same
time and risk the possibility of not taking
any action of all.

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5. WHY STRATEGIC MANAGEMENT
MATTERS
Therefore, to successfully chart the
organisation’s future, managers must:
Know where their firm is now;
Have a clear view of where it is headed,
and
Recognise the appropriate time to shift
to a new direction.
THAT IS WHY STRATEGY MATTERS!

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