1. Strategy in Action 13: Resourcing Strategies

2. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-2 Learning Outcomes (1)  Analyse the resource management issues that are important to achieving strategic success in four key resource areas:  The management of people  Access to and processing of information to build capabilities and change business models and/or managerial processes

3. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-3 Learning Outcomes (2)  The management of finance to create financial value, fund strategic developments and address the differing financial expectations of stakeholders  The management of technology to address changing competitive forces on an organisation and improve strategic capability  Address the integration of resources and competences across resource areas to underpin the success of strategy

4. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-4 Exhibit 13.1 Resourcing Strategies People Information FinanceTechnology Organisational strategies

5. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-5 What are Resourcing Strategies? Resourcing strategies are concerned with the two-way relationship between overall business strategies and strategies in separate resource areas such as people, information, finance, and technology.

6. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-6 Exhibit 13.2 Strategy and People Strategy People as a resource Organising people People and behaviour

7. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-7 Traditional HR Activities Viewing People as Resources  Audits  Goal-setting and performance assessment  Planning of rewards  Recruitment and retention  Training and development plans

8. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-8 People and Behaviour  Understanding the need to change organisational paradigms  Seeing role as ‘shapers of context’  Understanding the relationship between behaviours and strategic choices  Being realistic about the difficulty and time- scales in achieving change  Being able to vary style of managing change

9. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-9 Roles of the HR Function Service providerRegulator AdvisorChange agent

10. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-10 Customer Relations at KLM  Were KLM’s HR policies adequate for delivering on the promise of the Reliable Airline?  How did the behaviour of front-line staff influence the actual service delivery?  What could be changed to improve the consistency of service delivery?

11. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-11 Exhibit 13.3 Competitive Advantage Through People

12. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-12 Exhibit 13.4 Strategy and Information

13. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-13 Information and Strategic Capability Improving product/service features Competitive performance Ease/difficulty of imitation Competitive positioning

14. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-14 Information and Product/Service Features  Lower prices  Improved pre- purchase information  Easier, faster purchasing  Shorter development times  Product or service reliability  Personalised products  Improved after-sales service

15. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-15 What is Data Mining? Data mining is the process of finding trends, patterns, and connections in data in order to inform and improve competitive performance.

16. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-16 Information and Competitive Positioning Routinisation – Cost Reduction Mass customisation – more Product Features Customisation – advanced information

17. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-17 Information and Business Models Electronic processing Extended functions New functions Internal changes

18. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-18 Exhibit 13.5 Changing Business Models

19. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-19 ZOPA Leverages DIY Craze  How has ZOPA changed the business model for lending and borrowing?  List the advantages and disadvantages for lenders and borrowers of dealing with ZOPA instead of a bank.  How could the banks respond?

20. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-20 Exhibit 13.6 Strategy and Finance Strategy Managing for value Financial expectations Funding strategies

21. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-21 What is Managing for Value? Managing for value is concerned with maximising the long-term cash-generating capability of an organisation.

22. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-22 Value Creation Funds from operations Investment in assets Financing costs

23. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-23 Exhibit 13.7 Financial Aspects of Value Creation

24. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-24 Funding Strategies Sources of funds Business and financial risks Portfolio issues Mergers and acquisitions

25. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-25 Exhibit 13.8 Balancing Business and Financial Risk

26. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-26 Exhibit 13.9 Strategy and Technology Strategy Technology and the competitive situation Organising technology Technology and strategic capability

27. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-27 Exhibit 13.10 Matching Technology Strategies to Markets

28. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-28 Exhibit 13.11 Developing or Acquiring Technology

29. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-29 Organising Technological Development Location and funding Global vs local development Organisational processes

30. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-30 Exhibit 13.12 Funding and Location of R&D

31. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-31 What is a Stage-Gate Process? A stage-gate process is a structured review process to assess progress on meeting product performance characteristics during the development process and ensuring that they are matched with market data.

32. Exploring Corporate Strategy 8e, © Pearson Education 2008 13-32 Exhibit 13.13 Resource Integration in a New Product Launch