Nghiệp vụ ngân hàng - Business strategy - Different approaches to strategic planning

Nội dung text: Nghiệp vụ ngân hàng - Business strategy - Different approaches to strategic planning

1. BUSINESS STRATEGY Different approaches to strategic planning Lecturer: PHD. PHẠMQUM QUỐC KHÁNH Banking Academy (Vietnam) khanhhvnh@gmail.com Mobile: 0913210000
2. Different approaches to strategic planning Learning outcomes ƒ After finishing these chapters, you will understand: ƒ Incremental and emergent approaches and the benefits and the limitations of each. ƒ The impact of competition on strategic choices.
3. Different approaches to strategic planning The need for new models ƒ A new perspective- Company has to respond to new situation!!! Dynamic Turbulence Uncertainty Complexit y Yesterday Today •Inside strategy development •Consideration of environment in •Structured market strategy development. •Calculating area •“Reactors” in market. •Stable forecasts •Future not foresee. •Trends are surprising.
4. Different approaches to strategic planning The need for new models • The “5Ps”- five ways in which the term strategy is used: Plan- Ploy- Pattern- Position- Perspective. – Plan: Strategy is a plan - some sort of consciously intended course of action, a guideline (or set of guide lines ) to dea l w ith a s itua tion. They are ma de in advance of the actions to which they apply, and they are developed consciously and purposefully. – Ploy: As plan, a strategy can be a ploy too, really just a specific manoeuvre/ action intended to outwit/ outsmart a competitor.
5. Different approaches to strategic planning The need for new models • The “5Ps”- five ways in which the term strategy is used: Plan- Ploy- Pattern- Position- Perspective. – Pattern: Strategy is a pattern - specifically, a pattern in a stream of actions. • Strategy is consistency in behaviour, whether or not intended; plans may go unrealised, while patterns may appear without preconception. • Plans are intended strategy, whereas patterns are realised strategy; from this we can distinguish purposeful strategies, where intentions that existed previously were realised, and emergent strategies where patterns developed in the absence of intentions, or despite them.
6. Different approaches to strategic planning The need for new models • The “5Ps”- five ways in which the term strategy is used: Plan- Ploy- Pattern- Position- Perspective. – Position: Strategy is a position - specifically a means of locating an organisation in an "environment". By this dfiitidefinition s tra tegy b ecomes the mediati ng force, or "match", between organisation and environment, that is, between the internal and the external context. – Perspective: Strategy is a perspective - its content consisting an embedded wayyp of perceivin g the world. Strategy is a perspective shared by members of an organisation, through their intentions and / or by their actions.
7. Different approaches to strategic planning The need for new models • The “5Ps”: – Two market traders sell fruit and vegetables. Once decides to specialize in foreign fruit, as he feels there are enough rich and/or minded people in his area to make it worth his while. Plan Ploy Pattern Position Perspective
8. Different approaches to strategic planning The need for new models • Competences- Strategic approach involves indentifying a firm’s competences. – Experiences. – Individuals. – Quality of co-ordination
9. Different approaches to strategic planning Emergent strategies • Ad hoc choices (activity 2). – An emergent strategy is a pattern of action that develops over time in an organization in the absence of a specific mission and goals, or despite a mission and goals. – EtttitftibhiEmergent strategy is a set of actions, or behavior, consistent over time, "a realized pattern [that] was not expressly intended " in the original planning of strategy.
10. Different approaches to strategic planning Emergent strategies • Emergent and deliberate strategies . Deliberate Plans strategies Unrealised strategies Realised strategies Patterns of Emergent behaviour strategies
11. Different approaches to strategic planning Emergent strategies • Implicit/ hidden or explicit/ open strategies. – Implicit strategies are not documented. – Explicit strategies are documented. • What are risks of imppglicit strategies?
12. Different approaches to strategic planning Emergent strategies • Crafting emergent strategies. – Emergent strategies may: • Be inappropriate for long-term direction. • Create implications for resources use, different part of the business compete for resources . • Devote more resources. – Str ategi st m ust be ab le to recognise patte rn s aadtond to manage the process by which emergent strategies are created. Reconciling Manage Detect Know the Manage change and stability discontinuity business patterns continuity
13. Different approaches to strategic planning A behavioural approach • Strategy needs to be understood as an outcome of the social, political and cultural processes of management in organisation. Problem Problem Solution Solution awareness diagnosis development selection
14. Different approaches to strategic planning Incrementalism • Incrementalism involves small scale extensions of past practices. • Restricted rationality comes from limitation of time, information, skills, habits and reflexes. • Strategic managers: – Do not evaluate all possible options. – Do political bargaining with all interested group. – Do not optimise/ get the best solution . – Self satisfied. • What are disadvantages of incrementalism?
15. Different approaches to strategic planning Competition • Gaining significant ground on competitors at an acceptable cost. Re‐adjust Relative current superiority resources Challenge Degrees of assumption freedom
16. Different approaches to strategic planning Competition • Creating sustainable strategic position Strategy rest Operational on unique Trade‐ offs effectiveness activities Strategy about Strategy is combining about choices activities