1. Models, Levels and Tools
APPLYING STRATEGY
Models, Levels and Tools

2. Learning Objectives
Describe the 3 basic approaches to strategy that organizations can adopt
Discuss 3 levels of strategic decision making in organizations
List the main strategic planning tools
Understand why quantitative tools have tended to be preferred to qualitative ones
Appreciate the growing interest in vision building techniques

3. Types of Strategies
Teece (1997), there are 3 basic type that organizations do adopt in practice :
The competitive forces model
The strategic conflict model
The resource based model

4. Level of Strategy
The 3 levels of strategic decision making in organization :
The corporate level
The business level
The functional level

5. Corporate level strategy
There are 6 basic forms of strategy :
Stability strategy
Growth strategy
Portfolio extension
Retrenchment strategy
Harvesting strategy
Combination strategy

6. Business level strategy
Porter (1985) create 3 generic strategies for achieving competitive advantage :
Cost leadership
Product differentiation
Specialization by focus

7. Functional level strategy
The main function concern marketing, finance, R&D, human resource, manufacturing and purchasing
This level is the most neglected by western manager cause :
The concentration of corporate and business led to a lack of internal operations
Key element of function level were in effect determined and constrained by corporate
Eventhough 1980s tends saw interest in function level, this tended be one sides, tending to stress soft, personal type issues

8. Types of Organization
Miles and Snow (1978) classify the strategic organization base on the rate organization changes its products or market :
Defenders
Prospectors
Analyzers
Reactors

9. Strategic Planning Tools
There some of tools and techniques available to the strategist :
The PIMS (Profit Impact on Marketing Strategy) model
The growth share matrix
The scenario construction approach

10. PIMS
Program was launch in 1972 by Sidney Schoeffler.
PIMS operate as a form of club. It collects information from its member companies relating to such factors as market share, profitability, product quality and investment
The Growth Share Matrix
This was brainchild of Boston Consulting Group.

11. That business in an organizational portfolio can be classified into :
Stars
Cash cows
Dogs
Problem children or question marks
The scenario approach
This approach emerge in 1970s.
Scenario approach is to enable an organization to picture and make various assumption about future events and trends that might affect its operations

12. The scenario approach is built through the construction of case studies
The 2 main scenario-building approach :
The Delphi method
The Cross Impact method
Vision Building
Popularity in the last years and influenced more by Japanese management

13. The major elements of vision building :
The conception by senior management team on an ‘ideal’ future state
The identification of organization mission, its rationale for existence
A clear statement of desired outcomes and conditions and competence needed to achieve these

14. Summary
The Prescriptive stream of strategy has been examine the favour approaches to applying strategies
The approach to strategy to do with the type of organization it is and the orientation on its manager