Strategic Leadership
Robert Jones
rajones2004@hotmail.com
http://cambridgemba.wordpress.com/strategic-leadership-2015/
@talhandaq
© Robert Jones 2015
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Our starting point today:
What is strategy?
Discuss (briefly) and we will define
Definition of Strategy
Strategy is the direction and scope of an
organisation over the long term, which
achieves advantage in a changing
environment through its configuration of
resources and competences with the aim
of fulfilling stakeholder expectations.
Johnson & Scholes (2005)
Your own experience of making “strategic” decisions
Strategic Decisions are Likely to :
Be complex in nature
Be made in situations of uncertainty
Affect operational decisions
Require an integrated approach (both inside and outside an
organisation)
Involve considerable change
The context of strategy –
Layers of the business environment
Exhibit 2.1
Johnson & Scholes (2005)
The vocabulary of strategy
Exhibit 1.2
Johnson & Scholes (2005)
A model of the elements of strategic management
Exhibit 1.3
Johnson & Scholes (2005)
Strategic Leadership session 1
Internal Business Environment 1
Evaluate a wide range of approaches and models
In the evaluation of the internal business environment
Internals - the basics
Input / process / output
What are you delivering (outcome)?
The Value Chain
γνῶθι σεαυτόν gnōthi seauton
The Value Chain
Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of
The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved.
Exhibit 3.6
Johnson & Scholes (2005)
Strategic Capabilities and Competitive Advantage
Exhibit 3.1
Johnson & Scholes (2005)
Competence
physical, financial, human and intellectual
resources
Competence
Competence
http://etc.usf.edu/clipart/13100/13110/bundlesticks_13110_lg.gif
Competence
http://www.youtube.com/watch?v=hpUm_UQgid0
The Value Chain applied to Zara
A competence
© R Jones 2010, based on:Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of
The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved.
Exhibit 3.6
Johnson and Scholes (2005), Exploring Corporate Strategy
Zara (Inditex s.a.) core competence is:
“fast fashion”
All of its competences are pulled together
through the entire value chain to guarantee
speed of new fashions to market – 3 weeks
from magazine article to sale in your local
store.
Most companies have no core competence
ZARA
by David J. Arnold
26 pages. Publication date: Mar 12, 2003.
Zara: IT for Fast Fashion
by Andrew McAfee, Anders Sjoman, Vincent Dessain
23 pages. Publication date: Jun 25, 2004.
Zara's Secret for Fast Fashion
2/21/2005
Spanish retailer Zara has hit on a formula for supply chain success that
works. By defying conventional wisdom, Zara can design and distribute
a garment to market in just fifteen days. From Harvard Business
Review.
by Kasra Ferdows, Michael A. Lewis and Jose A.D. Machuca
Zara: Managing Stores for Fast Fashion
by Zeynep Ton, Elena Corsi, Vincent Dessain
19 pages. Publication date: Nov 23, 2009.
Some businesses achieve extraordinary profits
compared with others in the same industry
How?
Sources of Cost Efficiency
Exhibit 3.3
Johnson and Scholes (2005), Exploring Corporate Strategy
http://www.youtube.com/watch?v=oJCuYNvrE8g
Ryanair’s Value Chain
Competence = cost control
low price
© R Jones 2010, based on:Source: M.E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1985. Used with permission of
The Free Press, a division of Simon & Schuster, Inc. © 1985, 1988 by Michael E. Porter. All rights reserved.
Exhibit 3.6
Experience Curve
Exhibit 3.4
Johnson and Scholes (2005), Exploring Corporate Strategy
Internal Business Environment 1
Recap main points
Q&A