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Sustainable Development and Organisational Change (featuring: evolution and revolution as organisations grow) Richard Brooks 1st October 2010.

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Presentation on theme: "Sustainable Development and Organisational Change (featuring: evolution and revolution as organisations grow) Richard Brooks 1st October 2010."— Presentation transcript:

1 Sustainable Development and Organisational Change (featuring: evolution and revolution as organisations grow) Richard Brooks 1st October 2010

2 Agenda “the last thing we need is another strategy”
Introduce and use some strategy models So what? Development of firms (evolution and revolution as organizations grow) Another so what/sum up

3

4 Multi Dimensions We’ll explore PEST analysis Five Forces
Resource Based View of the Firm Q: How many people here use/know these tools? OUR COMPANY MICRO ENVIRONMENT MACRO ENVIRONMENT

5 Macro Environment P.E.S.T. Analysis
Step 1 Step 2 Political Economic Government budget cuts Continued low cost of capital Low growth War Value of $/£/Euro Sales Tax to 20% Double dip recession LOW MED HIGH PROBABILITY Social Technical Social Media Google Translate Economic Migration TMS & Workflow Broadband E-Procurement LOW MED HIGH IMPACT

6 The Micro Environment Threat of a NEW ENTRANT Threat of a NEW ENTRANT
Bargaining power of SUPPLIERS Bargaining power of SUPPLIERS The Rivalry within the INDUSTRY Bargaining power of CUSTOMERS Bargaining power of CONSUMERS Supply Chain Threat of SUBSTITUTE product or service Threat of SUBSTITUTE product or service Threat of SUBSTITUTE product or service Adapted from Michael Porter, “How Competitive Forces Shape Strategy”, Harvard Business Review 1979

7 The Organization The Resourced Based View of the Firm examines the link between ‘the internal characteristics of a firm and a firm’s performance’. States that a firm can be regarded as a bundle of resources. And it’s the resources which are simultaneously valuable, rare, imperfectly imitable, non-substitutable that provide the firm with the main source of sustainable competitive advantage. List your resources… are they valuable? Are they easy to imitate? Are they easy to leverage? Do you have any VRIN resources? Is it? Imperfectly Imitable Non Substitutable Resource Valuable Rare Key Learning Points MAKE RARE RESOURCES VALUABLE YOUR REPUTATION IS VERY IMPORTANT IN THIS INDUSTRY TACIT KNOWLEDGE is a key VRIN resource COMPARE WITH COMPETITION – WHERE ARE THE DIFFERENCES? Buildings Workflow system Databases Reputation Staff Adapted from Barney “Firm resources and sustainable competitive advantage”, Journal of Management 1991

8 Growth via COLLABORATION Growth via COORDINATION
Greiner’s Curve Crisis of ??? Crisis of RED TAPE Crisis of CONTROL Growth via COLLABORATION Crisis of AUTONOMY Growth via COORDINATION Crisis of LEADERSHIP Growth via DELEGATION Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972

9 To sum up Traditional strategy tools are vital but can lead to generic strategies (eg Porter’s 3 generic strategies (low cost, focus and differentiation)) – watch out for them at your competitors. RBV lets you explore the internal characteristics of your own companies and see what works and what should be invested in. Need to look at time factors when developing corp strategy – this can be your company’s developmental stage AND/OR the state the surrounding industry is in. If you are in a period of stable growth… BEWARE! Sustainable growth needs to be designed into the strategy, it won’t just happen.

10 Thank you Richard Brooks K International plc, UK
#1 Supplier of Translation Services to the UK Government Tel: blog.k-international.com @K_International @RichardMBrooks


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