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Strategy and Organization summary (6012S0017Y) with mandatory readings, seminars and lectures - University of Amsterdam - Pre-master Business Administration$6.90
Strategy and Organization summary (6012S0017Y) with mandatory readings, seminars and lectures - University of Amsterdam - Pre-master Business Administration
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Course
Strategy and Organisation (6011P0203Y)
Institution
Universiteit Van Amsterdam (UvA)
Prepare to excel in your Strategy and Organization exam with this in-depth, exam-focused summary. It covers all the key topics, including seminars, lectures and mandatory readings. Designed for effective and efficient study, this summary breaks down complex ideas into clear, concise points to help ...
Strategy and Organization, Amsterdam Business School
Table of Contents
Stoelhorst, J.W. (2008) - Thinking about Strategy .......................................................................2
Porter, M. (1979) How competitive forces shape strategy ...........................................................4
Barney, J. (1991) Firm resources and sustained competitive advantage .......................................5
Baden-Fuller, C. and J. Stopford (1992) The firm matters, not the industry ..................................6
Hedley, B. (1977). Strategy and the “business portfolio”, Long Range Planning ......................... 11
Porter, M. (1987). From competitive advantage to corporate strategy ...................................... 12
Prahalad, C.K. and G. Hamel (1990). The core competence of the corporation .......................... 14
Hax and Majluf (1991). A formal strategic planning process ...................................................... 19
Mintzberg, H. (1994). The fall and rise of strategic planning ...................................................... 20
Grant, R.M. (2003). Strategic Planning in a Turbulent Environment: Evidence from the Oil Majors
................................................................................................................................................. 21
Eisenhardt, K.M. and M.J. Zbaracki (1992). Strategic Decision-making....................................... 26
Similarities between Eisenhardt, K.M. and M.J. Zbaracki (1992) and Quin, J.B. (1989) ............... 27
Hambrick, D.C. and P.A. Mason (1984), The organization as a reflection of its top managers ..... 27
Quin, J.B. (1989) Strategic Change: Logical Incrementalism ....................................................... 29
Mintzberg, H. B. Ahlstrand and J, Lampel (1998), Strategy as cognition ..................................... 30
Romanelli, E. and M.L. Tushman (1994), Organizational transformation as punctuated
equilibrium: An empirical test ................................................................................................... 30
Miles, R.E., C.C. Snow, A.D. Meyer and H.J. Coleman Jr. (1978), Organization strategy, structure,
and process ............................................................................................................................... 33
Ghemawat, P. 2003. The Forgotten Strategy ............................................................................. 34
Bourgeois, L.J. and D.R. Brodwin (1984) Strategic implementation: 5 approaches to an elusive
phenomenon ............................................................................................................................ 36
Cuervo-Cazurra, A., Mudambi, R., & Pedersen, T. (2019). Clarifying the relationships between
institutions and global strategy ................................................................................................. 37
Ghoshal, S. (1987) Global strategy: an organizing framework .................................................... 38
Contingency theory ................................................................................................................... 40
Meyer, K.E., and Estrin, S, (2014). Local Context and Global Strategy: Extending the Integration
Responsiveness Framework to Subsidiary Strategy ................................................................... 41
Andersson, U, and Forsgren, M. (1996) Subsidiary Embeddedness and Control in the
Multinational Corporation ........................................................................................................ 42
>>This form includes 235 words. The assignment word limit does not include these 235 words.<<
, Strategy and Organization, Amsterdam Business School
Nohria, N. and Ghoshal, S. (1994). Differentiated Fit and Shared Value: Alternative for Managing
Headquarters-Subsidiary Relations ........................................................................................... 43
Kim, W.C. and Hwang. P (1992). Global Strategy and Multinationals Entry Mode Choice ........... 43
Linkage between articles of Week 6 ............................................................................................................ 44
Stoelhorst, J.W. (2008) - Thinking about Strategy
1- What are the authors trying to convince you about? (i.e. what is their main message)
Conception of strategic management follow 3 steps: strategic analysis is followed by strategic choice and
strategy implementation
To create strategy on the basis of the standard model, people should start with formulating the organization
objectives. Next step is to generate strategic options; possible strategies to deal with the strategic issues. The
last stage is the implementation of strategy.
ð Formulating organization objectives > analyze internal/external > generate strategic option >
implement the options
The prescriptive schools of thought:
• 1960 – the design school
• 1970s – the planning school
• 1980s – the positioning school
• 1990s – the resource-based school Commented [TB1]: 5 schools in general, 4 prescriptive school
of thought including design, planning, positioning and resource-
The descriptive school of thought based school.
• 1980s and onwards – the process school 1 descriptive school - process school
In the slide also have environmental school within this framework
The design school – strategy as a conceptual process Commented [TB2R1]: Content: what is a good content incl
positioning and resource-based school
A tailored approach based on internal and external The planning school: a strategy as a formal process Process: how to develop a strategy: design, process, planning
analysis A structured, formal process to ensure strategy school
ð Specific characteristics of the firm should be development Context: What is the external influences on strategy? -
environmental school
confronted with the external situation it faces ð Advocate a formal and very elaborate system for
(SWOT analysis) strategy development Commented [TB3]: Design school = informal and simple system
=> a foundation of the standard model of strategic management =>
ð Advocate for informal and simple system ð Develop an impressive arsenal of flowcharts, introduce concepts such as environmental fit and distinctive
7 assumptions about strategy from writings of the checklists and analytical tools to support a competence
proponents of this school: rational and stepwise approach to strategic Commented [TB4]: Planning school - formal and very elaborate
1. Strategy formation should be deliberate process of management system for strategy development => develop an impressive
flowchart, checklists and analytical tools to support a rational and
conscious thought Assumptions: stepwise approach to strategic
2. Responsibility for that control and consciousness 1. Strategies result from a controlled, conscious
must rest with the CEO process of formal planning, decomposed into
3. The model of strategy formation must be kept distinct steps, each delineated by checklists and
simple and informal supported by techniques
4. Strategies should be one of a kind 2. Responsibility for the overall process rests with
5. The design process is complete when strategies the CE in principle; responsibility for its
appear fully formulated as perspective execution rests with staff planners in practices
6. These strategies should be explicit and simple 3. Strategies appear from this process full blown to
7. Only after strategies have been formulated, can be made explicit so that they can be
they be implemented implemented through detailed attention to
Design school laid the foundation for the standard objectives, budgets, programs, and operating
model of strategic management => introduced plan of various kinds
important concepts such as environmental fit and
distinctive competence
>>This form includes 235 words. The assignment word limit does not include these 235 words.<<
, Strategy and Organization, Amsterdam Business School
The positioning school – strategy as a fit
The resource-based school: strategy as stretch
Focused on competitive positioning and industry Focus on internal capabilities, suggesting that
dynamics, stressing the important of fit Commented [TB5]: Positioning school = competitive
sustainable competitive advantage stems from positioning and industry dynamic => company should choose a
The relationship between industry structure and firm unique rss correct strategy depends on the environment
performance ð Can be seen as a reaction to the outside-in => check porter 5 forces model
The basic approach was that the industry structure approach to strategy developed by the
=> strategy as fit + barriers to competition, strategies are generic
positions in the market + the essence of strategy is analysis
determines much of the performance of the firms positioning school
within an industry, but the individual firms can do Commented [TB6]: Resource-based school: focus on internal
ð The strategy focus on the rss that they employ and suggest that sustainable competitive advantage stems from
better or worse than the industry average by choosing to produce their products unique rss
successful strategy. ð The rss-based school is to understand the
=> firm should differ from others
=> The differences are relatively stale
The concept of strategy in the positioning school can relationship between differences among firms in => These differences lead to difference performance
be summarized as follow terms of their rss, competencies, and => related to core competencies:
1. Strategies as fit capabilities on the one hand and performances
1. Add values to end product
2. Difficult to imitate
2. There are barriers to competition differentials among these firms on the other 3. Give access to multiple market
3. Strategies are generic positions in the market
hand
4. The essence of strategy is analysis The resource-based view holds:
Porter’s well-known 5-forces model carries the idea
1. Firm differ from each other
that stronger forces lead to more pressure on the
2. The differences are relatively stable
profit margins of the firm’s in the industry 3. These differences lead to differences in
Porter’s 3 generic strategies: cost leadership,
performance
differentiation and focus Core competencies can only be called “core” when:
1. It adds value for buyers in the end products
2. It is difficult to imitate
The process school: strategy as collective learning 3. It gives access to a variety of the markets Commented [TB7]: Process school: strategy as collective
To summary: the resource-based school can be learning
ð Strategy as a collective learning process
=> strategies appear first as patterns out of the past, only later, as
ð Linking thinking and acting viewed: plans for the future. => perspective guide ultimate behaviors
ð Process comes before content 1. Strategy as stretch (the environment is => continuous learning, linking thing and acting
Strategies appear first as patterns out of the past, only malleable and the essence of strategy is to
later, perhaps, as plans for the future, and ultimately, change the rules of the game in your favor)
as perspectives to guide ultimate behaviors => Bynder 2. Rss are the ultimate sources of competitive
current prospect email 3. Strategy is about having a clear vision for the
future and developing unique rss combination
to realise this vision
Alternative strategies for org to
The rise of the consultants: selling powerful oversimplications
ensure long-term competitive
- In the 1970s, diversification was extremely popular and the use of
advantage:
portfolio tools to help manage diversified firms was widespread
- Organization could adopt a
- These portfolio tools were developed by strategy consultancy firms
more holistic view of strategy
- Portfolio planning came to be seen as an approach to strategy that
and unique value proposition,
resulted in risk adverse behavior and that undermined long run
emphasizing agility and
competitive advantage
responsiveness to market
- Today the thinking about the content of strategy no longer puts such
changes can help firms pivot
a strong emphasis on diversification, market share and cash flows
quickly than being constrained
The strategic management field: taking stock
by rigid portfolio model
1. Strategy concerns both organization and environment
ð Integrating insight from rss-
2. The substance of strategy is complex
based view can guide firms in
3. Strategies exist on different levels
leveraging the unique rss and
4. Strategies involves issues of both content and process
capabilities to innovate and
5. Strategy involves various thought process
create value in a competitive
6. Strategies are not purely deliberate
landscape
>>This form includes 235 words. The assignment word limit does not include these 235 words.<<
, Strategy and Organization, Amsterdam Business School
Porter, M. (1979) How competitive forces shape strategy
Strategy = it’s about positioning – determining how an organization will achieve sustainable competitive
advantage, why its pursuing certain action and when to stop them => strategy is an overarching plan for
achieving a unique, lasting advantage, while steps are tactical action to support strategies
The nature of degree of competition in an industry hinge on 5 forces: Commented [TB8]: 5 forces of porter:
(1) the threat of new entrants, 1. Threats of new entrants
2. The bargaining power of buyer
(2) The bargaining power of customers, 3. The bargaining power of supplier
(3) The bargaining power of suppliers, 4. The threats of substitute product
5. The competition among current contestants
(4) The threat of substitute products
(5) The jockeying among current contestants
The collective strength of these forces determines the ultimate profit potential of an industry and develop a
suitable strategy that helps company navigate the complexities of the industry and identify areas for strategic
advantage
ð The weaker the forces, the greater the opportunity for superior performance
Threat of entry: the seriousness of the threat of entry Commented [TB9]: 6 major threats of entry:
depends on the barriers present and on the reaction Powerful suppliers and buyers 1. Economy of scale
from existing competitors that the entrant can ð Suppliers can exert bargaining power on 2. Product differentiation
3. Capital requirement
expect. There are 6 major sources of barriers to entry: participants in an industry by raising prices or 4. Cost disadvantage
1. Economies of scales reducing the quality of purchased goods and 5. Access to distribution channels
services 6. Government policy
2. Product differentiation
3. Capital requirements ð Buyers can force down prices, demand higher Commented [TB10]: Supplier is powerful when they raise
prices or reduce the quality of purchased goods and services
4. Cost disadvantages quality or more service and play competitors off
against each other – all at the expense of industry Commented [TB11R10]: Buyer is powerful when they force
5. Access to distribution channels down price, demand higher quality or more service and play
6. Government policy profits competitors off against each other
The company is likely to have second thoughts if A supplier group is powerful when:
incumbents have previously lashed out at new • It is dominated by a few companies and is
entrant if: more concentrated than the industry it sells to
• The incumbent possesses substantial • Its products are unique of differentiated
resources to fight back • It is not obligated to contend with other
• The incumbents seem likely to cut prices products for sale to the industry
because of a desire to keep market share • It poses a credible threat of integrating
• Industry growth is slow forward into the industry business
• The industry is not an important customer of
Substitute products: the supplier group
Commented [TB12]: Substitute produces or service limi the
Substitute products or services limit the potential of potential of the industry
A buyer group is powerful when: => the more attractive the price performance trade-off offered by
an industry substitute product => not a good market
• It is concentrated and purchases in large
The more attractive the price-performance trade-off
volumes
offered by substitute products, the firmer the lid
• The products it purchases from the industry
placed on the industry’s profit potential
are standard or undifferentiated
Jockeying for position – intense rivalry is related to • The products it purchases from the industry
the presence of number of factors form a component of its product and
1. Competitors are numerous and are roughly equal represent a significant fraction of its cost
in size and power • It earns low profits, which create great
2. Industry growth is slow incentive to lower its purchasing cost
3. The product lacks differentiation or switching cost • The industry product is unimportant to the
4. Fixed costs are high or the product is perishable quality of buyers’ product or service
5. Exist barriers are high • The industry product does not save buyer
6. Capacity is normally augmented in large money
increments • The buyer pose a credible threat of integrating
7. The rivals are diverse in strategies and backward to make the industry’s product
“personalities”
>>This form includes 235 words. The assignment word limit does not include these 235 words.<<
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