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SCM: What is Strategy?
Transcript of SCM: What is Strategy?
Nottingham Business School
Nottingham Trent University
+44 (0)115 - 8484804
Global Supply Chain Strategy:
What is Strategy
“Nobody really knows what strategy is” !!!
“Strategy is the direction and
of an organization over the
, which achieves advantage in a
through its configuration of
and competences with the aim of fulfilling
.” (Johnson, 2008)
Can organisations set a strategy,
which works for the next 5 years?
Two complementary approach to strategy
Comes from Environment, personnel, realized deliberate strategies, ...
Comes from managers
Strategies may be…
Michael Eugene Porter (born May 23, 1947) is the most cited author in Business Economics.
He is now a Professor of competitive strategy at Harvard Business School.
He is recognised as father of modern strategy field
He has written 18 books in strategy field.
His ideas and theories are thought in all business schools of the world.
Strategic decisions are those decisions which are:
on the organization
of the organization relative to its business environment and competitors
Move the organization closer to its
What are the Strategic Decisions?
Click to open the book
Supply Chain network
Logistics / Inventory strategy
Industry (or Sector)
Industry (or Sector)
Low Cost Leaders
The UK Macro-Environment
Generic Strategy (Porter, 1980)
Niche Market (Focused)
Strategic Group A
Strategic Group 1
Strategic Group 3
Strategic Group 2
- Understanding the Market configurations
- Understanding needs for Resources and capabilities
How to choose a sector and a strategic group?
Customer of my customer
Thank you... !
Dr Ehsan Sabet
Where is ZARA?!!
Why is it important to know exactly where our position is?
To Know who exactly are our customers are and then what suppliers/resources we need
Read Chapter two of this book:
Here is a link to the e-book:
You need to sign in to your library account first.
Adapted from Kapalan and Norton (1996)
Looking backwards to understand our current resource & position
Looking Forward to how can we develop through growth and learning - Looking to the future - (competing in future - Hamel and Prahalad approach)
Looking inside to understand the business Processes we need to excel at
Looking outside to determine if we are working to satisfy our customers
How long ?!
CEO of SESCO, Brian Fox, an outfit designer in London, who has been in the home market for over 15 years, is interested to explore the ever growing market for British design in US. He says:
Is this a good strategy?
'My strategy is to expand my current business to take some market share in this fast growing market'
Therefore, this statement is not a 'Strategy', as it doesn't say anything about 'Mean' (Resources); or ways (plan).
It is at its best a vague objective
"my strategy is to exploit my Italian designer, my South American supplier and a third party American distributor to launch my high-end designs to high street boutiques in New York city during the next 5 years, in order to hit 2 million US$ turnover target."