Technology & Innovation Management (49016) Week 4
- Strategy is the creation of a unique and valuable position, involving a different set of activities.
- Strategy requires you to make trade-offs in competing to choose what not to do.
- Strategy involves creating “fit” among a company’s activities.
- Strategy bridges the gap between where a company is and where a company wants to be.
Strategy Hierarchy
Non-strategic Action
Strategic Action
Vision / Mission
Broad statements on company direction
Inspiration and framework for strategic planning
A vision statement outlines where a company wants to be
A mission statement outlines broad aims and defines what the company does, what they want to do now
SMART
Goals / Targets
Goal: Setting the desired direction
Target: Setting the desired quantity
Perspectives of strategic management
Mintzberg’s 5 Ps
Plan
Ploy
Pattern
Position
Perspective
Porter’s Generic Strategies
Do what everyone else is doing vs do something noone else can do.
Resource-based View
Orgs have a competitive advantage if
- they implement a value creating strategy
- that is not implemented by any other competitor
Competitive Advantage : valuable , rare
Sustainable Competitive Advantage: Valuable, rare, inimitable(something that can’t be copied), durable
How easy it easy to substitute.
VRIO + VRIN +
Tools for Strategic Analysis
PESTEL
External
what are all the external factors affecting us
political, economic, social, technological, environmental, legal
Stakeholder analysis
External
Porter’s 5 forces
Value chain analysis
Internal
SWOT Analysis
Strength, Weakness, Opportunity, Threat
